CONTENTS

(1) Introduction
(2) Methods of Construction
(3) Company Profile
(4) Product Profile
(5) Marketing and Sales Promotion
(6) Analysis of Survey Findings
(7) Suggestions and Conclusion

Annexes
Questionnaire
Bibliography

Chapter 1

1.1 Introduction
1.2 Objective
1.3 Scope of the study
1.4 Methodology
1.5 Limitation of the Study

Introduction:

Shimoga is a city, which is growing in all trades at a

good speed. So as the construction industries too. Hence
in order to make this industry in par with other developing
cities in economy, faster construction method

the so

called concrete blocks are the subjects chosen to make

people their mind towards the usage of these blocks.

Concrete blocks are the composite mixture of cement,

sand and stone aggregates. In the year 1979 BSI approved
the usage of concrete blocks. Economy is the word, which
sounds in everybody and anybody who wants to build his
house. Hence to achieve this hollow blocks are the only
solution.

As we need an alternative to every item hollow blocks

are the answer for the conventional bricks. Blocks are
made in three grades namely Grade A, B and C.

The

grade A and B are load bearing blocks. Grade C is nonload bearing.

Another material, which is now, used

masonry increasingly in the concrete blocks. The reasons

are being machine made mostly is more uniform in
dimensions, as greater degree of reliability and quality,
faster in construction.

Objectives of the study:

This project report on manufacturing and marketing
of hollow blocks has the following objectives.
1

To study the various construction material with their

implications on their economy.

To know about the alternate construction material and

implementation of these material practically.

To study the advantages and disadvantages over the

conventional materials which are being used.

To study the possible decrease of construction time.

To suggest measures, to improve the performance of

both men and material.

Scope of the study:

The scope of this project report is confined to the

usage of new construction materials, comparison of
economy, various problems towards achieving efficiency
with the conventional materials, user-friendly aspects.

Methodology:

The date collected for the preparation of this project

report include both primary and secondary data.

Primary

data

has

been

collected

from

many

practicing engineers, professional qualified contractors,

consultants, manufacturers, and practical observations.

Secondary

data

comprises

of

journals,

books,

magazines, and newspapers and IS code.

Limitation of the study:

As this is more technical and professional subject, it

is rather difficult to deal and understand each and every
step of manufacturing of hollow blocks.

The inferences have been drawn and the information

collected from the firm.

Chapter 2
2.1 Methods of Construction
2.2 Conventional Methods
2.3 Traditional Wall construction
Puddle soil construction
Unburnt Bricks Construction
Burnt Bricks Construction
Bamboo reinforce mud wall
2.4 Introduction of Hollow Blocks in structures
2.5 Advantages and disadvantages

Methods of Construction

In an ancient time in shimoga traditional wall

construction is the only the way of construction of the
buildings, house and other walls.
other

materials

are

available

Now a day some of the

in

use

for

the

new

construction. Concrete Blocks, Clay Hollow Bricks, Table

Molded Bricks, are the new constructional materials.

Hence it is essential need to under stand the other

Traditional as well as Modern Methods that adopted by
our people from the long time. Some of the other
constructional Materials are as follows.

Soil has been used extensively as a material for wall

construction in traditional houses in India and abroad. It

is one of the material that easily available in every place

and low cost and other factors lead to its wide spread in
allover India. And also some of the other traditional wall
construction are easy/simple and they are acquired their
importance every were.

Soil is used in various forms for wall construction

like

(a) Puddle Soil,

(b)Unburnt bricks,
(c) Burnt bricks,
(d)Bamboo reinforced mud.

Traditional wall constructions

(a) Puddle Soil Construction: -

10

In this type of construction there are mainly two

activities-soil preparation and construction of the wall.
The soil preparation consists of mixing the appropriate
quantity f water with the soil to get a consistency such it
can be easily puddle. Some times chopped paddy straw or
some grasses are added. This mix is use for constructing
the wall. The thickness of the wall varies between 1.5 to
2.0 feet.

The height of the wall raised per day will be

around 1.0 to 1.5 feet. For the construction of such walls

no special skills and tools are required.

The major disadvantages of this type of construction

are:

(a) The wall becomes very thick leading to the reduction of

available floor space.

11

(b)Susceptibility to erosion, when exposed to rain.

(c) Needs frequent maintenance.

(b)Un burnt Bricks construction: -

Unburnt bricks are often used for construction of

wall of houses with light roofs such as tiled and thatched
roofs.

There are bricks made by using wooden moulds

and bricks made by cutting a sheet of soil into blocks.

The former type is most commonly used.

(1) Preparation of un burnt bricks using wooden

mould:
These bricks are made on fairly level ground. The soil
and water are mixed thoroughly, such that the soil is in
plastic state and easily workable.

12

This plastic soil is then dashed into a wooden mould

and kept on the level ground.

The top of the mould is

finished with hand and it is then immediately removed

leaving the fresh bricks on the ground. This process is
continued. The bricks are left on the ground for a day or
two for drying. Then these bricks are stacked and dried in
sun for few more days before using for construction of
walls.

