Ready Mix Concrete Plant Business Plan [Sample Template]
By: Author Tony Martins Ajaero
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Do you want to start a concrete plant and need to write a plan? If YES, here is a sample ready mix concrete plant business plan template & feasibility report.
It is an established fact that construction works aren’t going away any time soon in the United States. This goes to show that any business in the value chain of the construction industry is bound to succeed. Hence a ready mix concrete manufacturing business is worth starting in the united states of America.
Ready mixed refers to concrete that is batched for delivery from a central plant instead of being mixed on the job site. The United States in particular has some serious infrastructural goals that need to be filled in the coming years, meaning that as a ready mix concrete manufacturing company, there are loads of jobs waiting for you.
Interestingly, smaller operators comprise the majority of total establishments in the ready mix concrete manufacturing industry not just in the United States but in most countries of the world and they serve local markets. Below is a sample ready mix concrete manufacturing business plan that will help you write your own without stress.
A Sample Ready Mix Concrete Plant Business Plan Template
1. industry overview.
Ready mix concrete, or RMC as it’s also known, refers to concrete that is specifically batched or manufactured for customers’ construction projects, and supplied to the customer on site as a single product. It is a mixture of cement, water and aggregates: sand, gravel, or crushed stone.
Ready mixed concrete is used in construction projects where the construction site is not willing, or not able, to mix concrete on site. Using ready-mixed concrete means product is delivered finished, on demand, in the specific quantity required, and to the specific mix design required.
For a small to medium project, the cost of hiring mixing equipment, labor, plus purchase and storage for the ingredients, added to environmental concerns (cement dust is a particular airborne health hazard) may simply be not worth it when compared to ready-mixed concrete, where the customer pays for what they use, and lets someone else do the work up to that point.
For a large project, outsourcing concrete production to ready-mixed concrete suppliers means delegating the quality control and testing, material logistics and supply chain issues to specialists who are already set up for those tasks. Ready-mix concrete is bought and sold by volume – usually expressed in cubic meters (cubic yards in the US). Batching and mixing is done under controlled conditions.
The Ready – Mix Concrete manufacturing industry manufactures concrete and delivers it in a plastic and unhardened state to purchasers, who then mix and pour the concrete at construction sites. Please note that this industry does not engage in mixing and pouring operations.
It also does not manufacture dry concrete. Statistics has it that the Concrete Contractors industry in the United States of America, is worth over $34 billion, with an estimated growth rate of 5.1 percent between 2014 and 2019. There are about 81,886 registered and licensed ready – mix concrete manufacturing businesses in the United States and they are responsible for employing about 279,527 people.
It is important to state that CEMEX SAB de CV is the company with a dominant market share in the United States. A recent report published by IBISWorld shows that over the five years to 2019, favorable lending rates, improved per capita disposable income and record corporate profit levels have helped bolster construction activity across several sectors, increasing demand for industry products.
The report reveals that housing stats are expected to increase an annualized 6.2 percent over the five years to 2019. Conversely, unemployment is expected to fall at an annualized 10.7 percent during the same period, boosting the need for new office, industrial and manufacturing space.
The ready – mix concrete business will keep on thriving in the coming decade. The market is highly unsaturated and there is room for growth as the industry is expanding and maturing.
The Ready-Mix Concrete Manufacturing industry is very open to any aspiring entrepreneur who have acquired the required trainings, skills and perhaps professional certifications to start his or her own plant and of course make good money from the industry.
2. Executive Summary
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is a licensed American ready – mix concrete manufacturing company.
We have been able to secure a standard facility in an industrial district in Arlington Heights – Texas. We are set to compete in the highly competitive Ready Mix Concrete Manufacturing industry not only in Arlington Heights – Texas, but also throughout the United States market.
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. will manufacture ready mix concrete and deliver it in an unhardened state to purchasers who will then mix and pour the concrete at construction sites. Our business goal is to become one of the leading mix concrete companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.
Our workers are going to be selected from a pool of highly experienced civil engineers, technicians and tradesmen with different areas of expertise as it relates to our service offerings.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading concrete contracting companies in the United States.
At OJ Maxwell® Ready Mix Concrete Manufacturing, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is founded by Engr. Olsen Jay Maxwell. Engr. Maxwell graduated from A and M University, Texas; with a B.Engr. in Civil Engineering. He will run the business alongside his son Jeremy Maxwell who has a B.Sc. in Business Administration.
They have a combined experience that can help them build OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. to favorably compete with other ready mix concrete businesses in the United States of America.
3. Our Products and Services
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is established with the aim of maximizing profits in the industry.
We want to compete favorably with the leading ready companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every ready mix concrete manufactured from our plant meet and even surpass our customers’ expectations.
We will work hard to ensure that OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is not just accepted in Arlington Heights – Texas but also in other cities in the United States of America. Our service offerings are listed below;
- Manufacturing wet batches of ready-mix concrete in plants
- Delivering ready-mix concrete to end users
- Manufacturing ready-mix concrete in transit using mobile plant facilities
4. Our Mission and Vision Statement
- Our vision is to establish a standard and all – round ready mix concrete manufacturing company whose brand will not only be accepted in Arlington Heights – Texas but also in other cities in the United States of America.
- Our mission is to provide globally accepted ready mix concrete from our manufacturing plant and on transit and to build a ready mix concrete manufacturing company that can favorably compete with other leading brands in the industry.
Our Business Structure
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. intends starting small in Arlington Heights – Texas, but hopes to grow big in order to compete favorably with leading ready mix concrete manufacturing companies in the United States.
We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
At OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Plant Manager (Senior Civil Engineer)
- Human Resources and Admin Manager
- Sales and Marketing Executive
Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Plant Manager (Senior Civil Engineer):
- Oversees operations in the ready mix concrete manufacturing plant
- Serves as project manager of the organization; works directly with employees
- Develops strategic plan by studying technological, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and handymen
- Ensures that the organization work in line with international best practices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for OJ Maxwell® Ready Mix Concrete Manufacturing, Inc.
