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Selecting Vendor For Small
Capacity AAC Block Plant
October 21, 2013 | Filed under: AAC Blocks, Autoclaved Aerated Concrete,
Manufacturing and tagged with: AAC Products, Manufacturing, Manufacturing Plant
Selecting Vendor For Small Capacity
AAC Block Plant
Keen enthusiasts of AAC India will notice that we receive lot of
inquiries from entrepreneurs interested in setting up Autoclaved
Aerated Concrete block plant. A good number of these inquiries
are for small capacity AAC block plant. Usually this capacity falls in
range of 60-100 m3/day. Primary reason for this preference is to
build a stable and low-risk platform as a foundation to robust and
scalable business. Moreover full scale AAC block plants are not
viable for any capacity below 160 m3/day as it requires higher
capital investment. Even at 160 m3/day it is a stretch. Primary
reason for this number being basic capacity is scalability of AAC
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block plant. In broad terms, difference in capital required for 160
m3/day vs 500 m3/day is around 25-30%. Apart from capital
investment, other costs like manpower, marketing, etc. are almost
similar. When you consider total production cost and divide it in
terms Rs./m3, final figure of production cost for a 500 m3/day
plant would be 10-20% lower compared to that of a 160 m3/day
plant. Apart from production cost, there are various other factors
that help you determine plant capacity. These factors are market
acceptance, market maturity, competition, local preferences, etc.
Due to these factors, a small capacity AAC block plant may be
viable in a smaller market without competition. But such a plant
may not be viable in a bigger market with multiple factories
manufacturing AAC blocks.
Information shared above is not to discourage anyone, but present
the facts to help in long-term planning and decision making. Kindly
note that when I say 160 m3/day is minimum feasible capacity; it is
meant in context of a full size plant with default configurations.
But it does not mean that it is impossible to install and operate
small capacity AAC block plant. It is technically and practically
possible to design plants for smaller capacity production with good
scalability. It may be done by adapting plant equipment to
required size in order to bring down entire project cost. But before
you sign a contract for a small capacity AAC block plant, care must
be taken to ensure that your vendor has prior experience with
such a plant and is capable of delivering a functional and reliable
plant. I would like to suggest some points that might help you
select a good vendor and avoid dubious traders/importers/brokers
floating around in the market.
1. Ensure that you are directly dealing with the supplier and try
to avoid brokers, agents, company representatives, etc. as
these guys charge commission for equipment and it would be
included in final price. Vendor is not going to pay this
commission from his pocket. Indirectly it is the customer who
ends up paying it from his own pocket.
2. Check if particular vendor has operational plants in India or
abroad and try to visit them. Vendor may have operational
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plants in their country (e.g. China, Russia, Europe, etc.), but
may not have an operational plant in India. It is easy to install
and support a plant in their home-country, but installing and
supporting a plant in India is a different ball game altogether.
So while deciding on a vendor it is very essential to visit such
operational plants in India and talk to existing customers.
3. Visit vendors factory/workshop to get an idea of their
operations and workmanship. It has been observed that
couple of vendors with jazzy websites and glossy brochures
didnt have their own workshop and were hoping to secure an
order to help them start their own workshop. Helping people
is a noble cause, but this is business we are talking about. It is
better to work with existing players rather than funding a non-
entity.
4. Check with vendors about their after-sales support network in
your area. They might have a good after-sales team and willing
to extend support. But if this team is in a different country, it
would require lot of time and money for them to reach your
location in order to provide support. So try to gauge after-
sales support capability of a vendor in your area/country.
5. See if vendor is willing to let you localize your plant by
including as much local equipment as possible. This might also
include modification to vendor supplied equipment to suit
local conditions. Vendor may provide you with specifications
for necessary equipment like motors, screw conveyors,
conveyors, valves, etc. There are various benefits of having
local equipment integrated. Primary benefit is that you can
find out best vendors in local market rather than unknown
foreign vendors for such equipment. Secondly it would lower
the cost of entire project. Your savings will be in terms of total
import bill, sea and surface transport as well as customs.
Moreover it gives peace of mind and quality assurance since
you may reject equipment back to local vendor in case of any
defects. Youll also get much faster after-sales support from
vendors of local equipment compared to foreign vendors.
