|
PNN
Surat (Gujarat) [India], May 27: StarBigBloc Building Material Ltd, a wholly-owned subsidiary of BigBloc Construction Limited, one of India's largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and Panels, is set to raise funds through an SME IPO or preferential issue to support its expansion plans. Highlights * In the next 4-5 years, company plans to increase its production capacity from current 2.5 lakh cubic meter per annum to over 12 lakh cubic meter per annum * Company plans to setup two manufacturing units, each with a capacity of 5 lakh cubic meter per annum in North India and South India to meet future demand * In FY 27-28, StarBigBloc Building Material expects to reach revenue of Rs. 428 crore; EBITDA of Rs. 125 crore and Net Profit of Rs. 80 crore * Market size of AAC Block industry in India is estimated to grow at 15-20% over the next 4-5 years to reach Rs. 10,000 crore. The company plans to establish two greenfield manufacturing plants, each with a capacity of 500,000 cubic meters per annum. These new units are proposed in Chennai, Tamil Nadu and either Delhi or Haryana (North India). The North India plant aims to serve markets in Delhi, NCR, Punjab, Haryana, and Rajasthan, while the Chennai unit in Tamil Nadu will cater to Tamil Nadu, Karnataka, Kerala, and the southern region. With these expansions, the company's production capacity will increase from 250,000 cubic meters per annum to over 1.2 million cubic meters per annum in the next 4-5 years. The Board of Directors approved the fund-raising at a meeting on May 23, 2024. The Initial Public Offering or preferential issue will be subject to requisite approvals and market conditions. Details such as the size, price, and other specifics of the offering will be finalized in due course. Sharing more details, Narayan Saboo, Chairman, Bigbloc Construction Ltd said "AAC Block industry is poised to take a central position in the Indian construction industry in the near future and our company is ready for a quantum leap. The fund raising is planned for future expansion & value unlocking for all shareholders. Company's growth strategy includes, expansion into New Geographical Markets, Investments in R&D, product diversification and Brand Building and Marketing Campaigns to boost brand visibility, increase market share and establish trust among our stakeholders." StarBigBloc Building Material Ltd currently operates a plant in Ahmedabad with an installed capacity of 250,000 cubic meters per annum, serving most part of Gujarat, upto Udaipur in Rajasthan, and till Indore in Madhya Pradesh. The company aims for a substantial increase in operational and financial performance, targeting revenues of Rs. 428 crore by FY27-28, with an expected EBITDA of Rs. 125 crore and net profit of Rs. 80 crore. In FY23-24, the company reported revenues of Rs. 94.18 crore, achieving a revenue CAGR of over 21% in the last four years. Green and non-toxic building construction material, AAC blocks are lightweight, soundproof, and fire resistant, offer superior build quality, eco-friendly and economical too compared to traditional bricks. The Indian AAC Block market, valued at Rs. 4,000 crore in 2022-23, is projected to grow at 15-20% annually, reaching Rs. 10,000 crore in the next five years. India currently has around 150 AAC production facilities with a total capacity of 15 million cubic meters per year. The company's notable clients include Adani, Shivalik, Reliance, PSP Projects, Chavda Infra, Metro Project, Hi Tech Projects, Alembic, Addor, Darshanam, and Kaavyaratna Group. (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
|