The

wooden

moulds

used

will

have

two

compartments to permit moldings of tow bricks at a time.

The

size

of

these

23cm*11.4cm*7.5(9*41/2*3).

bricks

will

be

The walls constructed

with these bricks will normally have a minimum thickness

of

34cms(13.5inches).

These

constructed using mud mortar.

13

walls

are

normally

(2) Unburnt

Bricks

made

without

using

wooden

moulds: In this case the plastic soul (prepare by thoroughly

mixing water and soil) is spread on the fairly level ground
in the form of a sheet of uniform thickness. This sheet of
soil is then cut into blocks by slicking in two mutually
perpendicular directions using a knife. These blocks are
slightly bigger in size than unburnt bricks made by using
wooden moulds.

After drying in sun for a few days the

blocks will be ready for wall construction. These walls are

also built using mud mortar.

The Major disadvantages are: (1) Poor erosion resistance against rain,
(2) The walls need frequent maintenance and

14

(3) The walls are thick leading to sacrifice of available floor

space.
(c) Bamboo reinforces mud walls: -

The bamboos of 1-to12.0cms diameters are stacked

until the foundation at spacing of 60cms.

Bamboo of

smaller diameter (3cm) is interwoven with the vertical

bamboos. This arrangement roughly resembles a grid.
The space between horizontal bamboos will be around
15cms this forms the main structure of the wall.

The

plastic soil (soil mixed with water thoroughly) is pressed

by hand on wither side of the bamboo grid, such that if
penetrates well into the interstices of the bamboo grid,
This whole bamboo supporting structure is curved with
sol this is completely built by hands without using any
tools. This type of wall construction is faster compared to

15

the puddle soil construction the wall thickness will be

approximately 20to30cms. This method of construction is
similar to wattle and daub construction.

The major disadvantages are: -

(1)The bamboos supporting structure inside the wall is

susceptible to termite attach,
(2)Poor erosion resistance against rain,
(3)Needs frequent maintenance and
(4)Bamboo has become scarce and costly.
Modern Method of Construction
Burnt Brick Construction: Burning

at

high

temperature

renders

the

soil

immune to strength loss saturation ad suppresses the

erosion resistance.

Burning has been practiced since

16

ancient times to improve the properties of building

materials such as bricks and tiles. The performance of
well-burnt bricks used for wall construction.

They are

country Bricks and table molded bricks. The process of

manufacturing differs with each type: -

Country Bricks: The preparation of these bricks is similar to that of

unburnt bricks, as explained earlier.

These are burnt

after drying in sun for a few days. The burning is carried

out in clamps using firewood; Sometimes coal is also used
for burning. The bricks and the firewood are stacked in
alternate

layers

in

clamps.

Each

bricks

(size

2cm*11.4cm*7.5) consumes about 0.32kgs of firewood.

This is equivalent to 2kwh of thermal energy. Mud mortar

17

or cement mortar can be used for the construction of wall

thickness will generally be 34cms(13.5inches).

Table Molded Bricks: The preparation of these bricks is almost similar to

the country bricks. Here metal moulds are used and the
bricks are prepared on table.

The fresh bricks are

immediately removed from the table and stacked in a

different place for drying. These bricks are burnt in bulls
trench kilns. In these kilns the heart lost during cooling
of the bricks is utilized for preheating of the next set of
bricks. Hence these kilns have a better thermal efficient
than clamps. Normally coal is used as a fuel in such kilns
table molded bricks consumed about 0.20kgs of coal per
bricks.

The table-molded bricks have better shape and

strength compared to country bricks.

18

Mid mortar or

cement mortar can be used for the construction of walls

using these bricks.

Even though the performance of burnt bricks wall is

quite satisfactory, the bricks consume significant amount
of fuel energy.

The energy crosses emphasizes on

conservation of firewood and coal.

Hence constructing

bricks houses alone cannot satisfy the present housing

demand.

Advantages and Disadvantages Bricks: Advantages: -

No specific skilled labor is required, as it is of the

oldest construction methods in practice,

Size and Weight are convenient for picking up, placing,

19

It can be cut to any shape with very little effort and

most of the times, it is cut by trowel only,

Defects in masonry are easily rectifiable,

Maintenance is easy,

It can be used most conveniently; brick wall can be

used as load bearing walls,

Reasonably resistant against fire, chemicals, weather

and insects,

Modular construction is possible with less effort,

Elevation treatment is possible with special kind of
bricks,

Very easy to chase the wall for laying electrical and

water supply conduits,

Walls can be nailed.

20

Disadvantages:

In the manufacturing process of bricks, earth is the

chief raw material. Hence the fertile earth is being
used.

To manufacture bricks, for burring charcoal and coal

are being used. Hence smoke is lot, thereby less
environmental friendly,

Since

most

of

the

bricks

are

manufactured

conventionally, the dimensions Are non-uniform,

Labors intensive,

Cement mortar consumption is high, as number of

joints is more.

Direct use of soil (without burning) for construction

in any of the explained above has explained above has
certain disadvantages. The performance of these walls is

21

not every satisfactory.

