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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ARTIFICIAL GRANITE TILES

Artificial marble or granite having excellent aesthetic properties, patterns and tonalities cannot be found in natural materials. The artificial granite solid material has an excellent machinability, workability, and physical properties (strength), as well as good-looking textures (inorganic material like appearance, expressing by itself heaviness, hardness, and thickness; exhibits a very granitic look as a whole) with an ornamental and luxurious appearance. Granite was recently rated the top performing kitchen countertop material by a leading consumer magazine when compared with engineered stone (an excellent countertop material), butcher block, ceramic tile, stainless steel and other manufactured surfaces. It is also more hygienic (tied with quartz) than all other surfaces. One of the hardest and strongest materials in nature, granite originated from the earth's core as liquid magma. Extreme heat and pressure forged the quartz, mica, feldspar and other minerals into a very dense structure millions of years ago. Additional heat and pressure resulted in the myriad, fascinating combinations of color and pattern as well as the many outstanding qualities of out granite. Marketability of artificial granite tiles is mostly governed by its aesthetic properties, which cannot be subjected to quantitative measurements. The aesthetic properties include colour, pattern, surface appearance, texture, and workmanship, Granite Slab and Tiles are mainly used for wall paneling and facades Artificial granite tiles are used for facing flooring and wall skirting in domestic and commercial building including hotels and community buildings, so the consumption of granite slab and tiles is pre dominants in diversified end-user industries and as a consequence, there in variably exist a great demand-supply gap will need to be filled up. Hence a new entrepreneur will ever find this trade a profitable. The construction industry is the second largest industry in India after agriculture. It accounts for about 11% of India’s GDP. 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. 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 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. There is a good opportunity and scope for new players to venture into this field.
Plant capacity: 656700 Sq. Ft/AnnumPlant & machinery: 148 Lakhs
Working capital: -T.C.I: Cost of Project : 342 Lakhs
Return: 42.00%Break even: 55.00%
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PRE TENSIONED PRESTRESSED RAILWAY SLEEPERS

A railroad tie (generally known as a railway sleeper) is a rectangular object used as a base for railroad tracks. Ties are members generally laid transverse to the rails, on which the rails are supported and fixed, to transfer the loads from rails to the ballast and sub grade, and to hold the rails to the correct gauge. Traditionally, ties have been made of wood, but concrete is now widely used. Steel ties and plastic composite ties are currently used as well, although far less than wood or concrete ties. As of January 2008, the approximate market share, in North America, for traditional and wood ties was 91.5%, whereas the approximate combined market share for all concrete, steel, adobe (exotic hardwood) and plastic composite ties was 8.5%. Ties are normally laid on top of track ballast, which supports and holds them in place, and provides drainage and flexibility. Heavy crushed stone is the normal material for the ballast, but on lines with lower speeds and weight, sand, gravel, and even ash from the fires of coal-fired steam locomotives have been used. Approximately 3000 ties are used per mile of railroad track. The rails are traditionally joined to the track by a railroad spike rather than the substantial iron/steel chairs used in Europe. Concrete ties have become more common mainly due to greater economy and better support of the rails under high speed and heavy traffic. As concrete technology developed in the 19th century, concrete established its place as a versatile building material and could be adapted to meet the requirements of railway