India’s Top AAC Block Manufacturer Expands! Acquires 57,500 Sq. Meters for a New Greenfield Facility
Aims to increase its production capacity from the current 250,000 cubic meters per annum to over 1.2 million cubic meters per annum in the next 4-5 years.
StarBigBloc Building Material Ltd, a wholly-owned subsidiary of BigBloc Construction Limited, one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and ALC Panels in India, has acquired land to set up a greenfield facility for AAC Blocks in Indore, Madhya Pradesh. The company has purchased approximately 57,500 sq. meters of land at Khasra No. 382, 387, 389/2, Gram Nimrani, Tehsil Kasrawad, District – Khargone, Madhya Pradesh, for the expansion of its AAC Blocks business in Central India. The total consideration for the land deal is Rs. 6 crore, including stamp duty.
StarBigBloc Building Material Ltd currently operates a plant in Kheda near Ahmedabad with an installed capacity of 250,000 cubic meters per annum, catering to most of Gujarat, Udaipur in Rajasthan, and Indore in Madhya Pradesh. The capacity utilization at StarBigBloc Building Material Ltd for the third quarter stood at 75 per cent. The planned expansion will enable the company to establish a stronger presence in Madhya Pradesh and surrounding regions. Reaffirming its commitment to the Green Initiative, the company has also installed an 800 KW solar rooftop power project—a significant step toward sustainability and reducing its carbon footprint.
Mr. Narayan Saboo, Chairman, BigBloc Construction Ltd, stated:
"The AAC block industry is set to play a pivotal role in India's construction sector, and our company is poised for a significant leap forward. The proposed expansion in Indore, Madhya Pradesh, aligns with our growth strategy, focusing on geographic expansion, R&D investments, product diversification, and strategic branding and marketing initiatives to enhance visibility, increase market share, and strengthen stakeholder trust."
BigBloc Construction Ltd has recently expanded into construction chemicals, introducing Block Jointing Mortar, Ready Mix Plaster, and Tile Adhesives to tap into high-demand segments. The company has launched NXTGRIP Tile Adhesives alongside its trusted NXTFIX and NXTPLAST brands, ensuring superior bonding, strength, and performance.
In May 2024, the Board of Directors approved fund-raising through an SME IPO or Preferential Issue to support the expansion plans of StarBigBloc Building Material Ltd, subject to requisite approvals and market conditions. StarBigBloc Building Material Ltd aims to increase its production capacity from the current 250,000 cubic meters per annum to over 1.2 million cubic meters per annum in the next 4-5 years. The company is targeting revenues of Rs. 428 crore by FY27-28, with an expected EBITDA of Rs.125 crore and net profit of Rs. 80 crore. In FY23-24, the company reported revenues of Rs. 94.18 crore, achieving a CAGR of over 21 per cent over the last four years.
Incorporated in 2015, BigBloc Construction Ltd is one of the largest and the only listed AAC block manufacturers in India, with a 1.3 million cbm annual capacity across plants in Gujarat (Kheda, Umargaon, Kapadvanj) and Maharashtra (Wada). The company, which markets its products under the 'NXTBLOC' brand, is among the few AAC manufacturers in India generating carbon credits. With over 2,000 completed projects and 1,500+ ongoing projects, its clientele includes Lodha, Adani Realty, Indiabulls Real Estate, DB Realty, Prestige, Piramal, Oberoi Realty, Tata Projects, Shirke Group, Shapoorji Pallonji Group, Raheja, PSP Projects, L&T, Sunteck, Dosti Group, Puravankara Ltd, DY Patil, Taj Hotels, Godrej Properties, and Torrent Pharma, among others.
Disclaimer: The article is for informational purposes only and not investment advice.