Hess AAC Systems has a long presence in the Indian market with four plants running at Ultratech Ltd (near Mumbai and Hyderabad), JK Lakshmi Cement (near New Delhi), and UAL Industries (near Kolkata). This project is considered a re-entry into the Indian market.
The project has already kickstarted, and the foundation drawings and other technical documentation are under preparation. The land has been registered and civil work started.
The management of Brimax AAC Products LLP and Hess AAC Systems used the world’s leading trade fair Bauma in Munich in October 2022 as an opportunity to sign the contract.Preface
Technology has changed how we think, work, and live. It instigates a fresh approach to introduce new-age, better, and innovative future-ready solutions. One such product is Autoclaved Aerated Concrete Blocks (AAC Blocks). Over the last decade, this green and non-toxic building construction material has emerged as a preferred choice over red bricks due to its unique combination and superior build properties, like strength, low weight, thermal insulation, sound absorption, unrivalled fire resistance, and is also economical. Thanks to its unmatched buildability, it has emerged as the future of building construction.
India Opportunity
India is the second largest block manufacturer in the world after China. The Indian block Industry is almost entirely unorganised, characterised by many small players competing at the regional level, having around 150-180 plants for AAC blocks.
Despite the high growth of AAC block in building applications during the last decade, it is only 7-8% of the industry, while 85-90% of the industry is dominated by red bricks. This holds enormous potential for AAC blocks in the years to come.
The global autoclaved aerated concrete market size is expected to reach USD 28.41 billion at a steady CAGR of 5.3% in 2028 (according to the latest analysis by Emergen Research). As per a recent report, the Indian AAC blocks market is anticipated to register a CAGR of 14.3% during 2020-27 to reach USD 13,420 million.
A large number of integrated townships, mass housings (for urban poor, slum rehabilitation etc), IT/ITES parks, high-rise buildings and SEZs’ are being built using AAC blocks. Their use will grow tremendously in the coming years owing to increased awareness amongst builders and architects about their beneficial attributes over red clay and fly ash bricks. Shortage of manual labour and high interest costs have forced developers and construction companies to look for faster and more efficient building materials.
India is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, with construction of ~60 million new homes. The Union Cabinet has also extended the validity of the PMAY-Gramin programme till March 31, 2024, to achieve the target of constructing 22.50 million houses.
Brimax AAC Products LLP
Brimax is part of the Shreenath Group in Vadodara; it has recently ventured into the AAC block business and joined hand with Hess AAC Systems. Shreenath Group is a leading Real Estate Developer in Vadodara and the biggest red brick manufacturer in the state of Gujarat. The company plans to launch more products, including ALC panels, tile adhesives, gypsum plaster, and construction chemicals. It aims to become the largest manufacturer of AAC blocks and panels in Western India in the next 3-4 years.
