Construction & Building Materials

The construction industry is the second largest industry in India after agriculture. It accounts for about 11% of India’s GDP. It makes significant contribution to the national economy and provides employment to large number of people.Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation etc.There are mainly three segments in the construction industry like real estate construction which includes residential and commercial construction; infrastructure building which includes roads, railways, power etc; and industrial construction that consists of oil and gas refineries, pipelines, textiles etc.Building material is any material which is used for a construction purpose. Many naturally occurring substances, such as clay, sand, wood and rocks, even twigs and leaves have been used to construct buildings. Apart from naturally occurring materials, many man-made products are in use.

The feasibility of infrastructure projects in ports, roads, airports and railways with private-sector majority ownership is already evident. The government also expects a substantial increase in the share of private sector investments in infrastructure from 19 per cent in the Tenth Plan to around 30 per cent in the Eleventh Plan. The biggest increase in private participation is expected in roads (from 5 per cent to 36), ports (47 per cent to 74 per cent) and railways (less than 1 per cent to 20 per cent). The Planning Commission estimates that the remaining infrastructure investments will be funded by the central and state government. According to a study by ASSOCHAM, the burgeoning Indian construction industry, currently worth $70 billion, will rise to US$120 billion by 2010.

The Commonwealth Games - 2010 in New Delhi have thrown mega opportunities for Building Material Companies, Construction Equipments & Technologies companies. The Govt. of India has permitted FDI up to 100% for development of integrated townships in India last year. India is now the second most favored destination for FDI, behind China. A large and growing middle class population of more than 300 million people, a changing life style, better cost of living etc is growth drivers for this sector.

The Indian construction industry, an integral part of the economyand a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living in the coming years.

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Each detailed project reports cover all the aspects of business, from analysing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.

We also offer self-contained Pre-Investment and Pre-Feasibility Studies, Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process and or Equipment required, General Guidance, Technical and Commercial Counseling for setting up new industrial projects on the following topics.

Many of the engineers, project consultant & industrial consultancy firms in India and worldwide use our project reports as one of the input in doing their analysis.

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We can also prepare project report on any subject as per your requirement.

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INTEGRATED PRODUCTION UNIT OF GYPSUM POWDER, GYPSUM BOARD AND P.V.C. LAMINATED GYPSUM CEILING TILES

Calcium always occurs in the combined state. The most important naturally occurring compounds of calcium are calcium sulphate in mineral anhydrite and hydrated calcium sulphate in gypsum. Gypsum is employed in the manufacture of Plaster of Paris. Calcium sulphate occurs in enormous deposits of gypsum, CaSO4.2H2O. Large quantities of gypsum are employed in the manufacture of flooring plasters gypsum is used for making casts of statues and surgical treatment. For gypsum boards, the raw materials will be plaster of paris, special surface protection paper, glass fibre, frothing preparation and white latex. For the production of PVC laminated gypsum ceiling tiles, the capacity of the plant will be 1 million sq. mt./annum, PVC is one kind of plastics decoration materials. With PVC resin the principal ingredient mixed with moderate anti-age modifier and other materials, PVC is made through refining and calendaring. After coating, the gypsum board becomes light, insulated, warm, water-proof, fine-resistant and convenient to use. Gypsum board PVC coating, rich in specification, color and design, can be widely used in the decoration of interior walls and ceilings.
Plant capacity: 60,000 MT / A (Gypsum Powder), 3000 Thousand Sq. MT/A (Gypsum Board),600 Thousands Sq. MT/A (PVC Laminated Ceiling Tiles) Plant & machinery: 840 Lakhs
Working capital: -T.C.I: Cost of Project : 2352 Lakhs
Return: 42.00%Break even: 57.00%
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Pre-painted Coloured Galvanized Roofing Steel Sheet (Plain & Corrugated)