industry. Prestressed concrete is basically concrete in which internal stresses of a suitable magnitude and distribution are introduced so that the stresses resulting from external loads are counteracted to a desired degree. In reinforced steel concrete members, the prestressing is commonly introduced by tensioning the steel reinforcement. India’s infrastructure spending at present accounts for just 4 per cent of GDP, as compared to China’s 9 per cent. Physical infrastructure covering transportation, power and communication through its backward and forward linkages facilitates growth; social infrastructure including water supply, sanitation, sewage disposal, education and health, which are in the nature of primary services, has a direct impact on the quality of life. 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. Thus there is a good scope to venture into this field for new entrepreneurs. Few Major players are as under: Alpine Housing Devp. Corpn. Ltd. Bangalore G P T Infraprojetcs Ltd. Kolkata Hindustan Prefab Ltd. South Delhi Indian Hume Pipe Co. Ltd. Mumbai
Plant capacity: 300000 Nos./AnnumPlant & machinery: 182 Lakhs
Working capital: -T.C.I: Cost of Project : 466 Lakhs
Return: 44.00%Break even: 52.00%
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READY MIX CONCRETE (RMC)

Ready mix concrete is a modern trend of introduction in the Asian Countries. It is already introduced long before in the European Countries. It is new concept of use concrete in the construction area. Ready mix concrete has advantages in the area where immediate requirement of concrete mixture like in the preparation of bridge overhead roads on or the road construction. In India there is a hopeful to get good scope of RMC within short period. The batching, mixing, transportation, placing, compaction, finishing and curing are very complimentary operations to obtain desired good quality concrete. The good quality concrete is a homogeneous mixture of water, cement, aggregates and other admixtures. Admixtures are chemical mixtures that are added to concrete to enhance its performance is some fashion. Admixtures are materials other than cement, aggregate and water that are added to concrete either before or during its mixing to alter its properties, such as workability, curing temperature range, set time or color. Some admixtures have been in use for a very long time, such as calcium chloride to provide a cold-weather setting concrete. Others are more recent and represent an area of expanding possibilities for increased performance. Not all admixtures are economical to employ on a particular project. Also, some characteristics of concrete, such as low absorption, can be achieved simply by consistently adhering to high quality concreting practices. The aim of quality control is to ensure the production of concrete of uniform strength in such a way that there is a continuous supply of concrete delivered to the place of deposition, each batch of which is as nearly like the other batches as possible. India is the second largest producer of cement in the world after China. Cement and ready-mix concrete demand is dependent on the level of construction activities. Construction activities are in turn closely related to a number of macroeconomic factors such as consumer spending, population growth, manufacturing sector growth, inflation rates, government spending etc. 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. According to a study by ASSOCHAM, the burgeoning Indian construction industry, currently worth $70 billion, will rise to US$120 billion by 2010. The Ready-mix concrete business in India is in its nascent stage. In a developed country 70% of cement produced is used by the Ready-mix concrete industry. However, in India, the Ready-mix concrete industry uses less than 10% of the total cement production. 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. There is good scope to venture into this field for new entrepreneurs. Few Indian Major Players are as under: A C C Concrete Ltd. Ahlcon Ready Mix Concrete Pvt. Ltd. Ahluwalia Contracts (India) Ltd. Ashoka Buildcon Ltd. Grasim Industries Ltd. Larsen & Toubro Ltd. Madras Cements Ltd. Prism Cement Ltd. R D C Concrete (India) Pvt. Ltd.
