Siam Cement BigBloc Construction Technologies completes Land Acquisition for the Joint Venture Plant

BigBloc Construction Limited , one of the leading player in the manufacturing of Aerated Autoclaved Concrete (AAC) Blocks, Bricks and Panels has completed land acquisition for its joint venture with SIAM Cement Group (SCG). Company has acquired land for setting up 3 lakh cbm per annum facility for ALC Panels and AAC
Blocks at Kapadvanj, Kheda District near Ahmedabad, Gujarat. The plant is expected to start commercial production in Calendar Year 2023. The Joint Venture between SCG and Big Bloc has selected Gujarat for the first maiden FDI from Siam Cement Group into India.

SCG International Corporation, which is a reputed International supply chain company
(with presence in 20 countries) and part of SCG Group a leading business conglomerate in
ASEAN with asset more than 27 Billion USD will hold 48% in the joint venture with 52%
being held by Bigbloc Construction Limited. Total investment in the project is estimated at
Rs. 65 crore. This is the first JV formed by SCG in India.

Commenting on the development, Mr. Naresh Saboo, Managing Director, Bigbloc Construction Ltd. said, "We are happy to announce that company has completed land acquisition and necessary due diligence for the Joint Venture plant at Kapadvanj with SCG International Corporation. The joint venture also aim to share techno-commercial knowledge, promote mutual growth & cooperation in the construction industry and bring new age building materials to Indian markets. In the first phase, it plans to set up 3 lakh CBM per
annum plant for AAC Block and ALC Panels. Company is confident to start commercial production from the plant in Calendar year 2023. The project can be expanded to 5 lakhs CBM per annum in the second phase with approval from both joint venture parties. Going further SCG and Bigbloc shall work jointly on all the Building Material Solutions to strengthen supply chain in India, leverage each other capability and provide exceptional solutions to the Construction Industry.

Incorporated in 2015, BigBloc Construction Ltd is one of the oldest, largest and the only listed company in the AAC Block Space with a capacity of 5.75 lakh cbm. per annum. It is one of the only company in this segment which generates carbon credits. During the year, company laid down plans for installation of Greenfield projects at Wada (Maharashtra) and Ahmedabad (Gujarat). Expansion at Wada with 5 lakh cbm. per annum is going on as
scheduled and company expect commercial production very soon.

“Post completion of both expansion, company’s total capacities will increase to 13.75 lakh
cbm. per annum making the company one of the largest players in the country. Company
expects to generate around 3 lakh tons of carbon credit every year post the expansion.
Expansion will help company to further penetrate its presence into untapped markets across
the western regions and also make it the largest player in India. Use of AAC blocks are
expected to grow stupendously in the coming years owing to increased awareness, growth
in the infrastructure sector and preferences for low-cost houses amongst the builders and
architects and several beneficial attributes of AAC blocks over red clay and fly ash bricks,
said Mr. Mohit Saboo, Director & CFO, BigBloc Construction Ltd. Bigbloc Construction Ltd manufactures AAC blocks, a high-quality building materials with a unique combination of strength, low weight, thermal insulation, sound absorption, unrivalled fire resistance, and unmatched build ability Company’s manufacturing plants are located in Umargaon and Kapadvanj to cater to Maharashtra, Gujarat, Madhya Pradesh and Rajasthan. Company client includes Lodha, Adani Realty, Piramal Realty, Runwal Group, PSP Projects, Larsen & Toubro, Prestige Group, Capacite Infraprojects, Shivalik group, Sunteck among others.

For FY22, company reported Net Profit after Tax of Rs. 16 crore with EBITDA of Rs. 27.7
crore, Total Income of Rs. 175.8 crore. For H1FY23, company reported a consolidated net
profit of Rs. 16.9 crore (PAT Margin 16.25%), growth of 384% Y-o-Y. Total Income during
H1FY23 was reported at Rs. 104 crore, rise of 50.72% Y-o-Y. EBITDA for H1FY23 stood at
Rs. 26.2 crore (EBITDA Margin 25.19%), rise of 288% Y-o-Y.
SCG International Corp. (SCG INTL.) 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 INTL.
decided to partner with Big Bloc and selected Gujarat as the first location for SCG
investment, giving the positive work culture, investment friendly environment and other
favourable factors.

“SCG INTL INDIA has been actively operating business in Gujarat by supplying plasterboard
liner to most Gypsum board plants Pan-India with Vol. around 15,000 MTPA whilst sourcing
approx. 2 million sqm. of ceramic & bathroom fittings annually from Morbi. We have already
started marketing our Building Materials and Services under the brand name “Zmartbuild”
and have launched dedicated India website at https://www.zmartbuild.com/in/ to
showcase our wide range of products and service solutions. SCG INTL. acts as a spearhead
for SCG Group in emerging markets and we have high expectations that this initial move will
be the starting point for further opportunities in the fast growing Indian Market” Mr. Abhijit
Datta, Managing Director of SCG International Corporation co. Ltd said.