Business plan on fly ash bricks Presentation Transcript

Business plan on fly ash bricks Presentation Transcript

• 1. FLASH INDUSTRIES An Environment Friendly Start Up Presented By: AtikantGalgotias Business School, Greater Noida
• 2. Environment Helps us Survive Promotors Name Qualification Atikant B. A. (Hons.)
• 3. Executive Summary— Introduction: We are introducing the business of manufacturing Fly Ash Bricks with a view point of eliminating Fly Ash from the ecosystem as an environmental pollutant, which will provide huge benefits to organizations as well as to the environment.
• 4. Mission: “ To provide and promote business as well as services thatstrengthen the brick manufacturing sector for the ultimate benefitof it’s customers and society.”Vision: To be at the forefront in creating awarenessabout the environment & to be the largest playerin the field of Fly Ash Brick Manufacturing.
• 5. Plant Location
• 6. Geographical AdvantagesvThe area is rich with coal content and has a large number of heavy and small industries using coal as a fuel. Hence, large amount of fly ash is produced.vIn a survey, it was found that the total amount of fly ash produced in Jharkhand alone can support the demand of Fly Ash bricks in India.vThe Govt. has implemented rules which define that constructions within a radius of 100 Kms from Thermal Power plants are bound to use Fly Ash bricks.
• 7. Continued:vThe location helps in acquiring of raw materials, which is basically Fly Ash, at a cheaper cost.vOne of the main advantages is the absence of competitors in the area. The area, as a fact, has no manufacturers of Fly Ash bricks.vLand is available in abundance and with the government helping in the acquiring of the land, the task gets easier.vThe construction business is booming in Jharkhand and is expected to grow more with the passage of time.
• 8. The Need for such an InitiativeqThe bricks we currently use are made up of a specific quality of Top Soil (Approximately 10,000 Hectares of Top Soil is lost every year for Brick Manufacturing).qIf the top soil consumption carries on at the same pace, very soon, we will not have enough soil for cultivation.qAlso, the thermal power plants and the industrial units using coal as a fuel have no use with the Fly Ash left after the combustion and they need to dump it some where.
• 9. Continued:qFor dumping this Fly Ash, they need to acquire land from mining firms, which in turn is provided in the form of used underground mines.qBut, as result of this, huge amount of pollution takes place.qFly ash is reported to cause ailments like Allergic Bronchitis, Fibrosis of Lungs, Silicosis and Asthama.qAlso causes water and soil pollution along with air pollution.
• 10. Scope of the ProjectØ Nearly 73% of India’s total installed power generation capacity is thermal, of which coal based generation is 90%, the remaining comprising of diesel and gas.Ø The 85 utility thermal power plants, besides the captive power plants, use bituminous and sub- bituminous coal and produce large quantities of Fly Ash.Ø High ash content (30-50%) contributes to these large volumes of fly ash.
• 11. Product DescriptionFeatures:— Size of bricks will be 230 x 110 x 76 mm (as per the International Norms).— Faster construction.— Less mortar consumption.— Most suitable for walls as the bricks are earthquake and water resistant.— Decorative like stone masonry.— Ash content as high as 60%.
• 12. Acquiring the Raw Materials§ Fly Ash is readily available with thermal power plants and can be acquired from them even without spending on transportation.§ Lime, Gypsum and Sand are available in the market and can be purchased as per requirement.