Plant capacity: 240 Cubic Meter/DayPlant & machinery: 86 Lakhs
Working capital: -T.C.I: 936 Lakhs
Return: 42.00%Break even: 36.00%
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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. India is the second-largest producer of cement in the world after China with industry capacity of approximately 160 MT in 2006. 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, as against 40-42% in FY00.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 cement industry has witnessed substantial reorganization of capacities during the last couple of years. Some examples of the consolidation witnessed during the recent past include: Gujarat Ambuja taking a stake of 14% in ACC; Gujarat Ambuja taking over DLF Cements and Modi Cement; India Cement taking over Raasi Cement and Sri Vishnu Cement; Grasim's acquisition of the cement business of L&T; Indian Rayon's cement division merging with Grasim; Grasim taking over Sri Digvijay Cements; L&T taking over Narmada Cements; ACC taking over IDCOL. There is a very good scope and market potential of cement right now. New entrepreneurs should venture into this field. Few Indian Major Players are as under: A C C Ltd. Alcon Cement Co. Pvt. Ltd. Ambala Cements Ltd. Ambuja Cements Ltd. Amirgadh Cements Ltd. Andhra Cements Ltd. Anjani Portland Cement Ltd. B R Cement Industry Ltd. Bagalkot Udyog Ltd. Balaram Cements Ltd. Banjara Cements Ltd. Barak Valley Cements Ltd. Basera Cements Ltd. Bheema Cements Ltd. Bhilai Jaypee Cement Ltd. Binani Cement Ltd. Birla Corporation Ltd. Bokaro Jaypee Cement Ltd. Burnpur Cement Ltd. C C L International Ltd. Cement Corpn. Of India Ltd. Cement Manufacturing Co. Ltd. Century Textiles & Inds. Ltd. Chaanakya Cements Ltd. Chenab Cement Ltd. Cheran Cement Ltd. Chettinad Cement Corpn. Ltd. Cochin Cements Ltd. Concorde Cement Pvt. Ltd. D L F Cement Ltd. Dakshin Cements Ltd. Dalmia Cement (Bharat) Ltd. Dalmia Cement Ventures Ltd. Deccan Cements Ltd. Desai Cement Co. Ltd. Deva Drill Tech (India) Ltd. Dhar Cement Ltd. G K W Cement Ltd. Gangotri Cement Ltd. Garden Cements Ltd. Greygold Cements Ltd. Gujarat High Tech Inds. Ltd. Gujarat Himalaya Cements Ltd. Gujarat Jaypee Cement & Infrastructure Ltd. Gujarat Sidhee Cement Ltd. Heidelberg Cement India Ltd. Hemadri Cements Ltd. Hics Cements Ltd. High-Tech Lime Products Ltd. I P I-S P Cement Co. Ltd. India Cements Ltd. Indo-American Cement Corpn. Ltd. J K Cement Ltd. J K Lakshmi Cement Ltd. Jagadamba Cements Ltd. Jagdish Constructions Ltd. Jaipur Udyog Ltd. Janpriya Cement Ltd. Jubilee Cements Ltd. Jupiter Cement Inds. Ltd. K C P Ltd. Kakatiya Cement Sugar & Inds. Ltd. Kakinada Cements Ltd. Kalinga Cement Ltd. Kalyanpur Cements Ltd. Karnataka Cement Ltd. Karnataka Instrade Corpn. Ltd. Keerthi Industries Ltd. Kohinoor Cements Ltd. L I Cement Pvt. Ltd. L I Eastern Pvt. Ltd. Lafarge India Pvt. Ltd. Lakshmi Cement & Ceramics Inds. Ltd. Lemos Cements Ltd. Lloyd Cements Ltd. Lok Cements Ltd. M G T Cements Pvt. Ltd. Madras Cements Ltd. Mahendra Cements Ltd. Makers Development Services Pvt. Ltd. Malabar Cements Ltd. Mangalam Cement Ltd. Meghalaya Cement Ltd. Modern Cement Inds. Ltd. My Home Inds. Ltd. N C L Industries Ltd. Namo Cements Ltd. Necem Cements Ltd. Neelgiri Cements Ltd. Nihon Nirmaan Ltd. Nilanchaal Cement Pvt. Ltd. Nirman Cements Ltd. North East Cements Ltd. O C L India Ltd. P R Cements Ltd. Panchmahal Cement Ltd. Panyam Cements & Mineral Inds. Ltd. Penna Cement Inds. Ltd. Prism Cement Ltd. Prudential Cements Ltd. Raasi Cement Ltd. Radhakishan Cement Ltd. Raghoji Cement Mfg. Co. Ltd. Rain Commodities Ltd. Rajapalayam Cement & Chemicals Ltd. Ranisagar Cement Co. Ltd. Rishi Cement Co. Ltd. Sabari Cements (Chennai) Ltd. Sagar Cements Ltd. Sahas Cements Ltd. Sainik Finance & Inds. Ltd. Sanjay Intra Ltd. Saraf Agencies Pvt. Ltd. Satkar Cement Co. Ltd. Satyam Cement Ltd. Saurabh Cement Ltd. Saurashtra Cement Ltd. Seetharam Cements Ltd. Shaktiman Cements Ltd. Shiva Cement Ltd. Shree Cement Ltd. Shree Digvijay Cement Co. Ltd. Shree I-Jee Cement Inds. Ltd. Shree Quality Cements Ltd. Shri Hariganga Cement Ltd. Shri Keshav Cements & Infra Ltd. Shubham Industries Ltd. Sigma Cements Ltd. Singhal Cement & Allied Inds. Ltd. Snhehadhara Industries Ltd. Somani Cement Co. Ltd. Someswara Cements & Chemicals Ltd. Sorabh Cement Ltd. South India Cements Ltd. Sri Simhadri Cements Ltd. Srichakra Cements Ltd. Star Cement Meghalaya Ltd. Sudarshan Cement & Multiprojects Ltd. Sukhchain Cements Ltd. Talavadi Cements Ltd. Tamil Nadu Cements Corpn. Ltd. Travancore Cements Ltd. Udaipur Cement Works Ltd. Ultratech Cement Ltd. Umrongso Cement Ltd. Uttar Pradesh State Cement Corpn. Ltd. Vaishno Cement Co. Ltd. Varun Cements Ltd. Vinay Cements Ltd. Virgo Cements Ltd. Visaka Cement Industry Ltd. Vishwakarma Cements Ltd. Viswam Cement Ltd. Zodiac Cements Ltd. Zuari Cement Ltd.
