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Cost Of Setting Up A Block Industry - Business - Nairaland

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6 Keys to Success in Setting Up Your Small Business / Investing In Block Industry / How Much Does It Cost To Start A Block Industry Business? Please Advise (2) (3) (4)

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Cost Of Setting Up A Block Industry by Katier00(f): 9:33am On Dec 12, 2013
Hello my good friends in the house. I am thinking of setting up a block industry but i have no idea how much it will cost me or how profitable it is, pls i will love contributions from the house as i intend to start it by jan. Thanks

3 Likes

Re: Cost Of Setting Up A Block Industry by Nobody: 11:13am On Dec 12, 2013
Take this topic to the properties section
Re: Cost Of Setting Up A Block Industry by Tmex(m): 7:21pm On Dec 12, 2013
It depends on hw much u hv fr d start up,u ll be needing a piece of land either by rent or purchase, a sound lister engine wch costs about 120-150k,the mould itself wch is about 100-120k,operating cost of about 300k u may be needing a truck depending on the level u e starting wit
Re: Cost Of Setting Up A Block Industry by Krucifax(m): 9:18pm On Dec 12, 2013
No one can give you exact costs because they vary due to factors like location and your own sourcing abilities. Below is a list of items you need.

1. Land
Most Block Industry owners do not own the land they work from. It mostly belongs to farmers who they pay a lease to.
Make sure you are close to a water source like river,stream or water way or dig a well. Water is the life blood of the business. Do not
under any circumstance entertain the idea of buying water or the business will crash before it takes of!

2.Machinery
You need a Lister engine. These are very expensive, so you want to source for the most affordable you can find.This normally means
travelling out of town to buy one.
You need a moulding machine. This is what shapes your blocks. These are made to order by local manufacturers.
You need a Water Pumping Machine(Looks like a small generator) This brings in water from your source.

3. Materials
You need wooden pallets.This is where your blocks stay to dry out after moulding.Bought from local makers. Start with a few hundred pieces
(200-500 pieces).
You need also
1 x Wheel Barrow
2 x Shovels
2 x Metal drums(To house water for your machines during moulding.)
2 x Security chains to secure items when you leave site.

4.Storage
You have two options. Buy wood from the market and ask a carpenter to construct a small hut for you. Alternatively and more expensively
you can buy a disused shipping container and convert. This is to store your items like unused bags of cement when you leave for the day.


5. Daily operation
It's profitable depending on a few factors.
Location: For obvious reasons
Season: During rainy season contructions all over the country slow down meaning less need to buy blocks and less business.
Inflation: When a bag of cement rises or falls it affects your ability to mold and customers ability to build or buy blocks for doing so.
Capital: The business is very cash intensive. Every thing you do you will have to pay upfront whilst waiting for sale to recoup cost and profit.
This includes the machine operator and labourers who are all paid per block and types of block(there are two types) and on the day!
This includes your sand delivery which is paid upfront.
This includes your bags of cement which you obviously buy upfront too.

Hope this helps good luck!

22 Likes 1 Share

Re: Cost Of Setting Up A Block Industry by Katier00(f): 1:35pm On Dec 13, 2013
Tmex: It depends on hw much u hv fr d start up,u ll be needing a piece of land either by rent or purchase, a sound lister engine wch costs about 120-150k,the mould itself wch is about 100-120k,operating cost of about 300k u may be needing a truck depending on the level u e starting wit
Thanks dear, i am in abuja and i intend to rent a land. I have about 700k
Re: Cost Of Setting Up A Block Industry by stagger: 1:39pm On Dec 13, 2013
Katier00 :
Thanks dear, i am in abuja and i intend to rent a land. I have about 700k

I doubt if you can afford to start this biz in Abuja with 700k and be able to compete with the Finze or Gongola industries. Maybe you should start by selling cement.
Re: Cost Of Setting Up A Block Industry by Katier00(f): 1:45pm On Dec 13, 2013
Krucifax: No one can give you exact costs because they vary due to factors like location and your own sourcing abilities. Below is a list of items you need.

1. Land
Most Block Industry owners do not own the land they work from. It mostly belongs to farmers who they pay a lease to.
Make sure you are close to a water source like river,stream or water way or dig a well. Water is the life blood of the business. Do not
under any circumstance entertain the idea of buying water or the business will crash before it takes of!

