Project Report on Cement Bricks Manufacturing Plant

1. Introduction: Cement Bricks Manufacturing Plant

Project Report on Cement Bricks Manufacturing Plant: Cement Bricks are an essential building material used extensively in construction. They are made by mixing cement, sand, stone dust, and water, then molded and cured for durability. Compared to traditional clay bricks, cement bricks offer high compressive strength, lower water absorption, uniformity in size, and eco-friendliness.

2. Market Prospects: Cement Bricks Manufacturing Plant

With the continuous growth in infrastructure, housing projects, and commercial construction, the demand for cement bricks is on the rise. Government initiatives such as Pradhan Mantri Awas Yojana (PMAY) and Smart City Mission have further boosted the market.

3. Demand and Supply Forecast (Next 5 Years):

Year	Estimated Demand (in Lakh Units)	Estimated Supply (in Lakh Units)
2025	800	650
2026	880	700
2027	970	770
2028	1070	850
2029	1180	930

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4. Plant & Machinery: Cement Bricks Manufacturing Plant

• Cement Brick Making Machine (Semi-Automatic) – 2 Units
• Concrete Mixer Machine – 2 Units
• Hydraulic Pallet Truck – 2 Units
• Pan Mixer Machine – 2 Units
• Curing Tanks – 4 Units
• Other tools and electrical installations

Estimated Cost of Machinery: INR 35 Lakhs

5. Safety and Precautions:

• Use of PPE (helmets, gloves, goggles)
• Fire extinguishers and first-aid kits at strategic locations
• Regular maintenance of machinery
• Proper training for workers

6. Basis and Presumptions:

• Single shift operation: 8 hours/day
• 300 working days/year
• 85% efficiency in capacity utilization from year 3 onward
• Depreciation: 10% per annum on machinery
• Interest on term loan: 10% per annum

7. Plant Capacity per Annum:

Year	Units Produced (in Lakh)
2025	60
2026	72
2027	85
2028	90
2029	100

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8. Manufacturing Process:

1. Raw materials (cement, stone dust, sand) are weighed and mixed.
2. Mixture is poured into the brick molds.
3. Bricks are compacted and shaped.
4. Wet bricks are kept for initial setting.
5. Cured in water tanks for 7–14 days.
6. Dried and packaged for dispatch.

9. Project Cost: Cement Bricks Manufacturing Plant

Particulars	Amount (INR in Lakhs)
Land & Building	20
Plant & Machinery	35
Pre-operative Expenses	5
Working Capital Margin	10
Miscellaneous Fixed Assets	5
Total Project Cost	75

10. Means of Finance: Cement Bricks Manufacturing Plant

• Promoter’s Contribution: INR 25 Lakhs
• Term Loan from Bank: INR 50 Lakhs

11. Working Capital Requirement:

Year	Capacity Utilization (%)	Working Capital (INR in Lakhs)
2025	60	15
2026	72	18
2027	85	20
2028	90	22
2029	100	25

12. Cost of Production and Profitability Statement (Annual):

Year	Cost of Production	Sales Revenue	Gross Profit	Net Profit
2025	50 Lakhs	65 Lakhs	15 Lakhs	8 Lakhs
2026	58 Lakhs	78 Lakhs	20 Lakhs	12 Lakhs
2027	66 Lakhs	92 Lakhs	26 Lakhs	17 Lakhs
2028	72 Lakhs	98 Lakhs	26 Lakhs	18 Lakhs
2029	78 Lakhs	110 Lakhs	32 Lakhs	22 Lakhs

13. Repayment of Term Loan (5 Years):

• EMI based: INR 12 Lakhs per annum (principal + interest)

14. Cash Flow Statement (Summary):

Includes operating cash inflow, outflow, investing, and financing activities. (A detailed sheet can be created in Excel.)

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15. Projected Balance Sheet (Year-end):

Year	Net Worth	Term Loan	Fixed Assets	Current Assets	Current Liabilities
2025	28	45	60	20	7
2026	38	35	58	25	9
2027	51	23	55	30	10
2028	66	11	52	35	11
2029	88	0	50	40	12

16. Financial Ratios: Cement Bricks Manufacturing Plant

• Current Ratio: 2.0 (average)
• Gross Profit Ratio: 25% to 30%
• Net Profit Ratio: 12% to 20%
• Return on Investment: Increasing annually

17. Break-Even Point Analysis: Cement Bricks Manufacturing Plant

• Fixed Costs: INR 25 Lakhs
• Contribution Margin: 35%
• Break Even Sales = INR 71.43 Lakhs (approx.)

18. Conclusion: Cement Bricks Manufacturing Plant

A cement brick manufacturing plant is a viable, eco-friendly, and profitable venture with growing demand from the infrastructure sector. With efficient management and modern machinery, profitability and sustainability can be achieved over the next 5 years.

Manufacturing Process-Project Report on Cement Bricks Manufacturing

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