Bigbloc Construction To Invest Rs 30cr To Expand Wada Plant, Eyes Rs 200 Cr Revenue

Feb 20, 2024: Construction material maker BigBloc Construction Ltd is investing Rs 30 crore in its Wada plant in Gujarat to expand the capacity by 2.5 lakhs cubic meters per annum of AAC blocks and expects a revenue of Rs 200 crore from the facility, the company said on Tuesday. 

The company started the expansion work at the Wada plant in Palghar in December last year and expects to complete the project within four months, BigBloc Construction said in statement. The plant capacity will increase to 5 lakh cubic meters per annum after the expansion. 

The funding will be met by a mixture of internal accruals and debt, the company said. 

“At full capacity, the Wada plant is expected to generate annual revenues of Rs 200 crore per annum. The company is eligible for a 60% subsidy from the state government for the Wada project,” the company said. 

The company is also increasing the capacity of its another plant in Kapadvanj, Ahmedabad, which it expects to complete in two to three months. 

The company expects to achieve 20-25 per cent sales growth in FY24 with a healthy EBITDA margin of 20-25 per cent.

BigBloc aims for a leadership position in India’s AAC Block Space with 13.75 lakhs cubic meter per annum capacity post-completion of ongoing expansion projects, it said.

Last week, BigBloc Construction Ltd promoters bought 1.05 lakh shares from the open market to take the total promoter group holding to 72.42 per cent.

On February 16, promoter Madhu Narayan Saboo acquired 1,05,000 shares of the company from the open market

The AAC block producer reported a 24 per cent growth in revenue from operations to Rs 61.5 crore for the October-December quarter of 2023-24.