Construction material maker BigBloc Construction Ltd is investing Rs 30 crore in its Wada plant in Maharashtra 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 district 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 of Rs 30 crore 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% sales growth in FY24 with a healthy EBITDA margin of 20-25%.
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 Feb.16, promoter Madhu Narayan Saboo acquired 1,05,000 shares of the company from the open market.
The AAC block producer reported a 24% growth in revenue from operations to Rs 61.5 crore for the October-December quarter of 2023-24. AAC blocks which are lightweight, soundproof, and fire-resistant, are used in construction work in place of traditional bricks.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