• 13. Operational Finance &HR Planning
• 14. Plant Parameters— Capacity (Bricks/Year) – 5,11,000 (1,40,000x365)— Bricks/Day - 1,40,000— No. of Shifts/Day -2— Bricks/Shift - 70,000— Working Days/Year - 365— Land Required - 9 Acres (Of which the plant will require only 6 Acres)
• 15. Manpower RequiredDescription Total Nos. Nos./Shift Salary Total SalaryManager 4 2 34,000 1,36,000Production 16 8 15,000 2,40,000EngineerSkilled 80 40 5,200 4,16,000WorkersUn-skilled 160 80 85/day 13,600/dayWorkers 4,08,000 (30d)Chowkidars 8 4 3,000 24,000Peons 16 8 3,500 56,000Cashier-Cum- 4 2 6,000 24,000Clerk Total 13,04,000
• 16. Financial Aspects (Fixed Capital)Sl. Activity Period PeriodNo. Starting Completion1. Survey of collection of data in respect of Day 1 2nd Month demand, availability of technology, power, land and clearance from State Pollution Control Board2. Arrangement for margin money 2nd Month 3rd Month3. Preparation of project report and registration 2nd Month 3rd Month4. Finance assistance 2nd Month 4th Month5. Development of Site and construction of 5th Month 7th Month building6. Machine purchasing and installation 7th Month 8th Month7. Trial production 8th Month This will include a total cost of 10,50,000 including land acquisitions.
• 17. Financial Aspects (Machinery and Equipments) Description Qty Total Price (Rs.)Pan mixer (run by 20 HP motor) 2 1,50,000Hydraulic Press (30 Tones 2 3,00,000capacity)Belt Conveyor (Run 1 70,000by 3 HP motor)Deep Tube Well 1 35,000Generator 1 1,25,000Steel Plates and Extra Moulds 50 85,000Trollies 15 30,000Office, Furniture and Equipments 32,000Installation and Erection charges 28,000 Total 8,55,000 There will be other pre-operative expenses at around Rs 70,000
• 18. Working Capital Per Month (Staff & Labour)Description Total Nos. Nos./Shift Salary Total SalaryManager 2 1 17,000 34,000Production 2 1 12,500 25,000EngineerSkilled 10 5 5200 52,000WorkersUn-skilled 20 10 3800 76,000WorkersChowkidars 6 3 3500 21,000Peons 4 2 3500 14,000Cashier-Cum- 2 1 6000 12,000Clerk Total 2,34,000Add Pre- 1,95,600requisites @15% Total 2,69,100
• 19. Raw Materials Per Month (WC) Description Qty. (Ton.) Rate (Per Ton.) Total Cost(In Rs)Fly Ash 1000 40 40,000Lime 250 800 2,00,000Sand 125 100 12,500Gypsum 125 900 1,12,500 Total 3,65,000
• 20. Utilities Per Month (WC) Description Cost (In Rs.)Power 30,000Fuel 8,000 Total 38,000
• 21. Other Contingent Expenses(WC) Description Cost (In Rs)Postage and Stationery 1,200Telephone 1,800Transportation 2,500Insurance 5,000Repair and Maintenance 2,500Advertisement and Publicity 2,200Misc. Expenditure 2,500 Total 17,700
• 22. Summing the Finances— Total Working Capital Per Month = 6,89,800— Total Working Capital for 3 Months = 20,70,000— Fixed Capital = 10,50,000 + 8,55,000 + 70,000 = 19,75,000— Total Capital Investment = Fixed Capital + Working Capital = 19,75,000 + 20,70,000 = 40,45,000
• 23. Financial Analysis Description Cost (In Rs)Total Recurring cost of production per 82,78,000yearDepreciation on building @ 5% 36,500Depreciation on Machinery & Equipment 79,500@ 10%Depreciation on Office Equipments 6,400@ 20%Interest on Total Capital Investment 5,66,300@ 14% TOTAL 89,66,700
• 24. Quantity Rate Value 60,00,000 Rs 1.75 per Brick Rs 1,05,00,000Net Profit per Year(Before Tax is Paid) = Turn Over – Production Cost = Rs 1,05,00,000 – 89,66,700 = Rs 15,33,300
• 25. Others Important Stats— Net Profit Ratio = (Net Profit X 100)/Total Turnover = (15,33,300 X 100)/1,05,00,000 = 14.60%— Rate of Return = (Net Profit per year X 100)/Total Investment = (15,33,300 X 100)/40,45,000 = 37.90%
• 26. Break Even Point Fixed Cost In Rupees Depreciation on building @ 5% 36,500 Depreciation on Machinery and 79,500 Equipment @ 10% Depreciation on Office Equipment 6,400 @ 20% Interest on Total Capital Investment 5,66,300 @ 14% Insurance 60,000 40% of Salary and Wages 12,91,680 40% of Other Contingent Expenses 7,080 (excluding insurance) TOTAL 20,47,460 or 20,48,000
• 27. Procurement of Raw Materials Lime & Gypsum from Chemical Plants Fly Ash from Sand from Thermal local Power Plants contractors Procurement
• 28. Storage of Raw MaterialsvFLY ASH, in open yard. Duly wetted and covered with plastic sheet.vLIME, dumped in open yard or stored in packets.vSAND, in open yard. Duly wetted and covered in plastic sheet.vGYPSUM, in bags. Stored in godowns.
