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A Case Study on Production and Marketing Network Chain of Brick Kiln

By Marketing, 3EA
A Case Study on Production and Marketing Network Chain of Brick Kiln

A Case Study on Production and Marketing Network Chain of Brick Kiln

Abstract
Indian red clay and mud brick kilns have been contributing a lot to the construction sector particularly in real estate sector since ages. Demand and growth of the population are directly proportional and as we all are much aware of the expanding rate of this sector which is providing employment to the millions of people, but knows for the violation of fundamental rights of labourers. Brick, being one of the oldest building materials, is extensively used as a main input in construction because of its durability, strength, reliability, low cost and easy availability. The brick kiln industries have to face the different kind hurdle in the process of production to marketing.

The present paper mainly explains the different stages and factors which influences the production process and what different techniques adopted as a solution. through this we would be explaining that how a brick manufacturing company would expand in latest technology brick production as well as the opportunities for setting a hotel. The purpose of this project is to understand the feasibility and market for each of the below listed projects and provide recommendation on next steps:

  1. Exposed bricks/ Perforated bricks manufacturing project
  2. AAC blocks manufacturing project

Exploratory Research (Exposed/Perforated Bricks/ AAC Blocks)

Indian Scenario

Traditional Brick Production:

Currently the brick production process is very traditional and bricks are mainly produced through manual processes with little knowledge on raw material (mainly clay) and its selection. Brick production in India takes place in small units, using manual labour, sun drying and traditional firing technologies in traditional clamp or Bull's Trench Kilns (BTKs) Brick making is still a seasonal activity, starting after the rice harvest till the start of rainy season. Almost the complete brick production comes as solid bricks through manual production process. These kilns have low investment costs but are not energy efficient. They use low level of mechanization for clay preparation and brick forming processes. Brick kilns are located in clusters and they are important source of local air pollution (SPM, SO2, fugitive emissions, etc.) affecting local population, agriculture and vegetation. One such legal scenario was faced by our client as well.

Building material sector has seen growth in the past few years with rising developments in infrastructure and construction activities. India's improving economic growth, expanding population along with rapid increase in per capita income, industrialization and urbanization signals good growth prospects for this sector.

Lately, environmental hazards and control of pollution have also been given importance in India.It is estimated that the brick industry consumes around 350 million tonnes of good quality soil and around 25 million tonnes of coal. Traditional red brick manufacturing also emits greenhouse gase (CO2) causing further harm to the environment

Fact Sheet of the Indian brick industry (Source: TERI (2007))

  • Brick production: > 1400 billion/year
  • Annual turnover: > Rs 100 billion
  • No of units: > 0.1 million
  • Employment: 80 to 100 million people
  • Energy and Environment
  • Coal: 24 million tonnes
  • CO2 generation – 42 million tones
  • Top Soil: 350 million tones

Regulatory Norms for Production of Exposed/ Perforated Bricks

  • Bureau of Indian Standards (BIS), the national standards body of India has notified specifications for perforated/ hollow bricks and blocks.
  • Some of the important BIS Codes for REBs are – the Burnt Clay Perforated Building Bricks-Specification (Third revision) - IS: 2222-1991 and Specification for Burnt Clay Hollow Bricks for Walls and Partitions - IS 3952: 1988.

Different projects where it has been used:

Exposed/ Perforated bricks mainly used for theatrical construction. One major project which uses Exposed/ Perforated Bricks is in Karnataka

  • Rangayana is a theatre repertoire of Karnataka.
  • It has been using make shift spaces since inception; one outdoor among woods by the side of lake and another on the basement of a huge stage of a humongous Kalamandira auditorium that is considered good only for political speeches.
  • Vaulted and domed roofs: The 3200 sq. ft. house was designed for a former Vice Chancellor of Mysore University on a site of 50' x 80'. Small patches of three green courtyards were carved out of the site to be accessed from living and dining rooms. The roof is made of hollow clay block vaulting and brick doming without centering.

Research Methodology

Data Collection Method and Tools used for the research are as below:

  • Architects were interviewed to understand market scenario and future demand
  • Interviews conducted with Retailers to understand possibility of incentivizing for retention strategy of retailers and agents
  • In depth Interviews were used Research instrument for these projects through semi structured questionnaire. They were conducted in unstructured, conversational format either over phone or in person to adapt to the interviewer type and offer flexibility
  • Worked on secondary data for evaluation or estimation of basic parameter

For Hotel Project:

  • Hotel Visits: Hotel visits/ Interviews with owners were conducted to understand Layout, set up requirements, cost structure, operational issues etc.
  • Detailed semi structured questionnaire was prepared for Hotel owners to understand the business model which was conducted in conversational format

Execution and solutions:

Various issues and problems were reviewed on primary and secondary basis, team members worked hard in providing a logical and smart approach to the specified problems. Data was analysed through statistical software and appropriate solutions were provided.

Industrial Experts at 3EA provided clients the best possible solutions and helps them to grow their business.

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Case Study by: Marketing, 3EA
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