6. Try to compare level of technology and automation offered by
various vendors. I am not asking to go for fully-automatic
plant that may be a very costly affair but it should have
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10/20/2014 Small Capacity AAC Block Plant
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decent amount of automation. There is no point in having a
completely manual plant as itll hamper productivity and
might prove to be a costly affair in running cost due to
increasing labour wages and decreasing availability of labour.
Moreover if you have plans to expand your plant in near
future, automation will play a major role.
7. I am sure that once your plant is running well and you are
able to sell entire production at good rates, youll be tempted
to expand your production capacity. But if your plant does not
have expansion options, you might need to set up a
completely new production line. This would be a very costly
affair in terms of money, resources and time. So, when you
select to set up your first plant, ensure that your plant comes
with enough expansion options. Generally these options
depend on mixer capacity, cutting speed and handling
systems. These leaves out moulds and autoclaves. Addition of
moulds and autoclaves can be done easily without hampering
your routine operations. So while planning, figure in these
factors and select a plant with good expansion options.
8. Last but not the least is product support from equipment
vendor. This may be in form of production know-how,
processes, product optimization, growth path, staff training
etc. As most of you are aware, recipe (aka product mix) for
AAC products is very critical and determines quality of final
product. You can check with your vendor if hes willing to
design and supply recipe optimized for raw materials available
locally. A good vendor would also help you set up processes to
ensure consistent production and recommend you other
products that can be produced using same equipment or by
adding some extra equipment.
10/20/2014 Small Capacity AAC Block Plant
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A fresh batch of AAC blocks entering autoclave for
steam curing
Please note that this list is like a guideline. Although I have tried to
cover major points, it is not possible to cover everything. Youll
have to rely on your business acumen and gut instinct before
arriving at a decision. As I like to say, in addition to good quality
equipment and final product, you also need to have a robust
business plan, a good marketing network with a customer-focused
approach and grievance addressing mechanism. Remember that
Autoclaved Aerated Concrete is a new product in most parts of
India. AAC industry will take a direction depending on how you
treat and educate your customers and cultivate the market.
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Vishal Kansagra

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Written by Vishal Kansagra
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40 Responses to "Selecting Vendor For
Small Capacity AAC Block Plant"
kamal jalan says:
October 21, 2013 at 4:40 PM
Please let me know the names of small Aac plant
manufacturer with contact details, if can be shared
Reply
Vishal Kansagra says:
October 21, 2013 at 4:47 PM
Dear Kamal,
Thank you for your response on my website. As of now I have
not ventured into evaluation vendors for small capacity AAC
plants. As and when I come across good vendors, Ill post an
2 Like
10/20/2014 Small Capacity AAC Block Plant
http://www.aac-india.com/small-capacity-aac-block-plant/ 7/23
update.
Regards,
Vishal Kansagra
Reply
niket g says:
February 15, 2014 at 4:33 PM
I am planning to make aac
manufacturing plant. Can you guide me
about plant and financial vaibility ?
also i am planning to have it in nagpur ,please comment
on this as well.
Reply
kamal jalan says:
October 22, 2013 at 7:09 AM
Dear vishal,
Is it still possible to name couple of them that you know about.
Regards
Reply
Vishal Kansagra says:
October 26, 2013 at 9:58 AM
Dear Kamal,
I have not evaluated such vendors yet, so it wont be
meaningful to give any names at this stage.
10/20/2014 Small Capacity AAC Block Plant
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Regards,
Vishal Kansagra
Reply
ramnarayan says:
February 21, 2014 at 12:40 PM
Respected sir
I m interested in setting up a plant between vijayawada
and guntur(ap).
Capacity: minimum capacity to start a plant in the
beginning and later expandable(suggest me as small
plant as possible)
Land availability: good
Water: sufficient water
flyash availability less than 100 kms
Can u please guide me ,,
best reguards
Reply
sachin tiwari says:
November 13, 2013 at 7:50 PM
hi Vishal ji,
are AAC blocks machinery manufactured in India too,
& if yes then where?
What is the minimum capital requirement for setting up the smallest
AAC plant in India?
