Block Moulding Business In Nigeria, Cost Analysis And Ptofit

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If there are businesses you should consider that has the capacity to expand your capital base within a short time, is block moulding industry. I have looked around me, all the peope in this business are doing very well, they have their own houses, cars and are living large. The capital to start maybe huge but the profit is something to look forward to. Block making industry is very profitable but not easy. What will stand you out, is for you to mould quality blocks and be consistent.

Building business is very lucrative such as Block industry because everywhere in Nigeria is experiencing fast development. Hand moulding blocks which our fathers used in the past to build houses are relatively strong but time consuming especially if it is for a large project. This is because it requires time to dry properly after days of waiting. To reduce the length of waiting the technology of block making came into existence.

You can start this block moulding industrt in a small scale if you have little capital of #900,000 to start in a larger scale you need up to 2 million. But you can cut down cost if you are smart. For instance if your block or concrete moulding industry is positioned where there is available free water; then the cost of digging borehole or well or buying of water is out. Write a block making Industry business plan so you can convert your business idea to actualization.

Block moulding industry
block making

Materials Needed for Block Moulding Industry

  • Moulding machine
  • Lister generator
  • Land
  • Water
  • Tank
  • Pumping machine
  • Wooden pallets
  • Hose
  • Shovels
  • Wheel barrow
  • Security chains
  • Metal drums
  • Shed/storage
  • Workers
  • Truck

Land

Many of the block industries in Nigeria are not the owners of land they are using but leased them. If you have land in a good location then you are good to start otherwise lease it. When choosing a place to use for block making industry especially if you are a starter you have to choose a place that is just developing. That is, a place that new buildings are springing up, it can be a mapped out area for estate or Government allotted land, individual land etc.

Water

The life wire of any cement block business is water. Make sure your business is close to a source of water such as; river, stream, well, water ways etc. Do not include buying of water if you don’t want to close down the business quick. Except you can get it at a very reduced price.

Machines

Moulding machines can be purchased from local fabricators. The machine give the block shapes. They are used in carrying the moulded blocks to the point of drying. You need like 1000 copies

Water pumping machine is what pump out water from the source to your factory where it is used for mixing cements and sand. The machine looks like a small generator.
You need a leister generator for power, especially for concrete making industry. You will use it to power your block moulding machine. There are different types of moulding machine; the double and single cylinders. The single cylinder is preferable because it consumes less diesel and can power all your equipment very well. It can single handedly power pumping machine, and moulding machine.

Wooden pallets

After moulding your blocks you have to place them in a surface which is the pallet so they can stay on them to dry.

Shed/Storage

Buy woods and pay a carpenter to construct a small house for you or buy container and convert it to store where you can keep your items after use and before use. Items like; cements, wheel barrow, drums etc. Construct a shed where labourers will stay and manufacture the blocks. So it can shed them against rain and sun.
Cement Block Business

Block moulding industry
block factory

Challenges of Concrete an Block Moulding Industry

There are many things that affect block moulding industry, they are:

  1. Capital: block making industry is capital intensive and you have to pay upfront in all that you do then wait to perform transactions in other to get back the cost and profit of the business. This is it, you have to pay your labourers daily. And payment is per block (according to the type if block you are moulding). There are two types of block; 6 inches and 9 inches. Sand is bought with your capital and you have to pay at the point of purchase before delivery. The same goes with bags of cement.
  2. Location: it affects the operation of your business too. If you establish your block industry where development has already been established and not many people are building; then you have hit yourself on the leg. Because your business will not fly.
  3. The rise and fall in the prices of cement, when the prices of cement go up, customers ability to build or buy blocks also slows down.
  4. Seasons: time and season also affects block making operations. During raining season constructions normally slows down everywhere in the country. As such; customers will not see any need to buy blocks and your business will be on a low key.
  5. Workers: you need sincere workers so they don’t short changed
  6. You need 5 workers to handle one machine. And they must be intelligent and trustworthy.
  7. Operator 1 (to handle the machine),
  8. Mixers 2 (to mix cement and also fill them in the mould)
  9. Block carriers 2 (to carry blocks as they are moulded to point of drying)
  10. If you are not going to be part of the production then employ additional hands who will handle money and also supervise the operations.
  11. Driver 1 to convey moulded blocks to place of purchase and 2 loaders. You can hire or employ them directly if you own the truck. If truck is rented then you also hire them.

Block moulding machine prices in Nigeria

  • Pallet 500 pieces #150,000
  • Lister #200,000
  • Block mould #150,000

Cost of Moulding Blocks in Nigeria

You may be asking how much does it cost to start a block industry in Nigeria?
A tipper of sand sharp (double tipper), #22,000, it can mould 15 bags of cement and a bag of cement can produce 45 blocks of 6 inches blocks.
45 blocks x 15=675 blocks
Cement #2000 per bag (15bags x 2000=#30,000)
labour per bag is #700 you pay for workmanship according to the bag of cements used which is #700 regardless of the number of labour used. 700 x 15bags=#10,500
Total:#22,000+30,000+10,500= #62,500
The price for 1 block is #150 on the average and price depends on location for instance in Abuja there are some block industries that sell theirs #200
So 675 blocks from 15 cement bags=675x #150=#101,250
Amount sold – Cost of production =#101,250-#61,000=#40,250

40,250-miscellaneous

Miscellaneous will include the cost of transporting sand from querry to factory, cost of renting truck etc.
It therefore means you can make #30,000 from one trip of sand.

Is Block Moulding Industry Lucrative in Nigeria?

Block moulding industry is very lucrative in Nigeria because of the population of people building houses. The business itself is very profitable for instance moulding one trip of sand, the gain can be #30,000 if you are able to manufacture and sell up to 40 trips in a month you will make up to a million naira. Know this the starting may be small but the later end will increase.
Block Industries in Abuja
Gongola Industries
Finze
To compete with companies who are already in the business you have to produce relatively stronger blocks like theirs and it will only take a short time for people to identify your products.

How To Start Block Moulding Industry in Small Scale

You can start block moulding industry in a small scale if you don’t have millions as capital.

  1. Instead of buying tank position your block making industry near a drainage or where water passes if possible close to a water body like stream.
  2. Locate areas where construction is going on and lease a land nearby to start your block moulding industry, proximity to the site will be of great advantage. You may be lucky to get someone with a prepaid contract if you can move from one site to another to canvass for jobs.
  3. Purchase fairly used water pump
  4. Buy used wooden pallets, locate labourers of any block industry that are currently working they will link you up on where to get them.
  5. Rent a place you can be paying on instalment if the amount is they are calling is high but were it is affordable pay at once.
  6. Go to querry and arrange for cheapest stone dust for delivery.

Marketing

Before you are well known in the business and get contracted to mould for companies or customers you have to do serious marketing. You have to move from one building site to another in other to get customers who will patronise your block industry.

Conclusion

Block moulding Industry is lucrative but you have to do a lot of marketing to get contracts especially if you are in a very competitive environment. Be innovative and start a modern block industrty.

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