Cement Concrete Tiles and Paving Blocks

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Product Code 94459

Quality and Standards N.A.

Production Capacity: Qty. Quantity: 2400 Tonnes (per annum)

Value Rs.1,45,03, 000

Uploaded on January 2007

Introduction
Cement concrete tiles and paving blocks are precast solid products made out of cement concrete. The product is
made in various sizes and shapes viz. rectangular, square and round blocks of different dimensions with designs for
interlocking of adjacent tiles blocks. The raw materials required for manufacture of the product are portland cement
and aggregates which are available locally in every part of the country.

Market Potential
Cement concrete tiles and paving blocks find applications in pavements, footpaths, gardens, passenger waiting
sheds, bus-stops, industry and other public places. The product is commonly used in urban areas for the
aboveapplications. Hence, the unit may be set up in urban and semi-urban areas, near the market.

A lot of face-lift is being given to roads, footpaths along the roadside. Concrete paving blocks are ideal materials on
the footpaths for easy laying, better look and finish. Whereas the tiles find extensive use outside the large building
and houses, lots of these materials are also used in flooring in the open areas of public offices and commercial
buildings and residential apartments.

Basis and Presumptions

Efficiency: It is envisaged that the unit will run on two shift a day for 25 days in a month or 300 days in a year. 75
percent efficiency of machinery and manpower is considered.

Time Period: Full capacity utilization is expected to be achieved within 12 months of commencement of commercial
production.
Labour Wages: Minimum applicable wages are considered.

Interest Rate: An interest rate of 12% per annum on the total capital investment has been considered.

Margin Money:Promoter is expected to bring in 25% of the total capital investment.

Pay Back Period:The project will have a payback period of about 3-4 years.

Land and Construction Cost: Land cost is considered at Rs. 4000 per square meter, and Construction cost for office
and stores at Rs. 9000.00 per square meter, and work shed at Rs. 6000 per square meter.

Implementation Schedule
Activity Period

Preparation of the project report, selection of site, provisional registration from DIC, availability of finance 2 months

Construction of building, procurement of machinery and equipment, availability of electrical power 3 months

Erection and commissioning, recruitment of manpower, trial runs and commencement of commercial production 1 month

Total implementation period 50000

Technical Aspects
Process of Manufacture
Cement concrete is a mixture of portland cement, aggregates (sand and stone chips) and water. Aggregates passing
through 4.7 mm IS sieve are known as fine aggregates and the aggregates retained on this sieve are coarse
aggregates.

The process of manufacture of cement concrete paving blocks involves the following steps:
 Proportioning
 Mixing
 Compacting
 Curing
 Drying

A concrete mix of 1:2:4 (cement: sand: stone chips) by volume may be used for cement concrete paving blocks with
water to cement ratio of 0.62. The concrete mix should not be richer than 1:6 by volume of cement to combined
aggregates before mixing. Fineness modules of combined aggregates should be in the range of 3.6 to 4.0.

All the raw materials are placed in a concrete mixer and the mixer is rotated for 15 minutes. The prepared mix is
discharged from the mixer and consumed in the next 30 minutes. Vibrating table may be used for compacting the
concrete mix in the moulds of desired sizes and shapes. After compacting the blocks are demoulded and kept for 24
hours in a shelter away from direct sun and winds.

The blocks thus hardened are cured with water to permit complete moisturisation for 14 to 21 days. Water in the
curing tanks is changed every 3 to 4 days. After curing, the blocks are dried in natural atmosphere and sent for use.

The concrete paving blocks gain good strength during the first 3 days of curing and maximum gains in strengths are
secured in the first 10 to 15 days of curing. After curing, blocks are allowed to dry in shade so that the initial shrinkage
of the blocks is completed before they are used in the work. A drying period of 7 to 15 days would normally complete
the drying shrinkage after which they can be used. The concrete tiles are similarly produced with the help of semi-dry
pressing of the mixture and allowed to set for 24-36 hours. It is cured in the tanks for 15 days. If need be water can
also be sprinkled to gain maximum physical strength in 15-21 days.

Quality Control and Standards

a) Indian Standard Specification
There is no Indian Standard Specification specifically on cement concrete paving blocks. However, the specifications
laid down in IS 2185 (Part 1) Specification for concrete masonry units: Part 1 for Hollow and Solid concrete blocks,
may be used as general guidelines for meeting the quality parameters, since the paving blocks are also essentially
solid cement concrete blocks.
 b) Quality Requirements

Proportioning of raw materials, mixing, compacting, curing and drying are the important stages of manufacture.

Quality parameters like actual proportion of the individual raw materials, ratio of coarse aggregates to fine
aggregates, water to cement ratio, good finish, accuracy in size and shape and compression strength after curing are
the some of the important parameters that should be checked periodically to ensure good quality of the product.

Production Capacity (per annum)

Quantity :     800 tonnes
Value :     Rs. 22,00,000

Motive Power     80HP.

Pollution Control
Dust collecting unit is required to be installed at the mixing and raw material handling section. The workers may use
dust masks.

Energy Conservation
General maintenance of the machine and drive system can be employed for saving energy.

