Interlocking Paving Block Production in Nigeria; the Feasibility Report
Interlocking Paving blocks are precast solid products made out of cement concrete. The product is made in various sizes and shapes viz. rectangular, square and round blocks of different dimensions with designs for interlocking of adjacent tiles blocks. The raw materials required for manufacture of the product are portland cement and aggregates which are available locally in every part of the country.
Concrete block paving provides a hard surface which is aesthetically pleasing, comfortable to walk on, trafficable, extremely durable and easy to maintain. Paving blocks are fully engineered products, manufactured in factory conditions, ensuring consistency and accuracy. Laid with an edge restraint over a granular bedding course, individual blocks interlock to act compositely which can distribute large point loads evenly.
They are suitable for pedestrian areas, driveways, or heavily trafficked areas such as container ports and aircraft hard-standing. During the past few years consumer demands on concrete as a construction material have been continually on the rise. Apart from the visual aspect and load-carrying capacity, it is now that such features as cleaning comfort, durability and thus general value maintenance play an increasingly important role.
This report seeks to confirm the financial viability or otherwise of establishing a interlocking paving block production plant in Nigeria capable of producing various bricks/blocks including color-face bricks (layered material feeding), through-body tiles lock linkage blocks, road curb bricks, hydraulic blocks, hollow blocks, perforated bricks, and staperforated bricks, and standard bricks..
The plant is expected to operate for ten {10} hours in a day for 300 days per annum and produce 14,400 pcs of 200*160*60 size paving block both coloured and non coloured operating for 4 hours per day, 12,960 pcs of 200*100*80 size paving block operating for 2 hours per day -- Non-coloured and 720 pcs of 1000*300*120 mm size kerb operating for 2 hours per day -- Non-coloured , with a break of 30 minutes to change from one production design to another.
The company hopes to produce paving block used in residential market segment with standard thicknesses of 60 mm for light traffic and for commercial /industrial market segment with standard thicknesses of 80 mm for heavy traffic.
The raw materials required for production would be locally sourced and they include crushed stone, sand, cement and though other materials like dust, coal fly ash and other industrial wastes can be used.
The market for paving blocks is, at present, a growing one. One of the main reasons for the growth of this very specialized market would seem to be the worldwide tendency for beautification of cities, parks and gardens. This requires a modern concrete paving product, which is quick and easy to lay, and besides being esthetically pleasing, has the advantage of excellent performance under traffic.
Because of its greater acceptance, not only for roads, driveways and parking areas, but also for other applications such as airports, harbours and mines, it is expected that this market will continue to grow.
One area which promises the greatest potential is the paving of township roads as part of the employment creation programme. Concrete block paving provides an attractive, long lasting maintenance free road.
In Nigeria, the paving block market can be divided into the residential and the commercial/ industrial segment. The residential segment deals with driveways and parking areas. The standard thickness of the blocks used in this market segment is 60 mm and seems to be confined to highbrow areas like Lekki, VI, Ikoyi, Ikeja while the commercial/ industrial segment handles the use of paving blocks in public structures like roads, airports, seaports etc. The standard thickness of the blocks used in this market segment is 80 mm due to the heavy traffic expected.
Though they are no data on the market size of paving blocks in Nigeria, we can estimate that the residential market has about 75% of the market share while the commercial segment has about 25%.
Concrete block paving provides a hard surface which is aesthetically pleasing, comfortable to walk on, trafficable, extremely durable and easy to maintain. Paving blocks are fully engineered products, manufactured in factory conditions, ensuring consistency and accuracy. Laid with an edge restraint over a granular bedding course, individual blocks interlock to act compositely which can distribute large point loads evenly.
They are suitable for pedestrian areas, driveways, or heavily trafficked areas such as container ports and aircraft hard-standing. During the past few years consumer demands on concrete as a construction material have been continually on the rise. Apart from the visual aspect and load-carrying capacity, it is now that such features as cleaning comfort, durability and thus general value maintenance play an increasingly important role.
This report seeks to confirm the financial viability or otherwise of establishing a interlocking paving block production plant in Nigeria capable of producing various bricks/blocks including color-face bricks (layered material feeding), through-body tiles lock linkage blocks, road curb bricks, hydraulic blocks, hollow blocks, perforated bricks, and staperforated bricks, and standard bricks..
The plant is expected to operate for ten {10} hours in a day for 300 days per annum and produce 14,400 pcs of 200*160*60 size paving block both coloured and non coloured operating for 4 hours per day, 12,960 pcs of 200*100*80 size paving block operating for 2 hours per day -- Non-coloured and 720 pcs of 1000*300*120 mm size kerb operating for 2 hours per day -- Non-coloured , with a break of 30 minutes to change from one production design to another.
The company hopes to produce paving block used in residential market segment with standard thicknesses of 60 mm for light traffic and for commercial /industrial market segment with standard thicknesses of 80 mm for heavy traffic.
The raw materials required for production would be locally sourced and they include crushed stone, sand, cement and though other materials like dust, coal fly ash and other industrial wastes can be used.
The market for paving blocks is, at present, a growing one. One of the main reasons for the growth of this very specialized market would seem to be the worldwide tendency for beautification of cities, parks and gardens. This requires a modern concrete paving product, which is quick and easy to lay, and besides being esthetically pleasing, has the advantage of excellent performance under traffic.
Because of its greater acceptance, not only for roads, driveways and parking areas, but also for other applications such as airports, harbours and mines, it is expected that this market will continue to grow.
One area which promises the greatest potential is the paving of township roads as part of the employment creation programme. Concrete block paving provides an attractive, long lasting maintenance free road.
In Nigeria, the paving block market can be divided into the residential and the commercial/ industrial segment. The residential segment deals with driveways and parking areas. The standard thickness of the blocks used in this market segment is 60 mm and seems to be confined to highbrow areas like Lekki, VI, Ikoyi, Ikeja while the commercial/ industrial segment handles the use of paving blocks in public structures like roads, airports, seaports etc. The standard thickness of the blocks used in this market segment is 80 mm due to the heavy traffic expected.
Though they are no data on the market size of paving blocks in Nigeria, we can estimate that the residential market has about 75% of the market share while the commercial segment has about 25%.
EXECUTIVE SUMMARY
1. BUSINESS OVERVIEW
1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy
2. MARKETING PLAN
2.1 Description of product
2.2 Location
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition
3. TECHNICAL ANALYSIS
3.1 Description of the Location
3.2 Raw Materials
3.3 Production Technology / Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule
4. ORGANIZATIONAL AND MANAGEMENT PLAN
4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.1 Strategic Business Units
4.3.2 Management Support Units
4.4 Details of salary schedule
5. FINANCIAL PLAN
5.1 Financial Assumption
5.2 Start up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Account
5.7 Cash Flow Analysis
5.8 Viability Analysis
6. BUSINESS RISK AND MITIGATION FACTOR
6.1 Business Risks
6.2 SWOT Analysis
1. BUSINESS OVERVIEW
1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy
2. MARKETING PLAN
2.1 Description of product
2.2 Location
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition
3. TECHNICAL ANALYSIS
3.1 Description of the Location
3.2 Raw Materials
3.3 Production Technology / Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule
4. ORGANIZATIONAL AND MANAGEMENT PLAN
4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.1 Strategic Business Units
4.3.2 Management Support Units
4.4 Details of salary schedule
5. FINANCIAL PLAN
5.1 Financial Assumption
5.2 Start up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Account
5.7 Cash Flow Analysis
5.8 Viability Analysis
6. BUSINESS RISK AND MITIGATION FACTOR
6.1 Business Risks
6.2 SWOT Analysis
