PNN
Surat (Gujarat) [India], December 5: Bigbloc Building Elements Pvt Ltd, wholly owned subsidiary of BigBloc Construction Limited, one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks and Panels in India has initiated work on the 2nd phase of AAC blocks plant at Wada in Palghar, Maharashtra. Company aims to double the production capacity of Wada plant to 5 lakh cubic meter per annum of AAC blocks from existing 2.5 lakh cubic meter per annum.
In Phase 2 of Wada project, company is adding 2.5 lakh cubic meter per annum of AAC block capacity by investing around Rs 30 crore by mix of internal accruals and debt. Company expects to complete the project within six month.
Highlights
* At full capacity, Wada plant is expected to generate annual revenues of Rs 200 crore per annum.
* The company is eligible for 60% subsidy from the state government for the project
* The company aims for a leadership position in India's AAC Block Space with 13.75 lakh cubic meter per annum capacity post completion of all expansion plans
* The company expects to achieve 20-25% sales growth in FY24 with a healthy EBITDA margin of 20-25%.
The company has established 2.5 lakh cubic meter per annum capacity of AAC block at Wada in Phase I of the project. In April 2023, the company commenced commercial operations of the plant which is currently operating at 85% capacity utilisation.
Post completion of phase 2 of Wada plant, total production capacity of the AAC block plant will increase to 5 lakhs cubic meter. At full capacity, Wada plant is expected to generate annual revenues of Rs 200 crore per annum. The company is eligible for 60% subsidy from the state government for the Wada project.
Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the AAC Block Space with an installed capacity of 8.25 lakhs cubic meter per annum. Company's manufacturing plants are located in Umargaon (Vapi) and Kapadvanj (Ahmedabad) in Gujarat and Wada (Palghar) in Maharashtra. It is among very few company in AAC industry to generate carbon credits.
Narayan Saboo, the Chairman, Bigbloc Construction Ltd said, "Company will be in a better position to serve the growing demand of AAC blocks post completion of expansion of Wada Phase 2 and joint venture plant with SCG. Post completion of the current expansion company's manufacturing capacity will increase to 13.75 lakhs cubic meter per annum. Company's strategic growth initiatives, operational efficiency and commitment to launching environment friendly and sustainable building products will contribute healthy growth and maximise value for all stakeholders in the near to medium term."
Company in joint venture with Thailand's SCG Group, SIAM Cement Big Bloc Construction Technologies Pvt Ltd is setting up 3 lakhs cubic meter per annum plant for ALC Panels and AAC Blocks at Kapadvanj, Ahmedabad (Gujarat). Construction at the facility is running in full swing and company intend to start commercial production at this unit in approximately five to six months. This is SCG Group's first investment in India. BigBloc Construction holds 52% in the joint venture company.
Company has reported robust financial growth over the years with 3 year Net Profit CAGR at 132%, Sales CAGR at 19%. For H1FY24, company reported consolidated net profit of Rs 13.58 crore (PAT margin 11.90%) and EBITDA of Rs 27.80 crore (EBITDA Margin 24.37%). Total income during H1FY24 was reported at Rs 114.06 crore, rise of 9.5% Y-o-Y. Company expects to achieve 20-25% sales growth in FY24 with a healthy EBITDA margin of 20-25%.
BigBloc Construction Limited is India's leading AAC block manufacturing company. The Company markets its products under brand name 'NXTBLOC'. The Company has executed over 2,000 project so far and has another 1,500 plus in the pipeline. The Company client includes Lodha, Adani Realty, IndiaBulls Real Estate, Prestige, Piramal, Oberoi Realty, Shirke Group, Shapoorji Pallonji Group, Raheja, PSP Projects, L&T, and Sunteck among others. The company is installing 450 KW solar rooftop facilities at Umargam and Kapadvanj manufacturing facilities to keep the carbon footprints to the lowest possible. By this, company will be able to replace approximately 33% of its power requirement at both its plant with renewable green energy - solar power.
Green and non-toxic building construction material, AAC blocks are lightweight, soundproof, and fire resistant, offer superior build quality, eco-friendly and economical too compared to traditional bricks. Use of AAC blocks are expected to grow at a much faster rate in the coming years owing to increased awareness, growth in the infrastructure sector, demand for affordable housing, Government's impetus and regulations to use eco-friendly construction material and several other beneficial attributes over red clay and fly ash bricks.
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