Legal Aspects of Starting a Brick Making Business

* Calculations use average data for Russia

Starting investments:

from 300 000 ₽

The cost of a simple machine

from 245 000 ₽

The cost of bricks from the wholesale price

Payback period:

from 12-18 months

Brick is one of the most popular building materials in Russia. Brick production as a business is interesting because, along with large enterprises, it is possible to produce bricks with minimal investment.

The production of bricks and brick products is a business accessible to everyone, even a novice entrepreneur. Modern automated lines for the production of bricks make it possible to minimize the use of manual labor and obtain a diverse range of manufactured products. The business provides a sufficiently high profitability and acceptable payback periods for the initial investment.

Brick production: prospects and market volumes

Brick is one of the most versatile building materials in Russia. Growing volumes of construction imply more and more of its consumption by the economy. In terms of starting a business, brick production is interesting because, along with large enterprises, it is possible to produce bricks with minimal investment.

The main consumers of bricks are construction organizations. About 70% of bricks are used for housing construction.

Professional kit for creating business ideas

Types and classification of brick products

First of all, a brick differs in the material from which it is made.

Ceramic bricks are made from clay with various additives. The main production of silicate brick is quartz rock, that is, sand. Hyperpressed brick is produced by pressing in special forms screenings of marble, shell rock or dolomite, or from cement, quartz sand and crushed granite.

The second classification of a brick is based on its purpose. There are building or ordinary bricks, facing bricks, which are divided into textured and shaped options, furnace or refractory bricks. Clinker bricks are also distinguished, which is made from refractory grades of clay.

Depending on the nature of the filling, the brick is divided into solid and hollow.

Three standard sizes of bricks are standardized in Russia, and bricks are also produced according to European standard sizes.

As you can see, bricks come in completely different types, each of which has its own production characteristics and scope. Carefully analyze the market of brick products in your region and find those types of bricks in the segment of which the competition is lower, or its consumption is higher. Pay attention to the quality of products on the market. If you can provide better quality, then this will be a significant competitive advantage, as many consumers are willing to pay a higher price for exclusive quality of goods.

Brick production technology

Let's say a few words about the main technologies for the production of brick products, since the type of equipment purchased depends on this. Immediately make a reservation that the production technology is a complex process, which has its own nuances and subtleties. We will not dwell on the technological moments of production in detail, but will describe only the essence of the technologies used, on which the type of equipment used will depend.

The basis of technology for the production of silicate bricks is pressing. At the first stage, a mixture is prepared for the production of bricks, which consists of lime, water and sand. Next comes the pressing and autoclave processing of bricks.

The production of clay-based ceramic bricks begins with the preparation of a homogeneous mixture free from impurities. Next, the brick is molded, dried and fired.

Ready-made ideas for your business

The scheme for the production of clinker bricks is similar to the technology for the production of ceramic bricks. The differences are in the feedstock - refractory shale clay and high firing temperature.

The composition of hyperpressed bricks includes cement and screenings of limestone or other similar materials. The method of hyperpressing or, in other words, double-sided pressing in the production of bricks, is to obtain a product by compressing finely dispersed particles under the influence of excess pressure.

As you can see, brick production technologies can be conditionally divided into two groups - technology using firing and non-firing technology.

The choice of production technology should be made based on what type of bricks is most in demand in your local market.

Brick Making Equipment

A large brick factory requires investments in the amount of several hundred million rubles. For example, LLC "Kazan plant of silicate materials" produces up to 230 million pieces of silicate bricks per year, has more than 200 employees.

In this article, we will talk about a mini-factory, the investment in which is an order of magnitude lower. The variety of technologies gives rise to many types of equipment. We will not dwell on the composition of the equipment for the production line for the production of bricks, since its composition depends on both the productivity and the chosen technology.

For the production of ceramic bricks, the necessary equipment consists of the following main blocks:

line for grinding raw materials;

brick forming line;

line for drying and firing.

For the production of silicate bricks, the following main equipment is used:

equipment for the preparation of sand-lime mixture:

raw brick forming equipment;

equipment for processing a raw product in an autoclave.

For the manufacture of hyperpressed bricks, equipment will be needed:

hyperpresses;

crushers;

receiving and service bins;

dispensers;

screw and belt conveyors;

mobile compressor units;

concrete mixers and other equipment.

The cost of equipment depends on the technology used, the degree of automation of the production process and the productivity of the line.

Ready-made ideas for your business

The simplest machine for the production of bricks (vibrocompression method) costs from 245 thousand rubles. This machine can also produce wall stone, wood concrete, Lego-brick, paving slabs and curb stone. The productivity of this type of machine is about 100 bricks per hour. Of course, most of the operations on this machine will have to be done manually. More productive equipment, with a capacity of 500 bricks per hour, and in which part of the processes will be automated, will cost about 1.8 million rubles.

A small line for the production of bricks by hyperpressing can cost about 1-4.5 million rubles. The availability of raw materials is an important factor, since production is based on the low consumption of Portland cement and the use of mining, cement, metallurgical industries and various types of dumps as a filler.

