PROJECT REPORT

Of

INTERLOCKING BRICKS

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Interlocking Brciks.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in

project identification for investment and in order to serve his objective; the document covers various
aspects of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also
prepare project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : INTERLOCKING BRICKS

6 Name of the project / business activity proposed : INTERLOCKING BRICKS MAKING UNIT

7 Cost of Project : Rs.20.08 Lakhs

8 Means of Finance
Term Loan Rs.15.57 Lakhs
Own Capital Rs.2.01 Lakhs
Working capital Rs.2.5 Lakhs

9 Debt Service Coverage Ratio : 2.03

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 29%

13 Employment : 8 Persons

14 Power Requirement : 30.00 HP

15 Major Raw materials : Portland cement, Sand, Dust, Jelly and other materials

16 Estimated Annual Sales Turnover (Max Capacity) : 46.74 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 1000 Sq ft 5.00
Plant & Machinery 10.80
Furniture & Fixtures 1.50
Working Capital 2.78
Total 20.08

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.01

Working Capital(Finance) 2.50

Term Loan 15.57

Total 20.08
 INTERLOCKING BRICKS

Introduction: The block's sizes are modular and rectangular (250 mm

length, 210 mm wide and125 mm high) in shape. Corner or junction block is
required to maintain right angle corner or a proper T-junction. The
interlocking block is different from conventional blocks or bricks since they
do not require mortar for its laying work. Because of this characteristic, the
process of building walls and other structures are faster as the blocks are laid
dry and lock into place. Almost any type of building can be constructed with
interlocking blocks, which has projection and depression to key each other.
They are pre-cast solid products made out of cement concrete. The product is
made in various sizes and shapes viz. rectangular, square and round blocks of
different dimensions with designs for interlocking of adjacent tiles blocks.

Shapes & sizes: A variety of interlocking blocks have been developed

during the past years, differing in shapes and sizes, depending on the required
strengths and uses. The system developed has the following shapes and forms:
 (i) Full blocks (300 x 125 – 150 x 100 mm) for all standard walls (single
or double block thick).
(ii) Half blocks (150 x 125 - 150 x 100 mm), which can be molded to size,
or made by cutting freshly molded full blocks in half.
(iii) Channel blocks, same sizes as full and half blocks, but with a channel
along the long axis, into which reinforcing steel and concrete can be
placed to form lintels or ring beams.
(iv) The vertical sides of the blocks can be flat or have recesses, and the
vertical grout holes can be square or round.
(v) Inserts for electrical switch housing and conduits as well as water
piping outlets can be incorporated.
(vi) Special blocks for window sills.

Advantages of Interlocking Block:

The advantages of interlocking Block are:

(i) Construction with interlocking block saves time and ample amount of
mortar concrete compared to conventional masonry block laid with mortar

(ii) Areas prone to earthquake uses hollow interlocking block with the
strength improved with grout and reinforcement throughout the height of the
wall to resist the effect of earthquake, thus, providing adequate structural
stability against collapse

(iii) Having formed the base course, other course can be assembled by unskilled
labour

(iv) Dismantling of the blocks in case of temporary structure does not

incur much damages as in blocks laid with mortar

(v) Cost of construction is relatively less.

Market Potential: Interlocking cement tiles and paving blocks find applications in
pavements, footpaths, gardens, passenger waiting sheds, bus-stops, industry and other
public places. The product is commonly used in urban areas for the above applications.
Hence, the unit may be set up in urban and semi-urban areas, near the market. A lot of
face-lift is being given to roads, footpaths along the roadside. These bricks are ideal
materials on the footpaths for easy laying, better look and finish. Whereas the tiles find
extensive use outside the large building and houses, lots of these materials are also used
in flooring in the open areas of public offices and commercial buildings and residential
apartments.

