Flooring Tiles (Granite)

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Product Code N.A
Quality and Standards IS 3316:1974 Structural Granite
Production Capacity Quantity : 75000 Nos.
Value : Rs. 8250000
Uploaded on May 2007


Granite is the most beautiful and reliable material for the building industry. It is used as a building material in the form of tiles and slabs and is a modular element for flooring, internal and external cladding, steps, sills, etc., in houses, offices, hotels, restaurants, hospitals, temples, etc. It is also used in the monuments.

Granite has been scarcely used in the past on account of high degree of hardness and difficulties in processing. The development of new and advanced technology and machinery has made it possible for the granite industry to reduce its production costs and considerably increase its production capabilities.

Market Potential

India is the second largest producer of granite after South Africa. Besides a good domestic demand due to steady growth in the commercial complexes and other building industry, there is a good export potential for granite tiles. India has an established market in Singapore, Taiwan, Australia, Japan, USA, UK, Italy and Germany. Although there is an export potential for the product, with the envisaged scale of operation, it is advisable to concentrate on domestic market initially before stepping in for an ambitious export market.

Basis and Presumptions

Efficiency: It is envisaged that the unit will run for 8 hrs a day and 300 days in a year. 75% efficiency of manpower and machinery is considered.

Time Period: Full capacity is expected to be achieved within 6 months of trial production.

Labour Wages: Minimum applicable wages are considered.

Interest Rate : 13% per annum is taken into consideration.

Margin Money: One-third of the total capital investment may be brought in by the promoter (s).

Pay back Period: About 4 years.

Land Cost and Construction Cost:

Land Cost Rs .2000 per sq. metre

Construction Cost Office and Stores: Rs. 5000 per sq. metre

Work Shed: Rs. 5000 per sq. metre

Implementation Schedule

Activity Period (in months)
Preparation of the project report Selection of site Provisional registration 2
Availability of finance Construction of building, Procurement of machinery and equipment, Availability of electrical power 3
Erection and commissioning, Trial runs, Recruitment of manpower 1
Total Implementation Period 6

Technical Aspects

Process of Manufacture

Granite blocks of 1 cft and 2 cft in size are procured from quarry owners. Blocks of various colours and shades are to be chosen depending on the customers requirements. Varieties of granite are available in various colours and shades in Karnataka, Maharashtra, Andhra Pradesh and Rajasthan. These are Himalayan blue, Ilkal red, Cherry blossom, Blue rose, S K fantasy, Kanakpura multi colour, Hassan green, etc.

Granite blocks are fed into a fully automatic circular sawing machine for slicing. The spacing between the cuts is preset depending on the thickness of tiles to be required. The depth of the cut is adjusted depending on the hardness of the granite. The hardness varies depending on the varieties of granite. Diamond segmented blade is used for cutting or slicing in which, water is the coolant. Water re-circulation system is suggested for minimizing water consumption.

The tiles could be of different sizes viz. 6" × 6", 12" × 12" and 12" × 24". The thickness of the tiles ranges between 10 mm and 20 mm.

The sliced granite is sent for further processing in the following sequence:

  • Rough surface grinding
  • Smooth surface grinding
  • Polishing

For the above three processes different grades of abrasive powders and polishing heads are used. Manual mode of operation of the machine is suggested for the above three processes. Polishing heads are replaceable for different operations on a single machine. Alternatively, three operations can be done on three different machines for increased production.

After polishing the individual tiles can be fed into an edge-cutting machine with double blade for parallel cutting of the two edges. Then, the tiles are positioned so that the other two parallel edges are also cut.

Double blade edge-cutting machines are preferred over single blade edge-cutting machine because sizes are more accurate and 90º is easily maintained between the adjacent edges. Water is used as coolant.

Edge polishing may be done with abrasive stones manually or portable machines.

Finished tiles are inspected for accuracy in size, mirror polish, etc. Tiles with any visual defects in polishing are avoided.

Quality Control and Standards

The Bureau of Indian Standards has published the following standard for structural granite: IS 3316:1974 Specification for structural granite (first revision), Reaffirmed 1987.

