Opportunity Snapshot
- Country: India
- Industry: Manufacturing
- Stage: Start-up
- Investment size: $1,400,000 / min. $800,000
- Type of investment: Equity
Investment Opportunity
I am looking forward for an investor for my granite quarry which is located near Bangalore. There is great demand for manufactured sand in Bangalore.
M Sand
The natural river sand was the cheapest sand resource. However, the excessive mining of river bed to meet the increasing demand for sand in construction industry has led to the ecological imbalance in the state. Now the sand available in the riverbed is very coarse and contains very high percentage of silt and clay. The silt and the clay presence in the sand reduce the strength of the concrete and holds dampness. The natural river sand is a product of sedimentation. Mica, coal, fossils and other organic impurities are present in the river sand above certain percentage which makes the sand useless for concrete work.
M Sand Applications
M-Sand is manufactured sand, obtained from specific hard rock (granite) using the state-of-the-art international crushing technology. Its various advantages over river sand have made it favourite manufactured sand with quality conscious builders.
M-sand is crushed aggregates produced from hard granite stone which is cubically shaped with grounded edges, washed and graded with consistency to be used as a substitute of river sand. The high quality M-sand is widely applied in various construction applications, such as buildings, highways, railways, airports etc. If you want to find M-sand crusher machine manufacturer in India, please feel free to contact us.
VSI Crusher for M Sand
M Sand was used as a fine aggregate. It is manufactured in a processing plant by crushing stone making use of the vertical shaft impact (VSI) crusher, which is working by rock-on-rock principle. Due to the use of this technology the sand particles can be shaped very similarly to that of the naturally available fine aggregate. During the process of manufacturing, sieving is done using water jet and the fine separation by screw classifiers. The sand obtained by means of this method is clean, durable and has the desired particle size distribution.
M Sand Crusher Machine Manufacturer
The choice of the crusher machine for M-sand production is based on source rock properties such as hardness and the application to which the sand will be applied. Zenith is world leading supplier and manufacturer of sand crushing plant. We provide complete range of m sand crushing machinery, including jaw crusher, impact crusher, cone crusher, VSI crusher etc.
The sand making machine can be equipped with sand screening plant, washing machine and drying plant to be a complete sand production line. We have installed thousands of sand production lines in India.
Mine Details
Status of the Mine: G.O Approved by Mines & Geology Dept (Kurnool) for a period of 10 Years on 12-08-2012
Extent of Mining Lease Area: 24 Hectares (56 Acres)
Location of The Mine: Budli Village, Gorantla Mandal (Anantapur District)
Estimated Mine Reserves: 10 Million MT
Type of the Mineral: Granite (Jelly)
Salient Features: 1.43,000 acres of Special Economic Zone is approved by Govt of Andhra Pradesh
Crushing Details
Crushing Material = Brittle Granite stone
ROM lead from quarry to Crushing unit = 500 mtrs
Crusher Plant Capacity = 200 TPH (Tones/hour)
No. of Working Hours in a day = 16 hrs.
Crushing per day = 3,200MT(16hrs*200MT=3,200MT).
No.of Working days in a month = 25 days
Monthly production capacity of the plant = 80,000MT (200tph*16hrs*25days = 80,000 MT).
Cost of Production:
Amount of particulars per ton:
Mining Cost (Drilling, Blasting, Excavation, Transport lead up to 1.5Km): RS 110
Crushing plant 3 stage operation cost spares with manpower: Rs 50
Power cost- plant run with Generator : Rs 20
Mining Royalty (payable to DMG): Rs 30
Material handling cost: Rs 10
Miscellaneous: Rs 30
Total: Rs 250
Material Sale Price (Ex-Mine)
Material - Size - Price per ton in Rs
M sand - 75 μm to 5 mm – 650 Rs
Aggregates - 10 mm to 40 mm – 550 Rs
Income from Sales:
Material - Size - Percentage % - Price
M-sand - 75 μm to 5 mm - 70% - 56,000 MT x Rs 650 = Rs 3,64,00,000
Aggregates - 10 mm to 40 mm - 30% - 24,000 MT x Rs 550 = Rs 1,32,00,000
Total - 100% - Rs 4,96,00,000
Total Gross Profit: Rs 4,96,00,000
Less Cost of Production: Rs 2,00,00,000
Profit: RS 2,96,00,000
Less Tax at 30%: Rs 88,80,000
Post Tax Profit: Rs 2,07,20,000
Net Profit per Month: At 50 %
Lease Holder: Rs 1,03,60,000
Investor: Rs 1,03,60,000
Total: Rs 2,07,20,000
Rationale for the deal
Why M Sand?
With river sand becoming scarce and being sold at a premium following the Madras High Court restrictions on sand mining in rivers Cauvery and Tamirabharani, the need to find an alternative concrete aggregate material to river sand in construction works has assumed greater importance now.
Engineers and specialists have come out with their own ideas to minimise the use of river sand and use recent innovations such as M-Sand (manufactured sand), robot silica or sand, stone crusher dust, treated and sieved silt removed from reservoirs as well as dams besides sand from other water bodies.
The most preferred alternative to river sand is the M-Sand got through processing the blue metal quarry dust. Fine and uniform granulation of quarry dust by floating it through pressurised water shower leading to reduction of impurities gives us M-Sand.
(Source: The Hindu, August 11, 2012)
Use of financing
Project Investment
1.Cost for Acquiring Mines of 50% stake = Rs. 5 Crore
2.Investment for machinery and establishment by both parties = Rs 2.62 Crore
Machinery & Establishment Details:
Particulars Amount-RS
Cost of Crushing plant (Rest from bank Loan): 1,00,00,000
Purchasing of land for crushing unit & stock yard of 13.5 acres: 50,00,000
Capital Investment: 50,00,000
Power Generator 1 MW: 30,00,000
Weigh bridge for 60 tonnes: 10,00,000
Retaining wall & civil foundation for crushing plant: 10,00,000
Staff quarters & Office: 10,00,000
Testing lab: 2,00,000
Total: 2,62,00,000
Opportunity for the investor
To invest Rs 1,03,60,000 ($1,400,000 USD) and get 49% of the business.
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