Machinery & equipment requirement: Basic machines & equipments are:

Name Qty Price
Hydraulically operated Concrete block making 3 800000
machine
Concrete mixer capacity 1 90000
Water pump 1 40000
Colour mixer 1 100000
Other machines & equipments 50000

Raw materials: Basic raw material requirements are as follows:

1. Portland cement

2. Sand

3. Jelly

4. Dust

5. Other material & consumables

Manufacturing Process: The process of Manufacture of interlocking bricks involves
the following steps:

a) Proportioning
b) Mixing
c) Compacting
d) Curing
e) Drying

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area,
space for power supply utilities and auxiliary like Generator setup. Also some of the area
of building is required for office staff facilities, documentation, office furniture, etc. Thus,
the approximate total area required for complete industrial setup is 1000 to 1400Sqft.
Civil work will cost around 5 Lac (approx.)

Power Requirement –The power consumption required to run all the machinery
could be approximated as 30 hp.

Manpower Requirement– There are requirement of skilled machine operators to

run the machine set. Experience quality engineers are required for desired quality
control. Some helpers are also required to transfer the material from one work station to
other. Office staffs are required to maintain the documentation. The approximate
manpower required is 8 including 1 Supervisor, 1 Plant operator, 1 unskilled worker, 1
Helper and 1 security Guard. 3 Skilled worker including Accountant, Manager and sales
personal each.

Approvals & Registration Requirement:

Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with Trademark if
require
Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of Income Tax
Act, 1961

Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS
PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.01 -

Reserve & Surplus 3.68 5.20 6.70 8.35 10.33
Depriciation & Exp. W/off 2.27 1.96 1.70 1.47 1.27
Increase In Cash Credit 2.50
Increase In Term Loan 15.57 - - - -
Increase in Creditors 0.18 0.03 0.02 0.02 0.02

TOTAL : 26.21 7.19 8.42 9.84 11.62

APPLICATION OF FUND

Increase in Fixed Assets 17.30 - - - -

Increase in Stock 0.51 0.08 0.08 0.09 0.09
Increase in Debtors 2.66 0.49 0.48 0.51 0.54
Repayment of Term Loan 1.73 3.46 3.46 3.46 3.46
Taxation - - 1.67 2.09 2.58
Drawings 2.00 2.50 2.50 3.00 4.00
TOTAL : 24.19 6.53 8.20 9.14 10.67

Opening Cash & Bank Balance - 2.01 2.67 2.89 3.58

Add : Surplus 2.01 0.65 0.22 0.70 0.95

Closing Cash & Bank Balance 2.01 2.67 2.89 3.58 4.53
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 3.69 6.39 8.91 12.17
Add: Additions 2.01 - - - -
Add: Net Profit 3.68 5.20 5.02 6.26 7.75
Less: Drawings 2.00 2.50 2.50 3.00 4.00
Closing Balance 3.69 6.39 8.91 12.17 15.92
CC Limit 2.50 2.50 2.50 2.50 2.50
Term Loan 13.84 10.38 6.92 3.46 -
Sundry Creditors 0.18 0.21 0.23 0.25 0.27

TOTAL : 20.21 19.47 18.56 18.38 18.69

APPLICATION OF FUND

Fixed Assets ( Gross) 17.30 17.30 17.30 17.30 17.30

Gross Dep. 2.27 4.23 5.93 7.40 8.67
Net Fixed Assets 15.03 13.07 11.37 9.90 8.63

Current Assets
Sundry Debtors 2.66 3.14 3.62 4.13 4.67
Stock in Hand 0.51 0.59 0.68 0.76 0.85
Cash and Bank 2.01 2.67 2.89 3.58 4.53

20.21 19.47 18.56 18.38 18.69

TOTAL :

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 26.55 31.45 36.25 41.34 46.74

Total (A) 26.55 31.45 36.25 41.34 46.74

B) COST OF SALES

Raw Material Consumed 7.57 8.83 9.71 10.60 11.48

Elecricity Expenses 2.05 2.28 2.51 2.74 2.97
Repair & Maintenance 1.06 2.20 3.26 4.13 4.67
Labour & Wages 4.79 5.31 6.11 7.03 8.01
Depreciation 2.27 1.96 1.70 1.47 1.27