- Serves as internal auditor for OJ Maxwell® Ready Mix Concrete Manufacturing, Inc.
- Responsible for manufacturing wet batches of ready-mix concrete in plants
- Responsible for manufacturing ready-mix concrete in transit using mobile plant facilities
- Responsible for operating and maintaining concrete mixers, transit mixer trucks, dumper trucks, crane hoppers, truck-mounted conveyors, and, in extremis, wheelbarrows and other related equipment
- Handle other related job as instructed by the Plant Manager.
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured company that can favorably compete in the highly competitive concrete concreting industry in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of OJ Maxwell® Ready Mix Concrete Manufacturing, Inc.;
We can boast of having a system that runs on automation and it includes concrete mixers, transit mixer trucks, dumper trucks, crane hoppers, truck-mounted conveyors, in extremis, wheelbarrows and autonomously operating equipment.
We have been able to select a team of workforce that will give us advantage. Aside from the synergy that exists in our carefully selected workforce, our production process and products will be guided by international best practices.
As a new ready mix concrete manufacturing company in Arlington Heights – Texas, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients (construction companies) in the already saturated and industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
Construction can be very fast if RMC is used. It reduces cement consumption by 10 – 12 percent due to better handling and proper mixing. Further reduction is possible if mineral admixtures or cementitious materials are used.
Acceleration of the housing and nonresidential construction markets in the United States is bound to support growth for our business. Operators in the nonresidential building market are major consumers of concrete, mostly for use in foundations, suspended slab flooring, tilt walls and paving.
Ready-mix concrete is also the principal input into a wide range of other nonbuilding infrastructure, such as transportation terminals, sports stadiums and petrochemical plants. The value of private nonresidential construction is expected to increase in 2019, representing a potential opportunity for the industry.
Private investment in housing, commercial buildings and infrastructure is influenced by trends in long-term interest rates. A low inflationary outlook and interest rate stability foster investment in construction markets, boosting demand for ready-mix concrete.
Therefore, a low interest rate, characterized by a low yield on the 10-year Treasury note, bolsters revenue for ready-mix concrete manufacturers. The yield on the 10-year Treasury note is expected to decrease in 2019, but continued projections of growth mean it remains a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
A close watch on industry activities shows that revenue increase is due to an acceleration in downstream construction markets in the United States. As a result of the steady increase of demand from downstream construction markets, activities in this industry, registered businesses and of course contracts/job numbers have been trending upward.
Going forward, the construction industry and real estate industry are expected to continue thriving hence increase in the demand for ready mix concrete. Strengthening demand from downstream markets has driven growth for the Ready – Mix Concrete Manufacturing industry.
Operators in the industry produce and deliver wet batches of concrete to construction contractors. Companies do not mix the concrete or pour it, instead they focus on manufacturing and distribution. The industry’s largest market is in construction, both for private residential and nonresidential use and for state and local public agencies.
Therefore, industry demand is primarily driven by housing stats and the value of government investment on state and local projects. Growth in these factors, coupled with other economic catalysts, has pushed the industry to increase at an annualized rate of 5.1% to $34.0 billion over five years.
Another notable trend shows that ready mix concrete plants are moving from using technology solutions for specific tasks to having real-time and accurate information at their fingertips. Construction productivity is on the brink of a huge leap due to integrated and intuitive software that doesn’t just give you a bunch of numbers but rather provides easy-to-understand information that enables you to make good decisions.
8. Our Target Market
Before starting our ready mix concrete manufacturing company in Arlington Heights – Texas, we conducted a market survey and feasibility studies and we are certain that there is a wide range of construction companies and other players in the construction value chain that need our products. We are aware that the industry’s primary markets are the nonresidential and residential building sectors.
Our Competitive Advantage
There are favorable conditions for growth in the Ready Mix Concrete Manufacturing industry and as a result of this, survival in the industry will require that you build on existing knowledge and broaden your skill base. More ready mix concrete manufacturing companies are coming up and they are using the services of existing franchise in the business to boost their competitive edge and exposure in the industry.
We are quite aware that to be highly competitive in the Ready Mix Concrete Manufacturing industry means that you are not only expected to deliver reliable ready mix concrete, but you must be able to meet set targets. No one would want to hire your services if don’t always meet up with target.
Our Competitive Advantage lies in the power of our team; our workforce. We have a team of certified and highly trained civil engineers and technicians et al, a team with excellent qualifications and experience in various niche areas in the ready mix concrete manufacturing industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
We are mindful of the fact that there are stiff competitions in the Ready Mix Concrete Manufacturing industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets.
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to construction and real estate companies and key stake holders in and around Arlington Heights, Texas.
- Promptness in bidding for ready mix concrete supply contracts from construction companies and real estate companies
- Advertise our business in relevant business magazines, newspapers, TV and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is established with the aim of maximizing profits in the Ready Mix Concrete Manufacturing industry and we are going to ensure that we do all it takes to meet and surpass the expectations of our clients.
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. will generate income by;
10. Sales Forecast
One thing is certain, there would always be construction and real estate companies, households and individual who would need the services of ready mix concrete manufacturing companies.
We are well positioned to take on the available market in the Ready Mix Concrete Manufacturing industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our company to enviable heights.
We have been able to examine the ready mix concrete manufacturing cum construction market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for OJ Maxwell® Ready Mix Concrete Manufacturing, Inc., it is based on the location of our business and of course our target market;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.2 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate clients and households in the whole of Arlington Heights – Texas and beyond which is why we have made provisions for effective publicity and advertisement of our ready mix concrete manufacturing company.
Below are the platforms we intend to leverage on to promote and advertise OJ Maxwell® Ready Mix Concrete Manufacturing, Inc.;
- Place adverts on both print (newspapers and construction and real estate related magazines) and electronic media platforms
- Sponsor relevant community – based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our products
- Install our Billboards in strategic locations all around Arlington Heights – Texas
- Distribute our fliers and handbills in target areas
- List our company in local directories/yellow pages
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles, concrete mixers, transit mixer trucks, dumper trucks, crane hoppers, truck-mounted conveyors, wheelbarrows and other related equipment are branded with our company logo.
