KwaCrete Ready Mix Business Plan › Section 7 › Operations Plan

KwaCrete’s operational design is built around a single,
well-specified central batching plant and a right-sized delivery fleet,
supported by disciplined procurement, scheduling and quality systems.
The operating model is deliberately lean: capital is concentrated in
revenue-generating assets, and overhead is held to the minimum
consistent with safety, quality and reliability.

7.1 Plant & Site

The Company will commission a computerised central batching plant
rated at 60 cubic metres per hour, comprising aggregate bins, cement
silos, a weigh-batching system, a mixer and an automated control system.
The site will include a weighbridge, aggregate stockpile bays, a
laboratory, a workshop, wash-out and water-recycling facilities, offices
and ablutions. Site selection prioritises industrial zoning, proximity
to aggregate supply and arterial road access, and sufficient area for
stockpiles and fleet manoeuvring.

Table 7.1 — Plant capacity basis. The plan operates within a
conservative practical-capacity envelope, leaving headroom for a second
shift.

Importantly, the practical-capacity ceiling of 77,220 cubic metres
provides meaningful headroom: even at the FY2030 planned volume the
plant runs at roughly 87% of practical single-shift capacity.
Incremental demand can be met by extending hours and adding a partial
second shift before any further capital plant is required — a low-cost
growth option embedded in the asset base.

7.2 Production Process

The batching process follows a controlled, repeatable sequence that
the plant’s automation enforces and records:

1. Order intake & scheduling. Sales captures
   grade, volume, site and required time; dispatch slots the order against
   fleet availability.
2. Material weighing. Aggregate, sand, cement,
   water and admixtures are weigh-batched to the certified mix
   design.
3. Mixing & loading. Materials are combined and
   discharged into the truck mixer, which agitates the load in
   transit.
4. Quality check & ticketing. Slump is
   verified; a batch ticket recording the mix and time is issued with the
   load.
5. Delivery & placement. The mixer delivers
   within the placement window; pumping is provided where
   specified.
6. Wash-out & recycling. Returned water and
   washout are captured and recycled, minimising waste and environmental
   impact.

7.3 Supply Chain & Procurement

Raw materials are the dominant variable cost, and cement is the
single largest component — typically more than half of material cost.
KwaCrete’s procurement strategy is to secure volume-based supply
agreements with at least two cement suppliers to ensure continuity and
competitive pricing, to source aggregate and sand from nearby quarries
to minimise inbound haul, and to substitute a portion of cement with fly
ash or slag where the mix design permits, reducing both cost and
embodied carbon.

Table 7.2 — Raw-material cost structure and sourcing
strategy.

7.4 Fleet & Logistics

The delivery fleet is the bridge between plant capacity and realised
revenue. KwaCrete will operate six truck mixers, two concrete pumps and
two front-end loaders, sized to service the planned volume within the
delivery radius. Fleet management emphasises preventive maintenance to
maximise uptime, telematics for routing and utilisation, and driver
training for safety and product care. As volumes grow toward practical
capacity, additional mixers can be added incrementally.

7.5 Technology & Systems

• Automated batching control ensures mix accuracy,
  traceability and consistent quality.
• Dispatch & scheduling software optimises
  fleet utilisation and delivery timing.
• Fleet telematics track location, drum rotation
  and delivery performance in real time.
• Laboratory information management records mix
  designs and test results for certification and dispute
  protection.
• Integrated accounting & credit control links
  invoicing to delivery and enforces credit discipline.

7.6 Health, Safety & Environment

KwaCrete will operate a zero-harm safety culture compliant with the
Occupational Health and Safety Act. Environmental management addresses
dust suppression, water recycling, washout containment and noise
control, with the required environmental authorisation obtained before
construction. The Company will pursue lower-carbon mix designs both as
an environmental commitment and as a commercial differentiator, given
the carbon-tax burden carried by cement-intensive competitors.

7.7 Continuity & Resilience

Recognising South Africa’s electricity-supply challenges, the plant
will be equipped with back-up generation sufficient to sustain batching
during load-shedding, protecting delivery commitments. Critical spares
for the plant and fleet are held to minimise downtime, and dual-sourcing
of cement guards against supply interruption. These resilience
investments are modest relative to the revenue they protect.

7.8 Site Selection Criteria

Site selection is among the most consequential decisions in a
ready-mix venture, because location simultaneously determines haul cost,
the size of the addressable market and the perishable-product window.
Management will evaluate candidate sites against a weighted scorecard
covering the following criteria:

Table 7.3 — Weighted site-selection scorecard.

The economic delivery radius is the organising principle of the
entire operating model. Concrete must be discharged before initial set —
typically within 90 to 120 minutes of batching — so a plant positioned
centrally within its catchment, close to aggregate supply and with
direct arterial access, converts far more of its theoretical capacity
into profitable, on-time deliveries than a poorly sited competitor.
Management will not compromise on this criterion.

7.9 Operational Performance Indicators

Management will run the business against a focused dashboard of
operational key performance indicators, reviewed weekly by the
management team and monthly by the board. These metrics translate the
strategy into day-to-day accountability and provide early warning of
drift:

Table 7.4 — Operational KPI dashboard.

7.10 First-Year Operating Ramp

The first operating year is managed as a deliberate ramp rather than
an immediate push to capacity. Volumes build quarter-on-quarter as the
sales pipeline matures, certification unlocks tier-one and public work,
and fleet utilisation improves. The indicative quarterly profile below
underpins the FY2026 volume of 28,500 cubic metres and informs the
working-capital draw.

Table 7.5 — Indicative first-year quarterly volume ramp.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of KwaCrete Ready Mix (Pty) Ltd.