Do you want to start a sand manufacturing business? If yes, find here a stepwise business plan guide on starting sand making business with the manufacturing process, legalities, machinery, etc.
Sand is an essential component in the construction industry. River sand is the natural source of the sand. Natural or River sand are weathered and worn-out particles of rocks. These are of various grades or sizes. It depends upon the amount of wearing. The sand produced by proper machines can be a better substitute for river sand.
The sand must be of proper gradation. When fine particles are in proper proportion, the sand will have fewer voids. The cement quantity required will be less. Such sand is more economical. Sand manufacturing is a profitable business. It demands substantial capital investment in Plant setup.
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Is Sand Manufacturing Business Profitable?
Manufactured sand is produced by passing boulders and stones. It goes through a series of jaw and cone crushers for size reduction. Sandmaking has a bright future in the construction industry. The demand for sand is increasing rapidly. Here are a few reasons why sandmaking has a good market opportunity in India.
- At present, sand is nearly 50% cheaper than river sand. The river sand is being sold at around Rs 1,300 a tonne. The sand is sold for half the price.
- River sand cannot meet the rising demand for the construction sector. River sand in many parts of the country is not graded properly. It has excessive silt and organic impurities. These can be detrimental to the durability of steel in the concrete. The manufactured sand has no silt or organic impurities.
- The presence of other impurities such as coal, bones, shells, mica, silt, etc. makes it inferior for use in cement concrete. The decay of these materials shortens the life of the concrete. It is because of the weathering effects.
- Nowadays, the Government has put a ban on lifting sand from River beds.
- Transportation of sand damages the roads.
- Removing sand from the river bed impacts the environment, as the water table goes deeper & ultimately dry.
12 Steps to Start Sand Manufacturing Business
1. Conduct Market Research
Before starting into sand manufacturing, conduct thorough market research to understand the demand for various types of sand in your target market. Identify the specific uses of sand, such as fine sand for concrete or coarse sand for masonry, and the demand from construction companies and contractors.
2. Create a Business Plan
Develop a detailed business plan outlining your business goals, target market, funding requirements, production process, and marketing strategy. A well-structured plan will serve as a roadmap for your sand manufacturing business.
3. Legal and Regulatory Compliance
Check the legal requirements and regulations governing sand mining and manufacturing in your region. You may need permits, licenses, and environmental clearances to operate legally. Ensure compliance with all local and national laws.
Some of the basic licenses and permits needed are as follows:
- Incorporate the firm with ROC.
- Obtain a Trade License from the Municipal Authority
- Apply for Udyog Aadhaar MSME. This is optional. However, it will help you in getting Govt. a subsidy.
- Obtain GST registration.
- Apply for ‘NOC’ from the State Pollution Control Board.
- Apply for BIS certification. The end product must satisfy all the requirements of IS: 383. Additionally, you can do gradation in accordance with the usage of the sand. There are testing sieves, consisting of 4.75mm, 2.36mm, 1.183mm, 600 microns, 300 microns, 150 microns, etc.
4. Location Selection
Choose an appropriate location for your sand manufacturing unit. It should be close to sand sources (riverbeds or quarries) and have easy access to transportation for both raw materials and finished products.
5. Secure Funding
Determine your initial capital requirements for equipment, labor, and operating costs. Explore financing options such as personal savings, loans from banks and financial institutions, or investments from partners. Also, apply for a credit card to meet small-time business expenses.
6. Sand Making Machine & Unit Setup
First of all, you have to procure the major required machines. The list includes a vibrating feeder, jaw crusher, impact crusher, and vibrating screen for sand making. However, only, sand manufactured by VSI crusher/Rotopactor is cubical and angular in shape. Sand made by other types of machines is flaky, which is troublesome in working.
The Jaw crushers are generally used for crushing stones into metal/aggregates. Manufactured sand from jaw crushers, cone crushers, and roll crushers often contain a higher percentage of dust and have flaky particles.
In unit setup, you will require a minimum of 30,000 sq ft of land. It requires high-voltage electricity to operate the machines.
7. Sand-Making Process & Raw Materials
The manufacturing of the Sand process involves three stages. These are crushing stones into aggregates by VSI, then fed to Rotopactor to crush aggregates into the sand to required grain sizes (as fines). Then, do the screening to eliminate dust particles, and Washing of sand eliminates very fine particles present within.
Finally, the end product will satisfy all the requirements of IS:383. It can be used in Concrete & construction. However, the VSI Plants have an available capacity of up to 400 tons Per Hour (TPH).
Additionally, you can use all types of stone like gravel, basalt, and granite as the raw material in sand-making plants.
8. Quality Assurance and Testing
Regularly test and analyze the quality of your sand products to meet industry standards. Ensure that your sand complies with the specifications required for various construction applications.
9. Financial Management
You need to maintain accurate financial records, including income, expenses, and profits. Track your cash flow and budget for future investments or expansion.
10. Environmental Considerations
Adopt eco-friendly practices in your manufacturing process to minimize the environmental impact. Implement measures for responsible sand extraction and processing, including land reclamation and wastewater treatment.
11. Pricing Strategy
Determine competitive pricing for your sand products while considering production costs and market demand. Pricing should be competitive yet profitable.
12. Marketing and Distribution
Create a marketing strategy to reach potential customers in the construction industry. Build relationships with contractors, builders, and construction companies. Consider establishing distribution channels to deliver sand to construction sites efficiently.
Frequently Asked Questions
What types of sand are commonly produced in a sand manufacturing business?
Sand manufacturing businesses typically produce various types of sand, including fine sand for concrete, coarse sand for masonry, plastering sand, and specialty sands like silica sand for glass manufacturing. The types of sand you produce should align with the demand in your target market.
What are the environmental concerns associated with sand manufacturing?
Sand manufacturing can raise environmental concerns, particularly if it involves sand extraction from riverbeds or quarries. To address these concerns, businesses should obtain necessary permits, practice responsible land reclamation, and implement wastewater treatment systems to minimize environmental impact.
What are some common challenges in the sand manufacturing business?
Common challenges include fluctuating demand, environmental regulations, and competition. To overcome these challenges, diversify your product range to meet varying demands, ensure strict compliance with regulations, and focus on product quality and customer relationships to stay competitive.
What are some cost considerations in a sand manufacturing business?
Costs in a sand manufacturing business include machinery and equipment, labor, raw materials, maintenance, transportation, and compliance with regulatory requirements. Managing costs efficiently is essential for profitability.
Can I export sand products to international markets, and what are the considerations for international trade?
Exporting sand products is possible, but it involves compliance with international trade regulations and quality standards. Research international markets, understand import/export regulations, and establish efficient logistics and distribution channels for exporting.