§1What this business is
Cement, fly ash or sand and water are mixed into a slurry; pre-formed foam is blended in and the mix is poured into moulds, demoulded and stacked to cure. The blocks are about one-third the weight of clay bricks, cut and drill easily and insulate against heat and sound. Buyers are builders, contractors and cold-room makers.
Capacity: 3,000 blocks a day, 300 days → 9,00,000 blocks a year; 50% use in year 1 rising to 70% in year 5.
§2Is it right for you?
Who it is for
Someone with links to builders and contractors in a city with fly ash available nearby.
Who it is not for
Someone who wants quick profit — the report shows small profits until volume grows.
Advantages
- Light blocks cut the dead load and save steel and cement in the frame
- Good heat and sound insulation — suits cold rooms
- Uses fly ash, a waste
- Accurate size cuts plaster cost
Drawbacks
- Thin profit in the first year (₹0.91 L)
- Builders used to red brick need convincing
- Curing space and careful foam dosing are needed
Skills you need
- Mix design and foam dosing
- Curing and quality testing
- Selling to builders and architects
- Managing a small factory crew
Why difficulty 3/5: Process needs care and the first year earns little while you build buyers.
§3Market
Who buys
- Builders and real-estate developers
- Building contractors
- Cold-room and insulated-building makers
- Owners building homes in seismic or soft-soil areas
How it sells
- Direct sale to sites
- Building-material dealers
Good to know
- The report says CLC blocks weigh about one-third of clay bricks and give 2–3% more carpet area when 150 mm blocks replace 9-inch brick walls.
- It says a 100 mm wall gives 4 hours of fire endurance.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Plant & machinery (not itemised in the report) | 1 lot | ₹15.50 lakh |
From: PMEGP sample project report — CLC Blocks Manufacturing Unit (prepared by Udyami/Samadhan)
- Cement₹5,000 a tonne in the report
- Sand₹3,500 a tonne
- Fly ash₹1,200 a tonne
- Foaming agent (listed as 'foam generator' in the raw-material table)₹1,50,000 a tonne
- Water₹36 a tonne
From: PMEGP sample project report — CLC Blocks Manufacturing Unit (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam
- GST
- Pollution consent from the state board
- Block testing to the relevant BIS standard (government buyers ask for it)
- Trade licence
§6Schemes & subsidies
PMEGP (the report was made for it) and CGTMSE fit.
§7Money
How the investment is worked out: Plant & machinery ₹15.50 L + furniture ₹1.17 L + working capital ₹4.44 L = ₹21.11 L. Shed of 2,000 sq ft owned or rented, not costed. Finance: term loan ₹15.00 L, working capital loan ₹4.00 L, own ₹2.11 L.
Working capital: Working capital ₹4.44 L in the cost (bank ₹4.00 L): 10 days of raw material and finished blocks.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CAPEXIL
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- Blocks are heavy, so export is mostly to nearby countries.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Cement price jumps
- Weak blocks from bad foam or curing
- Slow market acceptance
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working clc (foam concrete) block unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start CLC (Foam Concrete) Block Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.