PNN

New Delhi [India], April 18: Established in 2015, BigBloc Construction Ltd stands as one of the largest and sole listed AAC block manufacturers in India, boasting an annual production capacity of 1.3 million cubic meters spread across facilities located in Gujarat (Kheda, Umargaon, Kapadvanj) and Maharashtra (Wada). This firm’s newest site in Kheda marks their fourth plant, distinctively capable of producing both AAC blocks and the advanced AAC walls. Their offerings are branded under the ' NXTBLOC' brand and also one of only a few firms in the AAC sector capable of generating carbon credits .

Energetic and Forward-Thinking Promoter Collective

The company is guided by energetic, youthful, and forward-thinking leaders. Moreover, the promoter group has steadily increased their ownership stake in the firm each year, rising from approximately 69.32% in March 2020 to 72.63% as of December 2024. To fund further growth initiatives, the promoter group has opted out of receiving dividends declared over the past several years.

Compensating Stakeholders with a 1:1 Bonus

In order to incentivize dedicated shareholders and improve marketability, the corporation has endorsed a 1:1 stock dividend. This means stakeholders will receive an additional share for each currently owned share. Additionally, the firm has sanctioned a plan to double the authorized share capital from Rs. 15 crore to Rs. 30 crore, which would be distributed across 15 crore equity shares with a par value of Rs. 2 per share.

Business Highlights

The company has expanded to become one of India’s biggest players in the AAC block sector, boasting a production capacity of 1.3 million cubic meters.

The firm’s foray into construction chemicals—such as Block Jointing Mortar, Ready Mix Plaster, and Tile Adhesives—signifies a calculated move towards lucrative building products.

* Bigbloc Building Elements Pvt Ltd, a fully owned subsidiary, has finished the second phase of expansion at its Wada plant, increasing its production capability from 2.5 lakh to 5 lakh cubic meters annually.

With the addition of the new solar plant, BigBloc Construction and its affiliates will reach a total solar capacity of 3475 kW.

The company has announced a strong Compound Annual Growth Rate (CAGR) of 33% over three years for its revenue and an impressive EBITDA CAGR of 66%.

* As of December 2024, the promoting group raised their stake in the firm to 72.63%, and they also relinquished their dividend rights to aid the company’s growth initiatives.

* The company issued a 1:1 stock dividend to its shareholders.

Solid Finances and Healthy Balance Sheet

In fiscal year 2024, the company announced a consolidated net profit of Rs. 30.69 crores. Its operating revenues for FY24 amounted to Rs. 243.22 crores, marking an increase of 21.55% over the previous year when compared to the operational income of Rs. 200.11 crores in FY23. For the same period, earnings before interest, taxes, depreciation, and amortization (EBITDA) reached Rs. 56.15 crores, up by 12.29% relative to the EBITDA figure of Rs. 50.01 crores recorded previously. Over three years, the firm demonstrated strong compound annual growth rates: 33% for revenue and 66% for EBITDA. Additionally, it showed solid financial health indicators including a return on capital employed ratio of 21.38%, a return on equity of 28.27%, and a debt-to-equity ratio of one point one times.

Green Energy

The firm is bolstering its Green Initiative by increasing its solar power capabilities to promote environmental responsibility and decrease its carbon emissions. Recently, they finished installing rooftop solar systems with capacities totaling 700 kW at the Umargaon site and 625 kW at Wada. Additionally, an extra 1350 kW solar rooftop setup was added at the new JV facility operated by Siam Cement Bigbloc. This brings their overall solar capacity across all operations and affiliated companies up to 3475 kW, underscoring their dedication to sustainable practices and a cleaner tomorrow.

Increased capacity twofold at Wada Plant in Maharashtra

In fiscal year 2025, Bigbloc Building Elements Pvt Ltd, which is fully owned, finished the second phase of expanding its AAC block production facility in Wada, Maharashtra. This upgrade doubled its output capacity from 2.5 million to 5 million cubic meters annually. This achievement significantly strengthens the company’s position. BigBloc Construction Ltd stands out as one of India’s leading producers of AAC blocks. When operating at maximum capacity, the Wada facility could potentially yield yearly earnings between Rs. 150-200 crore. The firm qualifies for a 60% financial incentive from the state government for the development in Wada. Furthermore, a 625 KW solar rooftop installation was launched concurrently with the expansion at the Wada site.

