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	Raw material proportioning, mixing, compacting, curing &drying 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	Concrete Mixer and accessories ( INR 85000-90000) –For mixing the above mentioned proportion of raw material Vibrating Table (INR 40000-45000) – For compacting or separating bubble in the module Slag Crusher (INR 90000-100000) – For Slag crushing purpose Plastic Mould (INR 50-70) – For shaping the block Pump Set (INR 3000-4000) – For Water 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: Own trading shop or office is best to showcase the variety & finishing of product which is most to sell the product E-Marketing also help in selling product direct to consumers 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 building@ 5%			50000
3	Depreciation of machinery@ 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

Slag Paver Block

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