Plant capacity: 90,000 MT/Annum Plant & machinery: 1296 Lakhs
Working capital: -T.C.I: Cost of Project : 1750 Lakhs
Return: 42.00%Break even: 47.00%
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GOOD FUTURE PROSPECTS FOR TMT BARS

The advent of thermo mechanically treated (TMT) steel bars has heralded a new era of economy in the construction industry in India. Round plain steel ruled over this industry up to sixties while Tor steel took over the scene in seventies and maintained its supremacy till nineties. 1997 and 1998 has now seen an extensive use of TMT steel and corrosion resistance steel thereby ushering in greater economy and longer life for RCC structures. TMT bars are widely used in general purpose concrete reinforcement structures, bridges and flyovers, dams, thermal and hydel power plants, industrial structures, high-rise buildings, underground platforms in metro railway and rapid transport system. TMT Bars is an acronym for thermo-mechanical treatment. Thermo Mechanically Treated (TMT) bars are manufactured using the Quenching & Tempering (Q & T) technology. A TMT bar gets its strength properties from quenching and tempering. No mechanical treatment is involved in TMT Bars. In TMT bars, the carbon content can be restricted to 0.2% to attain weldability and at the same time no strength is lost on this account. The joints can be welded by ordinary electrodes and no extra precautions are required. Another advantage of TMT bars is their tough surface providing high yield strength and a soft core providing excellent ductility. Strength, weldability and ductility are such properties which declare TMT steel highly economical and safe for use. An additional advantage of TMT steel is that a twisting operation is included in Tor steel, which subjects the bars to torsional stresses making them less corrosion resistant while TMT bars are free of such stresses thus having superior corrosion resistance. The TMT process gives the bar superior strength and anti-corrosive properties. Controlled water-cooling prevents the formation of coarse carbides, which has been cited as the main cause for the corrosive nature of common bar. Due to very high elongation values and consistent properties throughout the length of bar, TMT rebars have excellent workability and bend ability. The soft ferrite pearlite core enables the bar to bear dynamic and seismic loading. TMT bars have high fatigue resistance to Dynamic/ Seismic loads due to its higher ductility quality. This makes them most suitable for use in earthquake prone areas and above all it is cost effective. The grades of TMT bars available are Fe- 415, Fe - 500, & Fe - 550. The diameters of TMT bars manufactured are 8,10,12,16,20,25, 28 MM & the standard length is around 5.5 mtrs to 13 mtrs. Thus summing up, thermo mechanically treated steel is a new-generation-high-strength steel having superior properties such as weldability, strength, ductility and bend ability meeting highest quality standards at international level. The market for TMT bars is quite fragmented with a large number of small sized and regional players. 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. 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. After a sluggish growth in the last five years, capacity additions in the steel industry are expected to gain momentum. Progress of a large number of steel projects has gathered pace over the last 2-3 years and these are now scheduled to be commissioned by March 2013. 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. There is a very good scope, market potential and demand for such products and new entrepreneurs should venture into such projects.