The performance of burnt bricks

wall is quite satisfactory. However burnt bricks consume

significant amount of fuel energy.
Introduction of Hollow Concrete Blocks
Hollow Concrete Blocks are mainly used in framed
structures for walls in high rise buildings, industrial
sheds and temporary structures like compound walls,
labors shed etc. Even though the load bearing Hollow
Blocks can be manufactured.

There is no demand in the market for these blocks

as still people are under the pressure that they are weak
as they are hollow.

Hence in this aspect to make the

usage of these blocks in structures, there is a market need

to convince people and make them to make their mind to
use these blocks for individual houses also.

22

Advantages and disadvantages of Hollow Concrete

Blocks: Advantages:(1)They are more uniform in dimensions, quality and
strength,
(2)Builders concern about quality and reliability of supply
is lessened as most of the block manufactures are from
organized trade,
(3)Usage of mortar is less, as a number of joints are less,
(4)Less weight for a given volume of masonry,
(5)Plaster is not necessary if, quality of workmanship is
good,
(6)Offers

greater

resistance

transmission,
(7)They are economical,
(8)Less labor intensive,

23

to

heat

and

sound

(9)Since

the

raw

materials

is

cement,

sand

and

aggregates, no wastage of fertile earth,

(10) As there is no coal and charcoal being used, it is
environmental friendly.

Disadvantages: -

(1)Being hollow it is difficult to repair,

(2)It cannot be used for elevation purposes,
(3)Difficult to pickup and place in position as the sizes are
large,
(4)It cannot be used for load bearing structures without
getting special kind of blocks,

24

(5)Recession for electrical and water conduits is practically

not possible.

25

Chapter-3
COMPANY PROFILE

(a)History & Nature,

(b)Financial Resources,
(c)Origination Chart
(d)No of workers working under the factory

26

History and nature of Factory

History of Factory
Athani Concrete Blocks is situated in
Bommankatte, i.e., via Keerthi Nagar, Shimoga and office
R.M.R. Road, Durgigidi, Simoga.

In the year 1994, July the project was filed and

applied to the bank.

And in the middle of September

1994, the bank sanctioned the term loan for the

placement of orders of machinery.

The machinery,

electrification, commissioning were arrived and started the

trial production at the end of November 1994. And finally
in the 1994 December, the production was commercially
started.

27

Now it has developed wide market with the help of

good relation with public and leading civil engineers,
builders and contractors in and around shimoga.

Office: R.M.R Road, Durgigudi, Shimoga 577 202

Phone : 08182 - 226159

28

29

Nature of Factory: -

The Athani Concrete Blocks manufactures are

manufacture- two kind of blocks they are
(1) Hollow Concrete Blocks &
(2) Solid Concrete Blocks.

The installed capacity is

8*8*16 - 1440 blocks per 6Hrs,

6*8*16 1800 blocks per 6Hrs,

4*8*16 2880 blocks per 6Hrs.

The total working days per months are 25days, in a

year;

the

Athani

factory

manufactures

36,72,000 blocks per year.

30

more

than

Athani Manufacturers cover

(1)Shimoga district,
(2)Chickmagalure,
(3)Hassan district,
(4)Devangere district, and other cities.

The sizes of concrete blocks manufactured by

Athani factory are as follows: (1)8*8*16 - 45%
(2)6*8*16 - 43%
(3)4*8*16 - 12%

The raw materials required for the manufacturing of

concrete blocks are cement, jelly, quarry dust, sand and
water.

31

The Regular Manpower Working

(a) Machine Operator 2
(b)Concrete Mixing Operator 1
(c) Trolley Operator 2
(d)Loaders for mixer 4
(e) Curing Purpose 2 (female)
(f) Supervisor and technicians
The

minimum

area

(Platform)

required

is

50*100
Organization Chart
Proprietor

Supervisor

Supervisor

Storekeeper

Storekeeper

32

Skilled Labors

Unskilled Labors

(a) Masons

(a) Helper

(b) Mortar mixers

(b) Waterman

(c) Machine Operators

(c) Male coolies

(d) Drivers

(d) Female coolies

Manpower recruitment: Following are the labors Supervisory and

personnel requirements for the unit

Sl.N
o.

Labors-

Number of
workers
1

Total

supervisory
Supervisor @

3500/month
Machine Operator @

2,400

1,200/month
Mixer Operator @

1,200

1,200/month
Semi skilled
operator for

moldings machine

33

Rs./month
3,500

1,000

and mixer (sandy) @

5

1,000/month
Unskilled workers
Molding

1,800

machine

1,800

Mixer

7,200

Batching

2,700

Curing

3,600

Handling
Each at Rs.
900/month
Total

24

25,200

Financial Resources: -

The following were the major activities in the

implementation of this management unit.

a.

