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Block Factory Business Plan Overview

The document outlines the total costing for a block manufacturing project in Ghana, focusing on the production of autoclaved aerated concrete blocks. It details the investment requirements, operational capacities, manpower, and financial projections, indicating a total investment of GH¢67,706 plus land value. The project aims to produce 80,500 cubic meters of blocks annually, with a construction period of 13-15 months and a startup phase of 2-3 months.

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0% found this document useful (1 vote)
154 views4 pages

Block Factory Business Plan Overview

The document outlines the total costing for a block manufacturing project in Ghana, focusing on the production of autoclaved aerated concrete blocks. It details the investment requirements, operational capacities, manpower, and financial projections, indicating a total investment of GH¢67,706 plus land value. The project aims to produce 80,500 cubic meters of blocks annually, with a construction period of 13-15 months and a startup phase of 2-3 months.

Uploaded by

yoosi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Click for details of block manufacturing costing

BLOCK PROJECT TOTAL COSTING

GHANA EURO/GH¢ SEPTEMBER 2017

PRODUCT / TO MANUFACTURE BLOCKS AND OTHER GOODS IN LIME


SPECIFICATION AUTOCLAVED AERATED CONCRETE
OPERATIO TO SET UP the FACTORY IN COUNTRY
PRODUCTION 1° STEP OUTPUT / YEAR BLOCKS: GRANULATES:
80,500 CUBIC 2,670 CUBIC
METER METER
OPERATING DAYS / YEAR: SHIFTS / CYCLE: 10
300 DAY: 2 MINUTES

MARKETING GEOGRAFIC AREA GHANA

APPLICATION IN NEW BUILDING INDUSTRY,


IN REVAMPING INDUSTRY
TECHNOLOGY TYPE LIME AUTOCLAVED AERATED
CONCRETE
PROCESSING Silica sand is grinded in a mill. Sand
slurry, lime oxide, few cement,
DESCRIPTION alluminium powder is mixed and poured
in moulds, where rising and
consolidation phase takes place.
L.A.A.C. is squared and cut into blocks.
Steam hardening takes place into
autoclaves. Blocks are then packed;
granulates are packed; mortar & plaster
are packed.
RAW MATERIALS LOCAL SILICA SAND, LIME OXIDE,
CEMENT, ADDITIVES
IMPORTED ALLUMINIUM POWDER

UTILITIES ELECTRICITY 10,000 kwh/day

METHANE 4,000 cubic meter / day - OR


EQUIVALENT QUANTITY OF OIL,
WOOD, ECT…
WATER 30 cubic meter / day

MANPOWER TOTAL 57 + 4 + 4 + 1 Director

1
PRODUCTION 16 skilled workers + 35 workers

STOREHOUSE 2 workers

MAINTENANCE 2 mechanical technicians + 2 electricians

COMMERCIAL & 3 employees + 1 director

MARKETING

ADMINISTRATION 3 employees + 1 director

INVESTMENT, (x 1000) LAND 1° step: 15,000 sqm

INDUSTRIAL SHED GH¢4,946

3,000 SQM

EQUIPMENTS & GH¢40,280 (Italy ex work: 1,580,000 € +


estimed other: 5,620,000 €)
MANUALS

TRAINING GH¢1,813 (inclusive 100,000 € for B&L


of Ghanian personnel in Italy)
INSURANCE & GH¢2,591 (estimated value)

TRANSPORT

OTHER LOCAL & GH¢2,473 (estimated local cost)

CIVIL WORKS

ASSEMBLY, SPARE GH¢14,097 (estimated local cost + spare


PARTS parts to be agreed)

STARTUP GH¢1,507 (inclusive 210,000 € for board


& lodging of Italians in Ghana)

TOTAL INVESTMENT GH¢67,706 + Land’s Value

WORKING CAPITAL GH¢3,828 (factory cost for sixty working

2
days)

FINANCIAL PLAN 0% Sunk Capital ?

70% Loan GH¢47394

30% Share Capital GH¢20312 + know how value to be

agreed

CONSTRUCTION OTHER LOCAL & 5-6 months, including design


PERIOD CIVIL WORKS
INDUSTRIAL SHED 4-6 months, including design
3,000 SQM
EQUIPMENTS 9-11 months, including design

TRANSPORT, 3-6 months

ASSEMBLY

TOTAL 13-15 months

STARTUP & 2-3 months

PRODUCTION

PROFITABILIT Year EBITDA GROSS CASH ROI PAY


Y × PROFIT FLOW BAC
GH¢1,00
0
K
(Data × Prices
GH¢1,000) 460 2nd 12706 31.6% 9892 24.6% 17563 10.5% 4.9
400 rd
These values are 3 13272 32.8% 10458 25.9% 29714 20.3%
on the basis of the
460 4th 13213 32.5% 10399 25.6% 41806 20.5%
production 81,000 Prices

mc of blocks 520 2nd 18107 39.7% 15293 33.5% 26545 15.9% 3.9
regarding the 1° 450 3rd 18699 40.8% 15886 34.6% 44124 28.6%
step, (2 560 4th 18668 40.5% 15854 34.4% 61671 28.9%
autoclaves). The Prices
plant is able to
manufacture other
460 2nd 25507 41.6% 22006 35.9% 11044 41.9% +0.5
6
40,500 mc of 400 3rd 25461 41.4% 21965 35.7% 13480 41.9%
blocks / year per 3
autoclave added. 460 4th 25418 41.1% 21922 35.4% 15911 41.9%
7

3
121,500 mc of
blocks - 2° step, 3
autoclaves, after 4
years - investment
increases 1,41
billion for housing
+ 4,24 billion for
plant
TOTAL INVESTMENT GH¢67,706 + Land’s Value

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