Cement Concrete Tiles and Paving Blocks

Introduction

Cement concrete tiles and paving blocks are precast solid products made out of cement concrete. The product is made in various sizes and shapes viz. rectangular, square and round blocks of different dimensions with designs for interlocking of adjacent tiles blocks. The raw materials required for manufacture of the product are portland cement and aggregates which are available locally in every part of the country.

Market Potential

Cement concrete tiles and paving blocks find applications in pavements, footpaths, gardens, passenger waiting sheds, bus-stops, industry and other public places. The product is commonly used in urban areas for the aboveapplications. Hence, the unit may be set up in urban and semi-urban areas, near the market.
A lot of face-lift is being given to roads, footpaths along the roadside. Concrete paving blocks are ideal materials on the footpaths for easy laying, better look and finish. Whereas the tiles find extensive use outside the large building and houses, lots of these materials are also used in flooring in the open areas of public offices and commercial buildings and residential apartments.

Basis and Presumptions

Efficiency: It is envisaged that the unit will run on two shift a day for 25 days in a month or 300 days in a year. 75 percent efficiency of machinery and manpower is considered.
Time Period: Full capacity utilization is expected to be achieved within 12 months of commencement of commercial production.
Labour Wages: Minimum applicable wages are considered.
Interest Rate: An interest rate of 12% per annum on the total capital investment has been considered.
Margin Money:Promoter is expected to bring in 25% of the total capital investment.
Pay Back Period:The project will have a payback period of about 3-4 years.
Land and Construction Cost: Land cost is considered at Rs. 4000 per square meter, and Construction cost for office and stores at Rs. 9000.00 per square meter, and work shed at Rs. 6000 per square meter.

Implementation Schedule

Activity	Period
Preparation of the project report, selection of site, provisional registration from DIC, availability of finance	2 months
Construction of building, procurement of machinery and equipment, availability of electrical power	3 months
Erection and commissioning, recruitment of manpower, trial runs and commencement of commercial production	1 month
Total implementation period	50000

Technical Aspects

Process of Manufacture

Cement concrete is a mixture of portland cement, aggregates (sand and stone chips) and water. Aggregates passing through 4.7 mm IS sieve are known as fine aggregates and the aggregates retained on this sieve are coarse aggregates.
The process of manufacture of cement concrete paving blocks involves the following steps:

• Proportioning
• Mixing
• Compacting
• Curing
• Drying

A concrete mix of 1:2:4 (cement: sand: stone chips) by volume may be used for cement concrete paving blocks with water to cement ratio of 0.62. The concrete mix should not be richer than 1:6 by volume of cement to combined aggregates before mixing. Fineness modules of combined aggregates should be in the range of 3.6 to 4.0.
All the raw materials are placed in a concrete mixer and the mixer is rotated for 15 minutes. The prepared mix is discharged from the mixer and consumed in the next 30 minutes. Vibrating table may be used for compacting the concrete mix in the moulds of desired sizes and shapes. After compacting the blocks are demoulded and kept for 24 hours in a shelter away from direct sun and winds.
The blocks thus hardened are cured with water to permit complete moisturisation for 14 to 21 days. Water in the curing tanks is changed every 3 to 4 days. After curing, the blocks are dried in natural atmosphere and sent for use.
The concrete paving blocks gain good strength during the first 3 days of curing and maximum gains in strengths are secured in the first 10 to 15 days of curing. After curing, blocks are allowed to dry in shade so that the initial shrinkage of the blocks is completed before they are used in the work. A drying period of 7 to 15 days would normally complete the drying shrinkage after which they can be used. The concrete tiles are similarly produced with the help of semi-dry pressing of the mixture and allowed to set for 24-36 hours. It is cured in the tanks for 15 days. If need be water can also be sprinkled to gain maximum physical strength in 15-21 days.

Quality Control and Standards

a) Indian Standard Specification
There is no Indian Standard Specification specifically on cement concrete paving blocks. However, the specifications laid down in IS 2185 (Part 1) Specification for concrete masonry units: Part 1 for Hollow and Solid concrete blocks, may be used as general guidelines for meeting the quality parameters, since the paving blocks are also essentially solid cement concrete blocks.
b) Quality Requirements
Proportioning of raw materials, mixing, compacting, curing and drying are the important stages of manufacture.
Quality parameters like actual proportion of the individual raw materials, ratio of coarse aggregates to fine aggregates, water to cement ratio, good finish, accuracy in size and shape and compression strength after curing are the some of the important parameters that should be checked periodically to ensure good quality of the product.

Production Capacity (per annum)

Quantity :     800 tonnes
Value :     Rs. 22,00,000

Motive Power     80HP.

Pollution Control

Dust collecting unit is required to be installed at the mixing and raw material handling section. The workers may use dust masks.

Energy Conservation

General maintenance of the machine and drive system can be employed for saving energy.

