Sample AAC project profile for India
Name Of the Project
Autclaved Areated Concrete (AAC) Blocks Unit
Preparation Date st
1 March, 2011 Project Report Version: 001:001
Presented to
Shandong Dongyue Building Machines Co Ltd, Linyi City, Shandng province, China Proposed Project site
Multi Location, Pan India
Prepared by
N.Gangadhar Reddy Project Consultant, Product Quality Reassurance Services
[email protected],,
[email protected] [email protected]
1 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
1. Project at a Glance 1
Product Details Type BIS Code Technology Area Capacity Utilization
2.
: : : :
AAC light weight Blocks Fly Ash Based or sand based IS 2185 : 1984 …..Part 3 Infrastructure & Green-Tech 80%
Assumptions The following assumptions have been made while preparing this Project Report. a. Land of 3 Acres is Required b. Fly to be provided free of cost by power plants. Only transportation to be arraigned by Project. Average distance of 100 KM c. Production is estimated at 80% capacity, d. 300 working days is considered in a year during the first year. e. Boundary wall to be constructed from trail production bricks of Unit. f.
Carbon Credit is estimates are for reference purpose. The Project owner must handle his part of CDM project to get Carbon credits, through independent consultants.
g. Carbon credit can be transacted on registration. The PCN preparation & presentation, the PDD preparation & presentation, host country approval and the UNFCCC Registration might take somewhat 6 months to 2 years year. So it may be wise to start early. h. Sale price at site is estimated a conservative Rs 2500/- per cubic meter. An almost at par price of regular bricks. i.
AAC Blocks of all sizes will be manufactured according to the market requirement, though mainly stipulated sizes as per the BIS standards.
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Sample AAC project profile for India
3.
Introduction
AAC is Autoclaved Aerated Concrete. The blocks are made to aerate by creating a reaction between silica in base material such as fly ash or sand, active lime, and aluminum power. The block hardness is being achieved by cement strength, and instant curing mechanism by autoclaving. Gypsum acts as a long term strength gainer. The finished product is a 2.5 times lighter Block compared to conventional Bricks, while providing the similar strengths. The specific gravity stays around 0.6 to 0.65. This is one single most USP of the AAC blocks, because by using these blocks in structural buildings, the builder saves around 30 to 35 % of structural steel, and concrete, as tese blocks reduce the dead load on the building significantly. The major raw material………..Fly-Ash, an indispensable by-product of Thermal Power Plants, is an environmental threat across the globe. Power plants are facing an ever increasing challenge disposal of this polluting agent. This unit is proposed to manufacture AAC Bricks & Blocks by consuming the Fly-Ash as one of the prime raw material. Secondly, it also helps environment by saving the i nvaluable top soil by not using them in brick making like conventional brick making. Thirdly, they need no burning, thus further enhancing their Eco-Friendly Brand. The steam curing requires far less fuel, compared to the backing for each cubic meter of Bricks. This is the reason these bricks are also referred as Eco Bricks or popularly Green Bricks, (though the color is gray). AAC Blocks are largely used in various constructions, such as load bearing and pillar structure Buildings, Boundary walls, Roads, Culverts, Pavements, and wherever conventional bricks can be used. The general AAC blocks fall in the strength zone of 302 60 Kg/Cm , thus is having comparable strength as conventional Bricks, and hollow concrete blocks. These Blocks gain strength over a period of time up to 2 years, where as the conventional bricks tend to lose strength over a period of time. These green bricks can attain very regular and uniform shapes. As no burning is involved, so the shape also remains unchanged. As a result, the final Brick work with these green bricks consumes less mortar to build, less mortar to plaster. Further, the AAC being a concrete itself, it forms a more uniform bond with cement mortar, giving almost a homogeneous structure. Not only this, even exposed brickwork (without plastering) is a good durable structure. So people prefer to leave the Green Bricks Brickworks in garages, boundary walls etc. un-plastered.
4.
Advantages of using AAC Blocks. The advantages are as follows 1. Environmental friendly : Consumes Fly ash 2. Environmental friendly : Saves invaluable top soil 3. Environmental friendly: needs no burning/backing. 3
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Sample AAC project profile for India
4. Strength: Higher Strength Bricks. 5. Uniform Shape: Easier and faster Brick working. 6. Uniform Shape: Less Mortar in Brick work. 7. Uniform Shape: Less Mortar in Plaster. 8. Natural Concrete: Gains strength over time. 9. Natural Concrete: Walls can be left exposed/un plastered. 10. Better heat & sound insulation compared to red Bricks 11. Far Lesser brakeage during handling & transportation. 12. Better Vibration resistance compared to red Bric ks. 13. Light weight : Faster and easier transportation 14. Light weight : Faster and easier brickwork 15. Light weight : saves structural concrete by 35%
5.