There is significant increase in demand for pre-coated galvanized sheet-for industrial, storage and warehousing projects. In USA & Europe 55% Aluminium Zinc coated steel is used for roofing which gives increased life compared to ordinary coated sheets. The corrugated galvanized iron sheets are extensively used in various fields e.g. Industrial sheds, dairy farm sheds, poultry farm sheds and warehouses etc. for roofing purpose. It is observed that asbestos cemented roof sheet, plastic corrugated sheet, and red mud sheets are also used in the construction of industrial shed. However, the use of asbestos sheet is not preferred and there is a potential for growth of this product, in industrial projects, warehouses and storage establishments.
Plant capacity: 15 MT / DayPlant & machinery: 58 Lakhs
Working capital: -T.C.I: 793 Lakhs
Return: 50.00%Break even: 27.00%
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Concrete Block & Ready Mix Concrete

Ready mix concrete is a modern trend of introduction in the Asian countries. It is new concept of use concrete in the construction area. Ready mix has advantages in the area where intermediate requirement of concrete mixture like in the preparation of bridge overhead roads or the road construction. The concrete hollow blocks are used for building construction in developed countries. The second major advantage derived by the use of concrete hollow block is that the varieties in the blocks are filled with air column even after completion of the building work. Modern cement is setting upon ready mix concrete plant. The plant capacity 150 cubic/meter/day (45000 cubic meter/annum). Larsen & Turbo open RMC plant in Mumbai. It can be concluded that few new entrepreneurs may enter in this venture will be successful.
Plant capacity: 8000 No. Concrete Block / Day, 165 Cubic Meter Ready Mix Concrete / DayPlant & machinery: 5 Crores
Working capital: -T.C.I: 12 Crores
Return: 43.00%Break even: 39.00%
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GOOD OPPORTUNITIES IN CEMENT PLANT

The term cement is used to designate many different kinds of substances that are used as binders. The term cements as used henceforth will be confined to inorganic hydraulic cements, principally Portland cement. The demand for the cement was stimulated by the growth of canal systems in the United States during 19th century. This led to process improvements in the calcinations of certain limestones for the manufacture of natural cements and to its gradual displacement by Portland cement. The latter was named by aspdin in a 1924 patent because of its resemblance to a natural limestone quarried on the island of Portland in England. Research conducted in many parts of the world since that time has provided a clear picture of the composition, properties and fields of stability of the principal systems found in Portland cement. These results led to the widely used Bogue calculation of composition based on oxide analysis. Recent research is reported in the International Symposia on the Chemistry of Cements, and the annual reviews, beginning in 1974, of the American Ceramic Society in Cements Research Progress. India is the second-largest producer of cement in the world after China. The cement industry is regional in nature due to the concentration of limestone reserves located in a few states. This has resulted in a surplus situation in some regions and a deficit in others. Demand for cement has grown at a CAGR of 9.1% in the last two years with supply growing at a CAGR of 8.2% in the same period. With a large amount of infrastructure activities being planned in commercial, real estate and housing sector along with huge development works in roads, railways, ports and hydel projects, we expect the cement demand growth momentum to stay intact. We expect this to have a positive impact on cement prices in different regions till new capacities come up by mid-FY09. Demand for cement is correlated to the GDP growth of the country, infrastructure and industrial capex as well as exports. Strong GDP growth expected in the coming years and huge planned investments should result in healthy growth in the cement demand. The Indian economy continues to be on a much stronger growth path driven by increased amount of infrastructure spending and capex. The economy is expected to grow by 8% for the next two to three years, which will drive an increased demand growth for the cement industry. The cement demand is expected to grow at a CAGR of 10% at least for the next three years. The cement industry witnessed serious M&A activity in the past few years, as a result of which the top four players now account for almost 52-55% of the installed cement capacity of India. The M & A activity have also had global participants. The growing presence of international players bring with them better technology and operational efficiencies which could significantly alter pricing patterns. The demand- supply deficit is expected to remain for short term due to strong industrial growth thus keeping the prices firm. Being a bulk commodity, it is unviable to transport cement beyond a certain distance and due to the requirements of proximity to raw materials, proximity to markets, export potential and high freight rates involved it becomes necessary to evaluate the sector on a regional basis. The industry is divided into five regions - north, south, east, west and central. Northern region is facing an acute supply crunch for the last four years due to region's demand-supply deficit and increased net exports to other regions. Cement demand in the region grew at a CAGR of 10% for the last five years and is expected to grow at the same pace for the next five years, backed by aggressive infrastructure development activities, significant hydel capacity addition in the region, surging housing demand, SEZs construction, etc. Cement demand in the Western region has grown at a CAGR of 5.8% for last five years, backed by consistent infrastructure spending, concentrated investment from region-specific industries like oil refineries in Vadodara and Jamnagar region of Gujarat and steady growth in housing activities. The demand will continue to grow at the same pace for next 3-5 years fuelled by enhanced infrastructure spending like construction of the Metro Railway in Mumbai, express highways joining Gujarat and Mumbai, etc., resurgence in industrial investments, strong growth in retail sector. The demand in the southern region has grown at CAGR of 10.2% for the last five years as compared to capacity addition growth of 6.5% for the same period, reflecting the low capacity addition in the region since FY02. The region's demand is expected to grow in the range of 8-9% for the next five years on account of strong capital expenditure in the IT and electronic hardware sector, enhanced spending on infrastructure development, special thrust on irrigation activities, etc. Demand in the Central region grew at CAGR of 5% as compared to All-India demand growth of 8.5% Capacity utilization in the region will continue to remain above 99% for next two years and the region carries the lowest risk among all the regions as the trend would continue even in FY09E. The region is witnessing frenzied investments to the tune of $140bn to be implemented in next 5-10 years. The Eastern region lacks infrastructure to aid this quantum of investment, hence it will fuel the emergence of aggressive infrastructure development. Prices are expected to remain strong on the back of diminishing surplus and tight consolidation present in the region, with 73% of the market being controlled by top five players (three on group-wise criteria, ACC+Gujarat Ambuja, Ultratech+ Grasim and Lafarge). Volatility in cement prices in the Eastern region has been least among all the regions.
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: N/ABreak even: N/A
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Epoxy Coated TMT Bars

