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Medium Scale Concrete Block Production In Nigeria; The Feasibility Report

Medium Scale Concrete Block Production In Nigeria; The Feasibility Report

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Arguably one of the best investment vehicle in the world is real estate development owning to a number of factors which includes the fact that shelter {housing} is one of the basic need of man, fixed supply of land and the ever increasing value of properties with time.

Description

The concrete block production business is a vital segment of the construction industry in Nigeria. Given the country’s rapid urbanization and population growth, the demand for affordable and durable building materials is on the rise. Concrete blocks, being versatile and cost-effective, have become the material of choice for many builders and developers.

Concrete blocks are a standard construction material used in building walls, foundations, and other structures. They are made from a mixture of cement, sand, and water, which is molded into blocks and then cured. The blocks come in various sizes and types, including solid blocks, hollow blocks, and interlocking blocks, each serving different construction needs.

The use of concrete blocks in Nigeria dates back to the early 20th century, introduced by colonial builders. Over time, local production methods have evolved, incorporating modern techniques and machinery. Today, the concrete block industry is a significant contributor to Nigeria’s construction sector.

Nigeria’s growing population, estimated at over two hundred million (200,000,000), and rapid urbanization have fueled the demand for housing and infrastructure.

According to the National Bureau of Statistics (NBS), the construction sector has consistently contributed significantly to Nigeria’s GDP, highlighting the importance of building materials like concrete blocks. The government’s focus on infrastructure development, including roads, bridges, and housing projects, further drives demand.

Choosing the right location is critical for the success of the business. Factors to consider include proximity to raw materials (cement, sand, and water), accessibility to markets, and availability of utilities. The site layout should accommodate production facilities, storage areas, and administrative offices.

Investing in quality machinery and equipment is vital for efficient production. Essential machinery includes:

– Concrete Block Making Machine: For molding and shaping the blocks.
– Mixers: For blending cement, sand, and water.
– Curing Equipment: For ensuring the blocks harden correctly.
– Transportation Equipment: For moving raw materials and finished products.

The primary raw materials required are cement, sand, and water. Establishing reliable suppliers and negotiating favorable terms is essential for consistent production.

The production process involves several steps:

– Mixing: Combining cement, sand, and water in the right proportions.
– Molding: Pouring the mixture into molds to form blocks.
– Curing: Allowing the blocks to harden and gain strength.
– Storage: Storing the blocks until they are ready for sale.

Maintaining high-quality standards is crucial for building a reputable brand. Regular testing and inspection of blocks for strength, durability, and uniformity ensure customer satisfaction.
Nigeria’s construction industry is experiencing significant growth, driven by urbanization, population growth, and government infrastructure projects. This growth presents a substantial opportunity for concrete block producers.

Nigeria faces a massive housing deficit, estimated at over 17 million units. Concrete blocks, being affordable and durable, are ideal for addressing this deficit, creating a steady demand for producers.
Government initiatives such as the National Housing Policy and various infrastructure development projects provide a conducive environment for the concrete block production business. Policies promoting local manufacturing and reducing import dependence further enhance opportunities.

Table of Contents

Table of Contents:

EXECUTIVE SUMMARY

1. Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of product
2.2 Location
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Technical Analysis

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Technology / Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.1 Strategic Business Units
4.3.2    Management Support Units
4.4 Details of salary schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Financial Projections

6.0 Business Risk and Mitigation Factor

6.1 Business Risks

6.2 SWOT Analysis.

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Report Details

Report Type: Feasibility Report
Formats of Delivery: MS WORD
No. of Pages: 38 Pages
Product Code: FORA/2014/MEDIUMSCALECONCRETEBLOCKS/255668733
Publisher: Foraminifera Market Research
Release Date: 10/03/2014; Updated Every 3- Months
Language: English
Delivery time: 24– 48hours

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