Market
Shelter is third skin, according to a German Concept, which implies it’s importance next to human Skin and Clothing. This also shows the attachment of human race to this fundamental requirement. Building Material accounts for major component of the construction cost. Depending on the location they can contribute to 60 - 70 % of the cost of construction. With the ever increasing population, the demand for housing increases. This directly creates demand for this prime commodity of building. Add to the above fact the nearby area of this project site is undergoing a major infrastructure revolution. As Residential, Commercial, IT companies, and Industrial establishments are coming in, we can conclude that the Blocks unit will prosper and flourish in this environment. There is a central government gadget notification mandating government departments and CPWD to use 100% Fly Ash based Bricks in their all constructionsdirectly of through contractors. This factor will help the marketability of this product immensely. Fly Ash policy of the Government also mandates that 20% of Fly ash Generated by a power plant must be given free of cost to SME sector on a priority basis.
4 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
6.
Carbon Credits Estimates
AAC blocks are being seriously considered for CDM projects in India for earning Carbon Credits. As the CER Generated is also relatively less, four or five such units can be bundled together to make a Group CDM in the same sactors. This project is likely to generate 1 CER per each 7 or 8 Cubic Meter of Blocks production, depending on, and subject to the CDM methodology adopted, and the interpretation of additionality and baseline parameters by the validating authority. Just for a rough estimate of CERS, for an annual production of average size AAC plant, that is 100000CM/Annum, we are likely to get around 12500 CERs on full capacity Production. At present market rate of 11.5 Euros per CER and @ Rs. 60 per Euro, we can expect to get additional revenue on CER. But we must expect to take a cut of around 20 to 30% of CERs, if we want to forward sell the CERs and get the CDM part sponsored by the buyer.
5 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
7.
Raw Materials, Sources and Availability.
Fly-Ash:
A lot has been said about this raw material in this Project Profile itself. But this Raw material is freely available in Thermal Power plants. There are no taxes on this item whatsoever. Transportation charges are only to be attended by the entrepreneur.
Lime:
Active powered lime is a requirement for giving the real aeration to the product. In phase 1 we can aim to buy the acti ve lime directly. In phase -2 we can think of having backward integration and making a lime powering unit at site to have a more competitive advantage, We can also think of a lime burning klin inside the factory premises. The project financials however have not considered the costs of powering unit, and the lime kiln in this project. Different qualities of lime are available, and depending on the raw materials, the mix design can be chosen to get the optimal quality of production. OPC. This Project aims to utilize OPC cement as main binder material. It will give faster strength to the bricks, besides giving improved consistent quality. It also ensures a better cost effectiveness for the same. Using OPC will be a standardized practice. The other prime advantages of using OPC (compared to other binders) is it’s easy availability locally through nationwide Retail Network of Cement Companies.
Gypsum:
This too is an industrial waste. This is available as an industrial byproduct of Fertilizer Plant. Gypsum is responsible to give long term strength to the Blocks.
Aluminum Power .
Finely ground Aluminum power is used in very limited quantity ( less than 0.5%), so that it reacts with active lime, and silica in base material to make the aeration, and swell the product, making it very light weight product.
6 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
8.
Process The Process of manufacture is simple t follow, and complex to implement.
First, the Fly Ash is mixed with water, and made Slurry in a slurry mixture. If Sand is used as a base material, we need a ball mill to grind the sand to fine power. The slurry making process is same sand. After Slurry is made, the slurry is stored in slurry storage tank, where the slurry is constantly agitated. Care is taken to run the slurry storage tank all the time, so that is never settles down the particles. Then a weigh batcher weighs the Slurry, lime, OPC, Gypsum and aluminum power in preset quantities, and mixes thoroughly. The mixture also pours the mix into the Mould carried n the mould cart. The full pouring of the mixture is just enough to fill around 50% of the mould. Then the mould is kept in a warm c hamber for 2 hours, so that the aeration and the light initial setting takes place. Next process is de-molding process of the big block, in which a sophisticated overhead hoist takes the mould, demoulds the block. Next process is the level wire cutting of the Block, while the block passes on the cutting trolley through the series of wires. This process follows a vertical wire cutting where as the block remains stationary, and the cutter cuts the block vertically. The final cut blocks are Steam cured in autoclaves for 8 hours at 12 KG/Sq cm pressure, and 200D C The product is ready on the same date to go into the market.
