The construction industry is one of the most promising sectors for building and developing a business. Entrepreneurs from India and many other countries are increasingly considering entering the production of aerated concrete blocks. However, many are unsure about how developed this sector is and are hesitant to invest in what can be a highly profitable venture.
The best time to start your own business is now. Many people believe it was easier to start a business 10 years ago, but I strongly disagree. There is still less competition in our country compared to others, making it possible for almost anyone to start a successful business.
To stand out from the competition, it is important to offer quality service that surpasses others. Choose a field that interests you and where you feel comfortable working, and focus on providing excellent customer service. This is the key to success for anyone considering starting their own business.
Good luck to all aspiring entrepreneurs!
Before buying an aerated concrete plant, it is crucial to study the market in your area. Key factors to consider include:
The most important point to consider is the profit potential from aerated lightweight block production (Natural Curing Type – ALC). For instance, an ACB Pro 17 Plant with a capacity of 17 m³ per day can offer significant profits.
Typically, customers earn an average net profit of Rs. 500-1000 per cubic meter of aerated concrete produced. Let’s take the minimum of Rs. 500 for our calculations.
Assuming you produce 10 m³ per day (about 60% of the planned capacity) and work 25 days a month, the profit calculation is as follows:
This Rs. 1,25,000 of net monthly profit considers all expenses (raw materials, salaries, electricity, etc.).
The cost of setting up an AAC block manufacturing plant varies depending on the model.
Essarcon offers various plant models to suit different needs, ranging from 3.3 m³ per day to 80 m³ per day. For instance, the AAC block manufacturing plant setup cost for a 17 m³/day ACB Pro line starts from approximately Rs. 19 lakh plus 18% GST, depending on the accessories you purchase.
Considering the minimum monthly profit of Rs. 1,25,000, if you invest your own funds, the payback period for the equipment will be less than 18 months.
Our equipment can also be purchased with a bank loan. If you borrow a 75% loan for the purchase of equipment for a period of 3 years at an interest rate of 12% per annum, the EMI will be approximately Rs. 75,000. After paying all expenses and EMI, the net profit per month will be Rs. 50,000.
This provides a solid source of income with minimal investment, even considering a lower profit margin with approximately 60% efficiency. We use conservative estimates to clearly show the profitability of this business. Many of our customers operate such machines seven days a week, producing up to 17 m³ per day, and earn Rs. 800-1000 per cubic meter.
Essarcon has helped launch more than 55 aerated concrete plants and understands the concerns of beginner businessmen. We offer top-notch products and prompt services that guarantee customer satisfaction. Whether you’re a small business owner or a large industrial corporation, we have the perfect machine for you.
How We Streamline Your Business:
Our equipment comes with a 1-year warranty, and even after 10-15 years, we will certainly help you if needed. By purchasing equipment from us, you receive comprehensive support from the Essarcon team as a bonus.