Financial Aspects
A. Fixed Capital
(i) Land and Building
Particulars Sq. Meters Rate (Rs.) Value (Rs.)

Land 2000 4000 80,00,000

Built up area

Office, raw material and finished product stores, D.G. set 500   40,00,000
room, water bore well, boundary wall gates, security
room and workers room etc.

Working Shed 500 6,000 30,00,000

Total     1,50,00,000

(ii) Machinery and Equipments

Description Imp/Ind. Qty. Rate Value
(Nos.) (Rs.) (Rs.)
Production Unit

Concrete mixer: capacity 10cft/7cft with 3 hp motor, speed of the mixer Ind. 1 4,00,000 4,00,000
drum 20 rpm, and other accessories

Hydraulically operated Concrete block making machine: capacity 1500 Ind. 1 6,00,000 6,00,000
blocks per shift, with pressure vibration technique for compaction, 3 HP
motor, and other accessories

Mechanical tile melting press with 7HP motor   1 4,00,000 4,00,000

Construction of curing tanks Ind. 4 2,50,000 10,00,000

Mould tools, weighing scale etc., electrical generator and electrical 2 Nos.     23.00,000
system, and pollution control system and laboratory

Water pump set with tube well, water storage tank, Ind. 1 2,00,000 2,00,000

Cost of erection, installation lump sum       5,00,000

Cost of office equipment, furniture etc. 1 No.     8,00,000

Total 57,00,000

(iii) Pre-Operative Expenses (per month) (Rs.)

Project report cost, non-refundable deposits, etc. 3,00,000

Total Fixed Capital (i+ii+iii) 2,10,00,000

B. Working Capital (per month)

Personnel (per month)
Designation Nos. Salary / (Rs.) Total (Rs.)

Administrative Staff

Manager-Cum-Technical Expert 1 15,000 15,000

Supervisor and sales man 2 10,000 20,000

Clerk-Cum-Cashier and finance man 2   15,000

Store Keeper 1 5000 5,000

Technical (Skilled and Unskilled Workers)

Skilled workers 8 5,000 40,000

Semi-skilled workers 8 4,000 32,000

Unskilled workers 12 3,500 42,000

Peon 2 3,000 6,000

Chowkidar 4 3,000 12,000

Total 1,87,000

+22% perquisites on salary 41,000

Total 2,28,000

Raw Material (per month)

Particular Qty. (MT) Rate (Rs.) Value (Rs.)

Lime stone blocks (including transport charges 1600 M.T. 500 8,00,000

Packing material like gunny bags etc. L.S. L.S. 25,000

Total 8,25,000

Utilities (per month)

Particular Qty. (MT) Rate (Rs.) Value (Rs.)

Power 6000 kWH 4.0 24,000

Fuel/Furnace oil 150 KL. 18,000 27,00,000

Water  

Total 27,24,000

Other Contingent Expenses (per month) (Rs.)

Postage and Stationery 5,000

Sales and marketing expenses 41,000

Repair and Maintenance 41,000

Telephone 5,000

Consumable store 5,000

Travelling and Local expenses 25,000

Insurance 30,000

Total 1,52,000

Total Working Capital (per month) (Rs.)

Staff and Labour 2,28,000

Raw material 8,25,000

Utilities 27,24,000

Other Contingent expenses 1,52,000

Total 39,29,000

Working Capital for 3 months 1,17,87,000

Total Capital Investment

Fixed capital Rs. 1,87,10,000

Working capital for 3 months Rs. 1,17,87,000

Total Rs. 3,04,97,000

Financial Analysis
Cost of Production (per annum) (Rs.)

Total recurring cost per annum 4,71,48,000

Depreciation on building @ 5% 5,00,000

Dep. on kiln @ 20% 2,00,000

Dep. on machinery and equips. @ 10% 5,69,000

Dep. on tools fixture, dies, racks @ 25% 30,000

Dep. on office furniture and equips. @ 20% 60,000

Interest on total capital investment @ 12% 36,60,000

Total 5,21,67,000

Turnover (per annum)

Particular Qty. (MT) Rate (Rs.) Value (Rs.)

Burnt Lime 16,000 4,174 6,67,91,000

Net Profit (per annum)

  Total Turnover – Cost Production

Rs. 1,35,36,000 – 1,07,88,428

 Rs. 27,47,572

Net Profit (per annum)

  Total Turnover – Cost Production

Rs. 1,35,36,000 – 1,07,88,428

Rs. 27,47,572

Rate of Return (per annum)

  Net Profit × 100
-------------------------------

Total capital investment

1,46,24,000 × 100
----------------------

3,04,97,000

47.9%

Break-even Point
Fixed Cost (per annum) (Rs.)

Total depreciation 13,59,000

40% of Staff and Labour 10,94,000

40% of utilities and Other Contingent expenses (excluding insurance) 1,30,15,000

Insurance 3,60,000

Interest @ 12% 36,60,000

Total 19488000

B.E.P
    Fixed Cost × 100
--------------------------

Fixed Cost + Profit

19488000 × 100
-------------------------------
19488000 + 1,46,24,000

57.1%