2.Machinery
You need a Lister engine. These are very expensive, so you want to source for the most affordable you can find.This normally means
travelling out of town to buy one.
You need a moulding machine. This is what shapes your blocks. These are made to order by local manufacturers.
You need a Water Pumping Machine(Looks like a small generator) This brings in water from your source.

3. Materials
You need wooden pallets.This is where your blocks stay to dry out after moulding.Bought from local makers. Start with a few hundred pieces
(200-500 pieces).
You need also
1 x Wheel Barrow
2 x Shovels
2 x Metal drums(To house water for your machines during moulding.)
2 x Security chains to secure items when you leave site.

4.Storage
You have two options. Buy wood from the market and ask a carpenter to construct a small hut for you. Alternatively and more expensively
you can buy a disused shipping container and convert. This is to store your items like unused bags of cement when you leave for the day.


5. Daily operation
It's profitable depending on a few factors.
Location: For obvious reasons
Season: During rainy season contructions all over the country slow down meaning less need to buy blocks and less business.
Inflation: When a bag of cement rises or falls it affects your ability to mold and customers ability to build or buy blocks for doing so.
Capital: The business is very cash intensive. Every thing you do you will have to pay upfront whilst waiting for sale to recoup cost and profit.
This includes the machine operator and labourers who are all paid per block and types of block(there are two types) and on the day!
This includes your sand delivery which is paid upfront.
This includes your bags of cement which you obviously buy upfront too.

Hope this helps good luck!

thanks alot sir, wow you really gave me details. Like i said earlier i am in abuja and i intend to rent a land, i also want to buy a big tank but you said it is a bad idea, can 700k start the factory even on a small scale. I really want to go into building line because abuja in the fastest developing city in Nigeria and anything building is very profitable
Re: Cost Of Setting Up A Block Industry by Katier00(f): 1:52pm On Dec 13, 2013
stagger:

I doubt if you can afford to start this biz in Abuja with 700k and be able to compete with the Finze or Gongola industries. Maybe you should start by selling cement.
You are right i am jus starting on a small scale, abuja is big and there are many projects going on, i will also do some marketing too. Finze and gongola are household names in block industry and they have been in the buisness for years, i can't compete with them
Re: Cost Of Setting Up A Block Industry by Katier00(f): 1:54pm On Dec 13, 2013
stagger:

I doubt if you can afford to start this biz in Abuja with 700k and be able to compete with the Finze or Gongola industries. Maybe you should start by selling cement.
Re: Cost Of Setting Up A Block Industry by Katier00(f): 1:59pm On Dec 13, 2013
stagger:

I doubt if you can afford to start this biz in Abuja with 700k and be able to compete with the Finze or Gongola industries. Maybe you should start by selling cement.
Also selling cement is capital intenstive, you can only make profit if you buy in truck and have varieties,and i d'nt have such capital
Re: Cost Of Setting Up A Block Industry by Tmex(m): 2:35pm On Dec 13, 2013
Katier00 :
You are right i am jus starting on a small scale, abuja is big and there are many projects going on, i will also do some marketing too. Finze and gongola are household names in block industry and they have been in the buisness for years, i can't compete with them
who says you can't compete with them? All u need do is produce a relaatively sstronger blocks as theirs ,and it could only take time for people to identify ur products

1 Like

Re: Cost Of Setting Up A Block Industry by Krucifax(m): 4:36pm On Dec 13, 2013
stagger:

I doubt if you can afford to start this biz in Abuja with 700k and be able to compete with the Finze or Gongola industries. Maybe you should start by selling cement.

Finze and Gongola are multimillion dollar businesses that have been established for decades but it's not about competing with them as they are on another planet you need to do you. It@s a bit like saying you like fashion but can't open a fashion brand because you will compete with Versace

With N700K you can start in Abuja! However this is my advice to save money on your N700K
1. Do not by a tank!!!!!!!! Trust me on this unless you want to cry a few months down the line.
2. Buy a fairly used water pump.
3. Go to current owners of block industries. The laborers will hook you up with with used wooden pallets(beware of stolen goods though)
4. Arrange with the farmer or owner of land you want to lease to offer you option of installment payments.
5. By the time you have moulded your first couple of hundred blocks you might have run out of cash. Remedy this by going DIRECTLY to the quarry BY YOURSELF to negotiate the cheapest stone dust you can find for delivery. Alternatively you can choose not too mould stone dust blocks till you start making money this would make your production cheaper. However bear in mind many customer want stone dust. And if you want to contract to people like FCDA in Abuja they only buy stone dust blocks.