Steel is a generic name for a group of ferrous metals due to their abundance durability versatility and low costs are most useful metallic material known to mankind. Steel in the form of bars is used in the construction of buildings. The principle operation involves heating of billets ingots to proper counters dimensions and shape. Epoxy coated TMT Bar is a innovated and improved TMT Bar. It is resistance to corrosion and other degradation process. TMT Bar (Sariya) and rod constitute finished produced in straight form bar mills generally roll products with a minimum dia meter and from 5 mm to 32 mm are generally available. Epoxy coated TMT Bar is a innovated and improved TMT bar having a world wide acceptance and is becoming a most demandable. Now-a-days it is used in building construction and other civil work related constructions. The demand of the product is entire related to the growth and development in the field of building construction and its related field. Hence, there is a good potential in the market and new entrepreneur can well venture in this field and finds it a lucrative trade.
Plant capacity: 1,00,000 MT / AnnumPlant & machinery: 608 Lakhs
Working capital: -T.C.I: Cost of Project : 2808 Lakhs
Return: 43.00%Break even: 64.00%
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TMT Bars (Sariya)

Thermo Mechanical Treatment (TMT) is a term used to describe a variety of process combining controlled thermal and deformation treatment to obtain synergistic effect such as high yield strength, improved toughness and weld ability, higher resistance to brittle cleavage and to low-energy ductile fractures. An additional reduction in cost is provided due to the fact that controlled rolling process allows one to achieve desired properties. Steel is a generic name for a group of ferrous metals which due to their abundance durability versatility and low cost are most useful metallic material known to mankind. Thermo Mechanical Treatment (TMT) process for reinforcement bars is opening up new vistas. In composite RCC, the re-enforcing steel is the costliest constituent (30 To 40% Per Cu. m. of concrete). This cost can be substantially reduced by using higher grades of steel re-enforcing bars. Production of re-bars by the addition of micro-alloy gives the desired result of high strength but at a cost, which is prohibitive. The need for reduction in the steel used for concrete re-enforcement has prompted most countries of switch to re-bars of higher yield strengths of 500 to 550 MPa. The use of TMT process has not only helped produce re-bars of high yield strength but also having superior ductility, weld ability, band ability, better corrosion resistance and thermal resistance creating a revolution in re-enforcement engineering. The TMT bars are widely used in construction works such as high rise building, industrial structures, flyovers and bridges etc. Steel is one of the critical inputs required to sustain the growth of the economy. In fact it is the basic input for all kinds of economic activity. With the sustained growth of the Indian economy, there has also been a remarkable growth of the Steel Industry.
Plant capacity: 50,000 MT/AnnumPlant & machinery: 310 lakhs
Working capital: -T.C.I: Cost of Project : 1189 Lakhs
Return: 41.00%Break even: 74.00%
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TMT BARS (SARIYA) PROJECT

