Cement Concrete Hollow Blocks

Product Code (based on ASICC – 2000) 94459

Production Capacity: Qty. Quantity : 600000 Nos. per annum

Value : Rs 72 Lakhs per annum

Uploaded on May 2020

Introduction

Cement concrete hollow blocks have an important place in modern building industry. They are cost effective and
better alternative to burnt clay bricks by virtue of their good durability, fire resistance, partial resistance to
sound, thermal insulation, small dead load and high speed of construction. Concrete hollow blocks being usually
larger in size than the normal clay building bricks and less mortar is required, faster of construction is achieved.

Also building construction with cement concrete hollow blocks provides facility for concealing electrical conduit,
water and sewer pipes wherever so desired and requires less plastering.

Market & Demand Aspects

Cement concrete hollow blocks are modern construction materials and as such are used in all the constructions
viz. residential, commercial and industrial building constructions. Construction industry is a growing a sector. The
demand for this product is always high in all cities and other urban centres due to construction of residential
apartments, commercial buildings and industrial buildings. Growing public awareness of the advantages of the
product coupled with increase in the government and financial institutions support for housing which is a basic
human necessity would ensure a healthy growth in the demand.

Implementation Schedule
 Si Description of the activity Time (approx.)
1 Selection of the product 1 month
2 Preparation of the project report
3 Selection of the location
4 Registration of enterprise with DIC
5 Mobilising finance for the project
4 Purchase of land
5 Construction of building 4 months
6 Procurement of machinery and equipment
7 Obtaining EB connection
8 Erection and commissioning of machinery and equipment
9 Recruitment of manpower 1 month
10 Trial run and commencement of production
Total project implementation period 6 months

Presumptions

(1) Interest rate: 15% per annum on total capital investment is taken into consideration

(2) Margin money: The promoter may bring in one-third of both fixed capital and working capital requirements.

(3) Efficiency: 75% utilisation of machinery and manpower has been considered.

(4) Labour wages: Minimum wages applicable for semi-skilled and unskilled workers were taken into
consideration.

(5) Working shifts per day: It is envisaged that the enterprise will be in operation on single shift of 8 hours per day
basis for 300 working days in year.

(6) Implementation period: Project implementation period of 6 months is envisaged

Raw Materials

Concrete is a mixture of ordinary Portland cement, mineral aggregate (sand and stone chips) and water. The
water used in preparing the concrete serves two purposes:

(1) It combines with the cement to form a hardened paste

(2) It lubricates the aggregates to form a plastic and workable mass
The water that combines with the cement varies from about 22 to 28% of the total amount of mixing water in
concrete.

Mineral aggregates (sand and stone chips) are normally divided into two fractions based on their particle size.
Aggregate particles passing through the No.4 or 4.7 mm Indian Standard sieve are known as fine aggregate. The
particles retained on this sieve are designated as coarse aggregate. Natural sand is often used as fine aggregate in
cement concrete mixture. Coarse aggregate are crushed stone chips. Crushed stone chips broken into particle
sizes passing through the 4.7 mm sieve may also be used as fine aggregate. The maximum size of the coarse
aggregate that may be used in cement concrete hollow blocks is 12.5 mm. However, the particle size of the
coarse aggregate should not exceed one third thickness of the thinnest web of the hollow blocks. Ordinary
Portland cement is the cementing material used in cement concrete hollow blocks.

Cement is the highest priced material per unit weight of the concrete. Hence, the fine and coarse aggregates are
combined in such proportions that the resulting concrete is workable and has minimum cement content for the
desired quality.

Manufacturing Process

The process of manufacture of cement concrete hollow blocks involves the following 5 stages;
(1)Proportioning
(2)Mixing
(3)Compacting
(4)Curing
(5)Drying

(1) Proportioning:

The determination of suitable amounts of raw materials needed to produce concrete of desired quality under
given conditions of mixing, placing and curing is known as proportioning. As per Indian Standard specifications,
the combined aggregate content in the concrete mix used for making hollow blocks should not be more than 6
parts to 1 part by volume of Portland cement. If this ratio is taken in terms of weight basis this may average
approximately at 1:7 (cement : aggregate). However, there have been instances of employing a lean mix of as
high as 1:9 by manufacturers where hollow blocks are compacted by power operated vibrating machines. The
water cement ratio of 0.62 by weight basis can be used for concrete hollow blocks.