12. Our Pricing Strategy
According to the NRMCA – Ready Mixed Concrete Industry Data Survey, the average cost of concrete in 2016 was $108.22 per cubic yard, or $216.44 for the 2 cubic yards. At OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. we will keep the prices of our ready mix concrete below the average market rate by keeping our overhead low.
In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors that bid for such contracts.
- Payment Options
The payment policy adopted by OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for ready mix concrete delivered without any stress on their part.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard ready mix concrete manufacturing company in Arlington Heights – Texas and here are the key areas where we will spend our startup capital;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a facility that will accommodate the number of trucks for at least 6 months (construction of ready mix concrete plant inclusive) will cost – $120,000.
- The amount required to purchase the needed concrete mixers, transit mixer trucks, dumper trucks, crane hoppers, truck-mounted conveyors, wheelbarrows and other related equipment – $200,000
- Equipping the office (computers, printers, projectors, markers, servers/internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $5,000
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $1,000
Going by the report from the market research and feasibility studies conducted, we will need about six hundred and fifty thousand ($650,000) U.S. dollars to successfully set up a medium scale but standard ready mix concrete manufacturing company in the United States of America.
Generating Funds/Startup Capital for OJ Maxwell® Ready Mix Concrete Manufacturing, Inc.
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is owned and managed by Engr. Olsen Jay Maxwell and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the start up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our ready mix concrete a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
OJ Maxwell® Ready Mix Concrete Manufacturing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check : Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard ready mix concrete plant – facility, renovation and equipping of the facility inclusive: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of concrete mixers, transit mixer trucks, dumper trucks, crane hoppers, truck-mounted conveyors, wheelbarrows and other related equipment and other related equipment: Completed
- Printing of Packaging and Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress
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Batching Plant/RMC Plant(Ready Mix Concrete) – Requirements, License, Plant & Machinery, Investment, Profit, Use & Market Size
Batching plant/rmc plant(ready mix concrete) – requirements, license, plant & machinery, investment, profit, use & market size.
Ready-mix concrete (RMC) is a ready-to-use material, with predetermined mixture of cement, sand, aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or as per specifications of the customer, at a centrally located batching plant. It is delivered to a worksite, often in truck mixers capable of mixing the ingredients of the concrete or just before delivery of the batch. This results in a precise mixture, allowing specialty concrete mixtures to be developed and implemented on construction sites. The second option available is to mix the concrete at the batching plant and deliver the mixed concrete to the site in an agitator truck, which keeps the mixed concrete in correct form.
RMC (Ready Mix Concrete) is concrete that is manufactured in a batch Plant, where converts raw materials into a value added commodity.
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Advantages of Ready Mixed Concrete(RMC Plant):
- Better quality concrete is produced.
- Elimination of storage space for basic materials at site.
- Elimination of Procurement / Hiring of plant and machinery
- Reduction in cement consumption by 10 – 12 % due to better handling and proper mixing. Further reduction is possible if mineral admixtures or cementitious materials are used.
- Versatility in uses and methods of placing: The mix design of the concrete can be tailor made to suit the placing methods of the contractor.
- Wastage of basic materials is avoided.
- Labour associated with production of concrete is eliminated.
- High speed of construction- Speed of construction can be very fast in case RMC is used.
- Timely deliveries in large as well as small pours.
- Reduced noise and air pollution at site; less consumption of petrol and diesel and less time loss to business.
- Organization at site is more streamlined.
- Durable & Affordable
- No storage space required either for raw materials or for the Mix.
- Lower labour and supervisory cost.
- No wastage at site
- Environment friendly
- Availability of concrete of any grade.
Disadvantages of RMC Plant:
- Need huge initial investment.
- Not affordable for small projects (small quantity of concrete)
- Needs effective transportation system from RMC to site.
- Traffic jam or failure of vehicle creates problem if proper dose of retarder is not given.
- Labours should be ready on site to cast the concrete in position to vibrate it and compact it.
Uses of Ready Mixed Concrete(RMC Plant):
- It is used in the construction of bridge, dam etc.
- It is used in the construction overhead roads, pools, multi-storied building etc.
- It can be directly used at the construction site.
- It help greater element of automation and precision concrete mixing.
- A much higher quality and more constituent uniformity and increase standardization and speed which is done ten times faster as compared to site mixed concrete.
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Market Growth of RMC Plant:
The global ready-mix concrete market is expected to reach USD 954.7 billion by 2024. An increasing number of infrastructure projects including roads, bridges, dams coupled with rapid airport expansion works in emerging countries will fuel growth over the next eight years. Furthermore, rising government spending on power plants, manufacturing facilities, construction infrastructure along with the growing population will augment industry expansion over the upcoming years.
The growing number of infrastructure projects, including bridges, roads, dams, and airport expansion works, especially in developing nations is fueling the demand for ready-mix concrete. The global ready-mix concrete market is thus expected to witness high growth in the coming years. Some of the other reasons behind the growth of the market are high government spending on construction, manufacturing, and power plants, the growing population, and the trend of urbanization.
Ready Mixed Concrete(RMC Plant) Type:
- Compact Batching Plant.
- Mobile Batching Plant.
- Horizontal/Stationary Batching Plant.
Capacity of Plant:
The capacity of : 20 m3 /hr to 120 m3/hr
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Price Start From 20 Lac
- Area required 15000 Sqft.
- Plant setup area
- Material Storage area
- Transport movement area
- Plant office area
- Transit Mixture
- Proper Investment approx. 50 lac – 80 lac
- Power Requirement 30 HP – 81 HP (22 KW-60KW )
Raw material: Major materials used are as follows:
- Packing material (20 kg, 50 kg bags, etc.)
