CONCRETE PRODUCTS (Well Rings) INTRODUCTION ... - smallB
CONCRETE PRODUCTS (Well Rings) INTRODUCTION ... - smallB
CONCRETE PRODUCTS (Well Rings) INTRODUCTION ... - smallB
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<strong>CONCRETE</strong> <strong>PRODUCTS</strong><br />
(<strong>Well</strong> <strong>Rings</strong>)<br />
<strong>INTRODUCTION</strong><br />
Some of the major concrete products include concrete well rings. Concrete posts are used mainly<br />
for fencing purpose. A number of posts are required at regular intervals along barbed wire<br />
fencing. Some posts also find application as street light electric posts. Kitchen sinks are an<br />
integral part of most urban homes. In view of its convenience, sinks are fast entering rural homes<br />
also. Cement well rings, as the name implies, are required for open wells. Apart from forming the<br />
firm side walls they also facilitate movement into the well for cleaning purpose.<br />
MARKET POTENTIAL<br />
The demand for concrete posts would be largely linked with the magnitude of barbed wire fencing<br />
and rural electrification posts. Barbed fencing is carried out by the Home Department (Border<br />
Division), armed Forces, Forest Department and PWD. Generally, the spacing between two posts<br />
is about 3 to 3 ½ metre, each post being about 100 mm 100mm, in cross section with height<br />
varying from 1.5 to 3 metre. Thus in 1 Km of fencing about 300 posts would be required.<br />
Considering the vast borders of the north-eastern region and the massive programme being<br />
undertaken to fence the borders as well as regular requirements in forest areas it may be<br />
expected that the requirement of fencing would be about 300 to 400 Km per year. the<br />
corresponding demand for cement posts would be in the range of 90,000 to 1,20,000 per year.<br />
Besides, the demand for posts for rural electrification may be around 75,000 to 1,00,000 per year.<br />
Thus, the demand potential for cement posts in the north- eastern region could be of the order of<br />
1.7 lakhs per year. There are a number of tiny units (about 20 to 30) supplying cement posts.<br />
Considering that each unit produces about 5000 posts per year on an average, the available<br />
market opportunity for new tiny units is placed at about 70,000 posts per year.<br />
Kitchen sinks are being made by 2 to 43 units. It is estimated that in order to meet the housing<br />
shortage, about 80,000 dwellings will have to be constructed per year in the urban areas and<br />
about 8 lakhs dwellings per year in rural areas. Considering that majority of urban homes would<br />
generally opt. for ceramic sinks, the vast rural market is available for concrete sinks.<br />
Conservatively assuming that about 6 lakhs rural dwellings and 60,000 urban dwellings would be<br />
constructed per year and assuming that 10% of these dwellings and the private construction and<br />
replacement demand require RCC sinks, there is demand potential for about 1,60,000 sinks per<br />
year. Considering a typical unit to produce 3000 sinks per year there is scope for about 50 such<br />
units. However, there may be enough scope initially for setting up 15 units having a product-mix<br />
as given in the next paragraph.<br />
TARGET PRODUCTION<br />
Now-a-days, tube-wells have gained prominence over conventional wells. The demand for<br />
cement well rings would therefore be in specific areas where tube-wells are not possible /popular,<br />
and hence a small quantity of cement will rings is included in the product-mix. The main products<br />
would be concrete posts and kitchen sinks. About 300 numbers of well rings are also suggested.<br />
The production basis of a typical unit would be as follows:<br />
Sl. Particulars No. of Posts No. of Sinks No. of <strong>Rings</strong><br />
No.<br />
1. Daily production 10 5 1<br />
2. Working Days/year 300 300 300<br />
3. Annual Production 3000 1500 300<br />
The products would be manufactured in the following typical sizes.<br />
Concrete Posts 100m 100m 1,500 mm<br />
Kitchen Sinks<br />
600mm long 300 mm wide 450 mm deep<br />
<strong>Well</strong> rings 2m dia, 1 m ht., 50 mm thickness.<br />
55
RAW MATERIALS<br />
The major raw materials required are cement, sand, stone dust, stone chips and iron strips.<br />
Cement is manufactured in the north-eastern region in Assam, Meghalaya and Manipur. Bulk of<br />
