Clay Bricks Manufacturing Kiln is proposed to be located at any densely populated city such as Hyderabad, Larkana, Sukkur, Lahore, Rawalpindi, Peshawar, Multan, Faisalabad etc where good quality of clay or mud and water is available abundantly along with easy availability of trained and semi trained workers. This business can also be undertaken in all small second tier towns, in addition to suburban towns of large cities.
The proposed product line will consist of brick size of 9” x 4”, which is commonly used in construction of houses in some urban and almost all rural areas of the country. This proposed Pre-Feasibility study presents an investment opportunity for establishing a Clay Bricks Manufacturing Kiln unit with a capacity of 10 cycles per year initially and in each cycle, 0.5 million bricks of 9” x 4” will be prepared.
Initially the project is proposed to utilize 80% of production capacity. The total project cost for setting up a Clay Bricks Manufacturing Kiln Unit is estimated at Rs. 5.56 million out of which Rs. 4.84 million is capital cost and Rs. 0.72 million is working capital. The project is proposed to be financed through 50% debt and 50% equity. The NPV is projected around Rs. 7.15 million, with an IRR of 45% and a Payback Period of 2.22 years. The legal business status of this project is proposed as a ‘Sole Proprietorship’.
The most critical considerations or factors for success of the project are:
Most Significant Considerations:
- Accessibility of good quality of Mud / Clay to produce high quality bricks.
- Availability of burning material is also a very important factor.
- Availability of well experienced clay bricks makers, Kiln burner and operators.
Equally important Factors:
- This project is not suitable in hilly regions where clay / mud are not available easily.
- This business is unsuitable in frequent rainy areas.
Clay bricks are used in a wide range of buildings from housing to factories, and in the construction of tunnels, waterways, bridges etc. Their properties vary according to the purpose for which they are intended, but clays have provided the basic material of construction for centuries. The industry developed on traditional lines, using hand-making processes for the most part.
Following key parameters must be addressed as per Pre-Feasibility study under preparation:
Technology: This proposed unit use manual bricks making technique which includes preparation of clay, molding, drying and burning to produce
bricks of different sizes according to the demand.
Location: Processing unit can be set-up in any major city such as Hyderabad, Larkana, Sukkur, Lahore, Multan, Rawalpindi, Peshawar,
Faisalabad, and Taxila where good quality of clay or mud, water and trained or semi trained labours are easily available. This business can also be done in all small second tier towns in addition to suburban towns of large cities.
Product: The unit would initially produce a brick size of 9” X 4”, which is commonly used in construction. But this kiln can also produce other brick
sizes like 12” X 6” along with roof and floor bricks of different sizes according to the need and demands.
Target Market: Clay bricks are cheap and ideal building material which is commonly used in construction, civil engineering works as well as for
constructions of sidewalls, footpaths, floors etc. This building material is equally important for constructions in rural as well as in urban and semi-urban areas.
Employment Generation: The proposed project will provide direct employment to 86 people (contractual + salaried). Financial analysis shows that the unit will be profitable from the very first year of operations.
In clay preparation, there are three steps involved:
Tempering is the addition of water in clay to make it soft and workable.
After water is added, workers crush clay to make it homogeneous.
Before placing the clay into molds, the clay is coated with dry sand which
reduces crack effects in the bricks.
Placing of clay in a specific hollow container, to produce a particular size of bricks is called molding. There may be different sizes of molds to produce
different brick products according to the demand of buyers.
Drying is necessary to remove water which was added during the process of clay preparation; otherwise this water content or moisture may create cracks in bricks during burning process. Water is removed by using sun drying technique. In hot summer days, drying is done in 4 to 5 days and in winter season it may take 9-10 days.
Firing or Burning
After the particular stacking of raw bricks in the kiln as per the capacity, the process of firing takes place. At this stage the temperature must remain
constant in particular kiln area to get best quality produce. Proper and efficient burning techniques results in good quality of bricks and reduces breakage.
After the completion of burning stage for a specific time and as well as for a specific number of bricks or rows, the temperature must be slow down steadily and the burning operator moves the fire to the next raw bricks. After cooling, the prepared bricks will be ready to remove from Kiln for selling purpose.
Installed and Operational Capacities
The installed capacity of the proposed Clay Bricks Manufacturing kiln Unit is 0.5 million / cycle. The proposed brick size for this unit will be 9” x 4”, which is commonly used in construction. One may produce bricks of other sizes according to the demand but profit margin is almost same. The project may produce roof tiles or other bricks of different sizes as well as per the demand.
At initial stage, the production are 10 cycles / year and it will reach to 15 cycles / year at the rate of 2% per year increase and in each cycle there will be
production of 0.5 million bricks. The capacity utilization during year one is worked out at 80% with 2% increase in subsequent years up to the maximum capacity utilization of 90%.
Following critical factors should keep in mind, before making investment in this business.
- The land area for kiln construction and office should be purchased, whereas for preparation of raw bricks land can be acquired on rent
- Availability of high quality clay to produce good quality bricks.
- Selection of good land for soil.
- Availability of trained labor to produce high quality bricks.
- Availability of cheap burning material to make this business profitable.
- This project should not establish in heavy rainy areas.
GEOGRAPHICAL POTENTIAL FOR INVESTMENT
Construction activities and its output is an integral part of a country’s economy and industrial development. The construction industry is often seen as a driver of economic growth especially in developing countries. This industry can mobilize and effectively utilize local human and material resources in the development and maintenance of housing and infrastructure to promote local employment and improve economic efficiency.
There are different types of construction options including reinforced concrete structure, clay bricks, metal roof etc. Due to the soaring construction costs, low cost construction options are in high demand in most of the rural and urban areas of the country. The clay bricks are used in a large number of construction projects including non-traditional / traditional housing, community centers, warehouses and factories etc. It is also suitable for schools and other public buildings especially in the rural areas.
Demand for such type mainly exists for housing projects in villages, towns, urban, semi-urban and smaller cities. Additionally, in larger cities the low cost construction materials are used in suburban housing schemes and in many other public or private projects. The clay bricks manufacturing unit can be established anywhere in the country or near the towns or cities where main access to basic raw materials and requirements for this project are easily available, like Hyderabad, Larkana, Sukkur, Lahore, Rawalpindi, Multan, Faisalabad and Quetta.
POTENTIAL TARGET CUSTOMERS / MARKETS
Market for the clay bricks exist almost in all over the country. Investors can find demand of clay bricks round the year. Therefore, Clay Bricks Manufacturing Unit can be established at any time of the year. Expected potential customers are given below:
- Contractors of construction industry.
- Government’s construction projects.
- Building material suppliers.
- Individuals of rural & urban areas
BRICK MANUFACTURING IN PAKISTAN FINANCIAL REQUIREMENTS