Preparation

report

and

of

filing

Project
of

loan

34

July 1994

application to bank
b. Sanction of term loan from

Mid September

bank and placement of orders 1994

for machinery
c. Arrival of machine

End October

d. Commercial Production

1994
December 1994

The following were the major activities in the

implementation of this manufacturing unit-

35

Cost of the project and means of finance (Rupees in

lakhs)
I. Land
Own
II. Plant and Machinery
(a) Machinery
(b)Rain and Moulds
1.93
(c) Mixer
0.35
(d)Electrification
0.45
(e) Generator (20Kva)
1.50
III. Vehicle
5.85
IV. Civil works
(a) Godown for cement store
0.50
(b)Platform for pressing
2.50
(c) Water supply for curing
0.055
V. Borewell
0.70
VI. Deposits with telephone
0.04
VII. Preliminary and pre operative
0.20
Expenses
VIII. Interest during implementation
0.20
IX. Contingencies @ 5% on office
0.24
And
Machinery
X. Working capital
5.08
XI. M/s on fixed deposits
1.13
Total cost of the project
21.22
Proprietors investment 25%
05.31
Bank Loan 75% = 15.91

36

Explanatory note on cost of the project: -

(1)Plant and Machinery

The estimated cost of plant and machinery works out
to Rs. 4.04 lakhs.

(2)Miscellaneous fixed assets

It is proposed that to procure office equipments
table, chairs, almirahs etc, a sum of Rs. 25,000 is
provided for this purpose in the project cost.

(3)Deposit with telephone

A sum of Rs. 4,000 is earmarked in the project costs
towards deposit to be 0paid to telephone department.

(4)Preliminary and pre operative expenses

37

A sum of Rs. 20,000 is included in the project cost to

cover the following expenses like traveling, service charges
towards the preparation of feasibility report, printing,
stationery, postage, telephones and other miscellaneous
expenses.

(5)Interest during implementation

A sum of Rs. 20,000 has been provided towards
interest during the pre-commission period.

(6)Contingencies
A sum of Rs. 24,000 (5% on plant and machinery) is
included in the project cost in order to take care of
unforeseen expenditures and also escalation in prices and
Machinery.

(7)Working capital margin

38

The working capital requirement is utilization has

been worked out and is given vide annexThe working capital margin is based on 1-month
requirement of raw material like Portland cement and 2
weeks requirement of other raw material viz., sand and
jelly, 3 weeks goods in process, 2 weeks finished goods in
stock, 1 month bills receivable and 1 month working
expenses.

(8)Proprietor Contribution
The proprietors contribution works out to Rs.
5,31,000, which is 25% of the cost of the project. This has
also been included in the means of finance.

39

CHAPTER - 4
Product Profile

1.

Production and Manufacturing of H.C.B.

2.

Particulars of the product

3.

In fracture of the product

4.

Process Details-Hollow Concrete Blocks

5.

Requirement of Raw Materials & Consumables

6.

Cost of Production

40

Production and Manufacturing of Hollow Concrete

Blocks: The raw material viz. Sand, Portland Cement, Quarry
Dust, Jelly, Granite aggregates are mixed in the required
proportion with adequate water in the hydraulic concrete
mixer.

The concrete mix is fed to the Minato molding

machine, which moulds the concrete mix into concrete

blocks on the casting yard as per the mould, fitted on the
machine.

After each lying of the blocks, the machine

moves forward for next laying. These blocks are left on the
yard for a period of 24 hours of initial setting and later the
blocks are stacked to 6 to 8 layers for curing, sprinkling
water for the period of 21 days and left for drying for a
period of one week does curing. After curing the blocks
are removed from the curing yard for dispatch.

41

The

technology

of

manufacture

cement

hollow

concrete blocks is in vibratory compaction and Egg

laying type which comes along with the molding machine.

Process flow chart for the Hollow Concrete Blocks are

given below
Matching of raw materials

Mixing in concrete mixer with water

Molding a blocks

Stacking for curing

Dispatch of finished goods

42

Requirement of Raw Materials and consumables: -

The Major raw materials required are Portland

cement, sand, and granite, aggregate: -

(1)Portland Cement: -

The requirement of Portland cement will be about

9,330 bags for 4.50 lakhs Hollow Concrete Blocks of the
given product mix. Presently Portland cement is available
in the open market from dealers as well as from the
manufacturers as non-lavvy cement. The landed cost of
cement at the works is 175
+ 25 (12.5% VAT)
Total= 200 per bag
(2)Sand: -

43

The requirement of sand will be about 58.135 cft for

4.50 lakhs hollow concrete blocks of the given product
mix. The sand is available from the nearby river beds and
the transportation cost will be minimum and ten the cost
of sand is Rs. 5 per cft.

(3)

Granite aggregate: -

Granite aggregate of size 10mm and below is required

to an extent of 69,695 cft for 6 lakhs hollow concrete
blocks of the given product mix.

(4)

Other Consumable: The consumable are oil, grease, cotton, and waste

etc. that are required for cleaning the moulds etc.

The

lump sum provision of 1% of 23,86565 has been made at

100% capacity utilization.

44

The requirements of the above raw materials have

been worked out at recommended concrete mix of 1:5:6:
for hollow concrete blocks and also taking into account 2%
breakage and wastage in the process as recommended by
the manufacturer of the machinery

Annual

requirements

of

raw

materials

and

consumables at 100% capacity utilization: Sl.No.

