brick industry base line study

8/2/2019 Brick Industry Base Line Study

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BASELINE STUDY

OF

THE BIHAR BRICK SECTOR

Amit Kumar Singh

KIIT School of Rural Management KIIT UNIVERSITY, BHUBANESWAR, ODISHA



It is a non-profit organization engage in research and action for sustainable rural

development. It was established in 1983 and is registered under the Societies Registration Act with the

Government of India

VISION:

A world where every citizen can live a secure, healthy and fulfilling life in harmony withnature.

MISSION:

To promote sustainable national development

OBJECTIVE:

To design options & promote sustainable development through programmes of Economic efficiency

Eq uity & social justice

Environmental harmony

Resource conservation

Self-reliance

DEVELOPMENT ALTERNATIVES ± AN OVERVIEW



Development

Alternatives

Group

Innovation

Services

Branch (ISB)

Technology

Innovation

Group

Enterprise

Incubation

Group

Sustainability

Research

Group

Development

Services

Branch (DSB)

TARA Livelihood

Academy

Bundelkhand

Development

Group

Community

Partnerships

Group

TARA Technical &

Management

Services Group

Business

Services

Branch (BSB)

Technology & Action

for Rural Advancement

(TARA)

TARA Nirman Kendra

(TNK)

TARAhaat Information

& Marketing ServicesLtd.

Decentralised Energy

Systems India Ltd.

(DESI Power)

Communication

Services

Branch (CSB)

Corporate

Positioning

Group

Knowledge

Communications

Group

Sustainability

Policy Group

Corporate

Management

Branch (CMB)

FUNCTIONAL STR UCTURE - D A



Objectives:

Objectives of the project

To understand the present Scenario of Brick Industry in Bihar.

To assess the market potential & business viability for Clay firedbricks in allocated cluster area.

PHASE-I

SAMPLE DESIGN

FIELD WORK

DATA ANALYSIS

REPORT WRITING

PHASE-II

CONSULTATION WITH

REPORTING OFFICER OBSERVATION &

PERSONAL INTERVIEW OF

KILN OWNER

UNDERSTANDING THE PROJECT

QUESTIONNAIRE DESIGN

SURVEY DESIGN

FINAL REPORT

PREPARATORY WORK

Methodology:

PHASE-III



No. of FC-BTK sample taken for study in Bihar are

The sampling was ClusterCluster sampling for selecting area, namely

Cluster1Cluster1

Patna and Ara

Cluster2Cluster2

Saharsa, Supaul, Madhepura and Katihar.

I have taken convenience (non probability) sampling for

collection of primary data.

DistrictDistrict PatnaPatna AraAra SaharsaSaharsa SupaulSupaul MadhepuraMadhepura KatiharKatihar

SampleSample 55 55 55 55 55 55

Sampling:



Indian Brick Sector: Salient f eatures

Solid clay fired bricks

- Second largest brick producer in world

- Annual production 170 billion/year (approx.)

Decentralized unorganized production

- Decentralized production > 120,000 units

- Annual turnover Rs. 500 billion

- Employment to 1.20 crore workers

Resource intensive process- Coal consumption 6 crore tones/year

- Largest consumer of agricultural top soil



Technologies used:

- Predominantly FCK, sporadic instances of HDK, no alternatematerials e.g. fly ash

Production:

- No. of brick kilns around 4,500

- Annual production 11 billion (4th. largest in India)

Raw materials:

- Soil and coal

Waste materials used:

- Sporadic use of coal slurry

Quality:- Good to medium

Mechanization:

- Mechanized pugging, excavation of soil

The Bihar Brick Sector



Cluster districtUrban

Red brick fly ash Adobe

Cluster1

Ara Major NA NA

Patna Major NA NA

Cluster2

Saharsa Major NA NA

Supaul Major NA Occasional

Katihar Major NA NA

Madhepura Major NA Occasional

Rural

Red brick Fly ash Adobe

Major NA Minor

Major NA Minor

Major NA Minor

Major NA Minor

Major NA Minor

Major NA Minor

In Bihar, Red bricks is the major brick being practice to make buildings.

