In conversation with Mohit Saboo, Director and CFO of BigBloc Construction Ltd

We have a fleet of 75-80 trucks which gives us an edge over competitors in terms of margin as well as service to customers, signifies Mohit Saboo, Director and CFO of BigBloc Construction Ltd

In FY23, the total income of the company surged by 14.3 per cent while the net profit of the company zoomed by 87.4 per cent on a YoY basis. What were the contributing factors which led to the overperformance of the company? 

The revenue growth is mainly due to an increase in the selling prices of AAC Blocks which has resulted in margin improvement for the company. Capacity utilisation for FY23 was 83.44% which also helped the revenue and margins. 

Can you elucidate on the company’s current expansion plans in FY24? –

For FY 24, we have recently started commercial productions at our new unit at Wada, Palghar in the wholly owned subsidiary Company Bigbloc Building Elements Pvt Ltd with a capacity of 2,50,000 CBM per annum which is gradually scaling up. Once we receive EC for Subsidy purposes, we intend to take expansions on hand at this facility from 2,50,000 CBM to 5,00,000 CBM which will be at a capex of approx 18-20 Crores later on this year. 

Moreover, we have already bought land for our JV Company with Siam Cement Group and will be placing orders for machinery and starting construction of the factory shortly. We intend to start commercial productions at this factory in Q4 FY 24 with a capacity of 3,00,000 CBM per annum for blocks as well as panels.

At the moment, what are your top 3 strategic priorities? 

The top 3 strategic priorities are to become the largest AAC Blocks player with a pan-India presence soon. We also intend to venture into manufacturing of construction chemicals which are related to AAC blocks like Block Jointing Mortar, Ready Mix Plaster, Tile Adhesives and many others. Moreover, in the longer run, we intend to become a building materials company and not just an AAC Blocks company by introducing various other new-age and green building materials to our country.

What is the current competitive landscape for your company, and what are your plans for enhancing your competitive position? 

We are currently among the top 5 AAC Blocks player in the country and intend to become the largest in India with planned expansion in the next 12 months. Moreover, we are currently the largest in western India and because of this, we enjoy various other competitive advantages like a decent bargaining power from our suppliers like cement, lime etc due to huge quantities. Also, we have a fleet of our own of 75-80 trucks which also gives us an edge over our competitors in terms of margin as well as service to customers.

How significant is the addition of Shapoorji Pallonji Group as a major client for the company? Could you also provide more details about the nature of the business relationship between the company and Shapoorji Pallonji?  

Shapoorji Pallonji is one of the oldest construction contracting companies in the country with huge projects on hand and we are one of the only few suppliers to be approved for supplying AAC Blocks to them.