Cost of Production 17.74 20.59 23.30 25.97 28.41

Add: Opening Stock /WIP - 0.38 0.45 0.51 0.59

Less: Closing Stock /WIP 0.38 0.45 0.51 0.59 0.66

Cost of Sales (B) 17.36 20.53 23.23 25.90 28.33

C) GROSS PROFIT (A-B) 9.19 10.92 13.02 15.45 18.41

34.61% 34.72% 35.91% 37.36% 39.39%
D) Bank Interest (Term Loan ) 1.69 1.38 1.00 0.62 0.24
ii) Interest On Working Capital 0.28 0.28 0.28 0.28 0.28
E) Salary to Staff 3.28 3.44 3.96 4.55 5.23
F) Selling & Adm Expenses Exp. 0.27 0.63 1.09 1.65 2.34

TOTAL (D+E) 5.51 5.72 6.32 7.10 8.08

H) NET PROFIT 3.68 5.20 6.70 8.35 10.33

13.9% 16.5% 18.5% 20.2% 22.1%
I) Taxation 1.67 2.09 2.58

J) PROFIT (After Tax) 3.68 5.20 5.02 6.26 7.75

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

I 45% 7.57
II 50% 8.83 5% Increase in Cost
III 55% 9.71 5% Increase in Cost
IV 60% 10.60 5% Increase in Cost
V 65% 11.48 5% Increase in Cost
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 4,500.00 5,000.00 5,500.00 6,000.00

Production 2,70,000.00 3,00,000.00 3,30,000.00 3,60,000.00 3,90,000.00

2,70,000.00 3,04,500.00 3,35,000.00 3,65,500.00 3,96,000.00

Less : Closing Stock(5 Days) 4,500.00 5,000.00 5,500.00 6,000.00 6,500.00

Net Sale 2,65,500.00 2,99,500.00 3,29,500.00 3,59,500.00 3,89,500.00

Sale Price per brick 10.00 10.50 11.00 11.50 12.00

Sale (in Lacs) 26.55 31.45 36.25 41.34 46.74

COMPUTATION OF MAKING OF INTERLOCKING BRICKS

Item to be Manufactured Interlocking brick

Manufacturing Capacity per day 2,000 bricks

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 6,00,000 bricks

Total Production per Annum 6,00,000 bricks
INTERLOCKING
Year Capacity BRICKS
Utilisation

I 45% 2,70,000.00
II 50% 3,00,000.00
III 55% 3,30,000.00
IV 60% 3,60,000.00
V 65% 3,90,000.00

COMPUTATION OF RAW MATERIAL

Quantity of Raw Total CostPer
Unit Unit Rate of
Item Name Material Annum (100%)
Portland cement 170.00 Ton 6,500.00 11,05,000.00
Sand 95.00 Ton 4,000.00 3,80,000.00
Jelly 60.00 Ton 1,200.00 72,000.00
Dust 45.00 Ton 1,000.00 45,000.00
Other material & consumables 80,000.00
Total 16,82,000.00

Total Raw material in Rs lacs 16.82

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(5 Days requirement) 0.38 0.45 0.51 0.59 0.66
Raw Material
(5 Days requirement) 0.13 0.15 0.16 0.18 0.19

Closing Stock 0.51 0.59 0.68 0.76 0.85

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 0.51
Less:
Sundry Creditors 0.18
Paid Stock 0.33 0.03 0.30

Sundry Debtors 2.66 0.27 2.39

Working Capital Requirement 2.69

Margin 0.30

MPBF 2.69
Working Capital Demand 2.50
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 12,000.00 1 12,000.00
Plant Operator 10,000.00 1 10,000.00
Unskilled Worker 6,000.00 1 6,000.00
Helper 4,000.00 1 4,000.00
Security Guard 6,000.00 1 6,000.00

38,000.00
Add: 5% Fringe Benefit 1,900.00
Total Labour Cost Per Month 39,900.00
Total Labour Cost for the year ( In Rs. Lakhs) 5 4.79

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 10,000.00 1 12,000.00
Accountant cum store keeper 8,000.00 1 8,000.00
Sales 6,000.00 1 6,000.00
Total Salary Per Month 26,000.00