1
2
3

Materials

Quantit

y
Portland 9330

Price
135/bag

Total
12,59,550

cement
Sand

bags
58,135cf

5/cft

2,90,675

Granite

t
69,695cf

12/cft

8,36,340

aggregate

t
Total

23,86,565

Other
consumable
at 1%

45

23,865

Total

46

24,10,430

Total requirement of concrete at

100% capacity

utilization: No. Of blocks: - 3,82,500(per year)

Sl.No
.

Blo
ck size

Quanti Concrete
ty

requirement requirement
per

Total

block of

cft
0.36767

8*8*16 1,46,00

concrete

cft
53,679.82

0
2

6*8*16

73,00
0

4*8*16

6
73,0

00
4

Other
solid

0.2524
58
0.1682
8

73,0
00

47

12,284.
44

0.1682
8

blocks

18,429.

12,284.
44

Explanatory solution: (1)

Size: 8*8*16 (30mm shell thickness)

Volume

= Volume of blocks-volume of voids

= 16,000-(5.5cm*15.5cm*17.0cm) 4cc
= 16,000-5797cc
= 10,203cc
= 0.3603155cft

Assuming

2%

wastage,

--

The

requirement

concrete for the above size block = 0.36767cft

(2)

Size: -6*8*16 (22mm shell thickness)

Volume= Volume of blocks-volume of voids
= 1,200-(4.2*17.8*16.7) 4cc
= 1,200-1,994cc
= 7,006cc
= 0.2474145cft

48

of

Assuming 2% wastage, - 0.25246cft concrete per

block

(3)

Size: - 4*8*16 (22mm shell thickness)

Volume

= Volume of blocks-volume of voids

= 8,000-(5.6*17.8*16.7) 4cc
= 8,000-3,330cc
= 4,670cc
= 0.1649194cft

Assuming 2% wastage - 0.16828cft concrete

required per block
For 353cft of ready concrete in the ratio 1:5:6, the
requirement is 28.25 bags of cement, 176cgt of sand and
2121cft of granite aggregate. Hence the total requirement
of raw material at 100% capacity is as follows

49

Cement = 09,330bags
Sand = 58,135 cft
Granite Aggregate = 69,695 cft

Particulars of the product: (1)

Capacity
The capacity of proposed unit will be to produce

1,500 hollow concrete blocks per day of 8 hrs shifts. It is

assumed that the plant functions for 300 days in a year.
This capacity is decided by the block-molding machine
(capacity 200 blocks per hour of size 8*8*16) in case
of hollow concrete blocks.

(2)

Economic factors

50

The proposed unit has been envisaged in tiny scale

units, the capacity of the entrepreneur to invest and here
managerial capacity. A unit of above-mentioned capacity
has been found to be an economically viable size.
(3)

Nature of products
Normally hollow concreter blocks are produced in two

ranges of shell thickness of 22mm and 30mm.

Indian

standards institutions has brought out on issued vide is

2185-1967, further revised as is 2185-part 1 in 1979.
Prescribing
tolerances,

requirements
material

regarding

surface-texture,

dimensions,
mix

visual

examination and other physical requirements for load

bearing hollow concrete blocks.

(4)

Product Planning

51

The unit envisages operating a single shift basis with

and working hours per day.

The machines are so

balanced that none of the machine are kept idle.

The

utilized capacity is proposed to be built unto maximum of

80% from the third year and onwards with 66.66%
capacity utilization in the first year and 73.33% capacity
utilization in the second year of operation.

(5)

Marketing Demand
Based on the general demand pattern, the following

product mix is assumed in working out the project report.

Concrete Blocks
Hollow Concrete Blocks

Solid Concrete Blocks

(a) 8*8*16 55%

(a) 8*8*16 40%

(b) 6*8*16 45%

(b) 6*8*16 35%

52

(c) 4*8*16 00%

(c) 4*8*16 25%

100%

100%

Cost of Production: Cost of Production & Profitability

Cost of production, profitability and cash flow has
been

projected

for

period

of

8years

from

the

implementation of the project and the same are given.

From this projection, it is evident that the unit will be in a
position to pay back borrowings comfortably.

Sl.No.
1
2
3

Size
per Weight
block
block
8*8*16
23kgs
6*8*16
18kgs
4*8*16
18kgs

53

per Rate
per
block
Rs.13.00
Rs.11.00
Rs.11.00

Explanatory

note

on

cost

of

production

and

profitability: -

(1)The unit will be operating at a capacity utilization of

70% in the first year of operation, 80% in the second
year of operation and 85% from 3rd year and onwards.
(2)The cost of raw material and consumables has been
calculated in previously.
(3)Labor and supervisory charges are assumed to increase
every year by an amount equal to 5% of salaries of the
first year and the provision of 20% of salaries is made
towards social benefits.
(4)A lump sum provision of Rs. 10,000, 12,000 and
15,000 is made towards repairs and maintenance of
plant and machinery for the first, second and third year
of operation respectively.

54

(5) A provision of Rs. 4,000 is made towards taxes.

