Unseasonal rain may spur demand for fly ash bricks

Image
Komal Amit Gera Chandigarh
Last Updated : Apr 08 2015 | 11:57 AM IST
Manufacturers of fly ash bricks are gearing up for a surge in demand, as the production of clay bricks has been disrupted owing to the unseasonal wet spells in northern India caused by western disturbances. Rain at regular intervals has hampered brick-making over the past two months, and this is expected to create a shortage of clay bricks.

The manufacture of clay brick involves open-site jobs without any sheds. The bricks are moulded in the open and left to dry for two weeks. The frequent wet spells during the winter gone by prevented the moulded bricks from drying.

The moulding and drying of green bricks is a fifteen-day process after it is baked in a kiln, and one shower can destroy the entire lot. An average-sized brick kiln makes around one million bricks a month.

The remoulding and drying would add Rs1 to the cost of a brick. Punjab’s brick kiln owners are considering revising the cost of clay bricks by Rs1 per brick to overcome losses. This may increase the demand for fly ash bricks, as they would be more cost-effective. About 14,000 players across the country make fly ash bricks, with an average capacity of 15,000 per day. 

A brick made from fly ash is almost fifty paisa cheaper than a clay brick, and is more durable. A price hike in clay bricks would certainly trigger increased demand for fly ash bricks, said Anil Arora, director of the New Delhi-based Centre for Innovative Building Material.

Fly ash bricks are made through a mechanised manufacturing process and unlike clay bricks, they are made in sheds. So weather variations do not affect the manufacturing process. The dependence on labour is also less, as bricks are made mechanically and have a smaller carbon footprint. 

Guidelines issued by the National Green Tribunal in January 2015 make it mandatory for brick kiln owners to seek environmental clearance from the Union ministry of environment, forests and climate change for mining the earth. As the implementation of mining laws is not as stringent and transparent under the state government as it is under the Central government, many kiln owners are finding it difficult to comply.

“There has been almost no brick manufacturing for the past two months and our investments are going waste. A brick kiln owner has to pay Rs4.5-5 lakh per annum as VAT to the state in a lump sum in Punjab. The Punjab Brick Kiln Owners’ Association has sought a relaxation from the state government and has advised that VAT should be levied ad valorem,” said K K Khanduja, senior vice-president, All India Brick Kiln Owners’ Association.

There are close to 3,000 brick kilns in Punjab and a third of these have closed down owing to lack of environment clearance.

Some progressive brick kiln owners are considering diversifying into fly ash bricks. A plant having a capacity of 10,000 fly ash bricks a day can be constructed at a cost of Rs25 lakh, and a plant of this size has a labour requirement of just 10 persons. 

The construction sector may face some challenges as technology upgradation takes time, and disruption in conventional brick making may add to their costs.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 07 2015 | 12:55 AM IST

Next Story