Soil Cement Blocks (Stabilised Mud Blocks)

§1What this business is

Soil is tested, dried and sieved, mixed with cement and water, pressed into blocks and water-cured for about three weeks. The blocks replace burnt clay bricks in low-cost housing and are about 2½ times bigger, so walls go up faster with less mortar. The report makes 2,400 blocks a day and sells them at ₹10 each; standard IS 1725.

Capacity: 2,400 blocks a day, 7,20,000 a year (one shift, 300 days); 60% in year 1.

§2Is it right for you?

Skills you need

• Soil testing and mix design
• Curing discipline
• Selling to builders and government housing
• Teaching masons to use the blocks

Why difficulty 2/5: Simple process; selling against burnt bricks takes effort.

§3Market

§4Raw material & machinery

From: PMEGP sample project report — Soil Cement Blocks (prepared by Udyami/Samadhan)

• Soil or raw earth4,800 MT a year at ₹150 per MT (full capacity); about 75% sand and 25% silt and clay is best (report)
• Cement (ordinary Portland)360 MT a year at ₹5,800 per MT
• Sand or crushed stone dust2,400 MT a year at ₹300 per MT
• Waterclean, fit-to-drink quality is adequate (report)

From: PMEGP sample project report — Soil Cement Blocks (prepared by Udyami/Samadhan)

§5Licences & registration

1. Udyam registration
2. GST registration
3. State Pollution Control Board consent to establish and operate
4. Permission for digging soil if required under state minor-mineral rules
5. Testing to IS 1725 for government buyers

We can do this registration for you

§6Schemes & subsidies

• PMEGPCentralActive15–35% subsidy
• CGTMSECentralActiveNo collateral, up to ₹10 crore
• Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan

PMEGP (the report is a PMEGP sample), CGTMSE, Stand-Up India for SC/ST or women founders. Above MUDRA's ₹20 lakh limit.

§7Money

How the investment is worked out: Samadhan report: covered area (50 sq m) ₹2.00 L, brick-curing platform (250 sq m) ₹1.50 L, borewell with pump ₹0.75 L, plant & machinery ₹11.00 L, furniture ₹0.75 L, pre-operative ₹0.35 L, working capital ₹6.34 L = ₹22.69 L (term loan ₹14.72 L, working capital ₹5.71 L, own money ₹2.27 L); land 2,000 sq m own or rented.

Working capital: Working capital ₹6.34 L (bank ₹5.71 L); 30 days of raw material and finished blocks in stock.

Year not printed on the report — check current machinery and material prices.

How to prepare a loan file

§8Export potential

Not an export product — blocks are heavy and sold within a short distance.

§9Risks — where people fail

• Weak blocks from poor soil or curing
• Slow acceptance by masons
• Cement price swings
• Seasonal construction slowdowns (monsoon)

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

1. Days 1–30: Visit a working soil cement blocks (stabilised mud blocks) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

¶Sources

1. PMEGP sample project report — Soil Cement Blocks (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.