List of Machinery used in RMC Plant:
- Inline bins storage, Air Compressor, Cement filling compressor
- Skip bucket (skip hoist)
- Cement & Fly ash Silos
- Screw Conveyor
- Weighing system
- Controllers (Controller House)
- Aggregate hoper
- Aggregate Weighing system
- Transit Mixer (2 Nos.)
Where to buy RMC Plant Machine in India ?
If you want to buy RMC Plant Machine online then you can visit https://dir.indiamart.com/ to buy your favorite or required RMC Plant machine. However, you can also purchase from foreign country. And let me clear you one thing that you can also buy these machine offline. So, I’ll advice you that first compare the price of online and offline then purchase the machine.
The raw materials are procured and are thoroughly tested for their quality and physical properties. The required raw materials are stored in Silos in required quantity. Lime stone is put into the crusher where the material is crushed. Aggregates are transferred to crusher where crushing activity takes place and are crushed in required size. The material is then transferred to Compressed Air mixer in which the required material is mixed. The final product or mixture is then transferred to Silo for storing purpose. Finally the mixture that is ready for sale is packed in 25 kg or 50 kg bags as per market and consumer preference.
The industrial setup requires space for Inventory, workshop or manufacturing area, space for power supply utilities and auxiliary like Generator setup. Also some of the area of building is required for office staff facilities, documentation, office furniture, etc. Thus, the approximate total area required for complete industrial setup is 1500 to 2000 Sq ft. Civil work cost will be around 5 Lac Rs.(Approx).
There are requirement of skilled machine operators to run the machine set. Experience quality engineers are required for desired quality control. Some helpers are also required to transfer the material from one work station to other. Office staffs are required to maintain the documentation. The approximate manpower required is 11 including 1 Supervisor, 3 Plant operator and 2 unskilled worker , 1 Helper, 1 Security guard. 3 Skilled worker including Accountant, Manager and Sales person.
- Udhyam Registration
- Factory License
- GST Registration
- NOC (State Pollution Control Board)
- Environment Clearance
- EPF/ESIC Registration ( If 11 employee cross then required )
- Electricity Permission
- Brand Registration (If required)
Documents Required for Loan:
- Personal Documents like Aadhar Card, Pan Card, Address proof etc.
- ITR of Last 3 years or Audit Report with CA
- Bank Statement of last 1 year
- Business Registration
- Detail Project Report.
Total Investment for RMC Plants Setup:
- Land (Lease / Rent) Deposit: 5 Lac
- Civil work like Generator setup, Office building, Rest shelter & office furniture etc : 5 Lac
- Plant & Machinery(60m3/hr): 35 Lac (Approx.)
- Stock of Raw material: 10 Lac (Approx.)
- Transit mixture: 20 Lac-25 Lac
- License fee: 1,00,000/-
- First month Manpower Salary : 1,10,000/-
Total Investment required setup RMC Plant: 75 Lac (Approx.)
Price: (Charges to the clients):-
It is very useful in cities where demand of concrete is very high and construction sites are in congested areas where mixing on site is not possible. It is suitable for projects like Dam, Roads, Bridges, commercial complex, Malls and all types of mass construction where time limit plays a vital role and where demand is huge.
Also Read: Wire Nail Manufacturing Business plan- Requirement, Investment, Profit, Machine Required
RMC Plant Business Plan Related Video:
F.A.Q(Frequently Asked Question):
Q. What is Ready Mix Concrete Manufacturing industry ?
Ans: Ready-mix concrete (RMC) is a type of concrete which is manufactured in a cement factory, or specifically known as the batching plant.
Q. Machine Required for RMC Plant.
Ans: There are list of machine which is required for the RMC Plant which is given below:
Q. How much area required for the RMC Plant ?
Ans: The industrial setup requires space for Inventory, workshop or manufacturing area, space for power supply utilities and auxiliary like Generator setup. Also some of the area of building is required for office staff facilities, documentation, office furniture, etc. Thus, the approximate total area required for complete industrial setup is 1500 Sq ft to 2000 Sq ft. Civil work cost will be around 5 Lac Rs.(Approx).
Q. How has the Ready Mix Concrete industry performed so far and how will it perform in the coming years ?
Ans: The global ready-mix concrete market is expected to reach USD 954.7 billion by 2024 . An increasing number of infrastructure projects including roads, bridges, dams coupled with rapid airport expansion works in emerging countries will fuel growth over the next eight years.
Q. What is the Project Feasibility of Ready Mix Concrete Manufacturing Plant ?
Ans: The growing number of infrastructure projects, including bridges, roads, dams, and airport expansion works, especially in developing nations is fueling the demand for ready-mix concrete. The global ready-mix concrete market is thus expected to witness high growth in the coming years.
Q. What are the requirements of RMC ?
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Done For You Business Plans
We have put together several concrete business ideas and plans that will help you build a concrete business.
Interlocking Block Business Plan
Concrete to collect business plan.
- Onsite Batching Business Plan
- Egg Layer Business Plan
We have developed a business planning tool that is easy to complete for any currency. We just need your local input costs and we can develop a business plan for your business.
We are business people who talk business to business people. We are not here just to sell you a batching plant. We are here to support your business growth.
Watch the video and if you would like a copy of the business planning tool for your business complete the form below.
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Let’s build a business plan for you, complete the form to get started, interlocking block business video, executive summary for the plans.
The business idea is to cast 70 interlocking blocks per day (50m3 per day and 1,000 m3 per month) and sell them on with a premium value. The premium value is to sell then as a solution build retaining walls and such like.
The concrete batching plant has a monthly output of 5,000 m3. The spare capacity can then be sold off a concrete to collect.
The profits in light grey are block only volumes showing break even and full capacity. The profits in dark grey show blocks and selling the spare capacity to contractors.
The business case above is full block capacity with 300m3 of concrete to collect to make the business plan realistic.
With fibo finance no payments are made in the first year allowing the business to collect cash even at breakeven output
The business plan is to convert recycled concrete into concrete house build blocks.
