If you Want to start your own AAC (Autoclaved Aerated Concrete) plant, so you are in right place. In this article, we will try to answer few questions like AAC block manufacturing plant setup cost? or How much total capital amount required to start a plant? etc…
First, we have to understand the market of AAC blocks and in which you are entering into either small scale or large scale.
AAC block manufacturing in India was started in the year 1970 by Siporex and now it is highly competitive and dominated by a few large players, which have established considerable manufacturing capability to meet the current demands.
As of FY’2016, the top 4 players occupied most of the market share of the AAC block market, with HIL Limited being the largest player. Siporex was the second-largest player and followed by Magicrete and Biltech. Amongst the recent entrants to the market, JK Lakshmi Cement and Ultra Tech Cement occupied some reasonable market, while the remaining market was occupied by other small to mid-sized players.
Title: AAC block manufacturing plant setup cost
Table of Contents
Scope of the Autoclaved Aerated Concrete (AAC) Market: Globally
By Product Type
• Blocks
• Panels
• Tiles
• Lintels
• Others
By Applications
• Construction Material
• Roof Insulation
• Roof Sub Bases
• Bridge Sub-Structures
• Concrete Pipes
• Void Filling
• Others
By End-User
• Commercial Building
• Residential Building
• Infrastructure
• Others
By Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America
By Key Players
• Xella Group
• Aercon AAC
• H+H International A/S
• ACICO
• Masa Group
• Eastland
• Biltech
• AKG Gazbeton
• Ultratech
• Hansa Baustoffwerke
• J K Lakshmi Cement
• DOMAPOR
• Eco Green
• Schlamann KG
• Dongying City Franshion
• YABALANG Building
Title: AAC block manufacturing plant setup cost
Important links about AAC blocks;
AAC block manufacturing plant setup cost
To run a manufacturing Plant we require Land & building, Plant & machinery, and also Monthly working capital (Material, Labor, and other expenses).
so we will discuss one by one;
Land and Building: This looks awkward when we talk about this right because when we plan any company these are quite important and will be on our checklist as well. So I don’t need to stress on this area. But land and building’s area will definitely depend upon plant capacity.
So let us assume that your plant production capacity is 50 cubic meters per day then it will require approximately 4000 square meters of land, and a building in it to fit all your requirements.
So According to our research, we found that it will cost you around Rs. 1.88 crores; But it will vary depending on the location.
Plant and Machinery: For the manufacturing of AAC blocks we require heavy machinery for better output.
The process of manufacturing starts with taking material from silos and ends at the curing of the block. So the process has to be clean and robust with equipment and workers; Because we can’t automate the whole plant as it requires a lot of money and also “Machines are not able to do all the work which are done by the humans”
When we talk about the cost of plant and machinery, it requires approximately 1.21 crores; This cost may fluctuate based on market conditions. { This not includes wages of workers}
Title: AAC block manufacturing plant setup cost
Working capital (for a month)l: Working capital is nothing but monthly expenses to run a company, it includes material costs, wages of workers, and others (electricity, water, tax, etc…)
According to our observation, it costs you around 55-60 lakhs per month and As usual, this is not constant all the time because if the cement price goes up overall expenses go up. So we can’t make anything standard assumptions in the market.
So overall it requires approximately 4 crores of capital investment. This setup cost is only for a small production capacity of 50 cubic meters per day. So based on your plan the price goes up. If you want to check the prices of machinery and cement, you can visit IndiaMART
Cost estimation;
Plant Capacity : 50.00 Cubic mtr./day
land & Building (4000 sq.mtrs) : Rs. 1.88 Cr
Plant & Machinery : Rs. 1.21 cr
Working Capital for 1 Month : Rs. 55.54 Lacs
Total Capital Investment : Rs. 3.74 Cr
Note: The cost estimation is according to our research and not exact to market conditions. So before starting your venture, consult a professional business manager.