& what is the most basic advantage of AAC over CLC blocks?
regards
Sachin
Reply
10/20/2014 Small Capacity AAC Block Plant
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Prashant says:
November 15, 2013 at 9:34 AM
hi vishal
i am planning to start AAC block manufacturing in
Maharashtra. Please let me know the names of small Aac plant
manufacturer with contact details, and project details for AAC
Reply
Tushar says:
November 24, 2013 at 2:52 PM
Hello vishal
I just visited the exhibition at Bangalore where I came
across a lot of vendors ready to supply customised aac plants of
smaller capacities.could you please send me a list of reputed
vendors(specifically looking for vendors supplying plants of capacity
50-100m3) so that I can come to a decision.Thanks.
Regards
Tushar
Reply
Shalabh says:
November 27, 2013 at 3:39 PM
Please advise the investment in setting up AAC plant?
Thanks,
Shalabh.
Reply
10/20/2014 Small Capacity AAC Block Plant
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Vishal Kansagra says:
December 12, 2013 at 3:24 PM
Dear Shalabh,
Thank you for your response on my website. Investment
required for setting up AAC plant depends on various factors.
Primary factor is installed capacity. So if you could tell me the
capacity you are looking at, Ill be able to give you a ballpark
figure about investment.
Regards,
Vishal Kansagra
Reply
anuj sharma says:
December 10, 2013 at 2:25 AM
Respected sir,
I want to setup a small scale aac plant in Himachal pradesh. As it going
to be a monopoly buissness here can it be possible to setup a plant.
guidance needed
Thanks
Regards
Anuj sharma
Reply
Vishal Kansagra says:
December 12, 2013 at 12:27 PM
Dear Anuj,
Thank you for your response on my website. Since Himachal
Pradesh is a completely new territory for AAC, kindly let me
10/20/2014 Small Capacity AAC Block Plant
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know following details so that I can share relevant information.
1. Tentative location of plant.
2. Tentative capacity.
3. Land availability.
4. Water availability. (Approx 400 lt of water is required for 1
m3 of AAC)
Based on the information you share with me, Ill be able to give
you ballpark figures for investment and equipment.
Regards,
Vishal Kansagra
Reply
M M Ahmed says:
December 11, 2013 at 5:43 PM
Dear,
Hope you doing good.
I am interested to start AAC plant in my town as a small or medium
manufacturing unit .
I plead you to guide me through the investment and machinery, as I
have land and building ready with me.
More over, I appreciate your interest in the fast growing business of
India as a consultant.
Waiting for positive response.
Reply
Vishal Kansagra says:
December 12, 2013 at 10:54 AM
10/20/2014 Small Capacity AAC Block Plant
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Dear Ahmed,
Thank you for your response on my website.
Kindly let me know following details so that I
can share relevant information.
1. Tentative location of plant.
2. Tentative capacity.
3. Land availability.
4. Water availability.
Based on the information you share with me, Ill be able to give
you ballpark figures for investment and equipment.
Regards,
Vishal Kansagra
Reply
Narasimha reddy says:
December 15, 2013 at 12:23 PM
Respected sir
Im interested in setting up a plant near hyderabad.
Location of plant : cheeryal (15 km from secunderabad rly station)
Capacity: minimum capacity to start a plant in the beginning and later
expandable
Land availability: 3 acres ( how much is required actually)
Water: sufficient water
Can u please guide me ,,
Reply
Vishal Kansagra says:
10/20/2014 Small Capacity AAC Block Plant
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December 17, 2013 at 11:50 AM
Dear Narasimha,
Thank you for your response on my website. I
would like to know about source of fly ash and distance
between fly ash source and your site. Land seems to be
enough, although I would suggest buying some more land
nearby keeping future expansion in mind. It is sufficient as of
now. To discuss it in detail, you may contact me on 76986
17371.
Regards,
Vishal Kansagra
(+91) 76986 17371
Reply
Narasimha reddy says:
December 18, 2013 at 3:05 PM
Distance between fly ash and my site is
around 250 km
Reply
Anurag agarwal says:
December 15, 2013 at 3:00 PM
we want to start a small or medium capacity acc plant
in agra uttar pradesh . so pleas advise me about
investment.