At 90% capacity the plan will convert 432 tonnes of recycled concrete into 20,000 to 30,000 blocks per day depending on the size of blocks. 8,640 tonnes per month.
The table below show the net profit with and without finance at various outputs.
The plan uses a production cost of £40 per m3 and an average sales price of £70 per m3. The average sales price allows the blocks to be sold to retail and directly to contractors.
Onsite Batching Concrete Business Plan
The business idea is to batch concrete on site using a very fast set up mobile matching plant. The plant can arrive on site and batch concrete within an hour.
At full capacity, the T2200 can produce 6,000 m3 of concrete per month. Due to site demand the capacity may not be utilized and therefore a more realistic 50% capacity has been used in the business plan.
The table below shows the next profit with and without finance.
Using Fibo finance no payments are made for twelve months allowing cash to be generated even on low than 50% capacity.
A fleet of six T2200 plants can deliver a net profit of £3,500,000 at 50% Capacity.
Egg Layer Concrete Business Plan
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Ready mix concrete batching plant - business plan
Business plan for a concrete batching plant
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- 1. Farah Taleb Noor Osman Jihad Hajar
- 4. TCF is a startup concrete mixer establishment located in the North of Lebanon. TCF is expecting to catch the attention of many clients and contracting companies based on the high quality of the offered product. The Factory is planning to build a strong image and market position in the town. TCF aims to produce various kinds of concrete including quaking concrete and hard concrete, suitable for large or medium scale building works, road and bridge works. TCF’s mission is to exceed our costumer’s satisfaction and to become the single trusted source of high quality concrete.
- 5. Vision Statement: Become the most trusted single source and multi-trade industrial contracting and engineering ready mix concrete provider based on technical expertise and continuous development. Become a safety icon based on the high strength concrete we offer. Become an innovative factory which determines the concept of reliability, technology and quality in the rapidly changing world. Mission Statement: Offer a high quality of Concrete at a competitive price to meet the demand of our clients Establish a strong relationship with the area’s home builders. Provide customer satisfaction at maximum level by presenting products that are designed and manufactured in compliance with the customer needs and expectations.
- 6. Goals: Increasing sales steadily each year for the next 5 years. Increase profit and revenue. Have happy customers. Support Community. Being a great place to work. Build amazing product. Objectives: Reduce production costs. Launch new services. Have onsite customer visits. Sponsor charitable events. Apply new technologies. Offer more training programs.
- 7. Logo: Slogan: For Living Concrete
- 8. Providing a high quality of product with fair prices. Good Relationships with engineering customers. An advanced batching plant with high technology. Foresee changes in the market and it is to our clients' benefit that we proactively introduce new technologies and stay ahead of competition.
- 9. TCF offers a high quality of ready mix concrete. Our ready mix concrete is a mix of coarse aggregate, fine aggregate, sand, powder, chemicals and water. There are five types of ready mixed concrete; it differs according to their weighs. Starting from 250, 300, 350, 400, and 450 that represent the strength of the product.
- 11. 1 Bulldozer. 2 pumps. Diesel container. 2 ready-made houses. Power generator KVA 500. Electrical equipment for lighting and various uses. Equipment requires periodical maintenance. 8 mixers. 1 rapid, 2 Picanto cars.
- 12. Project manager office, including the decor, furniture, computer, telephone, files wardrobe and a big office table. The office will be a hall meeting when need. Accountant office with furniture, computer, printer, telephone, files wardrobe. Supervisor room containing simple furniture and 2 small offices. Kitchen equipment containing small refrigerator, gas and accessories and tools cabinets.
- 13. Since we are: Aiming to produce highly standardized products, using high technology, Competitors are direct and highly experienced. We chose to apply the Cost Leadership Strategy. This Strategy will allow us to: Define the market floor price, Attract buyers who buy on the basis of low prices. We also tried to merge this strategy with the differentiation strategy, since we are offering a larger variety of concrete products (varying in amount of raw material)
- 14. Planning • Thinking about and organizing the activities required to achieve a desired goal. • Involves the creation and maintenance of a plan. Organizing • Relationships betweem positions. • Relationships between people occupying these positions. Directing • Motivating Others. • Communicating with others. Controling • Helps to check the errors and to take the corrective action • Setting standards, measuring actual performance and taking corrective action.
- 15. Using the Microsoft Project, this step was done. First we mention the steps of the project taking into consideration the timing. Steps: Site Preparation. Getting our name out there through advertisements and publicity. Employment ads. Interviews to choose best employees. Analyze competitors. Set standards and internal rules of company. Financial analysis and expected sales study. Purchase all equipment. Purchase raw materials and resources. Train chosen employees to get familiar with the work. Start producing.
- 16. General Manager Accountant Salesmen Supervisor Project Manager Workers
- 17. The right person is put in the right place, The demand and supply of employees are estimated, The job analysis (job needs to achieve the objective) is performed, The job description and specification, The info of available position is delivered to as many people as possible (internet, media activity, job posting, employment agencies, job fair…) At this phase the manager of the project will receive a large amount of Curriculum Vitae (CV) that should be filtered in order to choose the right person. Interviews, examinations, work sampling or even physical test are done in order to know capability and ability of work and skills that distinguish every person from the other one.
- 18. At the end the chosen employees were: • 1 Civil Engineers, • 1 Accountant, • 2 Salesmen, • 10 Drivers, • 2 Drivers Helpers, • 2 workers. Coordination is very important so that the final product has exactly the same quality. The coordination should be held putting certain standards for results, procedure, and high level of qualification. Workers are always motivated to work harder and give their full capacity. This is done essentially by respecting the pyramid of needs Bonuses are given to those who work extra hours. Sometimes responsibility of a worker is increased in order to change their work tone. Recognition Self esteem Social Life + Being Accepted Security Biological, Physical
- 19. The project is verified if it’s oriented to the objective or not, the comparison between the results and the planning must be done. • The objective is fixed, while continuous evaluation takes place, • The results are analyzed, • Comparison takes place. It is highly important that the final product will always have the same quality and raw materials quantity. Product “A” Same Results Product “B”
- 20. The administration: general manager is responsible and he takes the strategic decisions. He represents the company and he has the power to make deals. The financial administration: the accountant is responsible. He records the daily financial operations. The supervisor: he is responsible of the production process, quality control, and leading the workers. Workers: are responsible in conducting the production process, maintenance, transportation and cleaning.