(2) Mixing
The objective of thorough mixing of aggregates, cement and water is to ensure that the cement-water paste
completely covers the surface of the aggregates. All the raw materials including water are collected in a concrete
mixer, which is rotated for about 1 ½ minutes. The prepared mix is discharged from the mixer and consumed
within 30 minutes.

(3) Compacting

The purpose of compacting is to fill all air pockets with concrete as a whole without movement of free water
through the concrete. Excessive compaction would result in formation of water pockets or layers with higher
water content and poor quality of the product.

Semi-automatic vibrating table type machines are widely used for making cement concrete hollow blocks. The
machine consists of an automatic vibrating unit, a lever operated up and down metallic mould box and a stripper
head contained in a frame work.

Wooden pallet is kept on the vibrating platform of the machine. The mould box is lowered on to the pallet.
Concrete mix is poured into the mould and evenly levelled. The motorised vibrating causes the concrete to settle
down the mould by approximately 1 ½ to 1 ¾ inches. More of concrete is then raked across the mould level. The
stripper head is placed over the mould to bear on the levelled material. Vibration causes the concrete come
down to its limit position. Then the mould box is lifted by the lever. The moulded hollow blocks resting on the
pallet is removed and a new pallet is placed and the process repeated. The machine can accommodate
interchangeable mould for producing blocks of different sizes of hollow or solid blocks.

(4) Curing

Hollow blocks removed from the mould are protected until they are sufficiently hardened to permit handling
without damage. This may take about 24 hours in a shelter away from sun and winds. The hollow blocks thus
hardened are cured in a curing yard to permit complete moisturisation for atleast 21 days. When the hollow
blocks are cured by immersing them in a water tank, water should be changed atleast every four days. The
greatest strength benefits occur during the first three days and valuable effects are secured up to 10 or 14 days.
The longer the curing time permitted the better the product.

(5) Drying

Concrete shrinks slightly with loss of moisture. It is therefore essential that after curing is over, the blocks should
be allowed to dry out gradually in shade so that the initial drying shrinkage of the blocks is completed before they
are used in the construction work. Hollow blocks are stacked with their cavities horizontal to facilitate thorough
passage of air. Generally a period of 7 to 15 days of drying will bring the blocks to the desired degree of dryness
to complete their initial shrinkage. After this the blocks are ready for use in construction work.
Quality Specifications

IS 2185 (Part 1): 2005 Indian Standard: Concrete Masonry Units – Specification (Part 1) Hollow and Solid Concrete
Blocks (Third Revision)

The above standard specifies requirements for these parameters: dimensions, grades of hollow blocks, blocks
density, compressive strength, water absorption, drying shrinkage, and moisture movement

Production Capacity

The plant and machinery proposed in the project has a production capacity of 800000 Nos. of cement concrete
hollow blocks of size 100X200X400 mm. At 75% utilisation of the capacity, productions of 600000 Nos. of blocks
have been taken into consideration.

Cement concrete hollow blocks are usually of the following three dimensions: 100X200X400 mm, 150X200X400
mm and 200X200X400 mm. Although hollow blocks of all the three sizes could be made using the same
machinery and equipment proposed in the project, for computation purpose only one size viz 100X200X400 mm
is considered in the sales turnover.

Hollow blocks of other sizes could also be made depending on the user requirement. With the given set of
machinery and equipment used in making the hollow blocks, solid blocks could also be made with the help of
additional mould sets only.

Utilities

Electrical Power requirement: 25 HP power for industrial purpose is required.

Water: water used in making concrete should be free from acids, alkalis, oil, dissolved carbon dioxide and
decayed vegetable matter. Generally, water suitable for human consumption is considered adequate for concrete
mixing.