Reply
Vishal Kansagra says:
10/20/2014 Small Capacity AAC Block Plant
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January 21, 2014 at 6:12 PM
Dear Anurag,
Thank you for your response on my website.
Kindly let me know the tentative capacity you are looking at.
Regards,
Vishal Kansagra
(+91) 76986 17371
Reply
Sanjay Birajdar says:
December 23, 2013 at 5:05 PM
Sir,
I am manufacturer of process equipments in Pune
Maharashtra.
I am designed & fabricate AUTOCLAVE for AAC, We tested with
pressure of 8Kg/cm2 & temprature of 180 deg. with inserting Moulds
but we are not gating satisfied density & load testing. Can you suggest
us proportion of mixing water, cement, fly ash, lime, aluminum?
Reply
Vishal Kansagra says:
December 27, 2013 at 4:51 PM
Dear Sanjay,
Thank you for your response on my website. I would love to
help you with production mix, unfortunately I cannot suggest a
recipe just like that. Designing product mix will require
thorough testing of raw materials. Getting recipe right require
lot of effort and that is the reason for not sharing it on an open
forum like this.
10/20/2014 Small Capacity AAC Block Plant
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Regards,
Vishal Kansagra
(+91) 76986 17371
Reply
Dr.Mynampati Sreenivasa Rao, Business
Consultant says:
December 31, 2013 at 11:56 AM
Dear Sir,
As a consultant , i studied these AAC plants. I prepared the project
report of 1 lakh M3/annum size to our client. 160M3/day is also not so
profitable in the present competitive market. Today one person call
and asked about 30M3/day plant with an investment of Rs.1.25Cr.Is it
viable? Some small and new manufacturers are giving false promises
to the innocent investors. If the small AAC plant are really viable,
please send complete details to promote in Andhra Pradesh through
my articles on selfemployment topics in a leading Telugu daily called
Andhra Jyothy. Any one can contact me.
Reply
Vishal Kansagra says:
January 21, 2014 at 6:57 PM
Dear Dr. Rao,
Thank you for your response on my website and sharing your
concerns. I really doubt such vendors who offer such plants.
Personally I have interacted with couple of plant owners who
were duped by such vendors. But all is not lost. There are
certain individuals I know who are doing good work in direction
of enabling a small capacity AAC plant at reasonable price
point. As of now all such plants are WIP (Work In Progress). Ill
share more information on this forum once their plants are
operational and performing well.
10/20/2014 Small Capacity AAC Block Plant
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Regards,
Vishal Kansagra
Reply
jai pratap singh says:
January 15, 2014 at 7:27 PM
Dear Sir,
I am interested to start AAC plant in my town as a small or medium
manufacturing unit .
I request you to guide me through the investment and machinery.
Location of plant : Jaipur (30 km from jaipur)
Capacity: minimum capacity to start a plant in the beginning and later
expandable
Land availability: 3 acres ( how much is required actually)
Water: sufficient water
Regards,
jai
Reply
Hitesh Modi says:
January 29, 2014 at 2:36 PM
Dear Sir,
I am interested to start AAC plant in my town as a small or medium
manufacturing unit .
I request you to guide me through the investment and machinery.
Location of plant : ahmedabad (gujarat)
Capacity: minimum capacity to start a plant in the beginning and later
expandable
how much land is required actually
10/20/2014 Small Capacity AAC Block Plant
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guide me with the list of vendors for machinery from india and china.
is it fisiable to go for second hand machinery from china.
i m also looking for a consultant to prepare project report.
is there any subsidies in this project of gujarat gov. or central gov.
tnanks a lot @ Regards,
Hitesh Modi
Reply
muthuselvam says:
February 9, 2014 at 10:51 PM
I have 4 acres of land ln coimbatore, tamilnadu. Please
let me know about the viability of 200 m3 per day,
Approx cost for building and machinaries. Is it viable?
Reply
Vishal Kansagra says:
February 10, 2014 at 2:42 PM
Dear Muthu,
Thank you for your response on my website. Kindly check your
email and revert.
