Concrete Block Manufacturing Market: Business

Outlook
Scope of Research

The report is precisely an industrial outlook pertaining to the

market of cement block manufacturing and demand. Cement
blocks are in huge demand for residential buildings, non-
residential buildings as well as commercial infrastructure.
How can the study be useful?
Key Target Audience of the report:
• Investors
• Market research and consulting firms
• Real Estate services providers

The study can be useful in terms of understanding the • Students & Researchers
demand of concrete blocks as a good substitute of bricks in • Structural Engineers & Civil Engineers
the construction market.
• Real Estate Contractors
1.1 Cement (Concrete) Blocks: An Overview

The global market pertaining to hollow concrete blocks Global Market Size of Concrete Blocks
market is expected to witness significant growth. The product
remains to be advantageous on account of being light weight 3000
and low cost. Simultaneously, such blocks consume minimum 2500
cement and hence remain environment friendly. 2000 Global Market
1500 Size of Concrete
In relation to the above, data collected from authentic sources 1000 Blocks in USD
reveal that: Billion
500
0
• The global market for concrete blocks is expected to 2019 2027
register a CAGR more than 5 % between FY 2020 -
24 Source: www.verifiedmarketresearch.com/product/
• Concrete blocks have a core void area larger than 25% concrete-block-and-brick-manufacturing-market/
of the gross area.
• Concrete blocks are good substitutes for conventional • The demand for the concrete blocks and bricks
bricks and stones in the real estate market. manufacturing market is driven by the growing
• Components of concrete blocks include sand, cement, construction sector.
aggregates, and water. • Demand is high across Asia-Pacific and the Middle East
• Concrete blocks can be manufactured in uniform region.
shapes and sizes. • Commercially, smooth-faced and split faced products
• They have a rough surface, which allows better have a high demand.
bonding between the surface and the mortar.
• Increasing tourism and urbanization is the primary
• However, increasing demand of lightweight materials driving factor in this market.
in the new construction structures is expected to have
• Manufacturers face intense competition from the existing
a positive impact on the growth of the hollow concrete
product alternatives such as traditional clay and concrete
blocks market over the next few years.
bricks.
1.2 Concrete Blocks: Product and Market Dynamics

Source: https://www.verifiedmarketresearch.com/product/concrete-block-and-brick-
manufacturing-market

As per data available consultants opine that:

• The global concrete block and brick manufacturing market is segmented according to categories of product
and market specifications.
• Concrete blocks have a huge demand in Asian economies.
• Growing demand is due to residential, commercial, and public utility infrastructure in the given economies.
• Concrete block and brick manufacturing market was valued at USD 1,700.55 Billion in 2019 and is projected to
reach USD 2,563.60 Billion by 2027
• Concrete blocks are a prefabricated material mainly used to build walls in a building.
• These blocks come in a variety of dimensions. Textures vary ranging from traditional smooth surfaces to rough
ones
• Concrete blocks are produced in an automated way
• Concrete blocks are known for conducive thermal behavior
• Concrete blocks have standard dimensions and its modular nature allow the builders to design convenient
energy friendly structures
• Concrete blocks are made according to technical specifications from contractors. Such blocks come in various
shapes, size and are identified as bullnose, partition block, concrete floor, double corner, pier, jamb, header
etc.
• Nominal dimensions of such blocks include length of 500 mm, height of 200 mm, and a width of 200 – 300
mm
• Classification of products are according to several grades such as Grade A, Grade B, Grade C, but all are
meant for load bearing units.
• The concrete blocks are chosen in accordance to several factors such as moisture movement, water
absorption, and drying shrinkage.
• Face shells and web thickness vary from one category to the other.
 Table: Detailed Product Specifications of Concrete Block