- 22. The industrial sector plays a major role in the local economy through its huge financial investment which provides job opportunity by involving expertise and human resources. This sector found itself in expansion in the last years.
- 23. Global Concrete and Cement Market research reports that worldwide market value for concrete and cement industry was US$449.4 billion in 2012. The Asia-Pacific region was the largest regional market and accounted for 58.1% of the global market. The Asia-Pacific concrete and cement market valued US$261.1 billion in 2012 A study has been created in order to know the feasibility of the project located in Tripoli North of Lebanon. This ready concrete mixer provides job opportunities since it needs at least 20 workers to operate. It appears that total sales for the first year is 5.540.400 US $, with a market growth of 3%.
- 24. The Concrete Factory (TCF) will focus on the following types of costumers: Owners of contracting companies, Structural engineers and builders 96 % [VALUE] % MARKET SEGMENTATION Owners of Contracting Companies Structural Engineers and Builders
- 25. Sales 2013 quarter 1 quarter 2 quarter 3 quarter 4 Total Daily Production 100 250 260 150 Quarter production 9000 22500 23400 13500 2013 9000 22500 23400 13500 68400 2014 9510 25000 28000 7942 70452 2015 10000 26500 30340 3680.4 70520.4 2016 10500 27000 31000 2054.6 70554.6 2017 10500 27000 31000 2054.6 70554.6 2018 10500 27000 31000 2054.6 70554.6
- 26. 67000 67500 68000 68500 69000 69500 70000 70500 71000 2013 2014 2015 2016 2017 2018
- 27. Product Year Unit Price Expected sales Total Expected Sales Ready Mix Concrete 2013 81 68400 5,540,400 Ready Mix Concrete 2014 82 70520.4 5,777,064 Ready Mix Concrete 2015 83 70554.6 5,853,160 Ready Mix Concrete 2016 84 70554.6 5,926,536 Ready Mix Concrete 2017 85 70554.6 5,997,090 Ready Mix Concrete 2018 86 70554.6 6,067,644
- 28. Helpful to achieve the objective Harmful To achieve the objective Internal Origin External Origin Equipment of high technology Qualified and Motivated workers Excellent sales staff with strong knowledge of existing product. Highest Quality at Lowest Price. Weak skills in business and marketing Weak experience in the field Similar product in the market is more expensive Raw materials as aggregate and sand are highly available Competitors are highly experienced in the field Similar strong product already exists
- 29. Two direct competitors are present in the market: Holcim and El Sabea. Our key to success is to penetrate the market is new and high technological batching plant, with high capacity of production and new equipment.
- 30. Holcim is a Swiss-based global building materials and aggregates company. The company also supplies ready-mix concrete and asphalt including associated construction services. After a visit to the field this SWOT analysis took place: Helpful to achieve the objective Harmful To achieve the objective Internal Origin Having two mixing machines, so if one is damaged the work won’t stop. Large planted areas which will reduce the amount of pollution. The two mixing machines are very small, which will lead to a low production capacity. Having only one large Kiln, so cleaning it will stop the work. External Origin High demand on the product due to fast urban growth. They have only one competitor in the region. Unsecure region. Company location is very close to the sea which will cause corrosion to the machines (repairing costs)
- 31. Helpful to achieve the objective Harmful To achieve the objective Internal Origin Having one large mixing machine, so they are capable of having high production capacity. Having three small kilns so while repairing or cleaning one of them the production won’t stop. If the mixing machine is damaged the production will stop. No planted areas which will not help in reducing the amount of pollution. External Origin High demand on the product due to fast urban growth. They have only one competitor in the region. Unsecure region. Company location is very close to the sea which will cause corrosion to the machines (repairing costs)
- 32. Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score Quality 0.30 4 1.2 4 1.2 3 0.9 Lowest Price 0.25 4 1 3 0.75 3 0.75 Customer Retention 0.25 4 1 4 1 3 0.75 Location 0.20 3 0.6 2 0.4 2 0.4 Total 1 3.8 3.35 2.8 Key Success Factors TCF HolcimEl Sabea
- 34. Industry Competitors Potential Entrants Buyers Substitutes Suppliers
- 35. Industry Competitors • Two experienced competitors are present in the market Potential Entrants • It is not very easy to start this business, so threat of new entrants is not high Buyers •Buyers can buy the product from others companies. •Low and well-chosen prices will attract buyers, so their power on the company is not that high. Suppliers • There many suppliers of rocks, aggregates, sand and other concrete raw materials. Substitutes • Concrete can’t be substituted by any other product, • Buyers may get product from others companies.
- 36. Forces Importance(1 to 5) Threat to industry (1to 5) Weighted score Rivalry among existing firms 4 3 12 Bargaining power of suppliers 2 2 4 Bargaining power of buyers 2 3 6 Threat of new entrants 1 3 3 Threat of substitution 2 3 6 Total Weighted Score = 12 + 4 + 6 + 3 + 6 = 31 Minimum Score = 5 (very attractive) Maximum Score = 125 (very unattractive) 31 is closer to 5 than 125 so the project is fairly attractive.