Good luck

These are the only ways to stretch your N700K.

3 Likes

Re: Cost Of Setting Up A Block Industry by Katier00(f): 4:58pm On Dec 13, 2013
Krucifax:

Finze and Gongola are multimillion dollar businesses that have been established for decades but it's not about competing with them as they are on another planet you need to do you. It@s a bit like saying you like fashion but can't open a fashion brand because you will compete with Versace

With N700K you can start in Abuja! However this is my advice to save money on your N700K
1. Do not by a tank!!!!!!!! Trust me on this unless you want to cry a few months down the line.
2. Buy a fairly used water pump.
3. Go to current owners of block industries. The laborers will hook you up with with used wooden pallets(beware of stolen goods though)
4. Arrange with the farmer or owner of land you want to lease to offer you option of installment payments.
5. By the time you have moulded your first couple of hundred blocks you might have run out of cash. Remedy this by going DIRECTLY to the quarry BY YOURSELF to negotiate the cheapest stone dust you can find for delivery. Alternatively you can choose not too mould stone dust blocks till you start making money this would make your production cheaper. However bear in mind many customer want stone dust. And if you want to contract to people like FCDA in Abuja they only buy stone dust blocks.

Good luck

These are the only ways to stretch your N700K.
Thanks alot sir, seems you know alot about block industry, pls how much do You think will be enough to set up a good factory and how much can i get a fairly used water pump. Thanks
Re: Cost Of Setting Up A Block Industry by Katier00(f): 5:00pm On Dec 13, 2013
Krucifax:

Finze and Gongola are multimillion dollar businesses that have been established for decades but it's not about competing with them as they are on another planet you need to do you. It@s a bit like saying you like fashion but can't open a fashion brand because you will compete with Versace

With N700K you can start in Abuja! However this is my advice to save money on your N700K
1. Do not by a tank!!!!!!!! Trust me on this unless you want to cry a few months down the line.
2. Buy a fairly used water pump.
3. Go to current owners of block industries. The laborers will hook you up with with used wooden pallets(beware of stolen goods though)
4. Arrange with the farmer or owner of land you want to lease to offer you option of installment payments.
5. By the time you have moulded your first couple of hundred blocks you might have run out of cash. Remedy this by going DIRECTLY to the quarry BY YOURSELF to negotiate the cheapest stone dust you can find for delivery. Alternatively you can choose not too mould stone dust blocks till you start making money this would make your production cheaper. However bear in mind many customer want stone dust. And if you want to contract to people like FCDA in Abuja they only buy stone dust blocks.

Good luck

These are the only ways to stretch your N700K.
Thanks alot sir, seems you know alot about block industry, pls how much do You think will be enough to set up a good factory and how much can i get a fairly used water pump. Thanks
Re: Cost Of Setting Up A Block Industry by Fajzay: 12:07am On Dec 16, 2013
The Question is what part of Abuja? ... For instance, if u are trying to get a land lease in my area in ABJ, almost a quarter of that money would be gone
Re: Cost Of Setting Up A Block Industry by Nobody: 8:40am On Dec 16, 2013
@op increase your budget to 1m naira, that is okay for a start.
Re: Cost Of Setting Up A Block Industry by stagger: 11:23am On Dec 16, 2013
Krucifax:

Finze and Gongola are multimillion dollar businesses that have been established for decades but it's not about competing with them as they are on another planet you need to do you. It@s a bit like saying you like fashion but can't open a fashion brand because you will compete with Versace

With N700K you can start in Abuja! However this is my advice to save money on your N700K
1. Do not by a tank!!!!!!!! Trust me on this unless you want to cry a few months down the line.
2. Buy a fairly used water pump.
3. Go to current owners of block industries. The laborers will hook you up with with used wooden pallets(beware of stolen goods though)
4. Arrange with the farmer or owner of land you want to lease to offer you option of installment payments.
5. By the time you have moulded your first couple of hundred blocks you might have run out of cash. Remedy this by going DIRECTLY to the quarry BY YOURSELF to negotiate the cheapest stone dust you can find for delivery. Alternatively you can choose not too mould stone dust blocks till you start making money this would make your production cheaper. However bear in mind many customer want stone dust. And if you want to contract to people like FCDA in Abuja they only buy stone dust blocks.

