bricks making and cost analysis

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Page 1: bricks making and cost analysis

KAMAL BRICKS FACTORYBRICKS MANUFACTURING

Presentted by :

SAVAN PRAJAPATI (NR 12124)

HARDIK RAJA (NR 12126 )

KAPIL SHAH (NR 12139)

RONAK MISTRY (NR 12079)

VASIM VAHORA (NR 12180)

Page 2: bricks making and cost analysis

CONTENT• INTRODUCTION

• REGULATION IN BRICK SECTOR

• PROBLEMS IN BRICKS MANUFACTURING

• PROCESS OF BRICKS MANUFACTURING

• FUTURE OF BRICKS MANUFACTURING

• INNOVATION IN BRICK SECTOR

• FINANCIAL ASPECTS

• WORKING CAPITAL

• POLICIES

• CONCLUSION

Page 3: bricks making and cost analysis

Indian Brick Sector

• The construction industry contributes to about 10 % of the Gross Domestic Product (GDP), registering an annual growth of about 9 %.

• The brick sector in India, although unorganised, is tremendous in size and spread. India is the second largest brick producer (China dominates with 54 % share) in the world. It is continuously expanding on account of a rapid increase in demand for bricks in infrastructure and housing industries.

Page 4: bricks making and cost analysis

Environmental regulations and the Indian brick industry

• Brick making is a traditional but important industry in India and other developing countries. Based on the limited information available on the brick industry in India, it is estimated that more than 100,000 kilns produce about 80 to100 billion bricks per year.

• Low efficiency in brick firing practices leads to high levels of PIC (product of incomplete combustion) emissions. In addition to these emissions from combustion, the life cycle of brick

making involves significant fugitive emissions.

Page 5: bricks making and cost analysis

Fact of the Indian brick industry

• Brick production : > 1400 billion/year

• Annual turnover: > Rs 100 billion

• No of units: > 0.1 million

• Employment: 80 to 100 million people

• Energy and Environment

• Coal : 24 million tones

Page 6: bricks making and cost analysis

KAMAL BRICKS

FACTORY

Page 7: bricks making and cost analysis

CLAY BRICKS MANUFACTURING

INTRODUCTION

Clay bricks are used in house construction , institutions andcommercial constructions. These bricks are very cheep compared to other hallow bricks. The strength of the wall is also good.

MARKET

There is good demand for clay bricks in developing countries like India .Due to increasing urbanization many houses and industries to be construct as per the requirement of the people.

Page 8: bricks making and cost analysis

PROBLEMS OF BRICKS MANUFACTURING

Two major problems of bricks industry:-

Labour Shortage

Changing of construction practices

Page 9: bricks making and cost analysis

Labour Shortage

• The fast growing economy, particularly the construction industry, is sucking cheap labour from rural areas and on the other hand government sponsored rural employment guarantee scheme is providing new employment opportunities for the poor in the rural areas.

• The combined effect has been that the flow of labour to the brick industry has lessened.

• Now a day labour charges is very high for per batch bricks making so its also a big problem.

Page 10: bricks making and cost analysis

Changing of construction practices

• With less availability space due to increasing population and demand, majority of the construction in cities / towns is taking place in the form of multi-storey buildings in RCC columns.

• Bricks are increasingly being used as filler material to fill the space between columns and not as the load bearing material as it used to be .

Page 11: bricks making and cost analysis

Cost…..

4. PRODUCTION CAPACITY PER

ANNUM

Capacity

Selling Price

1000 Bricks per day

Rs. 4 Per Brick

S.No Description Amount Rs.

1 Preliminary & Preoperative Expenses 1000

2 Fixed Capital 50000

3 Working Capital for 1 month(s) 95000

Total Project Cost 146000

5. PROJECT COST/CAPITAL INVESTMENT

FINANCIAL ASPECTS

A. FIXED CAPITAL

i. Land and Buildings

Rented

2000 per month

ii. Machinery and Equipment

Page 12: bricks making and cost analysis

WORKING CAPITALB. WORKING CAPITAL

i. Salaries & Wages (per batch)

S.No Description Nos. Per batch Amount Rs. 1 Supervisor/Entrepreneur 1 250 250

2 Fireman 1 125 125

2 Worker

Skilled

Mixing

Material Handling

Finished Goods Handling

1

1

1

1

500

10

80

25

500

10

80

25

Total 990

ii. Raw Material (per batch)

Description Per Unit Amount Rs. Clay 1 1000

Coal ash, husk,water 0.2 200

Sand 0.05 50

Coal (lignite) 1 1000

Total 2.25 2250

Page 13: bricks making and cost analysis

CONT….

iii. Other Expenses (per batch)

S.No Description Amount Rs. 1 Material Handling (labour) 60

2 Material Handling (vehicle) 100

3 Transportation

500

Total 660

iv. Total Working Capital (per batch)

S.No Description Amount Rs. 2 Salaries and Wages 990

3 Raw Material 2250

5 Other Expenses 660

Total 3900

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs. 1 Total Working Capital 1140000

2 Depreciation @ 15% 7500

3 Interest @ 12%

Total

11388

1158888

Page 14: bricks making and cost analysis

CONT….Turnover is Rs. 54,00,000pa.

TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs. 1 Bricks per annum 1200000 4.5

5400000 Total 1200000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs. 1 Depreciation 7500

2 Interest 11388

3 Rent 24000

4 Salaries & Wages @ 40% 45600

5 Other Expenses incl. Utilities @ 40% 16800

Total 105288

Page 15: bricks making and cost analysis

FUTURE OF BRICKS INDUSTRY

• Currently we are producing bricks by traditional method .

• In future there is new technologies and new equipments will apply so the volume of bricks will increase and cost of production can also low.

• In our local market there is high level of growth in buildings so the business has great opportunities in future.

Page 16: bricks making and cost analysis

Selective innovations in the FCK

• Use of energy saving additives

• Improved storage of coal

• Reduced size of coal

• Smaller size of spoon used for coal feeding

• Zig-Zag feeding pattern

• Reduced feeding interval

• Higher chimney height

• Better air flow and supply through changes in brick setting pattern

Page 17: bricks making and cost analysis

Suggestion

• In bricks manufacturing industry now a days demand of bricks in the market is very high.

• I would like to suggest that as demand increase in the market , increase in the production quantity and apply some new techniques, so the cost can be low and can fulfill the demand in the market.

• In bricks manufacturing there were certain regulation of Govt. so follow that and give contribution in keep environment clean.

Page 18: bricks making and cost analysis

CONCLUSION

• After making a project on cost of bricks manufacturing factory we can conclude that the now a days cost of raw material and a labor cost is big problem in bricks manufacturing industry.

• Because of the problem of availability of raw material and labor there is high cost of labor and high cost of lignite coal for burning of the bricks.

• So the working capital cost is increase day by day.so for reducing cost of production we have to improve our production system and implement new technology.