According to the above specification, the product should be free from flaws, injurious veins, cavities and similar imperfections that would impair its structural integrity and would adversely affect its strength and appearance.

Besides the above attributes, the above standard also specifies requirements for the following parameters:

Size tolerance: + 2 mm in length and breadth + 1 mm in thickness.

Water absorption: Not more than 0.50%.

Compressive strength: Not less than 1000 Kgs/sq. cm.

Specific gravity: Not less than 2.6

Production Capacity (per annum)

Granite tiles size Quantity (Nos.) Price (Rs.) Value (Rs.)
6" x 6" 50000 140 7000000
12" x 12" 20000 225 4500000
12" x 24" 5000 625 3125000
Total 75000   14625000

Motive Power 85 HP.

Pollution Control

Storage pits for slurry included

Energy Conservation Nil.

Financial Aspects

A Fixed Capital

Land and Building


Sq. Metres )

Rate (Rs.)

Value (Rs.)

Land 1000 2000 2000000
Built Area Office and Stores 100 5000 500000
Working Shed 400 2000 2000000
Construction of pits for waste slurry storage, etc.     100000
Total 4600000

Machinery and Equipments


Imp/ Ind.

Qty. (Nos.)

Rate (Rs.)

Value (Rs.)

Production Unit
Circular sawing machine (automatic), max. Cutting depth 375 mm, diamond segmented circular saw of 1000 mm dia., 25 HP main motor, 1 HP elevating motor and other accessories Ind. 2 700000 1400000
Double blade edge cutting machine (manual), max. work size: 450x450 mm, vertical movement: 80 mm, diamond segmented blade (200 mm dia.), 2 HP motor and other accessories Ind. 3 180000 540000
Heavy duty polishing machine (manual), max. polishing area: 600x1200 mm, vertical movement: 200 mm, 3 HP motor, polishing heads and other accessories Ind. 6 80000 480000
Testing Equipment Nil
Pollution control equipment Nil
Storage pits for waste slurry included in construction Energy conservation equipment Nil
Sub Total 2420000
Electrification and installation charges At 10% of cost of machines and equipment. 242000
Total 2662000
Cost of diamond segmented saws, polishing heads, etc. 450000
Cost of office equipment, working tables, etc. 141000
Total 3253000

Pre-operative Expenses 240000
(Project report cost, non-refundable deposits, etc.)  
Total Fixed Capital (i+ii+iii) 7853000

Working Capital (Per Month)

Personnel (per month)



Salary / (Rs.)


Administration and Supervisory
Manager 1 16000 16000
Supervisor 1 9000 9000
Salesman 1 9000 9000
Accountant 1 6000 6000
Clerk 1 5000 5000
Watchman 3 3000 9000
Attendant 1 3000 3,000
Technical: Skilled and Semi or skilled
Skilled workers 8 5000 40000
Semi-skilled workers 5 4000 20000
Sub Total 117000
Perquisites @ 22% of salaries LS 25740
Total 142740

Raw Materials (per month)


Imp/ Ind



Rate (Rs.)

Value (Rs.)

Granite rough blocks Ind. 500 Cft. 1000 500000
Packing materials Ind. L.S.     10000
Total       510000

Utilities (per month)




Rate (Rs.)

Value (Rs.)

Power 60 kWH x Rs.3.00x 8hrs.x25 days 8000 kWh 5.00 40000
Water 250 kL 20.00 5000
Total 45000

Other Contingent Expenses (per month)


Value (Rs.)

Postage and Stationery 2000
Telephone 4000
Consumable stores 30000
Repairs and maintenance 15000
Transport charges 10000
Advertisement and publicity 5000
Insurance 2000
Taxes 2000
Sales expenses 10000
Miscellaneous expenses 10000
Total 90000
Total Recurring Expenditure (per month) 787740
Total Working Capital (on 2 months basis) 1575480

Total Capital Investment

Fixed Capital 7853000
Working Capital 1575480
Total 9428480

Machinery Utilization

75% utilization has been considered on machinery and equipment. No bottleneck is expected in the operations.