A more productive line for the production of sand-lime bricks, designed to produce 22 million pieces per year, will cost about 60 million rubles. Naturally, such equipment is delivered to order within 4-5 months. As a rule, the price includes personnel training services, equipment adjustment depending on the characteristics of the initial mixture, installation supervision services and other services that allow you to start production as quickly as possible.

Equipment for large-scale production, that is, more than 50 million bricks per year, will cost more than one hundred million rubles.

When choosing equipment, attention should be paid to the possibility of production on this equipment of other products, except for bricks. This will significantly diversify the range of products sold and reduce the risks of opening such a production. Some lines of equipment allow the production of up to a dozen different types of products widely used in construction.

Brick business payback and financial results

Profit in this business depends on the performance of the equipment used and, accordingly, the capital cost of acquiring the equipment. As a rule, equipment with a small investment pays off faster than a full-scale plant.

The payback period of the mini-plant is about 1-1.5 years. A large enterprise for the production of brick products pays off in about three years. This is provided that you manage to ensure the production load of at least 70-80%.

The main investment costs when opening a brick production are the costs of equipment. The total amount of investments, taking into account the equipment and equipment of the premises, will be from 300 thousand rubles.

Ready-made ideas for your business

The total cost of manufactured brick products is approximately 30-50% of the wholesale price. The spread in the value of the cost of production depends on the degree of automation. In fully automated factories, the participation of personnel in production is minimal, due to which the weight of wages in the cost structure is reduced. But automated lines are much more expensive and require skilled personnel to set up and maintain production.

Profit, depending on the scale of production, can range from 300 thousand rubles a year for a mini-plant and up to 50 million rubles and more for a large enterprise.

The cost of production and, accordingly, the profit of brick production is significantly affected by logistics. Key customers should be located as close as possible to the production, as long-term transportation of bricks is not always cost-effective, and bricks can be damaged during transportation and handling operations. Even more important is the proximity to sources of raw materials.

Legal Aspects of Starting a Brick Making Business

To open a business for the production of bricks, any organizational form is suitable - both LLC and IP.

The simplified taxation system is preferable for this type of business, however, keep in mind that the maximum turnover for the simplified tax system in 2018 amounted to 150 million rubles.

The main OKVED code for ceramic bricks will be 23.32 "Production of bricks, tiles and other building products from baked clay."

For silicate bricks, the OKVED code will be group 23.61 "Manufacture of concrete products for use in construction."

When opening a business, it will be necessary to obtain permits from Rospotrebnadzor, the fire inspectorate and, depending on the region, Rosprirodnadzor. In addition, it is necessary to notify the municipal authorities at the place of registration or location of production.

It is desirable to obtain a certificate of conformity for the manufactured products. The legislation does not necessarily require this, however, consumers of products pay attention to the availability of the necessary certificates. This is the so-called voluntary certification. This stage must be completed after the start of production, when samples for certification are selected and a conclusion is issued for a period of one to three years. The cost of obtaining such a certificate is about 10 thousand rubles.

The main risks in the brick products business

The main risk for entrepreneurs who want to start a brick production business is the further stagnation of the Russian economy and, accordingly, a decrease in household income. The decline in household income may lead to a slowdown in housing construction, which will reduce the demand for building materials. In this scenario, larger enterprises with a large number of large customers will survive. Such enterprises have the ability to reduce the selling price due to large volumes of production, as well as a margin of financial strength, in particular, they are much more willing to lend to banks than small businesses.

Another significant risk is the outstripping growth of energy tariffs, which is especially critical in the production of bricks, the technology of which involves firing.

The main risk and the main issue in this business is the issue of sales. The competition in this market is very high. To enter the market, you need to make a discount to the selling price, and this reduces profits. It is necessary to open a business for the production of brick products only if there are confirmed distribution channels for products. The “we will produce and sell” method in this area may well not work. We believe that you can open such a business only if you have at least two or three customers who are guaranteed to take in total at least 75% of your products.

Thus, the brick and brick products business is cost-effective and efficient. It is significantly differentiated in terms of initial investments; you can enter the market with a very small amount of investment. A small amount of investment will involve a large amount of manual labor, which somewhat reduces the profitability of the business. The payback of the business is from one to three years, subject to a sufficiently high production load. The main risk of this business is high competition in this segment and the difficulty of marketing products.

463 people are studying this business today.

For 30 days, this business was interested in 47123 times.

Profitability calculator for this business

The payback period for investments in the production of polycarbonate materials is at least two to two and a half years.

Opening your own enterprise for the manufacture of rubber products will cost several million rubles, but if it is planned to buy land and build buildings, then you need to count on several ...

With a rough estimate, in order to open a small sawmill with a production volume of about 350 cubic meters. meters of lumber per month, it will take from 4 million rubles.

The business of manufacturing polymer concrete products requires a relatively small initial investment. All used materials, production equipment and tools can be found on sale, and some...

The total amount of investment costs for the opening of the sawmill will be at least 5.5 million rubles. Achievement of the break-even point should be expected in 8-10 months.

To organize an enterprise with a capacity of no more than one hundred panels per shift without equipment for the production of clinker tiles, it will take from 1.5 million rubles.