Please refer the Process Flowchart Drawing, 3D Layout Drawing, and the Pictorial Sketch Drawing given in following pages.
7 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
9.
Process Flow Chart. Fly Ash
Water Flyash Slurry Batched
Gypsum
Lime
Weight Batched
OPC
Main Raw Materials
Weight Batched
pouring Mixture to mix ingredients
Quantity
Aluminum
Bricks Casting on Mould
De-molding and Wire Cutting
Hi Pressure Steam Curing for 8 Hours
Eco-Bricks Ready for Sale
8 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
10.
Layout Drawing (3D)
Please follow the real 3D graphical layout drawing, and its prospective pictorial Sketch description
9 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
11.
Photographs
Just for technical clarity some of the photos of the real working are provided here. Please ask for a free video CD explaining complete working condition.
10 Prepared by Project Consultant. N. Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC project profile for India
11.
Raw Material Suitability
Almost 95% of the raw materials can be made suitable for AAC line through proper mix design. Also we can have many different mix designs for the same denicity…same strength of Blocks. We will help you to get the Best quality blocks at optimal cost by means of designing proper Mix as per your input raw materials. The following are basic guidelines (certainly not the final call) on the suitability of basic raw materials for AAC.
1. Fly ash (65-70%) Index Item
Grade (%) Gr-I Gr-II Degree of (0.045 square hole sieve left amount) ≤ 30 45 fineness (0.080 square hole sieve left amount) ≤ 15 25 ≤ Ignition loss 5.0 10.0 ≥ SiO2 45-55 40 ≤ SO3 1 2 Reference : The fineness can be 0.045 or 0.080 square sieve left amount.
2. Lime (8-25%) Item
Grade Super Gr. ≥ 90 ≤ 2 ≤ 2 ≤ 2
A(CaO+MgO) Quality Fraction % MgO Quality Fraction % SiO2 Quality Fraction % CO2 Quality Fraction % Digestion speed ,min ℃ Digestion temperature , Undigested residue quality fraction ,% Fineness (0.080 square hole sieve left amount) %
≤ ≥
5 10
≤ ≤
st
1 Gr. 75 5 5 5 5-15 60-90 10 15
2
nd
Gr 65 8 8 7
15 20
3.Cement (6-15%) SiO2
Al2O3
Fe2O3
CaO
MgO
C3S
C2S
C3A
C4AF
21-23
5-7
3-5
64-48
4-5
44-59
18-30
5-12
10-18
4. Gypsum/Plaster (3-5%) CaSO4 MgO Chloride（ 氯化） Preferably ground residue 90µm（ 可）
＞ ＜ ＜ ＜
70% 2% 0.05% 10-15%
5. Aluminum Power (about 0.08%) Type and recommendation for supply depend on raw materials and mix formula Metal Content Approx. >=65% Powder 铝粉
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Sample AAC project profile for India
12.
Indian Standard for AAC blocks
Bureau of Indian Standard Code no- 2185(Part-3):1984 discusses in details regarding the AAC blocks specifications in India. The prime requirements for AAC blocks (of ISI standards) in India as per the above said code are as follows.
A. ON PHISICAL SIZES OF AAC BLOCKS
B. ON TOLERANCES OF AAC BLOCK SIZES
C. ON DENCITY, STRENGTH & THERMAL CONDUCTIVITY TABLE-1
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Sample AAC Project for Dongyue-India Clients
Fixed Cost Calculations
F Sl No
Details
Fixed Cost
Promote Seed r's Margin Funding in %
Bank Loan
1 2
Land 4 Acers @ Rs. Own Land Land Devolopment @ Rs. 3 Lakhs/Acer
0.00 15.00
100.00 50.00
0.00 7.50
0.00 7.50
3 4 5 6
137.60 8.00 15.00 5.00
30.00 30.00 30.00 40.00
41.28 2.40 4.50 2.00
96.32 5.60 10.50 3.00
7 8
Stores & workShed 17200 sft @ Rs.800/office 1000 sft 500 sft x 3 floor rcc or MS struct Mis fixed assets Transformer/geneset/Electric Installations & charges Water Source--Boor Well with Pump
50.00 2.00
25.00 25.00
12.50 0.50
37.50 1.50
9
Plant & Machinary(with Installation)Phase-1 (1st Year)
549.72
25.00
137.43
412.29
133.10
25.00
33.28
99.83
133.10
25.00
33.28
99.83
5.00 15.00 5.00
40.00 40.00 40.00
Plant & Machinary(with Installation)10 Phase-2 (2nd yr) Plant & Machinary(with Installation)11 Phase-3 (3nd yr) 12 Prilimnary exp 13 Preoperative 14 Contingency 15 Total
1073.53
2.00 6.00 2.00
3.00 9.00 3.00
284.66
788.87
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Sample AAC Project for Dongyue-India Clients
G
Working Capital Calculation Costing Per Month 1
a b c d e f g h i j k L
Raw materials/ CM particulars
Fly Ash lime OPC Cement (Tanker load) Aluminium power Gypsium RM/CM Power(KWH) Coal (Kg) Other Consumables Total
1st Year Capacity at 80% production
50000 40000
Quantity T
rate/tonne
0.45 0.09 0.07 0.0005 0.005 0.62 9.00 30.00
150 5000 5000 230000 550
CM
3333.33
Nos 5 5 10
Lab/Month 6000 5000 4000
6 4
add Wastage @ 1% Raw material per CM Raw Materials per month at 80% capacity
24000 in Rs.