Plant capacity: 144000 MT/AnnumPlant & machinery: 332 Lakhs
Working capital: -T.C.I: Cost of Project : 1949 Lakhs
Return: 42.00%Break even: 76.00%
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CEMENT PLANT

Cement industry forms a vital part of infrastructure development since no modern construction activity can take place without the use of cement in one form or another. The term cement is used to designate many different kinds of substances that are used as binders. Cement used in construction is characterised as hydraulic or non-hydraulic. The term cements as used henceforth will be confined to inorganic hydraulic cements, principally Portland cement. India is the second-largest producer of cement in the world after China with industry capacity of approximately 160 MT in 2006. 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 to 55% of the installed cement capacity of India, as against 40 to 42% in FY00. 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. Indian cement sales rose 4.82% for FY11, its slowest pace in more than a decade, on poor demand. According to a report from the Business Standard, manufacturers have failed to match their expectation of 9 to 10 per cent growth in financial year 2010 to 2011, and are the first time since the industry entered its boom time during mid 2005 that cement makers’ high trajectory growth slipped to almost half of what experts had anticipated. The industry blames the slide on persistent poor demand for the building commodity throughout the year. After the Commonwealth Games held in Delhi last October, demand worsened, pulling down production and sales on a year on year basis in subsequent months, the report said. Cement demand is dependent on the level of construction activities. Construction activities are in turn closely related to a number of macroeconomic factors such as consumer spending, population growth, manufacturing sector growth, inflation rates, government spending etc. 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. According to a study by ASSOCHAM, the burgeoning Indian construction industry will rise in the coming years. 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 cement industry has witnessed substantial reorganization of capacities during the last couple of years. Some examples of the consolidation witnessed during the recent past include: Gujarat Ambuja taking a stake of 14% in ACC; Gujarat Ambuja taking over DLF Cements and Modi Cement; India Cement taking over Raasi Cement and Sri Vishnu Cement; Grasims acquisition of the cement business of L&T; Indian Rayons cement division merging with Grasim; Grasim taking over Sri Digvijay Cements; L&T taking over Narmada Cements; ACC taking over IDCOL. There is a very good scope and market potential of cement right now. New entrepreneurs should venture into this field.
Plant capacity: 1800000 Nos. Cement Bags (50 Kg. each)Plant & machinery: 1296 Lakhs
Working capital: -T.C.I: Cost of Project : 1750 Lakhs
Return: 42.00%Break even: 47.00%
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AAC BLOCKS (AUTOCLAVED AERATED CONCRETE BLOCKS) FLY ASH BASED

Autoclaved Aerated Concrete (AAC) is a non combustible, lime based, cementitious building material that is expanding into new worldwide markets. As a single component building material, AAC has achieved acceptance in new markets throughout the world. AAC products are equally suitable for residential construction, multistory buildings, commercial, and industrial construction. The products are made of natural materials: sand, lime, and water. These raw materials are processed to provide a building material with a large number of air pores; hence, aerated concrete. Fine pores (nearly 70% of the product) and the solid structure of calcium silicate hydrate gives AAC its exceptional material properties. The AAC has the features of light bulk density, good thermal insulation properties and sound-absorption, certain strength and process ability, and its raw materials is very rich, especially the reuse of fly ash enables the comprehensive utilization of industrial residue, curbs environmental pollution, no destroy on farmland, create good social and economic benefits. AAC is an ideal alternative of the traditional clay brick wall materials. For many years AAC has been strongly supported by national wall reform policy, tax policy and environmental policy. In a sentence, AAC has been an important factor in new building materials and has a broad market prospect. New entrepreneurs should venture into this field.
