Siam Cement & Bigbloc Const Technologies Complete Land Acquisition for JV

BY Realty+

BigBloc Construction Limited, a manufacturer of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and Panels have completed the land acquisition for its joint venture with SIAM Cement Group (SCG).

The company has acquired land for setting up a 3 lakh cbm per annum facility for ALC Panels and AAC Blocks at Kapadvanj, Kheda District near Ahmedabad, Gujarat. The plant is expected to start commercial production in Calendar Year 2023. The Joint Venture between SCG and Big Bloc has selected Gujarat for the first maiden FDI from Siam Cement Group into India.

SCG International Corporation, an international supply chain company (with a presence in 20 countries) and part of SCG Group a leading business conglomerate in ASEAN with assets of more than 27 billion USD will hold 48% in the joint venture with 52% being held by Bigbloc Construction Limited. Total investment in the project is estimated at Rs 65 crore. This is the first JV formed by SCG in India.  

Commenting on the development, Naresh Saboo, Managing Director, Bigbloc Construction Ltd. said, "We are happy to announce that company has completed land acquisition and necessary due diligence for the Joint Venture plant at Kapadvanj with SCG International Corporation. The joint venture also 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 3 lakh CBM per annum plant for AAC Block and ALC Panels. The company is confident to start commercial production from the plant in the Calendar year 2023. The project can be expanded to 5 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."

Incorporated in 2015, BigBloc Construction Ltd is one of the oldest, largest, and only listed companies in the AAC Block Space with a capacity of 5.75 lakh cbm. per annum. It is one of the only companies in this segment that generates carbon credits. During the year, the company laid down plans for the installation of Greenfield projects at Wada (Maharashtra) and Ahmedabad (Gujarat). Expansion at Wada with 5 lakh cbm. per annum is going on as scheduled and the company expects commercial production very soon.

“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. The company expects to generate around 3 lakh tons of carbon credit every year post the expansion. 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," said Mohit Saboo, Director & CFO, BigBloc Construction Ltd.

 “SCG INTL INDIA has been actively operating a business in Gujarat by supplying plasterboard liner to most Gypsum board plants Pan-India with Vol. around 15,000 MTPA whilst sourcing approx. 2 million sqm. of ceramic and bathroom fittings annually from Morbi. We have already started marketing our Building Materials and Services under the brand name ‘Zmartbuild’ and have launched a dedicated India website to showcase the wide range of products and service solutions. SCG INTL. acts as a spearhead for SCG Group in emerging markets and we have high expectations that this initial move will be the starting point for further opportunities in the fast-growing Indian Market” Abhijit Datta, Managing Director of SCG International Corporation co. Ltd said. 

Tags : BigBloc Construction Limited manufacturer Aerated Autoclaved Concrete blocks bricks panels joint venture Naresh Saboo Managing Director Bigbloc Construction Ltd Mohit Saboo Director & CFO BigBloc Construction Ltd