• 29. Batch Mixing of Raw Materials FLY ASH SAND Transportation of Raw Materials to Pan Mixer LIME GYPSUM
• 30. Mechanized Transfer from PanMixer to Automatic Brick MakingMachine Hydraulic Press PAN MIXER Hydraulic Press
• 31. Drying and Curing
• 32. HR CONCERNSqScientific Task Planning.qAuthority and Responsibility.qEquity.qUnity of Command.qUnity of Direction.qStability of Tenure.qFollowing rules for Ethical Decision Making.qCorporate Social Responsibility (CSR).qCorporate Philanthropy.
• 33. Economic Concerns— Currently, the demand for bricks is very high from the supply.— Demand and Supply gap is around 250 billion bricks per annum.— Raw material used for regular red brick is limited.— In India, the annual production of Fly Ash can result in manufacturing 780 billion bricks.— To reduce the demand and supply gap, we will need to expand in this sector at a larger rate than what is undergoing at the present time.
• 34. Competitive Strengths to ClayBricks— Fly Ash bricks are 28% lighter than clay bricks.— These bricks have a pleasing colour like cement, are uniform in shape and smooth in finish, also, they require no plastering for building work.— These bricks can provide advantages being available in several load-bearing grades, savings in mortar plastering, and giving smart looking brickwork.— High compressive strength eliminates breakages/wastages during transport and handling.
• 35. Contd.— The bricks also have a very high tensile strength, which eliminates the chances of their collapse during earthquakes.— The bricks are less water absorbent and hence we have less dampening in the bricks.
• 36. Pricing & Promotional Strategies— Penetration price of Rs 1.75 per brick for the first two years and then concession to high end buyers at a rate of 7.5%.— Aggressive Selling.— Trade Promotion.— Publicity.— Large volume of sales to the government.— Seeking the help of the government in publicity.
• 37. Marketing Strategies
• 38. Current Market Scenario— Market is dominated by clay bricks.— Fly Ash brick is a new product to the market.— The government has imposed rules for the use of 100% fly ash bricks in a radius of 100 Kms from thermal power plants. However, the government is itself not implying to the norms. The govt. can be forced to imply to such norms by NGOs and when such a scenario occurs, the demand for the bricks from the side of the govt. will increase many folds.
• 39. Contd.— Use of these bricks result savings of almost 37% in the construction cost.— The unit will also require a no objection certificate from the state government of Jharkhand in regard to pollution and other concerns.
• 40. STP Strategy— SEGMENTATION — Based on the geographic location. - As the plant is located in Jharkhand, we will first try to capture the local market and then move to the neighbouring states. — Based on demographic location. - Demographic factors will help greatly in determining the target customers. — Name of Company - FLASH Industries — Product Brand Name - FLASH Bricks
• 41. Targeting & Positioning Positioning Targeting Positioned as Environmental Builders Pollutant Cleaner Consultants Architects Government