SIAM Cement BigBloc Construction Technologies Pvt Ltd, a joint venture between Gujarat-based BigBloc Construction Ltd and Thailand’s SCG International Corporation Co., Ltd., has officially commenced operations at its new plant in Kheda, Gujarat. This collaboration marks SCG Group’s first investment in India, highlighting the growing importance of the Indian construction market. The plant aims to revolutionize the industry with advanced building materials.
A New Era in Indian Construction
The newly inaugurated Kheda plant, located near Ahmedabad, represents a significant milestone as it launches India’s first AAC (Autoclaved Aerated Concrete) Wall Plant. The facility will manufacture large format AAC Wall products, which are more efficient and sustainable than traditional building materials. The project, with an investment of approximately 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 superior quality and eco-friendly solutions for 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 help 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
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. The Kheda facility 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.
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 underscores the importance of this venture to both countries. Senior officials from SCG International and BigBloc Construction also attended, showcasing the collaborative spirit behind this project.
Advancing Construction Technology
Mr. Naresh Saboo, Managing Director of BigBloc Construction Ltd, emphasized the broader significance of this joint venture, stating that it fosters 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. 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 set to generate significant employment opportunities in the region, creating around 250 jobs once fully operational. 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
AAC Blocks and Walls are non-toxic and 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 excitement about the collaboration, noting that the 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, reflecting BigBloc’s commitment to innovation and sustainability.
Contributing to Carbon Credits
BigBloc’s operations contribute to carbon credits, aligning 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 fosters economic and cultural ties between India and Thailand, serving as a model for future collaborations and demonstrating the potential for mutual growth and cooperation in various industries.
