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.
Naresh Saboo, MD, Bigbloc Construction Ltd. said, "The joint venture aims 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 companies in this segment which generates carbon credit. During the year, the 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 the company expects 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. The 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 make it the largest player in India. The use of AAC blocks is 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," informed Mohit Saboo, Director & CFO, BigBloc Construction Ltd.
Bigbloc Construction Ltd manufactures AAC blocks, a high-quality building material with a unique combination of strength, low weight, thermal insulation, sound absorption, unrivalled fire resistance, and unmatched building ability. Company markets its products under Brand name 'NXTBLOC'. The company’s manufacturing plants are in Umargaon and Kapadvanj to cater to Maharashtra, Gujarat, Madhya Pradesh and Rajasthan. Company clients include Lodha, Adani Realty, Piramal Realty, Runwal Group, PSP Projects, Larsen & Toubro, Prestige Group, Capacite Infraprojects, Shivalik group, Sunteck among others.
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” said Abhijit Datta, Managing Director of SCG International Corporation co. Ltd.