““An Environment Friendly Project”An Environment Friendly Project”

Presentation by:Presentation by:

BUSSINESS PLAN BUSSINESS PLAN ONON

Accman Institute of Management, Greater Noida

PROMOTORS

Name Name QualificationQualification

Soumya Ranjan SahooSoumya Ranjan Sahoo B.com, PGDM (Finance & B.com, PGDM (Finance & Marketing)Marketing)

Karan AroraKaran Arora B.com, PGDM (Finance & B.com, PGDM (Finance & Marketing)Marketing)

EXECUTIVE SUMMARY• INTRODUCTION:

We are introducing the business of manufacturing Fly Ash Bricks with a view point of eliminating Fly Ash as an Environment Pollutant which provides the huge benefit to organization as well as to environment.

MISSION:“To provide and promote business and

services that strengthen the brick manufacturing sector for the ultimate benefit of its customers and society."

VISION:To be in the forefront of creating awareness

about environment, & to be the largest player in the field of fly-ash brick production.

Plant location• Andhra Pradesh

Anantapur

(INDIA)

• Generally bricks creates environmental pollution.

• The bricks which currently most us aware is made up of the soil of specific quality, but due to which earth erosion takes place and we waste natural resources.

• Approximately 10,000 hectares of top soil is being lost every year for brick manufacturing and road construction.

• If we continue in this format, very soon, we will not have sufficient soil to produce our minimum required food.

OVERVIEW

• This job is too laborious and involves cost.• Natural seasons affect the quality and cost.• Demand consumption and increasing cost We come

up with FLY ASH BRICKS. • This bricks help to reduce the pollution.• The main raw material is fly ash which is available in

abundant quantity and free of cost at the thermal power station.

• Disposal of fly ash is headache.• It is highly polluting material.

Continuing….

Scope of project

• Nearly 73% of India’s total installed power generation capacity is thermal, of which coal-based generation is 90% – the remaining comprising diesel, wind, gas, and steam.

• The 85 utility thermal power stations, besides the several captive power plants, use bituminous and sub-bituminous coal and produce large quantities of fly ash.

• High ash content (30%–50%) contributes to these large volumes of fly ash.

PROBLEMS OF FLY ASH

• It is a very difficult material to handle in dry state because it is very fine and readily airborne even in mild wind.

• It disturbs the ecology of the region, being a source of soil air and water pollution.

• Long inhalation of fly ash causes silicosis, fibrosis of lungs, bronchitis, pneumonitis etc.

Continuing…

• Flying fine particles of ash create great nuisance for people living near power stations, corrode structural surfaces, and affect horticulture.

• Eventual settlement of fly ash particles over many hectares of land in the vicinity of power station brings about perceptible degeneration in soil characteristics.

NEED FOR UTILIZING / DISPOSING FLY ASH

• With the rapid rise in thermal generation, environmental pollution as a result of massive fly ash generation, poses a new problem.

• Fly ash is reported to cause ailments like allergic bronchitis, silicosis, and asthma.

• Fly ash contaminates surface water and may also have an effect on underground water, affects the aquatic life, is harmful for plants, and corrodes exposed metallic structures in its vicinity.

CURRENT FLYASH DISPOSAL PRACTICES AND EFFECTS

• At thermal power plants, fly ash is currently collected / disposed off by using wet or dry systems. In cases, where fly ash collection systems are not very efficient, a portion of it escapes into the atmosphere causing environmental pollution.

• In the wet system, fly ash is mixed with water and sluiced to settling ponds or dumping areas near the plant. Being cheaper than any other manner of fly ash removal, it is the widely used method at present in India

Product Description: FLY ASH BLOCKS Features:

• Size of blocks is 290x185x125mm • Faster construction • Less mortar consumption • Most suitable for boundary walls • Plastering not required • Decorative, like stone masonry• Ash content 26%

PLAIN AND CHEQUERED TILES

• Plain and chequered tiles 22mm thick are manufactured in different sizes and colors as per requirement.

ASH COLLECTIONAsh can be collected in following categories: • DRY FLY ASH:

Dry ash is collected from different rows of electrostatic precipitators. It is available in two different grades of fineness in silos for use as resource material by different users.

• BOTTOM ASH:Bottom ash is collected from the bottom of the boiler and transported to hydro bins and then ash mound for use in road embankment.

• CONDITIONED FLY ASH:Conditioned fly ash is also available in ash mound for use in land fills and ash building products.

Operational & HR Plan

PLANT PARAMETERS

• Capacity, Bricks /Yr. 90,00,000

• Bricks / day 30,000

• No. of Shifts / day 2

• Working days / Yr. 300

• Land Area, 2 Acre  

Production Plan

• First year operation-30% of Capacity

(27,00,000 units)

• Production in batches– One batch of 1000 bricks.– Total 2700 batches yearly.

