Investor Presentaiton
BIGBLOC
CONSTRUCTION
LIMITED
AAC Growth Drivers
The construction industry in India is expected to reach USD 1.4 Tn, by 2025. This growth is
expected to be fueled by the increasing demand for residential and commercial properties due to
factors such as urbanization, smart city initiatives, and the development of industrial corridors.
Construction Industry:
India's start-up culture and business prowess is enabling the demand for office spaces in the
country, which has been growing rapidly. Around an estimated USD 1.3 Tn is likely to be invested in
housing over the next seven years, during which an estimated 60 Mn new homes will be built.
New Investments:
Post implementation of GST, the applicable tax rate is 12%, reduced dramatically from ~24-25%.
GST:
Govt. Initiatives:
The Indian government's sharp focus on affordable housing policies is expected to increase the
rate of availability of affordable housing to around 70% by 2024. With increasing regional
government projects and expanding real-estate industry, demand for ACC is expected to see an
upsurge. Projects such as Pradhan Mantri Awas Yojana, Police Housing, Kanya Shiksha Parishar, etc.
where the Government has made mandatory to use AAC Blocks.
Income to EMI Ratio:
A massive increase in affordability coupled with rise in
disposable income offers tremendous future prospects.
94%
93%
Pricing of red bricks has been on an increasing spree whereas the blocks prices have been much
cheaper which has resulted in conversion to fly ash blocks. Rising demand for lightweight
construction materials, growing preferences for low-cost houses.
Pricing:
Affordability Index for Housing
(By Metropolitan Area)
53%
60% 51%
43%
53% 38%
39%
48%
44%
51%
47% 48%
45%
39%
46%
29%
31%
28%
38%
36%
26%
28%
29%
26%
25%
26% 25% 24%
23%
20%
Mumbai
NCR
Source: Statista
Kolkata
Hyderabad
Bengaluru
Chennai
2010 2015 2020 2021
Pune
Ahmedabad
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