There is no fly ash brick industry.

In rural areas people made adobe houses (low income people made) but

it is not at large scale.

R esults-Technologies being practiced

Products:



Bricks:

J

CB:

Pug mill:

Dimension (l*b*h) Inch Average Weight (kg)

10*5*3 3.7

Company If own then

price(lacks)

If rent then

price/hr

Capacity

trolley/day

Service Time period

(years)

JCB 20 800 100 yes 1

Name Head

office

Average

price

Capacity

bricks/day

Service Time period

year

Durga engineering Kolkata 40000 10000 No 0

Jamuna engineering Patna 80000 8500 Yes 1

Biswash engineering Kolkata 50000 8000 No 0

Harnaut engineering Harnaut 90000 8000 Yes 1


Mechanization:



Cluster Districts Pug mill Moulding machine Fly ash JCB

Cluster 1 Ara No No No Yes

Patna Yes No No Yes

Cluster 2

Saharsa Yes No No Yes

Supaul No No No No

Katihar Yes No No Yes

Madhepura Yes No No Yes


Mechanization:

Cluster District Coal coming from Distance

Cluster 1 Ara Ghato 250

Dhanbad 350

Jhariya 300

Patna Jhariya 250Ghato 200

Hazaribag 230

Dhanbad 300

Cluster 2 Saharsa Guwahati 516

Supaul Guwahati 535

Madhepura Guwahati 500

Katihar Guwahati 591

Source of raw materials



Resource use

Agriculture

land

River bed

soil

90%

10%




Cluster Average land

area for kiln

(acre)

If land on lease (

lease period)

year

If lease

(acre/month)

Rs.

Market value of

land (lack/acre)

Rs.

Cluster 1 2.6 6 1878 14.6

Cluster 2 6.3 4 1460 29.2

Land particular:

R esults- Economic information

Mining tax (yearly in Rs.):

Urban area mining tax- 72000

Rural area mining tax- 52000

Interior rural area tax- 40000

VAT (yearly in Rs.):

Urban area VAT- 80000

Rural area VAT- 60000

Tax:



0

2000

4000

6000

8000

10000

12000

2007 2008 2009 2010 2011

c o a l c o s t

/ M T ( R s . )

Trend in coal price

Ara

saharsa

supaulkatihar

madhepura

patna

Cluster Rate /MT Average for season per kiln

(MT)

Average exp per kiln

(lakhs)

Cluster1 5800 450 26.19

Cluster2 9500 540 50.08

R esults-Energy consumption

Trend in coal price:



Technology Diesel (litter/ hr)

JCB 5

Pug mill 1.5

Diesel pump for water 1

Diesel detail


Use of diesel in various technology:

0

20000

40000

60000

800001

00000

120000

140000

Ara Patna Saharsa Supaul Katihar Madhepura

Average diesel exp seasonal/kiln(R s.)

Average diesel exp. seasonaly



Fire wood detail:

0

20000

40000

60000

80000

Ara Saharsa Supaul Katihar Madhepura Patna

Average exp for season/kiln(R s.)

Total exp for season(Rs.)

Energy consumption

ParticularAverage brick

production (lakhs)

Coal consumption/kiln

(MT)

Average cost of

coal/ (MT)

Total coal cost

(Rs.) Coal cost/ brick (Rs.)

Coal 26.55 525 8,275 43,44,375 1.67

Average brick

production (lakhs)

Diesel consumption/kiln

(litter)

Average cost of

diesel/litter

Total diesel cost

(Rs.) Diesel cost/ brick (Rs.)

Diesel 26.55 1162 44 51,128 0.02

Average brick

production (lakhs)

Fire wood

consumption/kiln (MT)

Average cost of

firewood/ (MT)

Total firewood

cost (Rs.)