Financial Aspects

A. Fixed Capital

(i) Land and Building

Particulars	Sq. Meters	Rate (Rs.)	Value (Rs.)
Land	2000	4000	80,00,000
Built up area
Office, raw material and finished product stores, D.G. set room, water bore well, boundary wall gates, security room and workers room etc.	500		40,00,000
Working Shed	500	6,000	30,00,000
Total			1,50,00,000

(ii) Machinery and Equipments

Description	Imp/Ind.	Qty. (Nos.)	Rate (Rs.)	Value (Rs.)
Production Unit
Concrete mixer: capacity 10cft/7cft with 3 hp motor, speed of the mixer drum 20 rpm, and other accessories	Ind.	1	4,00,000	4,00,000
Hydraulically operated Concrete block making machine: capacity 1500 blocks per shift, with pressure vibration technique for compaction, 3 HP motor, and other accessories	Ind.	1	6,00,000	6,00,000
Mechanical tile melting press with 7HP motor		1	4,00,000	4,00,000
Construction of curing tanks	Ind.	4	2,50,000	10,00,000
Mould tools, weighing scale etc., electrical generator and electrical system, and pollution control system and laboratory	2 Nos.			23.00,000
Water pump set with tube well, water storage tank,	Ind.	1	2,00,000	2,00,000
Cost of erection, installation lump sum				5,00,000
Cost of office equipment, furniture etc.	1 No.			8,00,000
Total				57,00,000

(iii) Pre-Operative Expenses (per month)	(Rs.)
Project report cost, non-refundable deposits, etc.	3,00,000
Total Fixed Capital (i+ii+iii)	2,10,00,000

B. Working Capital (per month)

Personnel (per month)

Designation	Nos.	Salary / (Rs.)	Total (Rs.)
Administrative Staff
Manager-Cum-Technical Expert	1	15,000	15,000
Supervisor and sales man	2	10,000	20,000
Clerk-Cum-Cashier and finance man	2		15,000
Store Keeper	1	5000	5,000
Technical (Skilled and Unskilled Workers)
Skilled workers	8	5,000	40,000
Semi-skilled workers	8	4,000	32,000
Unskilled workers	12	3,500	42,000
Peon	2	3,000	6,000
Chowkidar	4	3,000	12,000
Total			1,87,000
+22% perquisites on salary			41,000
Total			2,28,000

Raw Material (per month)

Particular	Qty. (MT)	Rate (Rs.)	Value (Rs.)
Lime stone blocks (including transport charges	1600 M.T.	500	8,00,000
Packing material like gunny bags etc.	L.S.	L.S.	25,000
Total			8,25,000

Utilities (per month)

Particular	Qty. (MT)	Rate (Rs.)	Value (Rs.)
Power	6000 kWH	4.0	24,000
Fuel/Furnace oil	150 KL.	18,000	27,00,000
Water
Total			27,24,000

Other Contingent Expenses (per month)	(Rs.)
Postage and Stationery	5,000
Sales and marketing expenses	41,000
Repair and Maintenance	41,000
Telephone	5,000
Consumable store	5,000
Travelling and Local expenses	25,000
Insurance	30,000
Total	1,52,000

Total Working Capital (per month)	(Rs.)
Staff and Labour	2,28,000
Raw material	8,25,000
Utilities	27,24,000
Other Contingent expenses	1,52,000
Total	39,29,000
Working Capital for 3 months	1,17,87,000

Total Capital Investment

Fixed capital	Rs. 1,87,10,000
Working capital for 3 months	Rs. 1,17,87,000
Total	Rs. 3,04,97,000

Financial Analysis

Cost of Production (per annum)	(Rs.)
Total recurring cost per annum	4,71,48,000
Depreciation on building @ 5%	5,00,000
Dep. on kiln @ 20%	2,00,000
Dep. on machinery and equips. @ 10%	5,69,000
Dep. on tools fixture, dies, racks @ 25%	30,000
Dep. on office furniture and equips. @ 20%	60,000
Interest on total capital investment @ 12%	36,60,000
Total	5,21,67,000

Turnover (per annum)

Particular	Qty. (MT)	Rate (Rs.)	Value (Rs.)
Burnt Lime	16,000	4,174	6,67,91,000

Net Profit (per annum)

Total Turnover – Cost Production Rs. 1,35,36,000 – 1,07,88,428 Rs. 27,47,572

Net Profit (per annum)

Total Turnover – Cost Production Rs. 1,35,36,000 – 1,07,88,428 Rs. 27,47,572

Rate of Return (per annum)

Net Profit × 100 ------------------------------- Total capital investment 1,46,24,000 × 100 ---------------------- 3,04,97,000 47.9%

Break-even Point

Fixed Cost (per annum)	(Rs.)
Total depreciation	13,59,000
40% of Staff and Labour	10,94,000
40% of utilities and Other Contingent expenses (excluding insurance)	1,30,15,000
Insurance	3,60,000
Interest @ 12%	36,60,000
Total	19488000

B.E.P

Fixed Cost × 100 -------------------------- Fixed Cost + Profit 19488000 × 100 ------------------------------- 19488000 + 1,46,24,000 57.1%