How to Start a Brick Manufacturing Business? [A-To-Z Guide]

Bricks have been used for construction for the longest time, right from ancient structures right till today. They are the foundation of every building or architectural model and construction; brick manufacturing has only become more advanced over the years. Several old structures that have stood firm for many years have been constructed using different kinds of bricks. For example, the pyramids of Egypt were constructed using mud bricks, while the Colosseum was made using fire bricks.

They are a primary raw material required all year round and not restricted to seasonal business ideas. The brick manufacturing business is a competitive market for the wide usage of bricks in every kind of construction. Plenty of materials can be used to make bricks, e.g., fly ash, slate, calcium silicate, concrete, marble, granite, etc.

How are Bricks Made?

Bricks are durable materials that are used to date in every kind of construction. Therefore their market demand has always been high. They have been irreplaceable due to their ability to sustain any climate or extreme weather conditions. The brick-making business is an excellent business idea at the beginner level or someone who wants to produce them at a low investment. However, first, let's look at how bricks are made.

Bricks can be made from various raw materials like clay, calcium sulphate, granite, mud, marble, shale, concrete etc. They are prepared using sand, water and additives to make clay. The mixture is then placed into moulds and cut up in sizes as per the requirement. Bricks, therefore, differ in the temperature they are fired at and many other factors. The standard size of the bricks is 14“ X 10” X 4”. With technology advancing every couple of years, bricks are now produced easily in mass quantities. There are DIY(Do-it-yourself) machines available that can help you make around 3000 bricks a day.

Brick making is a significant endeavour of the construction business that contributes to around 6% of India's GDP. As per the All India Bricks and Tiles Manufacturers Federation (AIBTMF), there are approximately 60,000 kilns in India. A big structured kiln can produce 30,000 bricks a day, and medium and small kilns can make 20,000 to 10,000 bricks a day.

Production Cost of Brick Manufacturing Business

If you’re wondering how to open a brick factory, then there are some prerequisites. Brick manufacturing needs a vast expanse of land and the cost of equipment and raw material. An average of INR 12-15 Lakh is required to get the land in place, with the machinery, chimney and other equipment, including labour and additional costs. However, the trend in the industry suggests that the bigger the kiln, the more the profit. A bigger kiln is prepared to produce many blocks in a day with the same amount of resources. The market has an ever-increasing demand for bricks for any construction.

With the growing awareness for the environment and sustainability, there are new business ideas in brick manufacturing - fly ash bricks. These are produced using sand, water, Class C, fly ash and water. They are more environmentally friendly and have become a sustainable alternative to clay and cement. Fly ash bricks are one of the unique business ideas, which costs about INR 30 lakh, including plant machinery, but excluding the cost of the power generator.

Labour cost is an important factor in brick manufacturing, especially since it is becoming increasingly difficult to find labour available in India. This work is intensive and requires working long hours in a dusty environment. To summarise, here are the essential factors that determine the cost of a brick making business.

1. Raw materials: Depending on the kind of brick manufacturing that you have expertise in, sourcing the right kind of raw materials is very important. Ratios in mixing is a crucial factor that can directly affect the cost and subsequently the profit margins of brick field business.
2. Land cost: A minimum of one-acre land with no proximity to city centres or residential areas is very important. A thermal power plant within a 10 km radius can help get fly ash quota if you plan to make fly ash bricks.
3. Labour cost: brick making requires intensive labour to work in a dusty environment for long hours. Providing the right incentives and employing good labourers can be a significant factor in the cost of making bricks.
4. Machinery cost: This is the main cost of the business.It is crucial to also have a good maintenance contract in place as these machines need fine-tuning. For the first time, entrepreneurs invest in rotary type hydraulic machines, which are cost-effective and productive.

Scope of the Business

Brick manufacturing business owners earn an average of INR 1 for each brick produced. As indicated before, large brick manufacturing kilns produce 30,000 - 40,000 bricks each day. With a good quality ratio of raw materials, bricks are sold in high demand. With the advancement of technology and more use of bricks in construction, the profit ranges have increased over the past few decades, with bricks being sold at INR 8-9 per piece.

Brick field manufacturers will need to constantly reinvent their process to ensure that while they produce mass quantities of brick for construction, their process does not harm the environment. Brick field business is one of the highest consumers of coal in India. From a future perspective, brick manufacturing businesses will have to focus on strategies to improvise and find sustainable alternatives to red clay bricks and cement ones that radiate chemical emissions. Fly ash bricks have proved to be a powerful alternative to red clay, but their application has still been up for debate.

Profit or Loss?

So now that you know how to open a brick factory, what is the final verdict? Is the brick manufacturing business a profitable venture or not? Yes, it is, else India would not be the second-highest brick manufacturing country in the world. India produces 13% of the 1300 billion bricks produced in Asia each year. The brick manufacturing business has a basic level of entry for anyone interested in getting into this venture. If you have a good business idea and a sustainable brick manufacturing business plan, it is pretty easy to get into this market regardless of how competitive it is.

Brick manufacturing is one of the best business ideas as it does not need heavy marketing like other businesses. It needs to produce good quality bricks that can sustain temperature changes, abrasions, and all kinds of weather. It should use good quality raw material in the correct ratio to produce high quality, resilient bricks. The market is always receptive to good quality bricks, and they will be in high demand forever.

Conclusion

Bricks are the foundation of any building or architectural structure, and the quality of bricks truly determines how long the structure will sustain. If there is a compromise in any of the factors while manufacturing bricks, there is a chance that the manufacturer will not make the expected profits. However, with the suitable investment and high-quality procedures in place, brick making can be a genuinely profitable venture for a huge kiln owner or an entry-level entrepreneur.  Novices and experienced professionals can use OkCredit and OkStaff to take care of sales management, inventory and staff management for easy business operation.

Also Read:

1) How to start a furniture manufacturing business?
2) How to Start a Furniture Upcycling Business?
3) How to start a business of eco-friendly & organic cleaning products?
4) How To Start An E-waste Recycling Business?
5) AAC Blocks Manufacturers in India

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FAQs

Q. What are fly ash bricks?

Ans. Fly ash bricks are the greener alternative to red clay bricks. They are produced using fly ash emitted from thermal power plants. They are a sustainable option and contain less harmful materials than other bricks. They also have high durability and strength compared to red clay bricks.

Q. How many types of bricks are produced in India?

Ans. India produces mainly four types of bricks - Clay, Fly ash, Concrete and AAC block.

Q. How were fired bricks made commercially?

Ans. Roman architecture introduced mobile kilns where fired bricks were mass-produced. They introduced the idea of firing bricks for mass production through experimenting in their environment, usually during spring, making this a profitable seasonal business idea.