Bigbloc Commences Production of AAC Blocks at Wada, Maharashtra
Bigbloc Building Elements Private Limited has commenced commercial production at its 5-lakh cubic meter per annum AAC Blocks plant at Wada in Palghar, Maharashtra. Company will be able to meet the growing demand of AAC blocks in Western India and strengthen its position in the markets including Maharashtra, Gujarat, Madhya Pradesh and Rajasthan with the commercial operation of the Wada plant. At full capacity, Wada plant is expected to generate revenues of Rs. 200 crore per year and will employ around 350-400 people at the plant. Total capex for the Wada project is estimated to be around Rs. 70 crores for setting up 5 lakh cubic meter (cbm) per annum plant. The company has invested Rs. 48 crores in the project so far for the commercial operations of Phase I. The 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). Commenting on the development, Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd said, “Company will be in a better position to serve the growing demand of AAC blocks in Western India from the Wada plant and strengthen its leadership position in the AAC block space in India. 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. The company has delivered a robust operational and financial performance over the years and is expected to maintain the strong growth momentum in coming years.” In a joint venture with Thailand’ SCG Group, the company is setting up 3 lakh cubic meter per annum plant for ALC Panels and AAC Blocks at Kapadvanj Ahmedabad (Gujarat) and has acquired 60,000 sq mtr land at Kapadvanj, Khdea district near Ahmedabad, Gujarat. 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. Further, with a commitment towards keeping the carbon footprints to the lowest possible, the company is installing solar rooftop projects at its Umargam and Kapadvanj manufacturing facilities. The Company is installing 450 KW solar rooftop facility at each of the plant. The Company will be able to replace approximately 33% of its power requirement at both its plant with renewable green energy – solar power. For nine months ended December 2022, the 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.
Tags : Bigbloc Building Elements Private Limited commercial production Maharashtra company demand blocks