Table of Contents
General Company Description
Management and Organization
Critical Risk Asessmnet
Sri Lankan construction industry is growing at a significant rate after end of the war and with government aid. Scarcity of the raw material, high lead time, and increase in labor cost are few challenges faced by present construction industry. At the same time there is a change in style and perception of constructions in Sri Lanka and more and more people are looking for alternative and cost effective construction technique and material.
eBricks (Pvt.) Ltd. is a Sri Lankan company to be formed and will be specialized in the manufacturing of Cement Stabilized Compressed Soil Bricks. We will focus on providing high quality soil bricks to Sri Lankan construction industry and expect to promote the soil bricks concept and thereby taking the industry to the next step of innovation. The project is environmentally friendly and could be treat as a carbon free product in any
Company will produce soil bricks under brand name eBricks and there will be three products mainly standard soil brick, corner brick and lintel brick. We use very common and cheap Laterite Soil as the main raw material which is widely available where the factory proposed to locate. Other than soil; cement, labor, water, electricity will be used in the production process.
We will expect to produce averagely 30,000 bricks per month in the first year and will price the product at Rs. 35/= per brick which is very competitive. Further, we are expecting 10% growth in the second and third years. We have the capacity to increase the monthly production up to 33,600 unit with the existing capacity. Furthermore, we have planned to increase our capacity after 3rd year after observing the progress of the project.
Presently we have approached potential customers and they have shown keen interest in our product and we have identified a huge demand in the market which is untapped. We will aggressively promote our product through various ways and means with a view of increasing awareness of the eco-friendly bricks concept among community. The product will be directly market to the end users.
Initial investment of Rs. 2.2 million is needed to start this project. The promoters Mr. Silva and Mr. Perera invest Rs. 1.2 million (approximately 55%) remaining 1.0 million (Approximately 45%) will be raised through an investor. The project has a very attractive IRR of 33.9 %. The project shows healthy NPV at 14% cost of funds rate and have an increasing Return on Equity (ROE) starting with 26.43%. The project is financially strong and gives a return above the market rate to the investors.
General Company Description
Name of the company
eBricks (Pvt.) Ltd. [EBPL]
Main area of business
Producing Cement Stabilized Compressed Soil Bricks
To provide high quality soil bricks to construction industry
in Sri Lanka
Goals & Objectives
▪ To manufacture, sell, export and distribute soil bricks for the construction industry in Sri Lanka with a annual turnover of Rs. 12.0M or more ▪ Promote soil bricks concept in Sri Lanka
Background of the Construction Industry in Sri Lanka
After 30 years prolonged war, Sri Lanka has gathered the momentum of development which includes massive infrastructure developmentslike ports, highways etc. At the same time private sectors has started to invest in business ventures such as tourism, trading, property developments etc. The constructions industry has shown a remarkable growth in year 2009. Following...
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