the cement required, however, still comes from outside the region. Cement may be available from<br />
local dealers or directly from nearby plants located at Bokajan, Mawmlucherra. Sand and stone<br />
chips may be procured locally and iron strips from the market.<br />
PROCESS<br />
The main process of steps involved are:<br />
i) Fabrication of suitable moulds.<br />
ii)<br />
iii)<br />
iv)<br />
Preparation of concrete mix by mixing water in cement, sand and stone chips in suitable<br />
proportion.<br />
Pouring of cement concrete into the moulds and stirring to avoid gaps or honey comb.<br />
Suitable reinforcement is to be provided while pouring cement concrete mixture for<br />
increasing the durability and strength of the product.<br />
Curing of the product for 4/5 days. During this period, water is to be poured. After<br />
opening from the moulds, water is to be sprinkled for about 6/7 days.<br />
MACHINERY<br />
The process is essentially manual and no major production equipment is required. The following<br />
accessories would suffice for the production:<br />
1. Mould for posts (to be made from Steel plate)<br />
2. Buckets, Shovels &Tools.<br />
INFRASTRUCTURE<br />
The main infrastructural facilities required are:<br />
Land … 2000 Sq.ft.<br />
Shed … 600 Sq. ft.<br />
Power<br />
1 KW<br />
Water<br />
2000 Litre/day<br />
LOCATIONS<br />
The suggested locations are:<br />
Assam<br />
Meghalaya<br />
Manipur<br />
Sikkim<br />
: Bokajan, Nagaon,<br />
Silchar, Goalpara<br />
: Mawmluhcherra, Jowai<br />
: Hundung<br />
: Dzongri, Brang<br />
TOTAL CAPITAL REQUIREMENT<br />
The total capital requirement, including fixed capital and working capital, is estimated at Rs.3.84<br />
lakhs as follows. Of this, the project cost comprising fixed capital and margin money on working<br />
capital is Rs. 2.05 lakhs.<br />
A. Fixed Capital: (Rs. in lakh)<br />
Land & Building<br />
On lease<br />
Plant & Machinery 0.80<br />
Miscellaneous fixed assets 0.20<br />
Preliminary and pre-operative expenses 0.10<br />
Total (A) 1.10<br />
56
B. Working Capital:<br />
Raw materials 1 month 0.42<br />
Stock of Finished goods 10 Days 0.32<br />
Working expenses 1 month 0.35<br />
Receivables 1½ month 1.65<br />
____<br />
Total (B) 2.74<br />
====<br />
Total (A) + (B) 3.84<br />
====<br />
Note: Working capital may be finance as :<br />
Bank Finance … Rs. 1.79 lakh<br />
Margin Money … Rs. 0.95 lakh<br />
___________<br />
Rs. 2.74 lakh<br />
===========<br />
MEANS OF FINANCE<br />
Promoter’s Contribution (35%) .. Rs. 0.72 lakhs<br />
Term Loan(65%) … Rs. 1.33 lakhs<br />
___________<br />
Rs. 2.05 lakhs<br />
===========<br />
OPERATING EXPENSES<br />
The annual operating expenses are estimated at Rs.11.02 lakhs as given below:<br />
Raw materials –<br />
Cement 53 tonnes @ Rs. 5200/tonne 2.76<br />
Sand 61 Cu.m. @ Rs.420/Cu.m. 0.26<br />
Stone chips 89 Cu.m. @ Rs.700/Cu.m. 0.62<br />
Iron Strips 5 tonne @ Rs.2800-/tonne 1.42<br />
Utilities 0.20<br />
Wages &Salaries 4.00<br />
Rent 0.36<br />
Other overheads 0.25<br />
Selling expenses @ 5% on annual sales 0.66<br />
Interest on term loan @12% 0.16<br />
Interest on Bank Finance @ 15% for W.C. 0.27<br />
Depreciation @ 10% on M/c. 0.08<br />
_____<br />
11.02<br />
=====<br />
SALES REALISATION<br />
The annual sales realization is estimated at Rs. 13.20 lakhs as under<br />
Sl.<br />
No.<br />
Products Quantity Nos. Price<br />
Rs./Unit<br />
Sales<br />
Rs.lakh/Yr.<br />
1. Concrete Posts 3000 150 4.50<br />
2. Kitchen sinks 1500 300 4.50<br />
3. <strong>Well</strong> <strong>Rings</strong> 300 1400 4.20<br />
Total: 13.20<br />
57
PROFITABILITY<br />
Based on the sales realization and the operating expenses, the profit at annual production<br />
envisaged would be Rs. 2.18 lakhs per year. This works out to a return on investment of 57%.<br />
The plant would break-even at about 50% of the targeted annual production.<br />
HIGHLIGHTS<br />
The major highlights of the project are as follows:<br />
Total Capital Requirement<br />
Rs. 3.84 lakhs<br />
Promoter’s contribution<br />
Rs. 0.72 lakhs<br />
Annual Sales realization<br />
Rs. 13.20 lakhs<br />
Annual operating expenses<br />
Rs. 11.02 lakhs<br />
Annual profit (pre-tax)<br />
Rs. 2.18lakhs<br />
Pre-tax return on sales 17%<br />
Break-Even Point 50%<br />
No. of persons employed 15<br />
58