Add: 5% Fringe Benefit 1,300.00

Total Salary for the month 27,300.00

Total Salary for the year ( In Rs. Lakhs) 3 3.28

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 5.00 10.80 1.50 17.30
- 5.00 10.80 1.50 17.30
- - -
TOTAL 5.00 10.80 1.50 17.30
Less : Depreciation - 0.50 1.62 0.15 2.27
WDV at end of Ist year - 4.50 9.18 1.35 15.03
Additions During The Year - - - - -
- 4.50 9.18 1.35 15.03
Less : Depreciation - 0.45 1.38 0.14 1.96

WDV at end of IInd Year - 4.05 7.80 1.22 13.07

Additions During The Year - - - - -
- 4.05 7.80 1.22 13.07
Less : Depreciation - 0.41 1.17 0.12 1.70
WDV at end of IIIrd year - 3.65 6.63 1.09 11.37
Additions During The Year - - - - -
- 3.65 6.63 1.09 11.37
Less : Depreciation - 0.36 0.99 0.11 1.47
WDV at end of IV year - 3.28 5.64 0.98 9.90
Additions During The Year - - - - -
- 3.28 5.64 0.98 9.90
Less : Depreciation - 0.33 0.85 0.10 1.27
WDV at end of Vth year - 2.95 4.79 0.89 8.63
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter 15.57 - 15.57 0.43 - 15.57
Iind Quarter 15.57 - 15.57 0.43 - 15.57
IIIrd Quarter 15.57 - 15.57 0.43 0.87 14.71
Ivth Quarter 14.71 - 14.71 0.40 0.87 13.84
1.69 1.73
II Opening Balance
Ist Quarter 13.84 - 13.84 0.38 0.87 12.98
Iind Quarter 12.98 - 12.98 0.36 0.87 12.11
IIIrd Quarter 12.11 - 12.11 0.33 0.87 11.25
Ivth Quarter 11.25 11.25 0.31 0.87 10.38
1.38 3.46
III Opening Balance
Ist Quarter 10.38 - 10.38 0.29 0.87 9.52

Iind Quarter 9.52 - 9.52 0.26 0.87 8.65

IIIrd Quarter 8.65 - 8.65 0.24 0.87 7.79
Ivth Quarter 7.79 7.79 0.21 0.87 6.92
1.00 3.46
IV Opening Balance
Ist Quarter 6.92 - 6.92 0.19 0.87 6.06
Iind Quarter 6.06 - 6.06 0.17 0.87 5.19
IIIrd Quarter 5.19 - 5.19 0.14 0.87 4.33
Ivth Quarter 4.33 4.33 0.12 0.87 3.46
0.62 3.46
V Opening Balance
Ist Quarter 3.46 - 3.46 0.10 0.87 2.60
Iind Quarter 2.60 - 2.60 0.07 0.87 1.73
IIIrd Quarter 1.73 - 1.73 0.05 0.87 0.86

Ivth Quarter 0.86 0.86 0.02 0.87 - 0.00

0.24 3.46

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R

PARTICULARS I II III IV V

CASH ACCRUALS 5.95 7.16 6.72 7.73 9.02

Interest on Term Loan 1.69 1.38 1.00 0.62 0.24

Total 7.64 8.54 7.72 8.35 9.26

REPAYMENT
Repayment of Term Loan 1.73 3.46 3.46 3.46 3.46
Interest on Term Loan 1.69 1.38 1.00 0.62 0.24

Total 3.42 4.84 4.46 4.08 3.70

DEBT SERVICE COVERAGE RATIO 2.24 1.76 1.73 2.05 2.50

AVERAGE D.S.C.R. 2.03

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 30
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 4,02,840.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47
Add : Lube Cost @15% 0.07

Total 0.54

Total cost of Power & Fuel at 100% 4.57

Year Capacity Amount

(in Lacs)

I 45% 2.05
II 50% 2.28
III 55% 2.51
IV 60% 2.74
V 65% 2.97
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
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reflect the views of the industry which are drawn from various research material
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considering specific requirement of the project, capacity and type of plant and
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intended for general guidance only and must not be considered a substitute for a
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