SCG International has formed a Joint Venture with Bigbloc Construction Limited to manufacture AAC Wall Panels and Blocks to meet the fast emerging demand for innovative products in the Indian construction industry.
Land acquisition of the project is complete in Kheda District near Ahmedabad and the plant expects to start commercial operations in 2023. The venture aims to generate sales of Rs. 125 crores per annum operating at full capacity.
Bigbloc Construction Limited will hold 52% of the equity while SCG International will hold 48%. The total investment in the project is estimated at Rs. 65 crore. This is SCG's first JV in India and the company is committed to a long and sustainable relationship in the region.
SCG is one of the largest industrial conglomerates in Thailand & ASEAN with annual sales revenues of approx. US$16.5 billion in the calendar year 2021. SCG recorded a growth of 32.5% Y-o-Y and EBITDA of US$2.87 billion, an increase of 23% for the same period.
EBITDA
The Group started operating in India through its wholly owned subsidiary, SCG International India in 2018 focusing on building materials, packaging business, and sourcing of ceramic / industrial supplies. This is the company's first Foreign Direct Investment (FDI) in India.
Abhijit Datta, Managing Director of SCG International Corporation co. Ltd. said, "SCG International India has been actively operating its business in Gujarat by supplying plasterboard liner to most gypsum board plants pan-India with volumes of around 15,000 MTPA whilst sourcing approx. 2 million sqm. of ceramic & bathroom fittings annually from Morbi.
We have already started marketing our building materials and services under the brand name "ZMARTBUILD" and have launched a dedicated India website at https://www.zmartbuild.com/in/ to showcase our wide range of products and service solutions.
SCG International India acts as a spearhead for SCG Group in emerging markets and we have high expectations that this initial move will be the starting point for further opportunities in the fast growing Indian Market.
Having spent some time exploring the Indian market, SCG International decided to partner with Bigbloc and selected Gujarat as the first location for SCG investment, given the positive work culture, investment friendly environment, and other favourable factors."
Going further, SCG and Bigbloc shall work jointly on all building material solutions to strengthen the supply chain in India, leverage each other's capabilities and provide exceptional solutions to the construction industry."
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( With inputs from ANI )
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