Plant capacity: 150000 M3/AnnumPlant & machinery: 1100 Lakhs
Working capital: -T.C.I: Cost of Project : 1790 Lakhs
Return: 44.00%Break even: 53.00%
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FLY ASH BRICKS FROM LIMESTONE

Fly Ash bricks are alternative to burnt clay bricks in the construction sector in India. Fly ash bricks are an environment friendly cost saving building product. These fly ash bricks are three times stronger than conventional bricks with consistent strength. This is proving to be a revolutionary invention that produces bricks without the sintering process and consequently no greenhouse gases are emitted. The ultimate product is none other than FaL G Brick which is well qualified as emission abating project to receive the benefits of carbon credits. India produces about 70 million tons of coal ash per year from burning about 200 million tons of coal per year for electric power generation. Coal ash management poses a serious environmental problem for India and requires a mission-mode approach. Currently, about one acre per MW of land is needed for ash disposal. The Ministry of Power, Govt. of India estimates 1800 million tons of coal use every year and 600 million tons of fly ash generated by 2031 to 2032. The country consumes about 180 billion tonnes bricks, exhausting approximately 340 billion tonnes of clay every year and about 5000 acres of top soil land is made unfertile for a long period. The Government is seriously concerned over soil erosion for production of massive quantities of bricks, in the background of enormous housing needs. Ministry of Environment & Forest (MoEF) Had issued a Gazette Notification on 14th Sep 1999, Stipulating that no person shall be permitted to manufacture clay bricks or tiles or blocks for use in construction activity without at least 25% of ash (fly ash, bottom ash, or pond ash on weight to weight basis), within a radius of 50 Km from coal or lignite based thermal power plants in India. Ministry of Environment & Forest had amended the Gazette Notification on 27 Aug 2003 making it compulsory to use fly ash for manufacturing building material by increasing the radius from 50 Km to 100 Km. Fly ash bricks are nowadays mostly used for construction and gaining its popularity over builders and engineers because of its high strength, uniformity and less consumption of mortar plastering. Above to this it is eco friendly bricks which saves environmental damage caused by burnt clay bricks and saves top agricultural soil which was the main raw material in the burnt clay bricks. Further ahead, by 2025-26 the number of middle class households in India is likely to more than double from the 2015 to 16 levels to 113.8 million households or 547 million individuals, indicative of increased household formation rate, and consequently increase demand for housing, thus providing a great market opportunity for new entrepreneurs according to NCAER. The demand is perceived to be higher for fly ash bricks & blocks than traditional bricks or blocks. The increased demand can be met by increased production levels of existing units or by setting up large scale manufacturing units. Fly ash utilization has great potential to lower green house gas emissions. Hence there is a bright market potential for fly ash bricks. New entrepreneurs should venture into this field.