Partnership with Thailand's Large Corporation - SCG Group

SIAM Cement BigBloc Construction Technologies Pvt Ltd—a joint venture between BigBloc Construction The joint venture between Ltd (52%) and Thailand’s SCG International (48%) — has started commercial operations at India's inaugural AAC wall manufacturing facility in Kheda, Gujarat. Established with an investment of Rs. 65 crores, this plant boasts an annual production capacity of 2.5 lakh cubic meters and specializes in producing large-sized AAC panels ranging from 8 to 20 feet in length. This development signifies the SCG Group’s initial foray into the Indian market.

The joint venture landed a contract worth Rs. 4.5 crores from Tata Projects Ltd., tasked with supplying and installing 200,000 square feet of 100 mm AAC panels at Micron India’s facility in Sanand; this marks their inaugural significant order. Additionally, the firm obtained IIT certification for its innovative offering called “ZMARTBUILD WALL by NXTBLOC.” Currently, they stand as the sole provider in India equipped to manufacture 20-foot AAC wall panels, products that were formerly imported into the country.

Rapid Expansion and Booming Industry

India ranks as the second-largest producer of blocks globally, trailing only behind China, with expectations for rapid growth within the AAC sector domestically. Composed of sustainable and nontoxic materials, both AAC blocks and walls boast light weight, excellent sound insulation, resistance to fire, high-quality craftsmanship, environmental friendliness, and cost-effectiveness when contrasted against conventional bricks. Made from sustainable and non-harmful substances, AAC blocks and panels are noted for their low mass, good acoustic properties, flame retardancy, top-notch structural integrity, ecological benefits, and economic advantages over standard clay bricks.

Innovative and High-Margin Products

The business has tactically broadened its scope within the construction chemicals sector by launching sought-after items such as Block Jointing Mortar, Ready Mix Plaster, and Tile Adhesives. This expansion bolsters their standing in the expanding market for building materials. They have introduced NXTGRIP Tile Adhesives, which join their established lines of NXTFIX and NXTPLAST products, providing enhanced adhesion, robustness, and efficiency.

A robust client base propels expansion.

The firm has executed more than 2,000 projects with an additional 1,500 underway. Its client list encompasses companies such as Lodha, Adani Realty, IndiaBulls Real Estate, DB Realty, Prestige, Piramal, Oberoi Realty, Tata Projects, Shirke Group, Shapoorji Pallonji Group, Raheja, PSP Projects, L&T, Sunteck, Dosti Group, Purvankara Limited, DY Patil, Taj Hotels, Godrej Properties, Torrent Pharma, and GAIL, amongst others.

Growing Presence in the Central India Market

In February 2025, StarBigBloc Building Material Ltd., one of its fully owned subsidiaries, purchased approximately 57,500 square meters of land in Kasrawad, Khargone (Madhya Pradesh). The aim was to establish a new AAC blocks manufacturing unit, thereby bolstering their position within central India’s market. At present, this firm manages a facility capable of producing 250,000 cubic meters per year located in Kheda (Gujarat). It primarily serves customers across Gujarat, Udaipur, and Indore regions. With plans underway for significant growth, they intend to increase annual output to more than 1.2 million cubic meters within the coming four-to-five-year period. Additionally, demonstrating strong dedication towards eco-friendly practices, the enterprise has implemented an 800-kilowatt solar panel installation atop their building rooftops.

Narayan Saboo, Chairman of Bigbloc Construction Ltd., stated, “The autoclaved aerated concrete (AAC) block industry is poised to become a cornerstone of India’s construction sector, and we at our company are prepared for substantial advancement. We have been actively progressing towards achieving sustainable long-term development goals and aim to establish ourselves as leaders within the AAC block market in India. This planned expansion harmonizes perfectly with our growth plan, including research and development expenditures, broadening our product range, and implementing targeted branding and promotional strategies aimed at boosting presence, capturing greater market shares, and reinforcing confidence among stakeholders.”

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