Tons in Rs.
Amount
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
67.50 450.00 350.00 115.00 2.75 985.25 54.00 120.00 50.00 1,209.25 12.09 1,221.34 Rs.
4,071,141.67
Tot sal/day Rs. 30,000.00 Rs. 25,000.00 Rs. 40,000.00 Rs. 95,000.00
Rs.
95,000.00
Rs.
76,000.00 20,182.99 91,619.96 83,333.33 4,437,277.95
4,437,277.95 8,874,555.91 13,311,833.86
2 a b
Labour/Month Skilled Labour Semi Skilled Labour
c d
Un skilled Labour
3
Officeial staff/Month
a b c d
Managers & accounts Supervisors Other staff Total Labour/Month
Tot sal/day Rs. 20,000.00 Rs. 32,000.00 Rs. 24,000.00 Rs. 76,000.00
5 6 7
Insuraance per Month ( at 0.3% per annum ) Maintainance per Month ( at 2% per annum ) Office Overheads( Post+phone+Net+travel+stanry) @ Rs. 25/CM
Rs. Rs. Rs.
8
Total Expences per Month
Rs. Rs. Rs. Rs.
9
Working Capital for 1 Cycle Curing Line 2 days Cerdit Period 14 days Stock holding 14 days Total = 30 Days Working Capital for 1 Cycle (30 days=1 month)- 1st year Working Capital for 1 Cycle (30 days=1 month)- 2nd year Working Capital for 1 Cycle (30 days=1 month)- 3nd year
Rs. Rs. Rs.
a b c d 10 11 12 * i ii iii
Total Labour/Month
Nos 2 4 4
Lab/Month 10000 8000 6000
20,182.99 91,619.96 83,333.33
Note Installed Capacity in phase-1 (1st Year ) is 50000 CM/annum capacity adition in phase-2 (2nd Year ) is 50000 CM/annum capacity adition in phase-3 (3rd Year ) is 50000 CM/annum
Prepared by Project Consultant. N.Gangadhar Reddy (Ph-9437123235,
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Sample AAC Project for Dongyue-India Clients
DEPREATIATION
H
Item
1st Yr
1 Block Land & Building 2 Added Land & Buildi ngs Depreaciation on building/shed and other constructions except land Year end Block
3 4 1 2
Block Machinary
3 4
Depreaciation on machinary & equipments Year end Block
Debt Service Coverage Ration ( D.S.C.R )
5 6 7
Profits before TAX Profits after Tax (33%) Profit After Tax
8
D.S.C.R
33%
9 Average DSCR
5th Year
Remarks
149.04
134.14
120.72
108.65
0.00
0.00
0.00
0.00
16.56
14.90
13.41
12.07
10.87
149.04
134.14
120.72
108.65
97.79
601.72
511.46
567.85
615.77
523.41
0.00
133.10
133.10
0.00
0.00
15%
Bank Loan Intrest on Bank Loan Repayment Aditional Loan in Year
4th Year
0.00
Block Added in the Year
I
3rd Year
165.60
10%
1 2 3 4
2nd year
90.26
76.72
85.18
92.37
78.51
511.46
567.85
615.77
523.41
444.90
689.04 89.57 0.00 0.00
689.04 89.57 172.26 99.83
616.61 80.16 172.26 0.00
444.35 57.77 172.26 0.00
272.09 35.37 172.26 0.00
249.99 82.50 167.49
709.64 234.18 475.46
1147.13 378.55 768.57
1256.72 414.72 842.00
1387.22 457.78 929.44
4.06
2.51
3.75
4.37
5.08
3.95
Note D.S.C.R = ( Profit After Tax + Depreciation + Intrest on Trrm Loan ) / (Intrest on Term Loan + Term Loan Repayment )
Prepared by Project Consultant. N.Gangadhar Reddy (Ph-9437123235,
[email protected])
Sample AAC Project for Dongyue-India Clients
J Project Cost, Profitability Calculation & Ratios J1 1 2 3
Project Cost Total Fixed Capital Total Working Capital
(30 days)
Project Cost