Financial Analysis

Cost of Production (per year)


Value (Rs.)

Total Recurring Cost 9452880
Depreciation on Building at 5% 230000
Depreciation on Machinery and Equipment at 10% 266200
Depreciation on Tools at 25% 147750
Depreciation on Office equipment at 20% 28200
Interest on total capital investment at 13% 1225702.4
Total 11350732.4

Sales Turnover (per year)




Rate (Rs.)

Value (Rs.)

Granite Tiles of size (6" x 12") 50000 Nos. 140 7000000
Granite Tiles of size (12" x 12") 20000 Nos. 225 4500000
Granite Tiles of size (12" x 24") 5000 Nos. 625 3125000
Total 14625000

Net Profit Before Tax (per year)


Net Profit Ratio (%)


Net profit per year × 100

Sales per year


3274267.6 x 100



Rate of Return


Net profit per year × 100

Total capital Investment


3274267.6 x 100



Break-even Point

Fixed Cost (per year)



Depreciations 672150
Interest on total capital investment 1225702.4
Insurance 24000
40% of salaries and wages 685152
40% of other contingent expenses (excluding insurance) 422400
Total 3029404.4


Fixed Cost per year x 100

Fixed Cost per year + Net Profit per year


3029404.4 x 100

3029404.4 + 3274267.6



Additional Information

It is advisable to set up units in the states where granite quarries are available. For example, Karnataka, Tamil Nadu, and Andhra Pradesh have good deposits of granite rock. Granite being a minor mineral, is under the purview of State Governments and, Govt. policies on granite quarrying and lease vary from State to State.

The proposed project depends on the quarry owners for its raw material. Continuous availability of the desired quantity and quality (viz., colour, shade, etc.,) is very important. The project is envisaged for supply of granite tiles to meet the consumption within the country, local or otherwise. To get export quality finish in the granite tiles, it is also advisable to install Chamfering machine, Grooving machine and Calibrating machine.

Addresses of Machinery and Equipment Suppliers Granite Cutting and Polishing Machinery

  • M/s. M. L. Shah and Co (Machinery) Pvt. Ltd.
    Lotus House, 5th floor, 33 A,
    New Marine Lines,
    Mumbai-400 020
  • M/s. Rajasthan Udyog
    13, Heavy Industrial Area,
    Jodhpur-342 003
  • M/s. Hensel (India) Pvt. Ltd.
    No. 58, Country Club Road,
    Bangalore 560 068
  • M/s. Jodhpur Machine Tools
    Suvidha Complex, Sector E-4,
    Shastri Nagar,
    Jodhpur-342 003
  • M/s. Rajasthan Industries
    Behind Old Power House,
    Jodhpur-342 001
  • M/s. Yantra Udyog
    65/2, KCG Industrial Estate,
    Bangalore–560 079
  • M/s. Afam Stonemachin
    No. 85, Sharada Colony,
    3rd Stage, 4th Block,
    Bangalore-560 079
  • M/s. M. R. Industries
    3, Varalin Industrial Estate,
    Chand Lodiya Gots Road, Gota,

  • Diamond Segmented Saws and Polishing Heads and Abrasives

  • M/s. Rajasthan Tools Pvt. Ltd.
    13/A, Heavy Industrial Area,
    Jodhpur-342 003
  • M/s. Winter Misra Diamond
    Tools Ltd.
    79, Jorbagh,
    New Delhi-110 003
  • M/s. Neel Enterprises
    15-A, Silver House,
    Nr. Mahalakhmi Road,
    Paldi, Ahmedabad-380 007
  • M/s. Bhukanvala Diamond Tools Pvt. Ltd.
    PO Box No. 946, The Peerage,
    86, MV Road, (Andheri-Kurla Road),
    Andheri (West),
    Mumbai-400 093

  • Raw Material Suppliers

  • M/s. Mysore Minerals Ltd.
    39, M. G. Road,
    Bangalore–560 001
    Other local granite quarry owners.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com