Magicrete Building Solutions Receives SME Led Investment of Rs 66 Cr
Magicrete Building Solutions Private Limited India’s AAC block manufacturer raises ~INR 66 crores of investment from India SME and other investors. Funds managed and/ or advised by MO Alternate Investment Advisors Private Limited had earlier invested ~INR 37 crores in 2013 in the Company. Magicrete has grown revenues at ~25% CAGR over the last 3 years with strong operating cash flows and is currently delivery operating margins of ~20%+. Systematix acted as the exclusive financial advisor to Magicrete on the transaction. Sourabh Bansal, Co-Founder & Managing Director, Magicrete Building Solutions said, “In our decade long partnership with MO Alternates, they have been a strong pillar of support for Magicrete through all the ups and downs during the journey. Their relationship has enabled us to drive sustainable growth through focus on cost control measures and generation of operating cash flows. With this funding round, we are very excited to add partners like India SME and other investors including the family of Mukul Aggarwal and believe that each of our investors bring unique skillsets which will help accelerate the company’s growth plans at a faster pace. The funds raised will be utilized for strengthening the existing AAC blocks business and increase focus on the newly incubated business segments of construction chemicals, AAC panels and precast. This will enable the company to evolve into a complete walling solution provider.” Prakash Bagla, Director and Head of Niche Manufacturing sector at MO Alternates commented, “Sourabh is a strong leader and has stood rock solid through the headwinds witnessed by the real estate industry over the last 5-7 years. Magicrete has used this period to look inward and strengthened their organization, focused on cost control initiatives and diversified into ancillary product segments to emerge as a comprehensive building solution provider. Under Sourabh’s leadership, the company has grown from strength to strength to emerge as the leading AAC block player in the country and we believe the growth story for the company has only begun.” Mitin Jain, Founder and Managing Director of India SME Investments commented, “India SME believes that AAC block industry is at an inflection point triggered by multiple factors including visibility on long-term sustenance of commercial viability of AAC blocks vis-à-vis other building materials including bricks and concrete, coupled with strong tail-wind and improving demand in real estate sector and implementation of E&S policies by government to protect soil layers and improve working conditions of labourers. Backed by strong pedigree of technocrat founders, and being one of the largest manufacturer and lowest cost player in the space, we believe Magicrete will benefit the most in this industry over the next decade.” In addition to AAC blocks, its product portfolio includes construction chemicals (dry mortars, tile adhesives and water proofing products), 3D modular precast construction (alternate construction technology ensuring faster execution) and AAC Wall Panels (expected to be next shift in wall construction). The company has 2 manufacturing plants, one each in Gujarat and Haryana, with a combined capacity of ~8 lac cubic metres, and has recently commenced operations at its 3rd manufacturing facility in Wada, Maharashtra.
Tags : Magicrete Building Solutions Private Limited India AAC block manufacturer Sourabh Bansal Co-Founder & Managing Director Magicrete Building Solutions