bricks making and cost analysis project ppt

1. KAMAL BRICKS FACTORY
BRICKSMANUFACTURING
Presentted by :
SAVAN PRAJAPATI (NR 12124)
HARDIK RAJA (NR 12126 )
KAPIL SHAH (NR 12139)
RONAK MISTRY (NR 12079)
VASIM VAHORA (NR 12180)

2. 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

3. 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.

4. 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.

5. 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

6. KAMAL BRICKS
FACTORY

7. CLAY BRICKS MANUFACTURING
INTRODUCTION
Clay bricks are used in house construction , institutions and
commercial 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.

8. PROBLEMS OF BRICKS MANUFACTURING
Two major problems of bricks industry:-
 Labour Shortage
 Changing of construction practices

9. 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.

10. 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 .

11. 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

12. WORKING CAPITAL
B. 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

13. 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

14. 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
5400000Total 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

15. 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.

16. 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

17. 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.

18. 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.