FMC

Slag Paver Block

Overview

Product Idea and description
  • Foundry waste slag use in paver block manufacturing in place of virgin stone aggregate
  • Use of foundry waste in paver block deliver same or higher strength then virgin stone material
Target group
  • Own Trading shop, Local dealers, Exhibitions or E-Marketing
  • Large buyers are municipality for road construction purpose, contractor or builders, industries, petrol pumps etc
Raw material required
  • Cement, coarse sand, slag, additive or chemical, water
Production capacity, facility and labour required
  • Production capacity 50,000 pcs per month and involving 16 workers (16 workshop workers, 1accountant & 1 manager) require approx. 350-400 sq. ft. space
Production Process
  1. Raw material proportioning, mixing, compacting, curing &drying
  2. A concrete mix of 1:4:4::cement:sand:slag chips by volume are used for making paving block
Tools &Equipment’s required for production and prices
  1. Concrete Mixer and accessories ( INR 85000-90000) –For mixing the above mentioned proportion of raw material
  2. Vibrating Table (INR 40000-45000) – For compacting or separating bubble in the module
  3. Slag Crusher (INR 90000-100000) – For Slag crushing purpose
  4. Plastic Mould (INR 50-70) – For shaping the block
  5. Pump Set (INR 3000-4000) – For Water
  6. Water Tank (INR 5000-5500) – For Water Storage
Financial linkages/ Government schemes Regional Banks or FIs PMEGP, SIDBI, CLCSS etc.
Pricing Strategy INR15-20 per piece according to shape, type or variety(~13% margin)
Package, storage and transportation requirements
  • Packaging of this product is not required; it is generally stored open space under the unit. Mostly Tractor are using for transportation of this material
Marketing strategy

Estimate of Market size in India
India is the second largest brick manufacturer in the world after China. Indian brick industry is almost entirely unorganized and characterized by the presence of large number of small scale manufacturers which compete with one another at the regional level.
Major B2B & B2C Portals – indiamart.com, tradeindia.com
B2C & B2B markets – Trading shop, Local dealers, hotels/resorts, Industries, municipality, contractor or builders, petrol pumps etc.
Marketing strategy:

  1. Own trading shop or office is best to showcase the variety & finishing of product which is most to sell the product
  2. E-Marketing also help in selling product direct to consumers
  3. Some major buyers like government tenders, contractor or builders, industries should be contacted for marketing of the product
Distribution Channel
  • E-commerce, Local trader & buyer, Government tenders

Production stage

Raw Material Proportioning- The proportion of cement:sand: slag for manufacturing paver block should be 1:4:4 & water quantity depend upon mixing condition. Mixer is rotated for arounf 15-20 min.

Mixing-Concrete Mixer should be used for better bonding between above proportion.

Compacting-Vibrating table is being for compacting or eliminating water bubbles in the product

Curing & Drying-After pouring into mould boxes the block is left into direct sunlight for 24 hours drying. The block thus hardening are cured with water to permit moisturisation or settling of cement for next 20 days.

Product SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

  • Cement, sand is easily available at every place.
  • Utilization of product is very flexible. It can be reused when its previous construction dismantled
  • Durable and robust, which bear weight without breaking
  • Require less skilled general workforce to operate the machine.
  • Low cost of set-up.
  • Large place is required to store the raw materials & finish products
  • Large time is required by product incuring or gaining strength.
  • Slag is not easily available in each or every places
  • Government tender is of high quantity of this material.
  • High market potential
  • Can be market through  via E-commerce platforms viz. indiamart, tradeindia
  • Customer can be approached within 40-50 Km range otherwise transportation cost become high.
  • High density cities are feasible place for this manufacturing because major customer lies locally.

Financial Plan

To start the slag paver block manufacturing business with working capital requirement (raw material, and labour etc) at 16.50L per month and per unit product cost at around INR15-20.Working capital requirement would be 16.50L per month assuming working capital cycle 30days and total 8 work hours in a day.

Summery Sheet:

S.No Parameters Value (INR)
1 Fixed cost 2083950
2 Working capital 8052000
3 Total capital investment 10135950
4 Total cost of  investment 9430209
5 Sales 10800000
6 Net profit 12.68
7 ROI 13.51
Fixed and Working Capital Calculation :

Fixed cost

S.No

Parameters

Total Value

1

Land & Building

1000000

Machinery & equipment

2

Concrete Mixer & Vibrating Table, accessories

135000

3

Slag Crusher

100000

4

Plastic Mould (10000 Nos.)

700000

5

Pump set & water tank

9500

6

Electrification & Installation @10 % cost of machinery

94450

7

Pre-operative expense

10000

8

Total cost of machinery & equipment

1048950

9

Cost of office equipment

35000

10

Total cost of machinery & office

1083950

11

Total fixed cost

2083950

Working capital

S.No

Parameters

Nos.

INR/Unit

Total Value

1

Workers

16

8000

128000

2

Accountant

1each

20000

40000

3

Total Manpower cost

168000

Raw material & utilities

4

Raw Material

450000

5

Utility Per month

20000

6

Water

1500

7

Total cost of raw material & Utilities

471500

Other contingent expenses

8

Repair & maintenance

5000

9

Transportation

2500

10

Telephone

2000

11

Other consumable

1000

12

Advertisement & publicity

2000

13

Postage & stationary

1500

14

Insurance

15000

15

Miscellaneous expenses

2500

16

Total of other contingency

31500

17

Grand total of working capital/month

671000

18

Grand total of working capital for 12 month

8052000

Financial Analysis:

Financial Analysis

S.No

Parameters

Nos.

INR per Unit

Value

1

Total recurring cost

8052000

2

Depreciation of [email protected] 5%

50000

3

Depreciation of [email protected] 10%

104895

4

Depreciation of office equipment @ 20%

7000

5

Interest on Total capital investment @12 %

1216314

6

Total cost of Investment

9430209

7

Sales/ turn over per year

6L pieces/year

INR 18/piece

10800000

8

Net profit ( sales- cost of production)

1369791

9

Net profit ratio

Net profit*100/sale

12.68

10

Return on Investment

Net profit*100/Total capital investment

13.51