Project Brief

The project objective is to set a stone crushing plant in the surrounding of Manshera. The plant will be able produce crushed stones of various sizes that can be used in various construction and road projects. The product will be hard lime stone crush of different sizes as required. Working with the proposed plant and machinery, the project will be capable of producing 30,000 C.ft. of crushed stone at 100% capacity utilization with single shift of 8 to 12 hours a day.

The total capital cost of the project is Rs. 21.324 million. For crushed stone manufacturing purposes, the majority of the crushing units use Hard Limestone, the reason lies in its extreme hardness and it also gives maximum strength to the building structure. Another reason is that it is easily available across the country in large quantities although granite could also be used for this purpose, as it is used by many other countries, though its excavation is comparatively difficult. Hard Lime Stone is found almost in every part of the country; so proposed sites and the availability of raw material are in abundance. According to extraction data for industrial minerals for FY 2002-03 the reserve of Lime Stone in NWFP are 4,921 million tons which are fairly large. However, in case of Granite, so far known sources of workable granites in the country which could be used for crushing purposes are available in Manshera in the North (NWFP). Gilgit Region (Northern Areas) does indicate great potential of variety, quality and quantity of granites that according to geological evidences have superiority over other granites in Pakistan (Source Expert Advisory Cell Digest of Industrial Sectors 2003)

Approximately 19 employees will be employed directly on the project. The civil works and installation of plant is estimated to complete in 3 months.

Project Rationale

Stone crushing industry is an important industrial sector in the country. The crushed stone is then used as raw material for various construction activities i.e. construction of roads, bridges, buildings and canals.

Over the last 10 years, the Construction sector has been registering strong growth rates in the range of 7-8%. Housing and construction is one of the major drivers of growth in more than 40 allied industries including STONE CRUSHING. In addition, for the building of roads, flyovers and bypasses, there is a mass and consistent need of crushed stone across the country. Several projects are in progress and are being commenced shortly which will have high demand of crushed stone all over the country. In order to make up the backlog and meet the projected requirements for the next 20 years, overall housing construction has to raise 500,000 housing units per annum. The area under consideration is badly affected by the earthquake and rehabilitation and reconstruction is in process. This process leads to construction of roads, bridges, new houses , markets , etc resultantly gear up construction activities and more use of crushed stones. Construction of Diamir-Basha Dam and Kohala Hydro –Electric Project are also synergic factor for this project. The aforementioned facts and statistics provide enough evidences, assuring a steep and continuous growth vis a vis investment opportunity in the STONE CRUSHING business.

There are increasing allocations from budget in the Public Sector Development Projects of Pakistan. There is sufficient skilled labor available at less cost to run the project. The raw material is abundantly available. If the machinery needs to be imported there are less import duties. The availability of initial depreciation made the project pragmatically five years tax free. There is need to employ latest and modern exploration techniques and machinery. The lack of coordination among various mineral sector agencies is also point of concern for the stone crushing industry.

Market Opportunity

Since it is an allied industry of the construction sector, growth in construction sector may be considered as proxy for the growth in stone crushing sector, i.e. around 7-8%. Crushed stone has a very minor share among the exports of non-metallic mineral products of Pakistan. It is observed that during the year 2000-03, total export volume of the crushed stone has been US $ 8,222, whereas, Marble with the highest share of US $ 5,968,232 remained at the top. The market scope for crushed stone is found to be encouraging in local market with the increased demand from building industry & construction fields. There is also a sufficient demand from Govt. Contractors for lying of roads and construction of industries etc. The entry in the target market is easy and there is a narrow gap in the supply and demand, which is expected to grow in the coming years.

Product Manufacturing Process

The main machinery involved in the stone crushing industry is Hammer Crusher, Screen, Conveyers etc. The process involved is to feed the stone in to the Hammer Crushers to make it further smaller in size as required by the customer. In the hammer crusher, the stone is crushed. The crushed stone is screened to separate the produce in different sizes by the separator. The crushed stone is conveyed by the conveyors to trucks for transport to the market place or storage area. Process flowchart of a stone crushing unit has been given

Process flowchart of a stone crushing unit

Product Marketing Channels

In the manufacturing industry, marketing is considered to be of significant importance. In the Stone Crushing industry, marketing parameters are very limited and usually in some degree associated with the construction sector. Some of the marketing promotion activities which should duly be rendered are given below:

  • Connection development with the building material suppliers, well known builders and contractors.
  • Update information on civil and construction works initiated by local, provincial and central government.
  • Draw linkages with material suppliers to the housing industry at town level.
  • Establish contacts with local civil engineering firms, individuals and professionals.

Human Resource Requirement

Construction and allied industry is a labor intensive industry; therefore, a total of 19 persons will be required to handle the production operations of a stone crushing unit. The business unit will work on one shift basis (8 hours daily). Total approximate manpower required for the business operations along with the respective salaries are given in the table below:

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