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BigBloc Construction and SCG International Launch AAC Wall Plant in Gujarat

11 June 20243 mins read by Angel One
BigBloc Construction and SCG International inaugurate India operations with the launch of an AAC Wall plant in Gujarat, marking SCG's first investment in India.
BigBloc Construction and SCG International Launch AAC Wall Plant in Gujarat
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On June 10, 2024, BigBloc Construction Ltd informed in an exchange filing that SIAM Cement BigBloc Construction Technologies Pvt Ltd, which is a joint venture between the company and SCG International Corporation Co. Ltd (SCG International), has commenced its operations in India with the commencement of commercial production at its inaugural plant in Kheda, Gujarat.

Investing approximately ₹65 crore, the joint venture has established a project with a capacity of 2.5 lakh cubic meters per annum, including the AAC Wall Plant in the Kheda district near Ahmedabad, Gujarat. The AAC Wall will be branded as ‘ZMARTBUILD WALL by NXTBLOC’, introducing a next-generation walling solution to the Indian market. Additionally, the joint venture entity will produce AAC Blocks.

The plant was inaugurated by H.E. Ms. Pattarat Hongtong, the Ambassador of Thailand to India, alongside Mr. Balvantsinh Rajput, the Minister of Industries and MSME, Government of Gujarat, who was the Guest of Honour. Senior officials from SCG International and BigBloc Construction also attended the ceremony.

BigBloc Construction formed a strategic Joint Venture with SCG International from Thailand to establish a cutting-edge manufacturing facility for AAC Walls and AAC Blocks in Kheda District, near Ahmedabad (Gujarat). Holding a 52% stake in the joint venture, BigBloc Construction partnered with SCG International, which holds the remaining 48%. This marks SCG Group’s inaugural investment in India.

Established in 1913, SCG is among the largest cement and building material companies in Thailand and Southeast Asia, with diversified operations spanning Cement, Construction Materials, Packaging, Chemicals, and more. With a presence in over 22 countries, SCG also engages in multiple joint ventures with international companies.

AAC blocks and AAC Walls, renowned for their sustainability and non-toxicity, represent a revolutionary choice in construction materials. Lightweight, soundproof, and fire-resistant, they offer superior build quality, eco-friendliness, and cost-effectiveness compared to traditional bricks.

The joint venture plant in Kheda, Gujarat, will pioneer India’s first AAC Wall Plant. It will introduce a diverse range of large-format AAC Wall products, spanning 8-12 feet in height, 2 feet in width, and 3-8 inches in thickness, tailored for the Indian market. Anticipated to create 250 job opportunities, the plant is poised to generate revenues of approximately ₹100 crore per annum at full capacity.

The joint venture also aims to foster the exchange of techno-commercial expertise, facilitate mutual growth and cooperation in the construction sector, and introduce innovative building materials to the Indian market.

Speaking of this expansion, the Managing Director of BigBloc Construction Ltd, Mr Naresh Saboo, said, “This joint venture goes beyond a simple business alliance, fostering a bond between countries and cultures. Construction at the plant began in September 2023, and within a year, production started, setting a remarkable record in India’s AAC industry. Moving forward, SCG and Bigbloc will work together on all building material solutions to strengthen the supply chain in India, leverage each other’s capabilities, and provide exceptional solutions to the construction industry. With approval from both joint venture parties, the project can potentially expand to 5 lakh cubic meters per year in the second phase.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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