BUSINESS PLAN FOR CEMENT BRICK MAKING

Cement Brick Manufacturing Business Plan

1. Executive Summary

This business establishes a cement brick manufacturing unit with 1,000 blocks daily capacity (312,000 annually) on 0.5 acre land. With $12,011 startup investment, the venture projects $218,400 annual revenue producing high-quality hollow and solid blocks for Uganda's construction boom.

Key Business Highlights

• Production: 1,000 blocks/day (312,000/year)
• Revenue: $0.70/block average selling price
• Market: $152M Ugandan construction materials market (8% CAGR)
• ROI: 5.2 months payback period

2. Production Process

Raw Material Preparation

Precise mixture per 1,000 blocks:

• Cement: 10 bags (50kg each)
• River sand: 4,000kg
• Stone dust: 1,500kg
• Water: 200-250 liters

Mixing & Molding

• Mechanical mixing for 5-7 minutes
• Vibratory compaction at 3,000 RPM
• Steel mold dimensions: 400x200x150mm (standard)
• Cycle time: 3 minutes per mold

Curing Process

• Initial setting: 24 hours in molds
• Water curing: 14-21 days at 25°C
• Compressive strength: 7N/mm² after 28 days
• Drying yard capacity: 5,000 blocks simultaneously

Quality Control

• Daily compression tests (3 samples)
• Dimensional tolerance: ±2mm
• Visual inspection for cracks/defects
• Moisture content < 5% before dispatch

3. Capital Investment Requirements

Equipment/Material	Qty	Unit Cost ($)	Total ($)
Concrete mixer (500L)	1	1,500	1,500
Vibrating table	2	800	1,600
Steel molds (various sizes)	50	30	1,500
Curing tanks	2	400	800
Wheelbarrows	4	80	320
Initial raw material stock	-	-	3,000
Land preparation	0.5 acre	1,000	1,000
Miscellaneous tools	-	-	500
Total Capital Investment	12,011

4. Operating Expenses

Monthly Cost Structure

Cost Item	Calculation	Amount ($)
Raw Materials	312,000 blocks/year ÷ 12 × $0.35 material cost/block	9,100
Labor (5 workers)	2 skilled @ $200 + 3 unskilled @ $150	850
Utilities	Electricity (15kWh/day) + Water (10m³/day)	300
Equipment Maintenance	2% of equipment value/month	100
Transportation	2 deliveries/day @ $5 each	300
Land Rent	0.5 acre urban plot	200
Miscellaneous	Contingency fund	150
Total Monthly Costs		11,000

Annual Operating Costs

Fixed Costs

• Labor: $10,200
• Rent: $2,400
• Utilities: $3,600
• Subtotal: $16,200

Variable Costs

• Raw Materials: $109,200
• Transport: $3,600
• Maintenance: $1,200
• Subtotal: $113,000

Total Annual Operating Costs: $132,000

5. Pricing & Revenue Structure

Product Portfolio & Pricing

Block Type	Size (mm)	Production %	Price/Unit ($)	Daily Revenue
Standard Hollow	400x200x150	60%	0.65	390
Solid Load-Bearing	400x200x200	25%	0.80	200
Decorative	400x100x150	15%	0.75	112.50
Total		100%	0.70 avg	702.50

5-Year Revenue Projection

Year	Production	Capacity Utilization	Revenue ($)	Growth Rate
1	312,000	80%	218,400	-
2	374,400	90%	262,080	20%
3	436,800	105%	305,760	16.7%
4	499,200	120%	349,440	14.3%
5	561,600	135%	393,120	12.5%

6. Profitability Analysis

5-Year Profit & Loss Statement

Year	Revenue ($)	COGS ($)	Gross Profit ($)	Expenses ($)	Net Profit ($)	Margin
1	218,400	132,000	86,400	18,200	68,200	31.2%
2	262,080	149,000	113,080	20,000	93,080	35.5%
3	305,760	165,000	140,760	22,000	118,760	38.8%
4	349,440	180,000	169,440	24,000	145,440	41.6%
5	393,120	194,000	199,120	26,000	173,120	44%

Key Financial Metrics

• Break-even Point: 157,143 blocks/year (50.3% capacity)
• ROI Period: 5.2 months
• Gross Margin: 39.6% (Year 1 average)
• Payback Period: 2.1 years (with dividends)

Start Your Brick Manufacturing Business

Get complete technical specifications, supplier contacts, and customized financial models

Contact Us on WhatsApp

+255 716 655 236 | Email: bricks@example.com