• Second year operation- 50% of capacity

RESOURCESMANPOWER

• Managerial 8• Skilled 32• Unskilled 12

RAW MATERIAL

(Tone per 1000 bricks) • Fly ash 2.5 • Sand 0.4• Lime 0.35• Chemical accelerator 0.01

RESOURCESUTILITIES

(Per 1000 bricks)

• Power, KWH 10.33 

• Water, KL 4 

• Coal , T 0.18 PLANT & MACHINERY 

ECONOMICS 

• Plant & Machinery 42,00,000

• License Fees 4,00,000 

• License Period 10 Years

Hydraulic Press Hoists Pulveriser BoilersAutoclave Curing chambers 

Hydraulic Press Hoists Pulveriser BoilersAutoclave Curing chambers 

MANUFACTURING PROCESS• The process involves wet mixing of fly ash, sand, lime and an accelerating agent.

• The mixture is shaped into the standard size of bricks in a hydraulic press to pressures varying between 100 to 200 kg/cm², as against below 50 kg/cm2 for conventional bricks.

• The moulded bricks are dried in two stages, i.e., atmospheric drying for a period of 24 hrs., followed by curing with steam in a steam chamber.

• Depending upon the temperature of steam available the curing time is scheduled as 6 hrs. between 95 to 105 oc.

TECHNOLOGY

• Technology for the project may be obtained from either the Central Fuel Research Institute, APSEB's Consulting Cell Or from the equipment suppliers.

• Technology agreements would preferably be entered into that guarantee the performance of the equipment, with equipment suppliers.

Demand And Supply

• Currently the demand for bricks is very high than the supply.

• D & S gap is 250 billion bricks per annum• Raw material used for regular red bricks is limited.

• Strategic step:– Introducing Fly Ash Bricks to reduce demand

and supply gap.– Subsidies and orders from govt.

Competitive strategies

• Colouring the bricks red

• Uniform in size, shape

• High strength

• Light in weight

• Good resistance to salinity and termite

• Water absorption is less

Pricing Strategies

• Penetration– Initially Rs. 1400 per 1000 bricks.– Later concession for large quantity buying.

Promotional Strategies

– Discounts on large buying– Aggressive Selling– Trade promotion– Publicity– Large volume of institutional sales

Existing Market Scenario

• Market is dominated by red bricks.

• Current estimates show the gap between demand and supply of bricks to be of the order of 250 billion bricks per annum.

• It is new product to the market.

• This project helps to reduce environment pollution.

Existing Market Scenario

• Use of this bricks results in savings in construction cost by 25%.

• These bricks are already getting popular with reputed Govt. agencies and builders.

• This unit too requires a No Objection certificate from the AP Pollution Control Board.

Sales Target

• We are going to sale 27,00,000 units of bricks first year.

• In second year the sales target will be 45,00,000 units of bricks.

Existing Users

• Gujarat Electricity Board

• Ahmedabad Urban Development Authority

• Ahmedabad Municipal Corporation etc.

STP Strategy • Segmentation

– Based on the geographic• As our plant will be located in AP area, firstly going to capture

this area.

– Based on the Demographic

• Name of Company:– ‘Fastec Industrial’

• Product Brand Name:– Flytec Bricks

STP Strategy

• Targeting– Builders– Consultants– Architects– Govt.

• Positioning – Positioned as Environmental Clearance

Financial Plan

Sources of fundsPARTICULARS AMT

Promoter's contribution

Rs. 40 lacs

Borrowed fund Rs. 60 lacs

Total fund Rs.100 lacs

(Outsider funds can be arranged from NABARD / SIDBI, which are easily providing industrial loan.Here we plan to arrange some funds from friends, relatives)

Uses of fund (INVESTMENT)

Land & Building 24,00,000

Plant & Machinery 42,00,000

License and Deposit 4,00,000

Furniture and Fixtures 3,00,000

Miscellaneous 9,00,000

Cash/ Bank 18,00,000

TOTAL 1,00,00,000

Particulars`` Units Yr.(2012-13) Units Yr.(2013-14)

Sales @ Rs. 1.4 Per unit 2700 3780000 4500 6300000

Less- Cost of goods sold: 2700

Raw-materials:Fly ash @ Rs. 100 Per ton Sand @ Rs. 500 Per tonLime @ Rs. 100 Per tonChemical accelerator @ Rs.2000 Per ton

(675000)(540000)(94500)(54000)

(1125000)(900000)(157500)(90000)

Wages & Salaries (552000) (552000)

Power, water and coal (189877) (316462)

Depreciation on

Plant and machinery @ 25% (1050000) (1050000)

Furniture and fixture @ 15% (48000) (48000)

Building @ 10% (240000) (240000)

Interest on borrowed fund @ 5% (300000) (300000)

License fees (400000) (400000)

Income Statement

Gross Profit/Loss (363377) 1121038

Less- Tax @ 30% - 336311.4

Net Profit Nil 784726.6

Working note:

Salary to manager -20,000Wages to skilled worker -10,000Wages to unskilled worker-6,000

Financial Ratios• ROI 7.8% ( for 2nd year)

• Profit Margin

Nil (1st year), 12.45%(2nd year)

For 2nd year

Total sales (2 year)=6300000

Total variable cost=2588962

Total fixed cost=2590000

• BEP (in sales value)=4397283.5

• MOS=1902716.4

CONCLUSION

• FASTEC with its dedicated efforts is trying to emerge as an organization, which can empower its fellowmen to eliminate environmental pollutants.

FASTEC in the long run will try its best to generate an environment- a pollution free environment.

THANK YOU