BigBloc Building Elements receive eligibility certificate for Rs. 27.14 crore subsidy for the Phase I of Wada Plant

BigBloc Building Elements receive eligibility certificate for Rs. 27.14 crore subsidy for the Phase I of Wada Plant

Business

Surat (Gujarat) [India], March 29:  Bigbloc Building Elements Pvt Ltd, wholly owned subsidiary of BigBloc Construction Ltd, one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and Panels in India has received eligibility certificate for subsidy of Rs. 27.14 crores under package scheme of incentives – 2019, Government of Maharashtra. The receipt of subsidy from the state government of Maharashtra is in relation to completion of the Phase I of the company’s AAC blocks project at Wada in Palghar, Maharashtra. Phase 2 of the Wada project is currently underway and company aims to receive the subsidy benefits post completion of the expansion. Phase 2 subsidy will be separate and over and above this subsidy.

Total admissible subsidy for the Phase I of the project shall be Rs. 27.14 crores over a period of 10 years w.e.f. 01st May, 2023. The subsidy can be availed from Industrial Promotion subsidy in the form of 100% SGST exemption on sale in Maharastra, Interest Subsidy, Exemption from paying Electricity Duty (for 10 years), Power Tariff Subsidy (3 years).

In April 2023, Bigbloc Building Elements Pvt Ltd completed the first phase of Wada Project in Palghar, Maharashtra by establishing 2.5 lakhs cubic meters per annum capacity of the AAC block. In December 2023, company initiated work on the 2nd phase of the AAC blocks plant at Wada in Palghar, Maharashtra which is expected to be completed in the first quarter of financial year 2024-25.

In Phase 2, company aims to double the production capacity of Wada plant to 5 lakh cubic meter per annum of AAC blocks from existing 2.5 lakh cubic meter per annum. Post completion of phase 2, the total production capacity of at Wada will increase to 5 lakhs cubic meters per annum. At full capacity, Wada plant is expected to generate revenues in excess of Rs. 160 crore per year.

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the Aerated Autoclaved Concrete (AAC) Block Space with an installed capacity of 8.25 lakhs cubic meter per annum. Company’s manufacturing plants are located in Umargaon (Vapi) and Kapadvanj (Ahmedabad) in Gujarat and Wada (Palghar) in Maharashtra. It is among very few company in AAC industry to generate carbon credits.

Mr. Narayan Saboo, the Chairman, Bigbloc Construction Ltd said, “The expansion in Wada, Maharashtra, and the joint venture with SCG Group underscore our dedication to completing projects promptly. Our partnership with SCG Group emphasizes the exchange of technological and commercial expertise, promoting mutual development, and introducing advanced building materials for the Indian market. Through strategic measures, enhanced operational efficiency, and a commitment to innovation, we foresee consistent growth and enhanced value for stakeholders.”

Additionally, company in joint venture with Thailand’s SCG Group, SIAM Cement Big Bloc Construction Technologies Pvt Ltd is setting up a 3 lakhs cubic meter per annum plant for ALC Panels and AAC Blocks at Kapadvanj, Ahmedabad (Gujarat) and targeting production in Q1 of FY24-25. Products of the joint venture company will be marketed under the brand name ‘ZMART BUILD’. BigBloc Construction holds 52% in the joint venture company while 48% with SCG.

Mr. Narayan Saboo, Chairman & Managing Director, Bigbloc Construction Ltd.

Post completion of all ongoing expansion, the company’s total capacities will increase to 13.75 lakhs cubic meter per annum making the company one of the largest players in the country. The company also expects to generate around 2.75 lakh carbon credit every year post the expansion.

Company has reported robust financial growth over the years with 3 year Net Profit CAGR at 132%, Sales CAGR at 19%. For the Nine months ended December 2023, the company reported a consolidated net profit of Rs. 22.0 crore (PAT margin 12.55%), EBITDA of Rs. 43.6 crore (EBITDA Margin 24.87%) and Revenue from operation of Rs. 175.3 crore. Going forward, the company expects to achieve 20-25% sales growth with a healthy EBITDA margin of 20-25%.

BigBloc Construction Limited is India’s leading AAC block manufacturing company. The Company markets its products under the brand name ‘NXTBLOC‘. The company has executed over 2,000 projects so far and has another 1,500 plus 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 Sunteck, Sethia Infrastructure Pvt Ltd, Dosti Group, Purvankara Ltd among others. Green and non-toxic building construction material, AAC blocks are lightweight, soundproof, and fire resistant, offer superior build quality, eco-friendly and economical too compared to traditional bricks.

If you have any objection to this press release content, kindly contact [email protected] to notify us. We will respond and rectify the situation in the next 24 hours.