Financial Aspects

Fixed Capital

(1) Land & Building

Sl Description Quantity Units Rate per Amount (Rs)

unit (Rs)

1 Land 1000 Sq. meters 250 250000

 2 Covered area 50 Sq. meters 5000 250000
3 Concrete platform 250 Sq. meters 1000 250000
4 Borewell with 75000
pump
Total 825000

(2) Machinery & Equipment

SI Description Quantity Units Rate per Amount

unit (Rs)
1 Hydraulically operated 1 No. (Rs)
325000 325000
concrete block making
machine with quadruple (4)
vibrators: hydraulic system –
5 HP Mould vibrators – 5 HP
Ram vibrators – 3 HP (1.5 HP
– 2 Nos.) Travel motor – 1 HP

2 Concrete mixer: 10/7 cft with 1 No. 200000 200000

5 HP motor, hydraulic hopper
and road wheels
3 Platform electronic 1 No. 75000 75000
weighing scale 500 kgs
capacity
4 Water dosing pump 1 No. 30000 30000

5 Electrical and EB charges for 70000

25 HP power connection

Total 700000

6 Erection and commissioning 70000

charges @ 10%
7 Ram and mould for 4 Sets 25000 100000
hollow blocks
8 Wheel borrows with 2 Nos. 10000 20000
pneumatic wheels
9 Office equipment LS 110000

10 Wooden palettes LS 100000

Total 1100000

(3) Preoperative Expenses :Rs 75000

(4) Total Fixed Capital :Rs 2000000
Working Capital (Per Month)

(1) Salary & Wages (Per Month)

SI Description No. Salary Amount

(Rs) (Rs)
1 Skilled or semi-skilled workers 2 5000 10000
2 Unskilled workers S 4000 32000
3 Watch and ward I 4000 4000
4 Manager/Supervisor I 10000 10000
Total 56000
Perquisites @ 15% 8400
Total 64400

(2) Raw Materials (Per Month)

SI Description Quantity Units Rate per Amount

unit (Rs) (Rs)
1 Cement 50 Tons 4000 200000
2 Sand or crushed stone sand 200 Tons 250 50000
3 Crushed stone chips 300 Tons 400 120000
Total 370000

(3) Utilities (Per Month)

SI Description Quantity Units Rate per Amount

unit (Rs) (Rs)
1 Power 1500 kWh 5 7500
2 Water 250 KL 20 5000
Total 12500

(4) Miscellaneous Expenses (Per Month)

SI Description Amount (Rs)

1 Office expenses 4000
2 Consumables 5000
3 Repairs and maintenance 5000
4 Sales expenses 6000
Total 20000
 (5) Total Working Capital (Per Month) : Rs 467000

(6) Working Capital for Three Months : Rs 1401000

(7) Total Capital Investment : Rs 3401000

Financial Analysis

(1) Cost of Production (Per Annum)

SI Description Amount (Rs)

1 Total recurring cost 5604000
2 Depreciation on building @ 5% 28750
3 Depreciation on machinery and equipment @ 10% 77000
4 Depreciation on moulds, wheel borrows, etc. @20% 66000
5 Amortisation of pre operative expenses @ 10% 7500
6 Interest on capital investment @ 15% 510150
Total 6293400

(2) Sales Turnover (Per Year)

SI Product item Quantity Rate Value

1 Cement concrete hollow blocks of size 600000 Rs 12 each Rs 7200000

100X200X400 mm Nos.

(3) Net Profit (Per Year) : Rs 906600

(4) Profit Ratio On Sales : 12.60%

Profit Ratio on Sales Net profit per year

--------------------------------------- × 100
Sales Turnover per year

906600
------------------- x 100
7200000

12.60%
 (5) Rate of Return

Rate of Return Net profit per year

--------------------------------------- × 100
Total Capital Investment

906600
------------------- x 100
3401000

26.70%

Break Even Analysis

(1) Fixed Cost Per Year

SI Description Amount (Rs)

1 Interest on capital investment 510150
2 Depreciations 179250
3 40% of salaries and wages 309120
4 40% of miscellaneous expenses 96000
Total 1094520

(2) Break Even Point (B.E.P.) : 54.70%

B.E.P Fixed Cost Per Year

--------------------------- x 100
Fixed cost Per Year + Net Profit Per Year

1094520
------------------------- x 100
2001120
= 54.70%
List of Supplier Address for Plant & Machinery

(1) Engineers Enterprises,

No.189, Bharathiyar Road,
Maniyakaranpalayam Road, Ganapathy,
Coimbatore – 641 006

(2) BTEC Concrete Block Machines,

No.466, Kamarajar Road, Lakshmipuram,
Peelamedu, Coimbatore – 641 004

List of Supplier for Raw Material

Local stockists and dealers in the location of the project

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com