Corporate Feature     

Published: Apr 15, 2023
Updated: Apr 15, 2023

BigBloc Construction

Riding ‘green’ concrete wave

BigBloc is setting up two greenfield projects at Ahmedabad (Gujarat) and Wada, Palghar (Maharashtra) with a combined capacity of 8 lakh cbm per annum. Post completion of the expansion, the company’s total capacity will increase to 13.75 lakh cubic metres, which will make it the largest player in India. It also expects to generate around 2.5 to 3 lakh units of carbon credits every year post the expansion.

Recently, the company’s wholly owned subsidiary — Bigbloc Building Elements Private Limited — started a trial run at its 5-lakh cubic metres per annum AAC blocks plant at Wada, Palghar, Maharashtra. Commercial production from the plant is expected to commence shortly. At full capacity, the Wada plant is expected to generate revenues of Rs 200 crore per year.

The total capex for the Wada project is estimated to be around Rs 65 crore. The company has invested Rs. 48 crore in the project so far for the commercial operations of Phase I. It is eligible for 60% subsidy from the state government for the project and expects to generate one lakh units of carbon credits per annum from the Wada project.

THAI PARTNER

In a joint venture with Thailand’s SCG group, the company is also setting up a 3 lakh cubic metre per annum plant for ALC panels and AAC blocks at Kapadvanj, Ahmedabad (Gujarat). The joint venture company -- Siam Cement Big Bloc Construction Technologies Pvt. Ltd — has already acquired 60,000 sq metres of land at Kapadvanj, Khedea district, near Ahmedabad. SCG is one of the largest cement and building materials companies in South East Asia and will hold 48% in the joint venture, with 52% being held by BigBloc. The plant is expected to start commercial production in calendar year 2023.

The company’s financial position is robust and it has been reporting an excellent operational and financial performance over the years with a 3-year CAGR of 21% in sales and 138% in profits. For FY22, it reported net profit of Rs 16 crore with EBITDA of Rs 27.7 crore, and total income of Rs 175.8 crore. The promoter group’s holding in the company as on March 2022 stands at 72.27%.

For the nine months ended December 2022, the company reported a consolidated net profit of Rs 24.67 crore (PAT margin 16.1%), and growth of 186.7% yoy. Total income during the period was reported at Rs 153.70 crore, a rise of 25.3% yoy. EBITDA for 9MFY23 stood at Rs 39.54 crore (EBITDA margin 25.7%), a rise of 134.9% yoy.

With a commitment towards keeping its carbon footprint to the lowest possible, the company is installing solar rooftop projects at its Umargam and Kapadvanj manufacturing facilities. It is setting up a 450 KW solar rooftop facility at each of the plants. BigBloc will be able to replace approximately 33% of its power requirements at both its plants with renewable green energy in the form of solar power.

BUILDER’S CHOICE