Plant capacity: 12000000 Nos./AnnumPlant & machinery: 80 Lakhs
Working capital: -T.C.I: 409 Lakhs
Return: 43.00%Break even: 40.00%
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CERAMIC WALL AND FLOOR TILES

The tile is a manufactured piece of hard wearing material such as ceramic, stone, metal, or even glass. Tiles are generally used for covering roofs, floors, walls, showers, or other objects such as tabletops. Alternatively, tile can sometimes refer to similar units made from lightweight materials used for wall and ceiling applications. Ceramic glazed tiles are made of porous body with a coating of white or colored glaze. These are used extensively in the Bathrooms, Kitchen in modern buildings and in Hospitals and Analytical Laboratories, Toiletries attached to Railway platforms. This is because of this products have properties like good resistance to weather and chemicals, having high strength hard, glossy surface with different colors and pleasing appearance. In the near future the chances for replacing these items by other materials look very bleak. These tiles are rather cheap, easy to clean have more life and are available in pleasing colours. India ranks among the world’s top five tile producing countries with a total annual production of around 450mn Sq. Mtr as on March 10. The ceramic tiles industry is large, rapid, growing and populated by organized and unorganized manufacturers. Over the last few years, industry prospects were subdued on account of an oversupply and increasing imports. The industry can be classified into three key segments, viz., wall tiles, floor tiles and segment on account of durability, utility, maintenance and better appearance with premium pricing and higher realisation. In the international markets these tiles are already major sellers. Ceramic tiles today have become an integral part of home improvement. It can make a huge difference to the way your interiors and outdoors look and express. There exists a very good opportunity and ample scope to venture into this field for new entrepreneurs. Few Indian Major Players are as under: Anant Raj Inds. Ltd. Asian Tiles Ltd. Bell Ceramics Ltd. Bell Granito Ceramica Ltd. Delta Tiles Ltd. Diamond Regina Ceramics Ltd. Elegant Marbles & Grani Inds. Ltd. Euro Ceramics Ltd. Excel Frits & Colours Ltd. Godavari Ceramics Ltd. Gujarat Goldcoin Ceramics Ltd. H & R Johnson (India) Ltd. Jalaram Ceramics Ltd. Jay Flash Ceramics Ltd. Lustre Tiles Ltd. Mandsaur Ferro Alloys Ltd. Montana International Ltd. Murudeshwar Ceramics Ltd. Nitco Ltd. Nortech India Ltd. Pearl Jet Microns Pvt. Ltd. Pedder & Pedder Tiles Ltd. Prism Cement Ltd. Regency Ceramics Ltd. Restile Ceramics Ltd. S T C L Ltd. Savana Ceramics Ltd. Silica Ceramica Pvt. Ltd. Stiles India Ltd. Sun Earth Ceramics Ltd. Taurus Novelties Ltd.
Plant capacity: 120000 Sq. Mt/Annum Wall Tiles & 90000 Sq. Mt/Annum Floor TilesPlant & machinery: 542 Lakhs
Working capital: -T.C.I: Cost of Project : 1020 Lakhs
Return: 43.00%Break even: 59.00%
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ARTIFICIAL SAND FROM STONES AND WASTE METALS

Sand is generally mixed with cement and water form concrete. These sand particles should be hard and inert with respect to cement continuous usages of river sand river beds condition is day by day deteriorating and threatening environmental disaster. This situation has forced the State Government to ban sand mining in many rivers and also to enforce stringent restrictions. This action has resulted deficiencies. This material supply on the other hand the construction industry is in a constant state of flutter these days. Sand is naturally occurring granular material composed of finely divided rock and mineral particles. Sand makes small hills and slopes, sand improves traction in icy or snowy conditions, sand is the principal component in common glass and sand is mixed with cement and sometimes lime to be used in masonry construction. Due to the increase of population and living standards, the demand for this product is multiplying in every year. Present supply of production is meeting only about 20% of the demand; if all the crusher units of the state start manufacturing machine made sand as an additional venture then also it could meet only about 50 to 60% of the requirements. Looking into the stringent state government policy on sand excavation and the constant fluttering state of construction industries and short supply of machine made sand it would be highly appropriate to set up some machine made sand units in this state the product of the new units could easily be accommodated in the present un saturated market. The scope for this product is very bright. A entrepreneur venturing into this project will find it very lucrative.
Plant capacity: 240000 MT/AnnumPlant & machinery: 178 Lakhs
Working capital: -T.C.I: Cost of Project : 460 Lakhs
Return: 43.00%Break even: 55.00%
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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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