Business Plan Proposal on Bricks Mfg free essay sample

Brick making remains an important industry in many rural and urban areas, but the income it provides can be a very marginal one. Often there are large numbers of producers and the quality of bricks produced can vary greatly. Stabilized Soil Brick technology (also known as Stabilized Compressed Earth Block (SCEB)) allows producers to easily manufacture higher quality bricks and as a result receive a higher income for themselves. What are Stabilized Soil Bricks? Stabilized soil bricks technology offers a cost effective and environmentally sound masonry system. The product has a wide application in construction and is manufactured by compacting earth (murram/sub-soil) mixed with a stabilizer such as cement or lime. A number of manual machines are available which compact the soil to attain dense, even sized masonry. The bricks are then laid out in the sun and cured rather than being fired. Some SSB technology also includes an interlock (called ISSB) resulting in lower mortar costs. The bricks have four key advantages over traditional bricks: 1) Build Quality: SSB allows users to produce uniform blocks of greater strength than typical fired blocks that provide better thermal insulation. Because far less mortar is required, structures don’t have to be plastered, and bricks can be made on site so transportation costs are minimized. 3) Environmental: Because SSBs are cured in the sun, the need for fuel wood is eliminated, helping curb deforestation rates. 4) Appearance: The bricks have an appealing aesthetic with an elegant profile and uniform size that doesn’t require plastering. OBJECTIVES The main objective of this project would be to carry out a comprehensive research on the basic aspects of a bricks manufacturing business, so as to eliminate maximum contingencies that can actually occur in the business in any form, so as to enhance the success probability of the business. Some of the basic objectives of this study are: To carry out marketing, technical and financial feasibility of the business To eliminate risks and thereby increase business success probability To take certain decisions about financing activities of the business To make a valid plan which would be presentable to a bank or a financial ? institution for grant of capital To help me control my degree of accountability and reduce time-wasting indecision To evaluate the firm; the industry growth and industry standards Carrying out a comprehensive study over the imitability, rarity, value preposition, ? and resource capabilities of the business; other incumbent firms. To identify certain threats and opportunities that may hinder the business in ? future. To know the most important focus areas that needs to be concentrated upon for ? the success of the business. To analyze customer satisfaction The primary objective of any new business, unless it is a non-profit organization, is to realize a healthy profit. A business plan delineates the financial goals of the business and lays out its plan for how it intends to reach them. Setting a profit objective that is excessively high may result in poor management and excessive risk, while an objective that is too low may stunt growth. The size of the profit objective should be based on a realistic assessment of market potential. Profit levels are closely related to market share. In large and booming industries, a business may have a small market share yet still realize large profits. In smaller fields, a business needs to fight for market share to keep its profits healthy. An analysis of market share objectives in a business plan reviews the size and condition of the field in which the business will be involved and explains how much market share the business intends to capture and how it plans to accomplish this. Community Involvement Many businesses contribute to their communities by becoming involved in local charities or making donations to the public good. These actions help to keep the community healthy and improve the public profile of the company. Some business plans emphasize this socially responsible aspect of business by including a description of intended community involvement in the business plan itself. Jobs One of the most significant contributions that a business can make to a community is to provide employment opportunities. A comprehensive business plan lays out the companys plans for employees. A business is likely to start small and then add to its staff as it achieves its growth goals. PROJECT DELIVERABLES Whether you are producing products for your customers or reports for your employees, your small business will have projects and those projects must have deliverables. Project deliverables are the tangible products generated from a project. Without deliverables, projects would be pointless; deliverables are why projects are created. However, there are many kinds of project deliverables that are intended for both internal and external stakeholders. Some projects have many deliverables; others just have one. This b-plan study would be able to identify certain flaws that a person may make while pursuing a journey towards a new business. All the advantages, disadvantages, threats, weaknesses, opportunities, and strengths of the business as well as its environment evaluation would be carried out. This