Thermo Mechanical Treatment (TMT) process for reinforcement bars is opening up new vistas in composite RCC, the re-enforcing steel is the costliest constituent (30 to 40% Per Cu. M. of concrete). This cost can be substantially reduced by using higher grades of steel re-enforcing bars. The higher yield strength of re-bars lowers the steel requirement, which results in reduced cost of construction. In India, high strength re-bars of yield strength up to 500 N/sq. mm. are produced either by cold twisting or micro-alloying or a combination of both which adds considerably to the cost of the re-enforcement bars. During the last 30 years, high strength cold twisted deformed bars with yield strength of 415 MPa conforming to IS:1786/85 are widely produced and marketed in our country. These cold twisted bars, though in extensive use at present, continue to have inherent problem of inferior ductility, weld-ability and increased rate of corrosion. Production of re-bars by the addition of micro-alloys gives the desired results of high strengths but at a cost, which is prohibitive. The need for reduction in the steel used for concrete re-enforcement has prompted most countries to switch to re-bars of higher yield strengths of 500 and 550 MPa. The need for cutting down the cost of production of high strength re-bars has initiated the involvement of a more economical and competitive process – the Thermo Mechanical Treatment (TMT) Process. The use of Thermo Mechanical Treatment process has not only helped produce re-bars of high yield strength but also having superior ductility, wild-ability, bend-ability, better corrosion resistance and thermal resistance creating a revolution in re-enforcement engineering. The TMT bars are widely used in construction works such as high rise building, industrial structures, flyovers and bridges etc. The Indian iron and steel industry has come to occupy a dominant position in the socio-economic development of the country and it is certainly a matter of pride that India is the 7th largest crude steel-producing nation in the world. After having gone through the highs and lows of business cycles over time, today the Indian steel industry is on the threshold of a major change as it gears up to give substance to an expansion plan that is ambitious by any standard. Joining forces with the ‘Main Producers’ are the ‘Secondary Producers’ as well, whose emergence in the post-liberalized decade in the Indian steel scene had been initially modest but over the years, they have made a significant contribution to the growth of the domestic iron and steel industry, in terms of spread, capacity, production and commodity basket, necessitation thereby, a fresh look at the segment, traditionally labeled as the ‘Secondary’ Producers, under the Indian context. Steel production in India got a momentum with the announcement of the Industrial Policy Resolution of 1956 when three SAIL plants were set up in the public sector in the late 1950s and the fourth in early 1970. These plants along with IISCO (now, a part of SAIL), VISL and TISCO (now Tata Steel Ltd) were the only integrated steel producers till the eighties. Vizag Steel plant/RINL came into production in the early nineties. The 70s saw the emergence of the Secondary sector – small scale steel producers who opted for the scrap-DRI based electric arc furnace/induction furnace routes – to meet primarily local demand. The semi finished ingots/billets produced by this segment, in turn led to the commissioning of a large number of re-rolling units to convert the semi finished steel into bars and rods, to be used mainly by the construction industry. Moving over the Re-rolling segment, challenges include facing the market downs, specially prices and operational factors like high energy consumption. Prospect for future growth may be considered bright, given the pace and scale of infrastructure / construction activities. Such prospects are captured in the projections for the 11th Five Year Plan of the Government of India, which indicates that share of Secondary Producers in total crude steel production would rise from the present below-50% mark to 53% at the end-of the plan period, as the Secondary sector consolidates their position further. The Indian steel industry has ended 2006-07 on a buoyant note, in the backdrop of Indian economy, growing by a projected 9% growth rate. As the steel industry, including the foreign steel giants setting up steel plants in India, prepares to launch their dream projects, the future of steel in India is awaits a new chapter to be written – a phase which would in all likelihood would witness the Secondary Steel sector further increase their dominance and criticality in the overall operations of the Indian iron and steel industry. If we were to pause for a moment to think about the growth of human civilization, we would find that the pace of social and economic growth has been closely linked to the proficiency with which people have been able to use of shape materials. Steel is one of the critical inputs required to sustain the growth of the economy. In fact it is the basic input for all kinds of economic activity. With the sustained growth of the Indian economy, there has also been a remarkable growth of the Steel Industry. The growth of infrastructures, roads and bridges, civil construction projects, and modern town ship complexes will ensure continued demand of TMT bars.
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: N/ABreak even: N/A
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Water Proofing Compound (Liquid and Powder)