- 37. Questions Very Good Good Average Bad Very Bad Total What do you think about the aggregates amount used in this sample? 12 32 5 1 0 50 What do you think about the strengths of this concrete? 30 15 3 0 2 50 What do you think about the silos? 45 4 1 0 0 50 What do you think about the prices? 29 11 8 2 0 50 What do you think about the quality? 33 7 10 0 0 50 What do you think about the delivery timing? 45 5 0 0 0 50 What do you think about the relation with the company? 39 5 4 2 0 50
- 38. A technical study has been elaborated to determine the basic specification of the project and the annual costs. Project needs have been detailed from: The fixed costs: salaries, amortization. The variable costs: these variables are divided on 3 sectors (raw material, power and maintenance). Raw materials, Working power, Machines and equipment, Human resources (managers and workers). Two kinds of costs have been shown:
- 39. Site location: the project is located in Tripoli – North Lebanon. The average total area is approximately 8.000 square meters which is only 100 m away from the main highway and it’s furnished with phone lines and water supplies. It’s possible to provide employees with the lowest possible costs. Building regularization: an erect support wall should be fixed to maintain the concrete mixer.
- 40. The raw material is put in containers which are filled by a bulldozer. Ready mixed concrete production is done by mixing: coarse aggregate, fine aggregate, sand, cement powder, chemicals and water.
- 41. The mixed product is emptied in a truck. It’s noted that the production rate is 36 meters per hour of concrete. Therefore, on the basis of maximum power on a 9 daily hours shift give us 324 meter per day. The working power of the machine is estimated to be 70% of the maximum power, the real annual production is 82,782 m ( 324 m* 365 *70% ) The factory needs electrical power, electricity will be provided by a power generator (KVA500) for operating the factory.
- 42. Product Essence: it’s produced depending on the desired type and sizes. The measuring unit is meter. Product Employment: In general it’s concentrated on the contracting sector. Taxes on revenues: The incomes are subjected to the taxes and paid to the ministry of finance and since the company is a SARL the tax is calculated as per 15% on the out coming profit after deducing the expenditures.
- 44. After studying the major specifications for running the project, the annual costs can be determined as fixed and variable costs. Variable costs: are expenses that change in proportion to the activity of a business, they are related to raw material quantity utilized in production process. The quantity is shown as bellow table: 250 300 350 400 450 Cement 23.65 28.38 33.11 37.84 42.57 Sand 7.328 6.576 5.712 5.232 4.944 Coare Agregate 1.748 1.35125 2.07575 1.8515 2.11025 Fine Agregate 1.42025 1.35125 1.38575 1.48925 1.2765 Powder 1.73 1.85 1.66 0.19 1.79 Chemicals 3.542 3.542 3.542 3.542 3.542
- 45. 8 mixers, 1 Bulldozer, 2 Pumps. Price per Unit ($) Total Price Land 250,000 250,000 Batching Plant 600,000 600,000 Mixer 45,000 8*45,000 = 360,000 Bulldozer 50,000 50,000 Pump 75,000 2*75,000 = 150,000 Office Tools 30,000 30,000 Work Tools 10,000 10,000 Build Warehouse and Rooms 60,000 60,000 Stock 100,000 100,000
- 46. Fixed costs: Amortization: in this project amortization may differ between 8% and 15%. Statement Amortization 2 ready made house 8% Concrete mixer 8% Transport machines 10% Office tools 15% Batching plant Trucks Office tools Ready made house Total Amortization Price ($) 600000 560000 30000 60000 RATE 8% 10% 15% 8% Amortization 48000 56000 4500 4800 113300
- 47. Salaries expenses: annual salaries have reached 201600 US $. Position Salary/Month ($) Engineer 2000 Accountant 800 Salesmen (2) 900/salesman Drivers (10) 1000/driver Drivers Helpers (2) 600/helper Worker (2) 500/worker
- 48. Investment (at year 0 2018) $$$ Batching Plant 600.000 Trucks 8* 45 000 mixer + 2 * 75 000+ 50.000 =560 000 Office Tools 30 000 Work Tools 10 000 Stock 100.000 Land 250.000 Build warehouse and rooms 60.000 Total Costs 1.610.000
- 49. 2012 2013 2014 2015 2016 2017 2018 200.000 100.000 100.000 100.000 100.000 360.000 50.000 50.000 50.000 50.000 30.000 10.000 50.000 50.000 250.000 60.000 960.000 200.000 150.000 150.000 150.000 0 0 TOTAL COST 1.610.000
- 50. 2013 2014 2015 2016 2017 2018 Quantity 68,400 70,452 70,520 70,554 70,554 70,554 Average price / unit 81 82 83 84 85 86 Sales 5,540,400 5,777,064 5,853,160 5,926,536 5,997,090 6,067,644 FIXED COSTS 1,451,600 1,451,600 1,451,600 1,451,600 1,451,600 1,451,600 Amortization 113,300 113,300 113,300 113,300 113,300 113,300 EBIT 3,975,500 4,212,164 4,288,260 4,361,636 4,432,190 4,502,744 Interest expenses( 5% ) 198,775 210,608.2 214,413 218,081.8 221,609.5 225,1377.2 EBT 3,776,725 4,001,555.8 4,073,847 4,143,554.2 4,210,580.5 4,277,606.8 TAX (15 %) 566,508.75 600,233.37 611,077.05 621,533.13 631,587.075 641,641.02 Cash Flow 3,210,216.25 3,401,322.43 3,462,769.95 3,522,021.07 3,578,993.425 3,635,965.78 Total revenues 20,841,288.91
- 51. 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 2013 2014 2015 2016 2017 2015 2018
- 52. Thank You !!!
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How to Start a Profitable Ready Mix Concrete Supply Business
Do you want to start a ready-mix concrete supply business? Find here, a detailed business plan guide for your ready reference.
Concrete is the most vital material in modern construction. Actually, the latest technological developments have made it possible to use it in intricate and architecturally complex structures, requiring a high degree of performance and aesthetic appearance.
Actually, the increasing number of benefits of ready-mix concrete is the major reason for growing the demand for this product. Additionally, the increasing construction activity is another reason for increasing the demand for ready-mix concrete on the project site.
Read: Profitable Business Ideas for Civil Engineers
Starting a ready-mix concrete supply business demands strategic planning and moderate capital investment. And definitely, the business ensures lucrative revenue return on investment.
