SIAM Cement-BigBloc JV Acquires Land For the Plant

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BigBloc Construction Limited, one of the leading manufacturers of Aerated Autoclaved Concrete (AAC) blocks, bricks, and panels has completed the land acquisition for its joint venture with SIAM Cement Group (SCG). The acquired land will be used to set up three lakh cbm per annum facility for ALC panels and AAC blocks near Ahmedabad, Gujarat. The plant is expected to begin its commercial production in 2023. This joint venture between SCG and Big Bloc has selected Gujarat for the first maiden FDI from SCG into India.

With a presence in 20 countries, SCG International Corporation a part of SCG Group, a leading business conglomerate in ASEAN with assets of more than $27 billion will hold 48 per cent in the joint venture while 52 per cent will be held by Bigbloc Construction Limited. Total investment in the project is estimated at Rs 65 crore.

Commenting on the development, Naresh Saboo, Managing Director, Bigbloc Construction Ltd said, "The joint venture aims to share techno-commercial knowledge, promote mutual growth & cooperation in the construction industry and bring new-age building materials to Indian markets. In the first phase, it plans to set up a three lakh CBM per annum plant for AAC Block and ALC Panels."

"The project can be expanded to five lakhs CBM per annum in the second phase with approval from both joint venture parties. Going further SCG and Bigbloc shall work jointly on all the building material solutions to strengthen the supply chain in India, leverage each other capability and provide exceptional solutions to the construction industry," he added.

Established in 2015, BigBloc Construction Ltd is the only listed company in the AAC Block Space with a capacity of 5.75 lakh cbm. per annum. It is also the only company in this segment to generate carbon credits. During the year, the company formulated plans for the setting up of Greenfield projects in Maharashtra and Gujarat. Expansion at Wada is going on as scheduled with 5 lakh cbm per annum.

"Post completion of both expansions, the company's total capacities will increase to 13.75 lakh cbm. per annum making the company one of the largest players in the country. Company expects to generate around three lakh tons of carbon credit every year post the expansion," said Mohit Saboo, Director & CFO, BigBloc Construction Ltd.

He further added: "The expansion will help the company to further penetrate its presence into untapped markets across the western regions and also make it the largest player in India. The use of AAC blocks is expected to grow stupendously in the coming years owing to increased awareness, growth in the infrastructure sector and preferences for low-cost houses amongst builders and architects and several beneficial attributes of AAC blocks over red clay and fly ash bricks."

For FY22, the company reported a net profit after tax of Rs. 16 crore with EBITDA of Rs 27.7 crore, and a total income of Rs 175.8 crore. For H1FY23, the company reported a consolidated net profit of Rs. 16.9 crore (PAT Margin 16.25 per cent), a growth of 384 per cent Y-o-Y. Total income during H1FY23 was reported at Rs. 104 crore, rise of 50.72 per cent Y-o-Y. EBITDA for H1FY23 stood at Rs 26.2 crore (EBITDA Margin 25.19 per cent), the rise of 288 per cent Y-o-Y.