would help the business sustain in the real bloodthirsty world of competition and would constantly provide greater value to the customers of the firm by constantly improving the products offered. The study would provide a base for strategic decision making process, which would then be used for making various other decisions like, marketing, financial, etc. The project would be able to evaluate which markets would it be competitive enough to enter to obtain sustainability. Future prospects for the business would be identified which would help business sail through different growth, maturity and decline stages. The B- plan would be documented, which would help develop an organizational culture that would be oriented towards the goals of the business. A successful completion of this B-plan study would yield information, which would help the new business to source capital from various financial institutions and angel investors. LITERATURE REVIEW The construction industry contributes to about 10 % of the Gross Domestic Product (GDP), registering an annual growth of about 9 %. Clay fired bricks form the backbone of the construction industry, which is valued at approximately US$ 70. 8 billion. The brick sector in India, although unorganized, is tremendous in size and spread. India is the second largest brick producer (China dominates with 54 % share) in the world. It is continuously expanding on account of a rapid increase in demand for bricks in infrastructure and housing industries. In order to meet this demand, over 150,000 brick units provide direct employment to more than 8 million workers. During the Ninth Five-year Plan period (1997-2002), the annual demand of 170 million bricks per year was estimated to be generating revenues of over US$ 4. 8 billion. Construction sector OVERVIEW Today, India is the second fastest growing economy in the world. The Indian construction industry is an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and peoples rising expectations for improved quality of living. In India, construction is the second largest economic activity after agriculture. Construction accounts for nearly 65 per cent of the total investment in infrastructure and is expected to be the biggest beneficiary of the surge in infrastructure investment over the next five years. Investment in construction accounts for nearly 11 per cent of India’s Gross Domestic Product (GDP). As opportunities in the sector continue to come to the fore, foreign direct investment has been moving upwards. The real estate and construction sectors received FDI of â‚ ¬216. 53 million in the first half of the current fiscal year. The construction industry is a major contributor to the country’s GDP (8% in FY12) and one of the largest employment generators currently employing around 33 million people. While the Indian economy grew by 5% in FY13 as compared to 6. 2% in FY12, the construction industry grew by 5. 9% in FY13 against 5. 6% in FY12. According to a PwC report prepared for the organizers of The Big 5 Construct India, India is expected to emerge as the world’s 3rd largest construction market by 2020. In the last decade, â€Å"the country has witnessed a tremendous housing boom and over the span of five years, from 2012 to 2016, the real estate sector is expected to account for 43% of the construction spend in India. This segment is forecast to achieve a CAGR of 13. 6% during this period. The PwC report estimates that the market for real estate construction segment in India is likely to aggregate to approximately US$ 380 billion over the five year period, 2012 to 2016†, stated Dushyant Singh, Associate Director Strategy from PwC. Policy Improving productivity of enterprises in the unorganized sector The Government in 2004, an interdisciplinary and autonomous body at the highest level to serve as a policy forum for credible and coherent policy initiatives in manufacturing sector, set up the National Manufacturing Competitiveness Council (NMCC). The Council is expected to energise and sustain the growth of manufacturing industries in the country and also help in implementation of strategy. Appropriate technologies in the MSME sector continue to remain a focus area, evident from the plans in the upcoming 12th Five Year Plan. At the national level, it is expected that a technology upgradation fund of Rs2500 crore will be created within the plan for the MSME sector to acquire and upgrade technology Technology and quality upgradation support to MSME Ten schemes were drawn up under the National Manufacturing Competitiveness Programme (NMCP) of which one of the most relevant for the clean upgradation of the brick sector is the Technology and Quality Upgradation Support to MSMEs (TEQUP) which has provisions for: Capacity building of MSME Clusters for Energy Efficiency/Clean Development Interventions and other technologies mandated as per? the global standards. †¢ Implementation of Energy Efficient Technologies (EET) in MSME sector/units. State industrial Promotion Policies Every State in India has an Industrial Promotion Policy that outlines the priority sectors for industrial development and the initiatives of the state to boost these industrial sectors, by providing subsidies and incentives in these sectors. The following are details relevant to the brick sector from two State industrial policies.