(6)A sum of Rs. 9,000 is also provided towards insurance
on plant and machinery.
(7)A provision of Rs. 8,000, 10,000 and 12,000 is made
towards miscellaneous expenses for the first, second
and third year of operation respectively.
(8)A sum of Rs. 5000 is provided towards profession and
consultancy fees in each year of operation.
(9)A lump sum provision of Rs. 5,000, 7,000 and 9,999 is
made towards postage telegram and telephone expenses
for the first, and second and thirds year of operation
respectively.
(10) A sum of Rs. 20,000, 25,000 and 30,000 is provided
towards selling and distribution overheads during first,
second and third year of operation respectively.
(11) The rate o interest on term loan is taken at 14.5%per
annum

55

(12) An interest rate of 15% per annum is taken on

working capital loan.
(13) Depreciation on plant and machinery is taken at
13.57%.

Chapter 5
MARKET POTENTIAL

Marketing and Sales Promotion

Demand And supply
Marketing and Distribution

56

Demand And Supply

It has been estimated that the housing requirement

cater to the net addition in the population in the seventh
plan period will be 16.2 million dwelling units which over
and above the already existing backlog of 24.7 million
dwelling units (2005).
impacts

given

to

In addition to this, with growing

industrialization,

the

demand

for

construction from the commercial sector is also on the

increase.

If, these requirements are to be met, it will

demand a production of 55, 00 corers of bricks by 2005.

For making first class burnt clay bricks, clay soil of

Celtic

aluminum are best suited.

The alluvial belt

suitable for making good quality bricks is mainly confined

to the plans of North India. Other area, excepting isolated

57

pockets near to the coastal region, are comprised of

different grades of black soils, red soils, or laterite soils
which are either unsuitable for making bricks or render
bricks of poor quality. Black soils and its derivatives and
mixture do not make good bricks, as these soils swell
enormously when wetted and consequently shrink upon
drying producing cracks in the bricks. Wet soils are of low
plasticity and succumb to lime bursting upon firing. The
laterite is non-plastic and can not be moulded in plastic
form.

Due to this the bricks produced in the states of

Madhya Pradesh, Maharashtra, Andhra Pradesh and

Tamil Nadu are of poor quality having a comprehensive
strength of 30kgs per sq.cm, compared to the strength of
70kgs per sq,cm and above for the bricks manufactured I
the northern region.

58

Coal is another important input for the manufacture of

bricks and this important input is becoming scarce and
costly which inturn results in the frequent hike in the cost
of bricks.

Hollow concrete blocks being a variable alternative for

bricks can easily capture the market for bricks, due to its
superiority and easy availability compared to that of
bricks.

It is interesting to note that a good number of

cement plants are situated in areas identified as having

soils unsuitable for making good bricks. In such areas,
the proximity of the cement plant ensures regular supply
of cement to the units manufacturing these blocks. Also
the quality of the burnt bricks available in these areas
being poor the concrete blocks can compete as a suitable
walling material.

59

The estimate on production and demand for burnt clay

bricks show that the demand and supply gap will persist
for years to come.
more

intense

Also even though housing activity is

around

union

centers

the

brick-

manufacturing unit are pushed away for urban areas due

to scarcity of suitable and resulting in shortage leading to
high prices in certain urban areas in particular, Shimoga.

The substitution of brick by hollow concrete blocks has

been cossisted due to inconsistent capacity of conventional
bricks are savings in material viz. steel and cement on an
account of use of cement hollow concrete blocks.

This

saving in cement at the construction site is on an account

of lesser thickness of plastering required on the wall
constructed of hollow concrete blocks.

There is also

saving in steel due to lighter weight of the hollow concrete

blocks as compared the conventional burnt bricks, which

60

results in reduction in loading on the columns and beans

in a framed structure. The resultant overall savings will
be of the order of 30% to 40% in the masonry and hence
preferred in the construction of buildings.

There is an

additional desirable quality of hollow concrete blocks i.e.

heats insulation.

This property is accomplished on

account of air packets I the cavities of the hollow concrete

blocks which act as the isulation.

On the basis of the market data collected from the

experts in the field it was found that about 1.60 lakhs of
hollow concrete blocks are required every month for
construction activity in and around Shimoga.
This

primarily

includes

demand

arising

from

the

commercial sector like office structure and business

shops.

61

Market information reveals that hollow concrete block

utilization

by

residential

individual

houses

is

less.

Presently hollow concrete blocks are being used effectively

for the construction of factory sheds, compound walls,
multi-storied

buildings

and

very

little

household

construction.

How ever due to increased shortage and

poor quality of bricks the demand from the household

sector is also on the increase.

Presently there are about five manufacturers of hollow

concrete blocks in Shimoga district.

In addition to this

three other manufacturers will be shortly setting up plants

in the near future.

The present installed capacity is 5

lakhs of hollow concrete blocks per annum. Taking into

account the fact that the manual machines run at 40%
efficiency.

62

The demand being 1-lakh hollow blocks per month, it

is clear that there exits a gap between supply and
demand. The proposed unit could function to fill this gap
partially to certain extent.

