Literoof to set up concrete blocks manufacturing facility

Literoof Housing is to set up a plant near Chennai at an investment of Rs 40 crore to manufacture concrete blocks and interlocking tiles (or pavers).

Chennai-based Literoof will fund the project through internal accruals and bank loans.

The plant will initially have a capacity to produce 28,800 blocks and 72,000 pavers in one shift (eight hours per day). With a capacity utilisation of 60 per cent, Literoof is projecting revenues of Rs 26 crore for 2008-09 and Rs 30 crore for 2009-10.

"Production of clay bricks (raw material for construction) has been hit owing to several reasons, including state government bans on mines. Given this, an alternative is required, and concrete blocks fit the bill. It can reduce the construction cost by 20 per cent and time consuming," said M Mohammed Ansari, managing director, Literoof Housing.

He added that the challenge would be to create awareness and retailing networks. As these blocks are of high net weight, they cannot be sold through retail shops or transported beyond 150 km from the manufacturing unit since freight cost will be higher.

Literoof tied up with Germany-based MASA AG to deliver plants and machinery for the plant as well as provide technical support like personal training and market surveys.