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written by | October 11, 2021

How to Start a Cement Brick Manufacturing Business?

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 Are you thinking of starting a brick and cement manufacturing facility? If so, here's the complete information on the brick and cement manufacturing business. 

Industrialisation and rapid urbanisation in developing nations have resulted in the growth of construction projects and have created new opportunities for the concrete block, cement, and brick manufacturing market. Beginning an enterprise to manufacture cement and bricks could be beneficial if you have the exposure and financial needs. Let's look at the procedure.

Did You Know?

India's construction industry is the second largest after agriculture. In addition to being the largest direct and indirect creator of employment, the industry accounts for 8% of India's GDP. It employs nearly 4 crore people and creates more jobs every year. 

Business Plan for Manufacturing Cement Bricks 

Business Plan

The first stage is to develop an outline of your cement brick business plan. When you're sure you'd like to start cement brick factories, it is essential to implement your plan first. When drafting an enterprise plan, you must determine the business's strategy. The marketing, financial, human resources, and operational plans should be distinct and specific.  

You must outline the goals of your business before the time and take appropriate steps to attain these goals. It is essential to establish milestones for your business and develop an action plan to meet these goals. Once you have your plan in place, you are ready to take the next steps.

Also Read: Know About India's Top Ten Cement Companies

Ideas for Starting and Making Money

The cement brick industry has been generating results in recent times. The manufacturing of cement bricks is a lucrative opportunity for many job seekers. There are a lot of questions and doubts among the public on whether or not the manufacturing of bricks and cement could be a viable startup.

Let's get deep into the specifics and explanations of the various questions that usually come up when you consider starting this industry. The most crucial factors you must be aware of are the costs of establishing a cement block factory or plant in India. Also, you must know the basic materials needed to manufacture the product and in-depth information about making cement bricks, including the cost of making machines for cement bricks.

The Location of the Cement Brick Business

Finding the right site for your cement brick business is the most crucial aspect. When evaluating the location, identify the size and the amount of open space required to run the business. Brick manufacturing requires a large area to store the raw materials and maintain the temperature inside to be increased by the heat from the furnace. So, pick a big private area to set up the manufacturing of cement bricks.

The Availability of Raw Materials

After you decide on the factory's location, the arrangements for raw materials should be completed. You must source the raw materials from the nearest site to reduce the transportation cost and ensure timely delivery of the raw materials. 

The different raw materials used for the production of bricks include cement, stones, sand silica, water soil, lime, etc. The materials must be easily accessible and reasonably priced. Have a sufficient stock of raw materials available.

Specific Requirements for the Business

Your cement brick business plan should contain all the information regarding the needs of your business. You'll need many things like raw materials. Then the equipment needed to make bricks. 

To start an enterprise manufacturing brick, you'll need the following.

Raw Materials

  • Clay
  • Sand
  • Water
  • Cement
  • Chemicals included in the mix 

Equipment

  • Cleaners
  • Kiln
  • The moulding structure is for bricks.
  • Mortar mixer machine
  • Tools for mixing, levelling and maintaining these materials

These are the main prerequisites to manufacture bricks. There is bound to be other equipment needed to manufacture. It is possible to learn about all the essential requirements when talking to someone who already knows the business. 

Also Read: How to Begin a Tiles Business?

Costing

When deciding whether to go with semi-automatic or fully automated equipment, you must reconsider the costs. If you'd like the equipment's cost to be below, it is possible to go with purchasing second-hand. Examine the costs of different equipment, raw materials, and so on.

The output you're planning to produce must be evaluated. Also, identify the other costs that come when you start a factory-like cost of labour, materials and electricity, water and other charges. The efficiency of your cement brick business model must be evaluated.

Analysis of Competition

The brick industry is only subject to competition on a local and regional level. This is why you must research your competition and what they are offering. To compete in the market, you must concentrate on network building. Make new connections in the area of construction.

They will allow you to expand your cement brick business and ensure regular deliveries. Ensure to get in touch with construction companies, builders, architects and others from your neighbourhood and surrounding area. Maintain good relationships with them. Provide high-quality services to your clients.

Workforce and Skilled Labour

There's not much expertise in making bricks. The only thing you have to be aware of is to search for clay and mortar quality and the proportion of clay-water, cement-sand and water, as well as the time and temperature needed to bake the bricks.

They aren't difficult to grasp for any person. Hire a skilled worker who has worked for many years in the field of the brick industry. The rest of them will require manual labour.

If you are operating on a smaller scale, you'll need at least three workers to begin manufacturing, and the number could increase to 12-15 depending on the requirements.

Permits and Licences

When you're ready to set up all the bricks and components of your factory, you must apply for the necessary permits and licences. There are laws regarding pollution of the environment, kilns etc., and they must be observed. It is also necessary to declare your clay brick. The site should be chosen according to the norms set by government officials. You can set up and begin your brick manufacturing facility when you've received the approvals.

Certain permits are important to begin and operate your brick manufacturing company. In the beginning, you'll need to declare yourself a business that includes construction and manufacturing.

In addition, you must grant permission from the local authority and government to establish a cement brick business. There are specific guidelines to follow when setting it up and manufacturing bricks. So, land away from the residential area is the standard for obtaining permission.

There is also the need for approval from the environment since you will be conducting manufacturing, which produces fumes, waste products, dust, and drainage. Consult a lawyer who deals with the issues mentioned above. A lawyer will assist you in understanding the regulations and following the guidelines to ensure smooth approval.

Manufacturing bricks is considered a strictly controlled industry that government officials visit to tour the factory's setting workers, employees, their identification numbers and the accounts book.

Conclusion

With all these things in place, you're just like a brick and cement business owner, and you are ready to make even lakhs. But, remember that you must conduct some kind of marketing. In the cement brick business, the primary marketing tool is quality.

Ensure that you don't make a trade for quality. There are lives at stake because if your cement and bricks aren't strong enough, the building made of brick and cement won't be as strong. You're well aware of what this means. Avoid mixing the cement with sand. Business management can be daunting if your calculations go wrong.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What processes are included in cement brick manufacturing?

Ans:

Mixing, moulding, curing, and cubing are the 4 processes.

Q: Is cement brick manufacturing profitable?

Ans:

There are many fly ash brick-making machines models, each having distinctive capacities. A typical one can conveniently make 1000-10,000 bricks per hour. The cost of this machine is around ₹10-13 lakh. You can sell nearly 5 lakh bricks for ₹30-40 lakh. In this way, after excluding all the expenses, you can profit around ₹4.90 lakh. So, the cement brick business is very lucrative.

Q: What should my cement bricks manufacturing business plan include?

Ans:

It would include everything that a typical business falling under MSME includes:

1.      Business profile summary

2.      Market research summary

3.      Business description and business overview

4.      Products

5.      Sales & marketing

6.      Operations

7.      Financials

Q: What is the profit I can expect from the cement bricks business?

Ans:

Large brick manufacturers make 30,000 - 40,000 bricks each day, which can be conveniently sold at ₹1-2 per piece. By running a successful cement bricks business, you can earn around the same amount as the number of bricks you produce. The annual profit margin in cement manufacturing is 12%.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.