SIAM Cement BigBloc Construction starts commercial production of India’s first AAC wall plant in Gujarat's Kheda

SIAM Cement BigBloc Construction Technologies Pvt Ltd, a joint venture between Gujarat-based BigBloc Construction Ltd and Thailand’s SCG International Corporation Co, Ltd, (SCG International) has launched its India operations with the commercial production of its first plant in Kheda, Gujarat. With the vision of launching a next-generation walling solution for the Indian market, the joint venture has invested around Rs 65 crore in setting up a 2.5 lakh cubic meter per annum capacity project including India’s first AAC Wall Plant at Kheda district near Ahmedabad (Gujarat). The AAC Wall will be marketed under the brand ‘ZMARTBUILD WALL by NXTBLOC’. The joint venture company will also manufacture AAC Blocks.

Highlights

• The joint venture plant at Kheda, Ahmedabad is SCG Group’s first investment in India
• India’s first AAC wall plant launched; to introduce large format AAC wall products of 8-12 feet
• Kheda plant can be expanded to 5 lakhs CBM per annum in the second phase post approval of JV parties
• SIAM Cement BigBloc Construction Technologies Pvt Ltd is a 52:48 joint venture company; BigBloc Construction holds 52 per cent stake and 48 per cent is with SCG International
• At full capacity, the plant is expected to generate annual revenues of around Rs 100 crore
• The joint venture also aims to share techno-commercial knowledge and launch new age building materials to Indian markets

The plant was inaugurated by H.E. Ms Pattarat Hongtong, The Ambassador of Thailand to India, a Guest of Honour in the presence of senior officials from SCG International, BigBloc Construction on 10 June 2024.   

BigBloc Construction entered into a strategic joint venture with SCG International from Thailand for setting up state-of-the-art manufacturing facility for AAC Walls and AAC Blocks in Kheda District, near Ahmedabad (Gujarat). BigBloc Construction holds 52 per cent in the joint venture company while 48 per cent is with SCG International. This is SCG Group’s first investment in India. Established in 1913, SCG is one of the largest cement and building material companies in Thailand and Southeast Asia with presence in various different verticals like cement, construction materials, packaging and chemicals with presence in more than 22 countries along with multiple joint ventures with many international companies

Naresh Saboo, Managing Director, BigBloc Construction Ltd, 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 has the potential to expand to 5 lakh cubic meter per year in the second phase.”

Sustainable and non-toxic building construction material, AAC blocks and AAC Walls are lightweight, soundproof, and fire resistant, offer superior build quality, eco-friendly and economical too compared to traditional bricks.

The joint venture plant in Kheda, Gujarat will also have India’s first AAC wall plant. The company will launch wide range of large format AAC Wall products of 8-12 feet of 2 feet width with a thickness of 3-8 inches for the Indian markets. The plant will generate 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 aim to share techno-commercial knowledge, promote mutual growth and cooperation in the construction industry and bring new age building materials to Indian markets.

Abhijit Datta, Head of International Business and Managing Director of SCG International said, "This collaboration combines SCG's century-long expertise and advanced technologies with BigBloc's deep understanding of the local market, we are poised to make a significant impact on India's construction industry by delivering cost-efficient and sustainable construction solutions. We proudly introduce ‘ZMARTBUILD WALL by NXTBLOC’ – the next generation of world-class walling solutions. This ground-breaking venture is not just about setting new standards; it's about redefining the construction landscape in India, one wall at a time.”

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed companies in the AAC block space. BigBloc operates three AAC Block plants: one in Umargaon District Valsad, Gujarat, another in Wada, Maharashtra, and the third in Kapadvanj, District Kheda, Gujarat. The new facility in Kheda is company’s fourth plant, uniquely equipped to manufacture both AAC Blocks and the innovative AAC Wall, known as the ZmartBuild wall. With this Joint Venture company’s total capacity has increased to 1.3 Million CBM/Annum. It is among very few company in AAC industry to generate carbon credits.

Video Links 

SIAM Cement BigBloc Construction Factory at Kheda, Gujarat - https://www.youtube.com/watch?v=NnRsRCcYOAY

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

About - SCG International Corporation Co., Ltd https://scginternational.com/

SCG International Corporation Co, Ltd. (SCG International) is a prominent leader in international trading and supply chain solutions. It is a subsidiary of SCG, founded under the Royal Decree of His Majesty King Rama VI in 1913. SCG is a leading conglomerate in ASEAN, entering its 111th year of stable growth with a revenue of $13.6 billion (2023). SCG encompasses 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 Cleanergy.

The company has been recognised by leading global institutions as a leader in sustainability, achieving the position of a company assessed within the top one per cent with the highest scores in the construction materials industry group, according to the Corporate Sustainability Assessment (CSA) by S&P Global. SCG has achieved the world’s No. 1 ranking for a straight decade and has remained in the world’s top three for 14 consecutive years. Furthermore, SCG is the first organization from ASEAN to join the DJSI since 2004.

SCG International started operating in India through its wholly owned subsidiary, SCG International India since 2018 focusing on Building Materials, Packaging Business, and Sourcing of Ceramic, Industrial Supply. This venture is the first Foreign Direct Investment (FDI) in India. Having spent some time exploring the Indian market, SCG International decided to partner with BigBloc Construction and selected Gujarat as the first location for SCG investment, giving the positive work culture, investment friendly environment and other favourable factors.

About – BigBloc Construction Ltd https://www.nxtbloc.in/

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. For FY2023-24, company reported revenue from operations of Rs. 243.2 crore (Y-o-Y growth 21.55 per cent), EBITDA at Rs. 56.15 crore (Y-o-Y growth 12.29 per cent) and PAT of Rs. 30.69 crore (Y-o-Y growth 1.83 per cent).

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