Fire wood cost/ brick

(Rs.)

Fire wood 26.55 12.3 4,208 51,758.4 0.02

Total energy cost/brick 1.71

energy expense/brick(Rs.):




0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

FCK VSBK FLY ASH

Total CO2e emission (kg) per brick from various technologies

R esults-Environmental issues

0

100

200

300

400

500

600

700

Soil excavation Raw material

transportation

Brick making Firing

CO2e emission per 1000 bricks (kg) from various sources and tech.:

Fixed chimney

VSBK

Fly ash



CO2e trading potential per brick from various technologies

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

FCK VSBK FLY ASH




Yes53%

No47%

Yes

23%

No77%

Yes40%

No

60%

Awareness about Eco Friendly

technology

Knowledge about new energy

saving technology

Willingness to adopt new

technology


Awareness, willingness and statuary clearance:

Yes10%

No

90%

DIC registration



Annual turn over:

Production cost:

2000

2500

3000

3500

4000

4500

2007 2008 2009 2010 2011

r o d u c t i o n c o s t / 1 0 0 0

b r i c k ( R s . )

Production cost/1000 brick (R s.)Ara

saharsa

supaul

katihar

madhepura

patna

R esults-Market trends

0

1000

2000

3000

4000

Annual turn over/district (million)



Trend in selling price:

Trend in profit:

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011

s e l l i n g p

r i c e / 1 0 0 0 b r i c k

( R s . )

Selling price/1000 bricks (R s.)

Ara

saharsa

supaul

katihar

madhepura

patna

0

200

400

600

800

1000

2007 2008 2009 2010 2011

p r o f i t / 1 0 0 0 b r i c k s

( R s . )

Prof it/1000 bricks (R s.)Ara

saharsa

supaul

katihar

madhepura

patna

R esults-Market trends



Moulder

44%

Supervisor

10%

Firing

6%

Unloader

20%

Loader 20%

Cost of labour

Parameter: labor cost/brick is Rs. 0.99

R esults- Labour issue:



Issues and opportunities

Technical

Absence of alternate technologies

Only FC-BTK

Brick size and shape

Bigger size bricks (10*5*3), solid

Absence of mechanization

Only pug mill, JCB




Use of top soil in brick making

consumes 41,55,000 m3 of clay per year

barrens 1026 acres per year

retards 1335 T of rice production / year affects 7417 people every year

Technical



Small scale brick production

Fly ash, VSBK

Medium scale brick production VSBK

Large scale brick production

HK (Holf-man kiln), VSBK


Technology




Brick size and shape

Use of standard brick size (8*5*3)

20% savings in soil

Use of hollow bricks

25-40% savings in soil

Use of industrial wastes 5-10% savings in soil

Mechanization

Small scale

Pug mills, extruders

Medium scale

Soft mud moulding machines, extruders




Energy

Rising cost of fuel

Average around 10% increase per year

Likely to increase each and every year

Scope for low energy technologies

Fly ash technologies

Vertical Shaft Brick Kiln

Reducing energy consumption

Use of industrial wastes as internal fuel

Energy can save of up to 60% of external coal




Strong pollution control and mining regime

Absence of incentives

Absence of subsidies

Awareness on cleaner brick production technologies

Policy



R ecommendation

To reduce the f uel consumption and production cost of brick,should use internal f uel like( R ice husk, f ly ash, sugar mill

wastage).

Eco-kiln technology supplier organization should create a modal

in Bihar for inspiring the entrepreneur to adapt the technology.

Bihar brick industry is not mechanized so create awareness about

various technology which will helpf ul to reduce the production

cost and quality enhancement of brick.

Clay brick industry directly aff ected the agriculture and

environment so have to move eco-cleaner technology like f ly ash

and concrete block brick.

brick industry base line study

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