HOLLOW CONCRETE BLOCK

Introduction:
Hollow concrete blocks are substitutes for conventional bricks and stones in building construction.
They are lighter than bricks, easier to place and also confer economics in foundation cost and
consumption of cement. In comparision to conventional bricks, they offer the advantages of
uniform quality, faster speed of construction, lower labour involvement and longer durability. In
view of these advantages, hollow concrete blocks are being increasingly used in construction
activities.
Market Potential:
Hollow concrete blocks can be used for (a) exterior load bearing walls, (b) interior walls, (c) Panel
walls, (d) columns, (e) retaining walls and (f) compound walls. In view of their versatile uses and
properties, hollow concrete blocks are in demand by departments/agencies engaged in
construction including PWD, Housing Boards and Urban Development Corporations, Road
Transport Corporation and Forest Departments.
To mitigate the housing shortage in the north east, construction to the tune of Rs 800 crore per
year would be involved. In addition, the other construction activities where hollow concrete blocks
can be used include hotels, shops, offices, public buildings etc. The value of hollow concrete
blocks may be taken to be about 8 to 10% of the total cost of construction. Assuming that about
20% of the construction activities would use hollow concrete blocks, the demand potential for
hollow concrete blocks is estimated at Rs 13 crores per year. Barring Guwahati where there are
two units manufacturing hollow concrete blocks at present there are hardly any units in the north
east. Keeping this in view and potential demand, there appears to be scope for over 28 units to
be set up depending on the capacity and location.
Plant Capacity:
The standard sizes of hollow concrete blocks are
(a)
400mm x 200mm x 200mm
(b)
400mm x 200mm x 150mm
(c)
400mm x 200mm x 100mm
A typical unit would have a production rate of 1500 blocks per day of size 400 x 200 x 100mm on
a two shifts basis. The annual production would, thus, be about 3.08 lakh blocks as given below
(based on 400 x 200 x 100mm size):
Production per hour
Capacity utilization
Daily production envisaged
Saleable blocks
Working days/year
Annual production

:
:
:
:
:
:

1500 blocks/day
70%
1050 blocks
98% of production
300
308700 blocks
Say: 3.08 lakh blocks

Raw Materials :
The raw materials required are cement and stone chips. The annual requirement of raw materials
for the production of 3.08 lakhs hollow concrete blocks pe year are as follows:
Cement
Sand
Stone chips

:
:
:

105 tonne per year

210 cu.m
1260 cu.m

All these raw materials are locally available in the north eastern region. Crushed stone chips
below 12mm size would need to be procured from stone crushing units.
Process:
The ratio of cement, sand and stone chips (metal) in the raw material mix determines the
properties of hollow concrete blocks. A ratio of 1.3:8 (cemnt:sand:metal) confers higher strength,
while a ratio of 1.5:6 can be employed for normal load bearing construction. The water to cement
ratio is usually 0.4:1.

62

The major process steps are

i)
First stone and sand are mixed with water and cement is then poured in the
mixer.
ii)
Weighing of aggregate.
iii)
Pouring of cement slurry in moulds place on concrete block making machine.
iv)
Ramming of moulds in machine.
v)
Removal of moulds from machine.
vi)
Curing of cast blocks for 21 days.
Machinery:
The major equipment required are
i)
ii)

iii)
iv)

Concrete block making machine

Ramming moulds of following sizes
(a) Cavity 100 x 200 x 400mm
(b) Cavity 150 x 200 x 400mm
(c) Solid 200 x 200 x 400mm
Concrete mixer
Tipping barrows

1 No.

Infrastructure:
The main infrastructure required are
Shed (thatched)
Open storage area
Power
Water

:
:
:
:

2000 sq.ft.
400 sq.ft.
10 KW
120 ltr/day

:
:
:
:
:

Bongaigaon, Tezpur
Shillong
Imphal
Aizawl, Kolasib
Dzongri, Brang

Location:
The suggested locations are
Assam
Meghalaya
Manipur
Mizoram
Sikkim

Total Capital Requirement:

The total capital requirement including fixed capital and working capital is estimated at Rs 9.00
lakhs as follows. Of this, the project cost comprising fixed capital and margin money on working
capital is Rs 5.98 lakhs.
(Amount Rs lakh)
A.
Fixed Capital:
Land and building
On rent
Machinery
3.46
Misc. Fixed Assets
0.60
Preliminary & pre-op. expenses
0.30
Total (A)
4.36
B.
Working Capital:
Raw materials
Working progress & Finished goods
Working expenses
Receivable

Note: Working capital may be financed as

Bank Finance :
Margin money :

63

month
1 month
1 month
1 month
Total (B)
Total (A + B )

0.76
1.68
0.41
1.79
4.64
9.00
3.02
1.62

Means of Finance:

(Rs lakh)

Promoters contribution(35%)
Term loan(65%)

:
:

3.15
5.85
9.00

Operating Expenses:
The annual operating expenses are estimated at Rs 23.53 lakhs as below:
Amount (Rs lakh)
Raw materials
Cement 103 MT @ Rs 5200/MT
:
5.36
Sand 210 cu.m @ Rs 500/cu.m
:
1.05
Stone chips 1260 cu.m @ Rs 700/cu.m
:
8.82
Utilities
:
0.77
Wages & salaries
:
3.68
Rent
:
0.24
Other overheads
:
0.25
Selling expenses @ 10% on annual sales
:
2.16
Interest on Term Loan
:
0.34
Interest on bank finance for working capital
:
0.45
Depreciation
:
0.41
23.53
Sales Realization:
Based on a net ex-factory price of Rs 5.50 per block, the annual sales realization is estimated at
Rs 24.64 lakhs.
Profitability:
Based on the sales realization and the operating expenses, the profit at 70% capacity would
be Rs 1.95 lakhs per year. This works out to a return on investment of 62%. The plant would
break even at about 45% of the rated capacity.
Highlights:
The major highlights of the project are as follows:
Total Capital requirement
Promoters contribution
Annual Sales realization
Annual Operating Expenses
Annual Profit (pre-tax)
Pre-tax return on sales
Break-even point
No. of person employed (direct)

Machinery Suppliers:
M/s Minato Shirke Concrete Machinery Pvt. Ltd.,
72-76 Industrial Estate,
Mundhwa,
Pune 411 036.

64

Rs. 9.00 lakhs

Rs 1.53 lakhs
Rs. 24.64 lakhs
Rs. 23.53 lakhs
Rs. 1.11 lakhs
45%
58%
18 Nos.