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Plant capacity: 300 MT Liquid/year, 300 MT Powder/yearPlant & machinery: 19 Lakh
Working capital: -T.C.I: Cost of Project : Rs. 66.67 Lakhs
Return: 45.00%Break even: 63.00%
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Cement Roofing Tiles

Roofs are basic element of shelter to protect the people themselves from cold, wind rain and sun. Tiles are thin slabs of baked clay used for construction of roofs, walls or floors. They may be plain or ornamented, and glazed or unglazed. Tiles are also made from marble, cement or plastic materials. The type and designs of tiles are many and they can be conveniently classified into two groups, namely, non roofing and roofing tiles. Roofing tiles made from plastic, clay are usually unglazed. They are of many designs of which the more popular are country, Mangalore, Raniganj, Allahabad, Ridge, ventilation, Sky-light, hourdis and valley. The manufacture of cement tiles are exclusively carried out by small medium scale sectors. The tile industry reoriented itself to changing pattern of internal demand by establishing several units, both in large and small scale sectors for manufacturing of roofing and non-roofing tiles in near future to patch up the gap between demand and supply so this industry is to main fold. The announcement made by govt. to build rural houses, for poor people, will definitely become the counterpart of it and which and should not be allowed to go waste by negligence, here important is that to bring about a change of heart and attitude of the people, inform them of the advisability of casing cement roofing tiles for their houses. Cement roofing tiles meet the styling, long lasting service combined with a flexibility that make this versatile roofing adaptable for residential houses, tiles will definitely push up the demand of cement roofing tiles, so there is wide scope of new entrepreneurs to venture into this project.
Plant capacity: 5000 Nos. /DayPlant & machinery: 39 Lakhs
Working capital: -T.C.I: 163 Lakhs
Return: 43.00%Break even: 43.00%
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HOLLOW BLOCKS & PAVING TILES

Concrete block technology is based on the principle of densification of a lean concrete mix to make a regular shaped, uniform, high performance masonry unit. Concrete blocks are of various types like; hollow, paving, tree-guard blocks. Each of them is available in different shapes and sizes. Hollow block is an excellent replacement of clay blocks. The block masonry is load bearing and there are several advantages of using blocks. More importantly they are widely used in South India, more particularly in Bangalore, Chennai, Mumbai, and Ahmedabad. Paving tile is versatile, aesthetically attractive functional, cost effective and requires little or no maintenance if correctly manufactured and lay. Blocks had many advantages fire resistant, economical, highly durable etc. Due to increase in the price of clay bricks and quality of clay brick detoriating day by day, blocks are gaining popularity, so there will be wide scope for new entrepreneurs to venture into this project.
Plant capacity: 144 Lakhs Hollow Blocks/year, 288 Lakhs Paving Tiles/yearPlant & machinery: 598 Lakhs
Working capital: -T.C.I: Cost of Project : 1234 Lakhs
Return: 46.00%Break even: 34.00%
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Information
  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • 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.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

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