BigBloc Construction Limited, wholly owned subsidiary - Bigbloc Building Elements Private Limited started a trial run of machineries for Greenfield Project of AAC Blocks at Wada in Palghar, Maharashtra. Commercial production from the plant is expected to commence by end of March 2023. At full capacity, Wada plant is expected to generate revenues of Rs. 200 crore per year.
Total capex for the Wada project is estimated to be around Rs 65 crore for setting up the 5 lakh cubic meter (cbm) per annum plant at Wada, Maharashtra for manufacturing AAC blocks. Company has invested Rs 48 crore in the project so far for the commercial operations of Phase I. Company is eligible for 60% subsidy from the state government for the project and expects to generate 1 lakh units of carbon credits per annum from the Wada project. (i.e One carbon credit represents 1 tonne of CO2e that an organization is permitted to emit).
Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the AAC Block Space with a capacity of 5.75 lakh cbm per annum. Green and non-toxic building construction material, AAC blocks are economical, lightweight, soundproof, fire resistance with superior build quality and saves energy, eco-friendly and economical too compared to traditional bricks. It is the only company in this segment that generates carbon credits from its operations.
Commenting on the development, Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd said, “We are happy to announce the commencement of the trial run at Wada facility and confident to start commercial production from the facility very soon. The company is growing from strength to strength and has delivered a robust operational and financial performance over the years with healthy growth in revenue and profitability. 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."
In a joint venture with Thailand’ SCG Group, the company is also setting up 3 lakh cubic meter per annum plant for ALC Panels and AAC Blocks at Kapadvanj Ahmedabad (Gujarat). Joint venture company - Siam Cement Big Bloc Construction Technologies Pvt. Ltd has already acquired 60,000 sq mtr land at Kapadvanj, Khdea district near Ahmedabad, Gujarat. SCG is one of the largest cements and building material company in South East Asia and will hold 48% in the joint venture with 52% being held by Bigbloc Construction Limited. The plant is expected to start commercial production in Calendar Year 2023.
Post completion of the expansion, company’s total capacities will increase to 13.75 lakh cbm per annum making it the largest manufacturer of AAC block in the country. Company also expects to generate around 2.5 to 3 lakh units of carbon credit every year post the expansion.
For nine months ended December 2022, company reported a consolidated net profit of Rs. 24.67 crore (PAT margin 16.1%), growth of 186.7% Y-o-Y. Total income during the period was reported at Rs. 153.70 crore, rise of 25.3% Y-o-Y. EBITDA for 9MFY23 stood at Rs. 39.54 crore (EBITDA Margin 25.7%), rise of 134.9% Y-o-Y. For FY22, Company reported Net Profit of Rs. 16 crore with EBITDA of Rs. 27.7 crore, Total Income of Rs. 175.8 crore.