Is Ready Mix Concrete Supply Business Profitable?
Some of the major global markets are India, China, the US, Indonesia, and UAE. Actually, there are several reasons for the growing demand for ready-mix concrete. The list includes the superior and consistent quality of concrete, strict selection of raw materials during production, etc. Other reasons are customizability for specific requirements and quantity and testing the physical and mechanical strength of concrete.
Also, the application of ready-mix concrete results in low wastage ensures streamlined workflow, eliminates the need for storage spaces and other raw materials at the construction site, reduces the time and workforce required, and reduces noise and dust production.
Some of the major advantages of this technology include low labor costs, fast construction, increased complexity or accuracy, less waste production, and greater integration of function.
Generally, the global ready-mix concrete market for non-residential applications accounts for the majority market share. And there are several factors that are responsible for the growth. The list includes rapid industrialization, population growth, urbanization, favorable government policies, availability of cheap resources and skilled workforce, and low operational and labor costs. So, according to the present market scenario, starting a ready-mix concrete supply business is highly lucrative for entrepreneurs.
8 Steps to Start Ready Mix Concrete Supply Business
1. learn the different types of ready mix concrete.
In starting this business, you need to understand first the different types of concretes and their advantages and uses. Broadly, there are four different segments of the ready-mix concrete industry.
a. Performance-based Concrete
Generally, performance-based concretes are used in projects where high effectiveness is needed. This item is perfect for RCC members with intricate and complicated shapes and sizes. Additionally, it helps to avoid defects such as segregation and honeycombing. Also, it ensures a superior surface finish enabling faster construction and lower manpower requirements. It increases resistance to sulfates, reduces chloride-ion penetration, and improves resistance to aggressive environments.
b. Usage-based Concrete
Generally, architects and engineers prefer this type of concrete for big and delicate projects. Basically, it is an enhanced crack-resistant and relatively ductile concrete, produced by using different types of fibers like polyester, polypropylene, glass & steel, etc. It minimizes the problems of plastic shrinkage cracks of the concrete in the green stage and substantially improves its static and dynamic properties like flexural impact and tensile strength.
c. Decorative Concrete
Generally, the decorative segment consists of two different types of concretes. These are color concretes and stamped concrete. As the name defines, this concrete is used for decoration purposes only. Color concrete comes with quality UV-resistant pigments that help in retaining the true color/shades for a longer duration. Basically, decorative concretes are ideal for driveways, patios, walkways, swimming pool decks, car parks, industrial floors, and exterior walls.
d. Green Concrete
Basically, green concrete comes with a high porosity used for concrete flatwork applications. Actually, it allows water from precipitation or other sources to pass through, thereby reducing the runoff and ensuring the recharge of groundwater. Hence, it offers numerous environmental, structural, and economic benefits and is an excellent alternative to expensive stormwater management methods.
2. Write a Business Plan
First of all, crafting a business plan is a must. Basically, this is a small and medium-scale business. You need to put a lot of thought into capital investment. And for crafting the plan, you must research the local market first. You will need to identify the demand for the specific type of concrete in your locality.
In addition to that, identify the existing concrete suppliers, their products, and pricing. It will help you to price your product in a much better way.
In your business plan, include your business objective, mission, and vision. Determine the management pattern of your business. Finally, calculate the startup cost. Actually, you will need to calculate both the fixed and working capital costs.
Generally, the fixed cost includes the plant, machinery, and other pre-operative expenses. On the other hand, the working capital cost includes raw materials, utility, and other operational expenses. Calculate an expected ROI and break even.
Have a clear marketing strategy. Have a plan and capital both for promoting your ready-mix concrete supply business. Additionally, have an expansion plan too.
3. Arrange the Finance
Arranging finance is one of the most important aspects of starting this business. Actually, it is advisable to start this type of business with bank finance. Also, you can apply for venture capital funding. And here, your business plan will help you in getting the investor’s confidence.
4. Business Registration & Licensing
According to the Federal law of your state, you must register your business. Also, consider the financial participation at the time of company formation. Additionally, check the licensing issues if there are any. Generally, this type of business doesn’t demand any type of NOC from the Pollution Control Board. However, it is better to check before initiating the plant.
5. Establish the ReadyMix Concrete Warehouse Unit
In establishing the unit, the primary requirement is vacant land . You must secure land with a covered shade area for operating the unit. Check the availability of adequate electricity and water supply. Get the floor plan from the machinery supplier and set up the unit accordingly. Your unit must have a wide entry space for easygoing of your delivery vehicles. An administrative office setup is a must. You can set up the office with the unit or at other commercial spaces.
6. Procure the Machinery & Equipment
Basically, machinery, equipment, and vehicles demand major investments in this type of business. And you must select the specific machinery according to your specific requirements. It is better to install a customized plant. Additionally, the cost of the plant majorly depends on the capacity.
Generally, an RMC plant comprises a bucket elevator, screen, sand dryer, burning furnace, storage silo, screw conveyor, weighing system, and other advanced process control systems for easier handling. Finally, you will need to procure a specific type of concrete delivery vehicle.
7. Make an Operational Plan
Starting a ready-mix concrete supply business consists of so many operational aspects. And you will need to determine these before offering the products to your clients. First of all, you will need to employ human resources. Broadly, you will need manpower for production, marketing, and administrative work. In addition to that, you will need to have a logistics team also.
Prepare the entire process of getting an order, scheduling delivery, and accepting payments. Open a business bank account in your nearby bank. For accounting, billing generation, and stock maintenance, you may need an accounting software solution.
8. Promote the Ready Mix Concrete Supply Business
Any business as such can never be successful without sufficient promotion. So, you must promote your business both offline and online. And you must create a website for your company. Mention there your contact info and product details. Additionally, you must put your effort into ensuring institutional clients.
A small ready-mix concrete supply business will get the desired success when you can ensure the local clients first. However, you must think about expansion after getting initial success in this business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.
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