Source: “Standard Specifications of Hollow & Concrete Solid Blocks”, https://theconstructor.org/concrete/hollow-

solid-concrete-blocks-specification/54785/

1.4 Investment perspectives for concrete block manufacturers

• Raw material for concrete blocks are procured and the other is fully automatic
from local markets and such products have
competitive price. Ø Quality raw material i.e. cement, stone
• Machine and technology remains to be a major dust and sand is required to manufacture
component for investment. cement blocks,
• Concrete manufacturing plants should have safe Ø Raw material procurement can be
electrical connections and water supply in the challenging and Bl has a cost
vicinity. Ø Proportioning, Mixing, Rotating,
• Quality of electrical network should be Compacting and Curing are the
excellent in the plant. processes involved in manufacturing
• Water quality should be good as well. Ø Manufacturing process and technology
differs from a semi-automatic to a fully
• The market is highly volatile, therefore automatic manufacturing process
investments in the given market is risky.
Ø Manufacturing units can be set up on a
• Market dynamics vary from one market to small scale
another
Ø Such a manufacturing plant can hire
• Ratio of the raw material mix required to machineries temporarily as this remains
manufacture concrete blocks vary from one a trend.
country to the other.
Ø Cost of machinery buying and
• Cement based concrete blocks have a higher installation is expensive
‘Global Warming Potential’. Ø Well trained labor is required to operate
• The industry has a huge environmental such a manufacturing plant
implication
• In India there are two types of concrete block
• manufacturing plants, one is semi-automatic,
Investment Guide:
The sector continues to look for durable and cheaper raw material to decrease the cost and make
housing more affordable. Due to shortage of soil and cost factor, many infrastructure companies opting
for cement blocks instead of soil bricks. Also, cement blocks are more durable than hollow brick and
soil brick.
1) Depend on client budget, one can opt hydraulic machines compared to
for manual machine or hydraulic manual machines.
machine with vibrator. 5) Depends on brick, the raw material for
2) Manual machine price starts from Min brick manufacturing will be ash: 40-
4lacs to Max 15lacs including mixer, 60%, Cement: 10-30%, Gypsum: 5-
control panel, foam generator and 25% and water: 5%
compressor 6) Plant should be around 70-120KM
3) Training will be free in case client opt radius of thermal power plant. This will
for hydraulic machines. reduce the transportation cost of fly ash.
4) Final product will be much better in

Margin per brick:

1) Fly ash per brick: INR 1.50
2) Concrete per brick: INR 3.50
Prices excluding all expenses and taxes

Production:
Production completely depending's on machinery. As per industry standards;
1) Manual machine will produce: 1800-2500 per shift
2) Hydraulic machine will produce: 18000-25000 per shift

Land required:
1) For fly ash brick minimum land required is; 3 Acre
2) For cement block minimum land required is: Half Acre

Legal documents required:

1) Non agriculture land certificate 5) ECI&PF
2) Factory trade license 6) Trade License
3) GST registration 7) Labor license
4) Environment clearance

Advantage of cement blocks: Disadvantage:

1) Light weight 1) Still not much demand compared to
2) Easy transportation with minimum soil brick
transportation loss 2) Hyper competitive market
3) Maximum consumption with minimum 3) High inception cost
wastage 4) Product is only viable at nearby
4) Environmentally friendly market due to high transportation
5) Sound absorption cost.
 Conclusion:
1) Cost for setting up manual plant will be around 20lacs to 25lacs
2) Decent income can be expected provided by tight cost control and optimize of resources including
labor cost.
3) Training will play key role in understanding the machinery for better production. It is important to
identify the manufacturer who provide training per long duration (at least 2-3 weeks at sight location)
4) Advised to purchase semi-automatic instead manual for increased production and less operating cost
5) Cement bricks business consist of many local players, business model only viable with good order
book and contacts.

Investment break up for Manual machine:

Item No Cost
Mixer, control panel, compressor, and foam
generator 1 390000
Mould box 60 6,30,000
Slurry trolly 2 33600
brick trolly 2 29600
installation charges& training 25000
Land rent (1 year) 80000
borewell with pump fitting 1 160000
Plot levelling 1 10000
Plot filling 1 30000
Concrete 40 MM 4 Load 26000
Sand 30 Ton 75000
Cement 125 bags 37500
Labour 1 25000
CRS Masonry(800cftxRS140/CFT 112000
Rough stone floor for fly ash cement 22500
Shade for machinery(RS 140*1500Sq.Ft) 210000
Plumbing and electric work 100000
cutting machine 1 400000
Fly ash for 15 days(100T) 100T 100000
Cement 1000 bags 300000
Foam 60000
Labour for 15 days(Rs600*150) 90000
Electricity and water 3000
Total 2949200
 THANK YOU!

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