Marketing and Distribution

Presently, there are as such no middlemen in the

distribution process.

The contractors place the order

directly to the manufacturers and the delivery is made

directly to the site.

It should be noted that there is no

competition growing in Shimoga and no necessity to do

some marketing to push the product I the market. One
important aspect of hollow concrete blocks is that the
public contrctors have gradually accepted the concept.

63

Market Arrangements: -

As mentioned earlier, the construction activity of

residential and commercial buildings are increasing day
by day on account of non-availability of local bricks or
good quality bricks in and around Shimoga.

The sudden spurt in construction activity coupled with

the preferential acceptability of hollow concrete blocks over
bricks has created a gap in demand and supply. Hence
there is good scope for the unit.

The proprietor has good public relations and contacts

with many of the leading civil engineers, builders and
contractors in and around Shimoga an hence no problem
is envisaged in marketing hollow concrete blocks.

64

The proprietor intends selling hollow concrete blocks at

Rs.13.00for 8*8*16 11.00 for 6*8*16Rs.11.00 per
block of 4*8*16 size which is lesser than the price of
market leader thus gaining customer preference for this
product.

It is proposed to appoint an experienced sales officer

on commission basis whose duty is to travel extensively to
procure orders for the unit.
The proprietor has also planned to offer an attractive
package of incentives to the contractors, which will
motivate them to place their orders with the proposed
unit.

65

Demand and Supply of Hollow concrete Blocks during

last four years:
year

2005

Particulars
Production 1,42,458
Demand

1,50,000

2004

1,38,25
0
1,00,00
0

66

2003

1,39,35
2
1,20,50
0

2002

1,25,500
1,05,000

Chapter 6

Analysis of Survey Findings

67

Analysis of Survey Findings

Today as we all very well known Consumer is the
King. In the market, he is the judge and the final decider
for the product to purchase or not. Because he is the final
consumer satisfaction should be ultimate aim of the
producer and the marketer consumer interest should be
taken into consideration while taking decisions.

However

it ids clear that consumer is the one and all for all the
area.
The total number of Blocks user is interview by this
survey the result is more than 87 respondents were
selected

on a random basis in different areas. It was

observed that Hollow Concrete Blocks was famous enough

with masses and most of them posses Hollow Concrete
Blocks

competition mainly from Molded Bricks , Burnt

Bricks, and other kind of Bricks

68

1. Table showing respondents occupation

Occupation
Government servants
Businessmen
Agriculturist
Others
Total

No. of respondents
46
27
04
10
87

Percentages
53
31
05
11
100

From the above table it is clear that number of

respondents from the side of government servants and
then the businessmen occupies the second place in the
respondents area.

69

Graph showing respondents occupation

Agriculturist
5%

Others
11%

Government servants
53%

Businessmen
31%

70

2. Table showing Income group

Income
Below 5000
5000 10000
10000 25000
Above - 25000
Total

No. Of Respondents
25
30
15
7
87

Percentage
32
40
19
9
100

The above clearly and numerically suggest that

maximum number of persons from the second groups
only.

71

Graph showing Income group

30
30
25
25

20
15
15

10

0
Below 5000

5000 10000

10000 25000

72

Above - 25000

3. Table showing type of bricks used

Type of bricks
Bricks
Hollow Concrete Blocks
Unburnt Bricks
Solid Concrete Blocks
Total

No of

Percentage

respondents
33
44
03
07
87

38
51
3
8
100

From the survey it is clear that maximum number of

respondents used the Hollow Concrete Blocks only and
then the Bricks occupies the second place in the table.

73

Graph showing type of bricks used

44
45
40

33

35
30
25
20
15
7
10

5
0
Bricks

Hollow Concrete
Blocks

Unburnt Bricks

74

Solid Concrete Blocks

4. Table showing reasons for buying Hollow Concrete

Blocks
Reasons
No.of Respondents
Less in price
55
Quality Others
12
Uniformity in size
9

Percentages
63
14
10

of blocks
Others

11

13

Total

87

100

Maximum respondents prefer only less in price.

From the above table it is clear that the second higher
group will be quality respondents.

75

Graph showing reasons for buying Hollow Concrete

Blocks

13%
10%

14%

63%

Less in price
Quality Others
Uniformity in size of blocks
Others

76

5. Table showing the Special feature for buying Athani

Concrete Blocks

Special feature
Low price
High performance
High quality
Others
Total

No.of Respondents
27
33
20
07
87

Percentages
31
38
23
8
100

From the above table it is clear that the customer of

the above firm identified the performance of the firm as
compared to other quality.

77

Graph showing the Special feature for buying Athani

Concrete Blocks

33

35

30

27

25
20
20

15
7

10

0
Lowprice

High performance

High quality

78

Others

6. Table showing on what basis or what made to buy

Athani Concrete Blocks

Factor
Goodwill

of

No. of respondents
the
09

Percentage
10

company
Service provided

45

53

by the company
Price
Service quality
Other factors
total

16
10
07
87

18
11
8
100

Maximum respondents came buy the Blocks on the

basis of service provided by the Athani Concrete Blocks.