Good luck

These are the only ways to stretch your N700K.

My brother,

I was discouraging the OP. I am a business man myself and the number one business killer in this country is lack of capital. Forget everything that people will tell you about capital not being the most important component of business. IT IS!

700k to start a block business is just too small. The costs of setup will denude the OP's capital and then what will be left?

He needs to ramp up his budget to at least N1.5m to make any headway. That is what I meant by competing with Finze and Gongola. Those guys have money to run their businesses and I can tell you authoritatively that you need money to stabilize a business especially when it is growing. There is no guarantee that the OP will start selling the few blocks he can come up with straight off the blocks (no pun intended) to generate more money to stay afloat.

I do not like keeping people's hopes unduly high. I have seen the good, the bad and the very very ugly of business. It is not a kid's game.

His best bet if he cannot come up with more than 700k is to at least go and start to hustle for some small jobs. Locate areas where construction is going on and lease some land to start operations in close proximity to these sites. Then he can go from site to site canvassing for jobs. If he prays well, God will send his angels to go before him and get one person to give him a prepaid contract.

A prepaid contract was what saved one of my cash-strapped businesses from imminent collapse. Keep it real!

4 Likes 1 Share

Re: Cost Of Setting Up A Block Industry by eyems: 11:30am On Jul 30, 2016
Cement block moulding industry business plan in Nigeria.
http://www.businessplannigeria.com.ng/concrete-block-moulding-business-plan/
Re: Cost Of Setting Up A Block Industry by ogiadomhe(m): 10:33pm On Nov 04, 2016
pick ur courage nd start small ,nd be focus on ur stability
Re: Cost Of Setting Up A Block Industry by lonelydora: 10:25pm On Aug 03, 2017
Katier00:
You are right i am jus starting on a small scale, abuja is big and there are many projects going on, i will also do some marketing too. Finze and gongola are household names in block industry and they have been in the buisness for years, i can't compete with them

Think Big bro.
Re: Cost Of Setting Up A Block Industry by geejayjax: 10:40pm On Aug 23, 2017
Katier00:
Hello my good friends in the house. I am thinking of setting up a block industry but i have no idea how much it will cost me or how profitable it is, pls i will love contributions from the house as i intend to start it by jan. Thanks

so Op were u able to start the business afterall, pls give us an update of how it went.
Re: Cost Of Setting Up A Block Industry by HollowBlock: 10:09am On Jan 26, 2019
Hello, Those who are looking to start Block making machine in Nigeria, we are Turkish Factory and producing high-quality block moulding machine for Nigerian customers and we have shipped our machine to Nigeria and our customers are happy with our machine , if you are new in this business you need to choose a small block moulding machine which cost of this machine start from 13000$ which is good machine we give 2 years grantee , but if you have already started this business and want to buy high-quality block machine to produce more hollow block and paving block we have a good machine for you which cost start from 37000$ I am sharing the picture and video of machines and more if anyone interested to import our machines can visit our website for contact us directly in WhatsApp (+905326382935)
please visit our website here Block making machine


Video of small machine (
https://www.youtube.com/watch?v=VQ_2iQm_C0U&t=4s)
video of Semi-Automatic block moulding machine (
https://www.youtube.com/watch?v=BiYestuThuA&t=39s )

Re: Cost Of Setting Up A Block Industry by megacontrol(m): 2:49pm On Nov 13, 2019
Pls repost the pictures again especially the small one which didn't show up well.


[quote author=HollowBlock post=75126133]Hello, Those who are looking to start Block making machine in Nigeria, we are Turkish Factory and producing high-quality block moulding machine for Nigerian customers and we have shipped our machine to Nigeria and our customers are happy with our machine , if you are new in this business you need to choose a small block moulding machine which cost of this machine start from 13000$ which is good machine we give 2 years grantee , but if you have already started this business and want to buy high-quality block machine to produce more hollow block and paving block we have a good machine for you which cost start from 37000$ I am sharing the picture and video of machines and more if anyone interested to import our machines can visit our website for contact us directly in WhatsApp (+905326382935)
Re: Cost Of Setting Up A Block Industry by joeyreports: 11:45am On Mar 20, 2020
Get a Block making or block industry business plan...

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