SIAM Cement and BigBloc Construction Kick-Off Operations in India with Innovative AAC Wall Plant
SIAM Cement BigBloc Construction Technologies Pvt Ltd, a collaboration between Gujarat-based BigBloc Construction Ltd and Thailand’s SCG International Corporation Co., Ltd., has officially started its operations in India. This partnership marks SCG Group’s first investment in the country, emphasizing the growing importance of India’s construction market. They have inaugurated their first plant in Kheda, Gujarat, aiming to revolutionize the Indian construction industry with advanced building materials.
A New Era in Indian Construction
The Kheda plant, near Ahmedabad, represents a significant milestone as it launches India’s first AAC (Autoclaved Aerated Concrete) Wall Plant. This facility is set to manufacture large format AAC Wall products, which are more efficient and sustainable than traditional building materials. The project, which required an investment of around Rs. 65 crore, has an initial capacity of 2.5 lakh cubic meters per annum. These walls, marketed under the brand name ‘ZMARTBUILD WALL by NXTBLOC’, promise to offer superior quality and eco-friendly solutions to the construction industry.
Expansion Plans
The joint venture plans to expand the plant’s capacity to 5 lakh cubic meters per annum in its second phase, pending approval from both parties. This expansion will enable the plant to meet the increasing demand for sustainable building materials in India. At full capacity, the plant is expected to generate annual revenues of approximately Rs. 100 crore, highlighting the significant economic impact of this venture.
Partnership Dynamics
The joint venture company, SIAM Cement BigBloc Construction Technologies Pvt Ltd, is structured with BigBloc Construction holding a 52% stake and SCG International holding 48%. BigBloc Construction Ltd is a well-established player in the Indian AAC Block market, operating three plants in Gujarat and Maharashtra. This new facility in Kheda is their fourth plant and the first to manufacture both AAC Blocks and AAC Walls.
SCG International, a subsidiary of Thailand’s SCG Group, brings over a century of experience in the cement and building materials industry. Established in 1913, SCG is one of the largest companies in Southeast Asia, with operations spanning various sectors, including packaging, chemicals, and construction materials. Their entry into the Indian market through this joint venture underscores their commitment to expanding their global footprint and sharing their technological expertise.
Launch Event
The inauguration of the Kheda plant was a grand event, attended by dignitaries such as H.E. Ms. Pattarat Hongtong, the Ambassador of Thailand to India, and Mr. Balvantsinh Rajput, Minister of Industries and MSME, Government of Gujarat. The presence of these high-profile guests signifies the importance of this venture to both countries. The event also included senior officials from SCG International and BigBloc Construction, showcasing the collaborative spirit behind this project.
Advancing Construction Technology
Mr. Naresh Saboo, Managing Director of BigBloc Construction Ltd, highlighted the broader significance of this joint venture. He emphasized that this partnership 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.
Looking forward, SCG and BigBloc plan to collaborate on various building material solutions, aiming to strengthen the supply chain in India. This collaboration is expected to leverage each company’s capabilities, providing exceptional solutions to the construction industry. The plant’s innovative AAC Walls and Blocks are lightweight, soundproof, fire-resistant, and more eco-friendly than traditional bricks. These products offer superior build quality and are economically viable, making them an attractive option for modern construction projects.
Employment and Economic Impact
The new plant is also set to generate significant employment opportunities in the region. Once fully operational, it will create around 250 jobs, contributing to the local economy. Additionally, the plant’s operations are expected to drive ancillary industries and services, further boosting economic growth in Kheda and surrounding areas.
Technological and Environmental Benefits
One of the key advantages of AAC Blocks and Walls is their sustainability. These materials are non-toxic, reducing the environmental impact of construction projects. They also contribute to energy efficiency in buildings due to their superior insulation properties. This aligns with global trends towards greener building practices and helps India move towards its sustainability goals.
A Vision for the Future
Mr. Abhijit Datta, Head of International Business and Managing Director of SCG International, expressed his excitement about the collaboration. He noted that this venture combines SCG’s extensive expertise with BigBloc’s deep understanding of the local market. Together, they aim to make a significant impact on India’s construction industry by delivering cost-efficient and sustainable solutions. The introduction of ‘ZMARTBUILD WALL by NXTBLOC’ represents a new era in construction, offering advanced, world-class walling solutions to the Indian market.
BigBloc Construction’s Growth Trajectory
Incorporated in 2015, BigBloc Construction Ltd has rapidly grown to become one of the largest and only listed companies in the AAC Block space in India. With the addition of the Kheda plant, the company’s total capacity has increased to 1.3 million cubic meters per annum. This growth reflects BigBloc’s commitment to innovation and sustainability, as well as its ability to meet the evolving needs of the construction industry.
Contributing to Carbon Credits
Another noteworthy aspect of BigBloc’s operations is its contribution to carbon credits. The company’s focus on manufacturing eco-friendly building materials aligns with global efforts to reduce carbon emissions. By producing AAC Blocks and Walls, BigBloc helps offset carbon emissions, contributing to a more sustainable future for the construction industry.
Strengthening Bilateral Ties
This joint venture also has broader implications for the relationship between India and Thailand. By combining resources and expertise, the two countries are fostering economic and cultural ties. This partnership serves as a model for future collaborations, demonstrating the potential for mutual growth and cooperation in various industries.
Conclusion
The launch of SIAM Cement BigBloc Construction Technologies Pvt Ltd’s operations in India marks a significant milestone in the country’s construction industry. With the introduction of advanced AAC Wall products and plans for further expansion, this joint venture is poised to revolutionize building practices in India. The project not only brings economic benefits but also aligns with global sustainability trends, offering eco-friendly and efficient building solutions. As BigBloc Construction and SCG International continue to collaborate, they are set to make a lasting impact on the Indian market, setting new standards for innovation and sustainability in construction.