The company expects to meet the growing demand of AAC blocks in Western India and strengthen its position in the markets including Maharashtra, Gujarat, Madhya Pradesh and Rajasthan with the commercial operation of the Wada plant.

At full capacity, Wada plant is expected to generate revenues of Rs 200 crore per year and will employ around 350-400 people at the plant.

Total capex for the Wada project is estimated to be around Rs 70 crore for setting up 5 lakh cubic meter (cbm) per annum plant.

The company has invested Rs 48 crore in the project so far for the commercial operations of Phase I.

The company is eligible for 60% subsidy from the state government for the project and expects to generate 1 lakh units of carbon credits per annum from the Wada project.

Narayan Saboo, chairman & managing director, Bigbloc Construction, said, “Company will be in a better position to serve the growing demand of AAC blocks in Western India from the Wada plant and strengthen its leadership position in the AAC block space in India.

The company has delivered a robust operational and financial performance over the years and is expected to maintain the strong growth momentum in coming years.”

BigBloc Construction is one of the largest and only listed company in the AAC Block Space with a capacity of 5.75 lakh cbm per annum. Green and non-toxic building construction material, AAC blocks are economical, lightweight, soundproof, fire resistance with superior build quality and saves energy, eco-friendly and economical too compared to traditional bricks. It is the only company in this segment that generates carbon credits from its operations.

For nine months ended December 2022, the company reported a consolidated net profit of Rs 24.67 crore (PAT margin 16.1%), growth of 186.7% YoY. Total income during the period was reported at Rs 153.70 crore, rise of 25.3% YoY.

The scrip rose 0.28% to currently trade at Rs 126 on the BSE.