BigBloc Construction Limited, wholly owned subsidiary - Bigbloc Building Elements Private Limited started a trial run of machineries for Greenfield Project of AAC Blocks at Wada in Palghar, Maharashtra. Commercial production from the plant is expected to commence by end of March 2023. At full capacity, Wada plant is expected to generate revenues of Rs. 200 crore per year.
Total capex for the Wada project is estimated to be around Rs 65 crore for setting up the 5 lakh cubic meter (cbm) per annum plant at Wada, Maharashtra for manufacturing AAC blocks. Company has invested Rs 48 crore in the project so far for the commercial operations of Phase I. Company is eligible for 60% subsidy from the state government for the project and expects to generate 1 lakh units of carbon credits per annum from the Wada project. (i.e One carbon credit represents 1 tonne of CO2e that an organization is permitted to emit).
Post completion of the expansion, company’s total capacities will increase to 13.75 lakh cbm per annum making it the largest manufacturer of AAC block in the country. Company also expects to generate around 2.5 to 3 lakh units of carbon credit every year post the expansion.
Can anyone close to construction market pls give their 2 cents on - future of AAC blocks in light of Mivan picking up big time?
As per my research, most high rise builders in NCR, Pune, Blr etc. are using Mivan technology for construction. I am unsure if both Mivan and AAC blocks can coexist - for instance, AAC blocks for internal walls and Mivan for external framework.
The aluminum framework used in Mivan is expensive but due to faster (50%) construction times, leads to cheaper and quicker large scale projects. On the other side, unsure if its a cost-effective option for smaller/residential housing or smaller apartments?
Did some scuttlebutt too: a retired chief engineer in rajasthan govt said that AAC blocks are being used for government enclosures too and they are mandated due to lower cost and being environment friendly.
Looks like AAC blocks has a future. On top of it management is talking about getting into more green materials in future.
Reasons of Bad Q4 -due to Holi vacation- shortage of Labour in both construction site and plant.
I personally could not digest these reasons.
