Detailed Project Report (DPR) on cement plant (cap:600000 ton/annum)

CEMENT PLANT
(CAP: 600,000 TON/ANNUM)
CODE NO. 3340

Dipon Infrasturcture Services Ltd. Bangladesh (CLIENT), intend to set up a cement manufacturing plant at Moheshkhali, Bangladesh. Considering market requirements, one new cement plant is proposed at Moheshkhali in Bangladesh by CLIENT. The total capacity of the plant will be 600,000 MT per year. The Plant will have all basic required facilities for normal plant operation, control facilities, fire and safety requirements & export.

The local Bangladeshi economy is growing at a rapid rate and the investment volume (foreign and local) have ensured the growth shall be sustained for the coming years. One such location is the Moheshkhali region where several new industries, infrastructure, and construction projects will cause a significant boom in the demand for cement.

Raw materials such as clinker and other materials are not available locally in Bangladesh and therefore is required to be imported from international suppliers. This feasibility report shall consider the availability of raw materials from nearby markets.

Currently, the cement industry of Bangladesh is the 40th largest market in the world. Bangladesh is one of the fastest developing countries and is thus expected to have major infrastructure, housing and services development in the coming years. Thus, expecting a growth in demand for cement is considered logical. Since the liberation war in 1971, major urbanization and industrialization took place in the country, which led to a rise in demand for cement. As the companies saw an opportunity in the field, they undertook capacity expansion plans. However, multiple factors like, delay in the construction project of Padma Bridge, political unrest, economic slowdown and also the downfall in the real estate sector have greatly impacted the industry growth. Thus, the expectations regarding the increase in demand were not met.


For commodities like cement, which requires strong consumer confidence, competitive price is not the sole factor ensuring the demand, brand name is also important. Thus, global players have an advantage in this regard, as customers finds them more trust worthy due to their worldwide presence. On the other hand, senior local brands are also being able to sell their brand name as they have gained customer loyalty. Hence, the new comers are likely to face a difficult time entering the market, unless they plan for higher marketing budget.


COST ESTIMATION

Plant  Capacity                                          :       2000.00 MT./day
land & Building (30 Acres)                      :    Rs.  49.38 Cr
Plant & Machinery                                     :    Rs.  140.00 Cr
Working Capital for 2 Months                  :    Rs.  42.00  Cr
Total Capital Investment                          :    Rs.  237.50 Cr
Rate of Return                                           :    31%
Break Even Point                                       :    49%

INTRODUCTION    
PROPERTIES OF CEMENT    
TYPES OF CEMENT    
PRINCIPAL CHEMICAL REQUIREMENTS
FOR PORTLAND CEMENT ASTM C150-63    
PRINCIPAL PHYSICAL REQUIREMENTS
FOR PORTLAND CEMENT (ABBREVIATED) ASTM C150-63    
TYPICAL COMPOSITIONS OF VARIOUS CEMENTS    
TYPICAL POTENTIAL COMPOUND COMPOSITION
OF VARIOUS CEMENTS    
ORDINARY PORTLAND CEMENT     
PORTLAND BLAST FURNACE SLOP CEMENT    
USES AND APPLICATION    
MARKET SURVEY    
CEMENT INDUSTRY OF BANGLADESH    
FACTORS DRIVING THE DEMAND FOR CEMENT IN BANGLADESH    
FALL IN INWARD REMITTANCE HAS POSED A THREAT TO THE
CEMENT INDUSTRY AS INDIVIDUAL HOMEBUILDERS’ ABILITY
TO SPEND ON CONSTRUCTION HAS DECLINED CORRESPONDINGLY    
NATIONAL ELECTION TO BE HELD BY THE END OF 2018 OR IN THE  
BEGINNING OF 2019 IS A CRITICAL TIME FOR CEMENT INDUSTRY    
INDUSTRY OUTLOOK    
BRAZIL BECOMES THE FOURTH-LARGEST GLOBAL CONSUMER OF CEMENT    
CEMENT CONSUMPTION TO DOUBLE IN INDIA BY 2025    
QATAR CEMENT DEMAND TO DOUBLE BY 2017    
INDONESIA CEMENT CONSUMPTION EXPECTED TO RISE BY MORE
THAN 10% IN 2013    
PROCESS OUTLINE FOR CEMENT MANUFACTURING USING DRY METHOD    
MANUFACTURE OF CEMENT    
PROPORTIONING OF RAW MATERIALS    
RAW MATERIAL PREPARATION    
BURNING    
GRINDING    
HORIZONTAL ROTARY KILN    
FIRING & HEATING PROCESS    
DRY-PROCESS KILNS, SUSPENSION    
PREHEATERS, AND PRECALCINERS    
PROCESS FLOW CHART    
HORIZONTAL ROTARY KILN    
PROCESS DESCRIPTION OF CEMENT MANUFACTURE    
COMPUTER CONTROL    
QUALITY CONTROL    
ENVIRONMENTAL POLLUTION CONTROL    
SAFETY MEASURES    
TOTAL POWER CONSUMPTION    
SCHEDULE OF MAINTAINANCE OF PLANT MACHINERY    
STOCK LEVEL FOR STORES ITEMS    
PLANT LOCATION    
GENERAL LAYOUT    
PROVISIONS FOR FUTURE EXPANSION & DIVERSIFICATION    
STAFF & LABOUR REQUIREMENT    
OPERATION    
EMISSION AND ITS CONTROL FOR CEMENT INDUSTRIES    
EMISSIONS AND CONTROLS1    
SUPPLIERS OF PLANT AND MACHINERIES    
SUPPLIERS OF COMPLETE CEMENT PLANT    
TURNKEY PLANT SUPPLIERS FOR CEMENT PLANT    
SUPPLIERS OF RAW MATERIALS    
LIME STONE    
CEMENT PLANT    
DETAILS OF PLANT & MACHINERY FOR 6,00,000 TON/ANNUM    

APPENDIX – A:

 1.      COST OF PLANT ECONOMICS      
 2.      LAND & BUILDING                                      
 3.      PLANT AND MACHINERY                                  
 4.      FIXED CAPITAL INVESTMENT                             
 5.      RAW MATERIAL                                         
 6.      SALARY AND WAGES                                     
 7.      UTILITIES AND OVERHEADS                              
 8.      TOTAL WORKING CAPITAL                                
 9.      COST OF PRODUCTION                                   
10.      PROFITABILITY ANALYSIS                               
11.      BREAK EVEN POINT                                     
12.      RESOURCES OF FINANCE                           
13.      INTEREST CHART                                       
14.      DEPRECIATION CHART                                   
15.      CASH FLOW STATEMENT                                   
16.      PROJECTED BALANCE SHEET