79

Graph showing on what basis or what made to buy

Athani Concrete Blocks

45
45
40
35
30
25
20

16

15

10

10
5
0
Goodwill of the
company

Service provided by
the company

P rice

80

Service quality

Other factors

7. The table showing satisfaction about Athani Concrete

Blocks

Particulars
Satisfactory
Not Satisfactory
Total

No.of respondents
69
18
87

Percentage

100

The maximum numbers of respondents are satisfied

with service provided by the Athani Concrete Blocks.

81

The Graph showing satisfaction about Athani Concrete

Blocks

Not Satisfactory
21%

Satisfactory
79%

82

Chapter - 7

Suggestions and Conclusion

83

Suggestion: -

It ha to maintain to supply the concrete blocks as early

as possible door delivery

It has to make mere advertisement to Know the firms

popularity

It is to be made easily available to the poor class with

low price as far as possible

Blocks should be readily available in large numbers

and blocks should be made available by door delivery

Smaller width blocks could be more useful for walls

By reducing the quantity of dust and increasing in

quantity of cement helps the blocks in better strength
and also useful for load bearing walls.

To rise the portion of ingredients and thus helps to use

for multi storied buildings

84

It needs vast publicity to show and demonstrate the

work at size, so that, common people can use this

It should maintain uniform size and specifications

The manufacturer of Hollow Concrete Blocks. Experts

in the field engineers, technician, and traders can be
asked to gather for symposiums. The different aspect
of improving the quality, strength, marketability, and
popularity of Hollow Concrete Blocks can be discussed
so that it could be competitor for the traditional burnt
bricks.

Conclusion
I hereby conclude by saying that Hollow Concrete
Blocks will be ultimate in construction technology in the
near future and construction without it will be inevitable.
It has been a great experience to work with the proprietor

85

of Athani Concrete Blocks. I have really enjoyed doing this

project. Thank you one and all.

86

Annexes

Questionnaire

Bibliography

87

Questionnaire

Dear Sir or Madam:

I am a student of Sahyadri arts and Commercrce
collage shimoga-577203 studying in final year BBM for the
academic year 2005-06 for the partial fulfillment of my
course. I am conducting the survey on the marketing of
hollow concrete blocks at with a special reference to a
case study of Athani Concrete Blocks at Shimoga and
preparation of project report. Therefore I request you to
spend for me a few minutes to answer the question in the
questionnaire.

Thanking you,
Yours faithfully,
BHASKAR
B.B.M. 3rd year,

88

Sahyadri Arts & Commerce College,

Shimoga - 577203.

1. Name

2. Address

3. Occupation

Government Servant [ ]
Businessman

[ ]

Agriculturist

[ ]

Others

[ ]

4. Monthly Income
Below 5000
05000 10000
10000 25000
Above 25000
5. Have you ever involved in construction of any premises?
Yes [ ]

No

[ ]

89

6. If yes, what type of Bricks you have used?

Burnt Bricks
Unburnt Bricks
Hollow Concrete Blocks
Solid Blocks
Others

Please Mention -------

7. Have you ever used Hollow Concrete Blocks?

Yes

[ ]

No

[ ]

8. If yes, which of the following factor you consider while

purchases Hollow Concrete Blocks?
Less in price
Quality Others
Uniformity in size
Others
9. What are the advantages and disadvantages you found
in the bricks?

90

Advantages
Uniformity in size
Strength
More savings
Less Labour intensive Others

Disadvantages
Difficult repaid
More weight
Others

10. How do you come to know about Hollow concrete

Blocks?
Advertisements
Friends
Engineers
Others
11.

In case you are planning to buy a Hollow Concrete

Blocks, which company would you prefer first?

12.

Have you ever heard of Athani Concrete Blocks

Yes [ ]

13.

No

[ ]

If yes, how did you come to know about it?

Advertisement
Goodwill of Company
Engineers

91

Friends
Others
14.

Which of the following factor you consider while

purchasing Athani Concrete Blocks?

Goodwill of the company
Service provided by the company
Price
Good quality
Others

15.

Do you find any advantages in using Athani Concrete

Blocks ?
Yes [ ]
16.

No

[ ]

If yes, what are the advantages you found

Low price High
Performance

92

High quality
17.

If no, disadvantages are ?

High price
Bad service
Other, Please mention

18.

Was the service provided by Athani Concrete Blocks

satisfactory
Yes [ ]
19.

No

[ ]

If yes, Satisfactory level after using Athani Concrete

Blocks
Very high

High

Low

Very low

Cost
of
service
Price level
Speed of
service
quality

20.

Would you recommend your

friends/relatives to

purchase Athani Concrete Blocks, concrete Blocks?

93

Yes
21.

[ ]

No

[ ]

Suggestion for Improvement of Athani Concrete

Blocks, Blocks

---------------------------------------------------------------

Place:
Date:
Signature

94

Bibliography
Marketing Management - Phillip Kotler
Marketing Management - Sherleker
Human Resource Management - B.S. Raman
Journals
1. Inside Outside a magazine
2. Architectural Design
3. Building Materials

95

96