BRICK MAKING FROM BLACK SOILS
Introduction
This business idea is for production and marketing of bricks at a small scale investment. This business idea aims at production of 90,000 bricks per month, which translates into 1,080,000 bricks per year. The revenue potential is estimated at US$ 501 per month translating into US$54,007 per year with a sales margin of 10% and total investment capital is US$531,615 for the first year.
Production Capacity
It is analyzed that more than 3,000 bricks can be made per day depending on the equipment being used. The company can have a production capacity of more than 80,000 fired bricks and 10,000 unfired per month (Hoffman kilns can fire 80,000 bricks).
Market Analysis
With the growing construction projects
in urban and rural areas,
the market base for the bricks is wide.
Sources of supply of raw materials
Technology and Process Description
The clay brick making technology is simple as it requires less skilled manpower and local materials mixture. The production process starts with the raw clay, preferably in a mix with 25-30% siliceous stone dust to reduce shrinkage. The clay is first ground and mixed with water to the desired consistency. The clay is then pressed into wooden moulds and pressed into preferred cube shape. The cubes are left to dry slowly while covered with banana leaves, grass or plastic sheets to avoid cracking which lowers quality. The dried bricks are then fired ("burned") at 900- 1000 °C to achieve strength.
Scale of Investment (Capital
Requirements, Equipment &
machinery)
The investment scale depends on the production capacity and demand. The following tools and equipment can be used:
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Wooden moulds |
No |
3 |
4 |
12 |
|
Hoes |
No |
4 |
3.5 |
14 |
|
Jerry Cans |
No |
5 |
2 |
10 |
|
Spades |
No |
3 |
5 |
15 |
|
Wheel barrow |
No |
3 |
25 |
75 |
|
Delivery truck |
No |
1 |
9,000 |
9,000 |
|
Total |
|
19 |
9,040 |
9,126 |
Production and Operating Costs
Direct Materials, Supply and Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Clay |
trips |
25 |
4 |
100 |
2600 |
31200 |
|
Grass |
Bundles |
0.1 |
10 |
1 |
10 |
120 |
|
Ash and |
trips |
12.5 |
1 |
12.5 |
12.5 |
150 |
|
Sub-total |
15 |
113.5 |
2622.5 |
31470 |
||
|
General Costs(Overheads) |
||||||
|
Utilities(Firewood & Water) |
32 |
384 |
||||
|
Labour |
425 |
5100 |
||||
|
Rent |
250 |
3000 |
||||
|
Other Costs |
150 |
1800 |
||||
|
Depreciation(Asset write off)Expense |
190.13 |
2,281.5 |
||||
|
Sub-Total |
1047.1 |
12,566 |
||||
|
Total Operating Costs |
3,669.6 |
44,036 |
1. Production costs assumed are for 312 days per year with a daily capacity of 3,462 bricks
2. Depreciation (fixed asset write off) assumes a 4 years’ life of assets written off at 25% per year for all assets.
3. Direct Costs include: materials, supplies and other costs that directly go into production of the product.
4. A production month is assumed to have 26 days.
Project Product Costs and Price Structures in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Prod |
Unit |
T/rev |
|
Bricks |
3,462 |
1,080,144 |
0.0 4 |
43,206 |
0.05 |
54,007 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per Yr |
|
Revenue |
173 |
4,501 |
54,007 |
|
Less: Production and Operating Costs |
141 |
3,670 |
44,036 |
|
Profit |
32 |
831 |
9,972 |