Siam Cement BigBlock commences production at India’s first AAC wall plant in Gujarat

Highlights

• The joint venture plant at Kheda, Ahmedabad is SCG Group’s first investment in India.
• India’s first AAC wall plant launched; 8-12 ft large format AAC wall products to be introduced
• The capacity of Kheda plant can be expanded to 5 lakh CBM per annum in the second phase after approval of the joint venture parties.
• Siam Cement BigBlock Construction Technologies Pvt Ltd is a 52:48 joint venture company; BigBlock Construction holds 52% stake and SCG International holds 48% stake
• The plant at full capacity is expected to generate annual revenue of around Rs 100 crore
• The joint venture also aims to share techno-commercial know-how and launch new age building materials in the Indian markets.

This plant was inaugurated. Her Excellency Ms. Pattarat Hongtong, Ambassador of Thailand to IndiaOn 10th June 2024, SCG International will be the Chief Guest in the presence of senior officials of Bigblock Construction.

BigBlock Construction entered into a strategic joint venture with SCG International of Thailand to set up a state-of-the-art manufacturing facility for AAC walls and AAC blocks in Kheda district near Ahmedabad (Gujarat). BigBlock Construction holds a 52% stake in the joint venture company while SCG International holds a 48% stake. This is SCG Group’s first investment in India. Established in 1913, SCG is one of the largest cement and building materials companies in Thailand and South East Asia with presence in cement, building materials, packaging, chemicals and many other sectors with presence in over 22 countries and several joint ventures with several international companies.

Mr. Naresh Saboo, Managing Director, Bigblock Construction Limited said, “This joint venture goes beyond a simple business alliance and promotes bonds between countries and cultures. Construction at the plant began in September 2023 and production began within a year, setting a remarkable record in India’s AAC industry. Going forward, SCG and BigBlock 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 the approval of both joint venture parties, the project has the potential to expand to 5 lakh cubic meters per annum in the second phase.”

Durable and non-toxic building material, AAC blocks and AAC walls are lightweight, soundproof and fireproof, offer better construction quality than traditional bricks, are also eco-friendly and economical.

The joint venture plant at Kheda, Gujarat will also house India’s first AAC wall plant. The company will launch a wide range of large format AAC wall products in sizes 8-12 feet, 2 feet width and 3-8 inches thickness for the Indian markets. The plant will create 250 employment opportunities and at full capacity the plant is expected to generate revenues of around Rs 100 crore per annum. The joint venture also aims to share techno-commercial knowledge, promote mutual growth and collaboration in the construction industry and bring new age building materials to the Indian markets.

Mr. Abhijit Dutta, Managing Director & Head of International Business, SCG International said,“This collaboration combines SCG’s century-old expertise and advanced technologies with BigBlock’s deep understanding of the local market, we are set to make a significant impact on India’s construction industry by providing cost-efficient and sustainable construction solutions. We proudly present ‘ZMARTBUILD WALL by NXTBLOC’ – The next generation of world-class wall solutions. This unprecedented venture is not just about setting new benchmarks; it is about redefining the construction landscape in India, one wall at a time.”

Incorporated in 2015, BigBlock Construction Limited is one of the largest and only listed companies in the AAC block space. BigBlock operates three AAC block plants: one at Umargaon District Valsad, Gujarat, another at Wada, Maharashtra and the third at Kapadwanj, District Kheda, Gujarat. The new facility at Kheda is the company’s fourth plant, uniquely equipped to manufacture both AAC blocks and the innovative AAC wall, known as ZmartBuild Wall. With this joint venture the company’s total capacity has increased to 1.3 million CBM/year. It is one of the very few companies to generate carbon credits in the AAC industry.

video link:-

Siam Cement Bigblock ConstructionFactory, Kheda, Gujarat – https://www.youtube.com/watch?v=NnRsRCcYOAY

How to Install ZMARTBUILD WALL by NXTBLOC – https://www.youtube.com/watch?v=b1BJC6508rs

SCG International Corporation Company Limited (SCG International) is a prominent leader in international trade and supply chain solutions. It is a subsidiary of SCG, which was established in 1913 under the royal decree of His Majesty King Rama VI. SCG is a leading group in ASEAN, entering its 111th year of stable growth with revenues of USD 13.6 billion (2023). SCG comprises a wide range of businesses including SCG Cement and Green Solutions, SCG Smart Living, SCG Decor (SCGD), SCG Distribution and Retail Business, SCGP, SCG Chemicals (SCGC) and SCG CleanerG.

According to the Corporate Sustainability Assessment (CSA) by S&P Global, the Company has been recognised by leading global institutions as a leader in sustainability, ranking the company within the top 1% with the highest score in the building materials industry group. SCG has achieved the world’s No. 1 ranking for a decade in a row and has remained in the world’s top three for 14 consecutive years. In addition, SCG is the first organisation in ASEAN to be included in the DJSI since 2004.

SCG International began operations in India through its wholly owned subsidiary. SCG International India Focusing on sourcing of building materials, packaging business and ceramics, industrial supplies since 2018. This venture is the first foreign direct investment (FDI) in India. After spending some time exploring the Indian market, SCG International decided to partner with Bigblock Construction and chose Gujarat as the first location for SCG investment considering the positive work culture, investment friendly environment and other favourable factors.

Bigblock Construction Limited India’s leading AAC block manufacturing company. The company markets its products under the brand name ‘NXTblock‘. The company has completed more than 2,000 projects so far and has more than 1,500 projects in the pipeline. The company’s clients include Lodha, Adani Realty, Indiabulls Real Estate, Prestige, Piramal, Oberoi Realty, Shirke Group, Shapoorji Pallonji Group, Raheja, PSP Projects, L&T and Suntech, Sethia Infrastructure Pvt Ltd, Dosti Group, Puravankara Ltd, etc. For FY 2023-24, the company reported revenue from operations of Rs 243.2 crore (YoY growth 21.55%), EBITDA of Rs 56.15 crore (YoY growth 12.29%) and PAT of Rs 30.69 crore (YoY growth 1.83%).

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