1st Yr 2nd year 3rd Year 4th Year 5th Year 807.32 940.42 1073.53 1073.53 1073.53 44.37 88.75 133.12 144.21 155.30 851.69
1029.17
1206.65
1217.74
1228.83
40000
80000
120000
130000
CM/ 140000 year
532.47
1064.95
1597.42
1730.54
1863.66
16.56 90.26 110.72
14.90 76.72 133.79
13.41 85.18 156.86
12.07 92.37 158.31
10.87 78.51 159.75
Total cost of production
750.01
1290.36
1852.87
1993.28
2112.78
J3 Sales per year @ Rs. 2500/CM Note : Sales inclusive of VAT & Excise
1000.00
2000.00
3000.00
3250.00
3500.00
J2 E 1 2 3 4 5
Machinary Utilisation assumed/production Cost of production per year
Working capital for 12 months Depreaciation on building/shed and other constructions except land equipments Intrest and Oppurtunity Cost
10 percent 15 percent 13 percent
2808.00
Sample AAC Project for Dongyue-India Clients
J Project Cost, Profitability Calculation & Ratios J1 1 2 3
Project Cost Total Fixed Capital Total Working Capital
(30 days)
Project Cost
1st Yr 2nd year 3rd Year 4th Year 5th Year 807.32 940.42 1073.53 1073.53 1073.53 44.37 88.75 133.12 144.21 155.30 851.69
1029.17
1206.65
1217.74
1228.83
40000
80000
120000
130000
CM/ 140000 year
532.47
1064.95
1597.42
1730.54
1863.66
16.56 90.26 110.72
14.90 76.72 133.79
13.41 85.18 156.86
12.07 92.37 158.31
10.87 78.51 159.75
Total cost of production
750.01
1290.36
1852.87
1993.28
2112.78
J3 Sales per year @ Rs. 2500/CM Note : Sales inclusive of VAT & Excise
1000.00
2000.00
3000.00
3250.00
3500.00
5000.00
10000.00
15000.00
25.88
51.75
77.63
J2 E 1 2 3 4 5
Machinary Utilisation assumed/production Cost of production per year
Working capital for 12 months Depreaciation on building/shed and other constructions except land equipments Intrest and Oppurtunity Cost
10 percent 15 percent 13 percent
2808.00
Expected CER Generated J4 Note :
Carbon Credit Revenue (Apprx) CERs @8 CM=1 CER, 50000 CM=6666 CER @ 11.5 Euros@60 INR
16250.00 17500.00 84.09
90.56
25% of CERs deducted as transactional and operational costs. CER revenues for Guidelines only. Not computed in Profitability of this report
Analisis J5
Total Revenue
1000.00
2000.00
3000.00
3250.00
3500.00
J6
Net Profit/year
249.99
709.64
1147.13
1256.72
1387.22
J7
Net Profit Ratio
25.00
35.48
38.24
38.67
39.63 %
J8
Rate of return on investment
29.35
68.95
95.07
103.20
112.89 %
J9 1 2 3 4 5 6 7
Fixed cost (Per annum) 106.82 2.42 110.72 5.40 7.98 10.00 243.34
91.62 2.82 133.79 10.80 15.96 20.00 275.00
98.59 3.22 156.86 16.20 23.94 30.00 328.82
104.44 3.22 158.31 17.55 25.94 32.50 341.95
89.38 3.22 159.75 18.90 27.93 35.00 334.18
49.33
31.66
22.28
21.01
Depreatiation (Full) Insurance (0.3% on Fixed costs) Intrest on investment (Full) 25% Power 30% of wages &50% salary Other Overheads (Full) Total fixed cost
J10 Break Even Point (B.E.P)
19.41 %
ote : 1
Net Profit Ratio = (Net Profit / Net Sales) x100
2
Rate of Return on Investment = (Net Profit / Project Cost) x 100
3
Break Even Point ( B.O.P )= (Fixed Cost / (Fixed Cost + Net Profit)) x 100
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