Regards,
Vishal Kansagra
(+91) 76986 17371
Reply
S P Rao says:
February 14, 2014 at 4:28 PM
10/20/2014 Small Capacity AAC Block Plant
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Want to get in touch with Project Consultation
Agencies for an upcoming plant in AP. Board approval
received. Interested consultants may please contact.
Reply
Prem Goel says:
April 7, 2014 at 2:47 PM
Dear vishal,
We are manufacturing 60m3 autoclaved clc blocks per day in pune.
We would like to invite you to visit our plant and give us your valuble
guidence.
Regards,
Prem goel
Reply
Vishal Kansagra says:
April 7, 2014 at 6:30 PM
Dear Prem,
Thank you for your response on my website and invitation to
visit your plant. Ill definitely visit you when I visit Pune. But I
doubt how much value I may be able to contribute as CLC is not
my cup of tea.
Regards,
Vishal Kansagra
(+91) 76986 17371
Reply
10/20/2014 Small Capacity AAC Block Plant
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Prem Goel says:
April 7, 2014 at 7:44 PM
Dear vishal,
Thanks for prompt reply. Our plant is located in Pune
not in banglore. We are planning to switch to aac
production in our running clc plant as we have
sucsussefully taken out trials of aac blocks in the same
plant.
Regards,
Prem goel
Reply
santosh madhvani says:
May 25, 2014 at 11:32 AM
Dear sir.
I want to know the prices of aac blocks.. as it is
available in different measurements. Plz let me know the price
structure in different measurements.
Reply
Vishal Kansagra says:
May 26, 2014 at 2:51 PM
Dear Santosh,
Thank you for your response on my website. Usually blocks are
sold in terms of m3 (cubic meter CBM). Although dimensions
of blocks might vary, total volume of blocks in 1 m3 will stay the
same.
Regards,
10/20/2014 Small Capacity AAC Block Plant
http://www.aac-india.com/small-capacity-aac-block-plant/ 20/23
Vishal Kansagra
(+91) 76986 17371
Reply
Mallikarjun says:
May 29, 2014 at 12:49 PM
Hi Vishal,
Greetings.
I am interested in starting a small scale AAC plant at a location (case 1:
10 km or case 2: 150 km from Fly Ash Source ). In case 2, the 4
hectares land is available for free but in case 1 land is to be rented. I
wish to know what are the things to be considered to go forward with
the business plan. It would be great if you can provide me with a ball
park figure of investment and production capacity as well.
Thanks,
Mallikarjun
Reply
Vishal Kansagra says:
June 18, 2014 at 4:06 PM
Dear Mallikarjun,
Thank you for your response on my website. Decision to locate
the plant should primarily focus on target market(s) and
availability of raw material. Normally it is better to be closer to
the market for simplified and cost-effective transportation. This
is because your landed cost of raw materials except fly ash will
remain nearly same irrespective of location you select. I
suggest you call me on my number mentioned below to discuss
this point in more detail.
Regards,
10/20/2014 Small Capacity AAC Block Plant
http://www.aac-india.com/small-capacity-aac-block-plant/ 21/23
Vishal Kansagra
(+91) 76986 17371
Reply
jadhavaji patel says:
June 19, 2014 at 9:26 AM
Hi sir,we want to start aac plant in
Belgaum,Karnataka,for 50cbm capacity,flyash distance
is 275km,kindly advice regarding feasibility.thanks
Reply
Vishal Kansagra says:
June 24, 2014 at 11:05 AM
Dear Jadhavaji bhai,
Thank you for your response on my website. Although I do not
deal with small scale AAC plants, I would like to have a
discussion with you in order to understand dynamics of nearby
markets and suggest right course of action to you. Kindly call
me on my number mentioned below.
Regards,
Vishal Kansagra
(+91) 76986 17371
Reply
Gaurav lunar says:
July 28, 2014 at 5:34 PM
Please let me know the dimension of blocks which
made in your plant
10/20/2014 Small Capacity AAC Block Plant
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Reply
Vishal Kansagra says:
July 29, 2014 at 10:23 AM
Dear Gaurav,
Thank you for your response on my website. Most commonly
available sizes are 600 x 200 x 100/150/200/225/250 and 625 x
240 x 100/150/200/225/250.
Regards,
Vishal Kansagra
(+91) 76986 17371
Reply
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