Availability of AAC blocks and business opportunities

Availability of AAC Blocks and Business Opportunities

Since quiet some time I have been studying availability of AAC blocks and business opportunities. I have been interacting with builders, developers, contractors, architects and civil engineers in Gujarat (Western India). Most of them are fascinated by Autoclaved Aerated Concrete (AAC) blocks. They are willing to use AAC blocks in their projects and recommend it to others as well. They prefer AAC blocks to clay bricks and other conventional construction material despite of AAC being more expensive. E.g. In Ahmedabad, 1 m3 of AAC blocks cost around Rs. 3200-3500 while 1 m3 of clay bricks would cost Rs. 2400-2700. In spite of the price difference, construction industry wants to use AAC blocks due to inherent advantages.

There is a very interesting connection between availability of AAC blocks and business opportunities. Major hurdle stopping construction industry from completely switching to AAC blocks is availability. As of now there are only couple of AAC factories in Gujarat. Their total production capacity is around 2000 m3/day while current requirement stands at 2800-3000 m3/day. Out of total production, a chunk of total production is dispatched to Maharashtra.

Most of AAC blocks factories are located around Surat in Southern Gujarat. High price of AAC blocks is due to inclusion of transportation cost which forms around 15-20% of the total cost. Entrepreneurs should really think hard about setting up AAC blocks factories. In addition to relatively lower investment, profit margins are really high with sizable volume. Moreover as awareness about AAC grows, more and more companies will start using AAC blocks for construction. Secondly, there is no dearth of major thermal power plants in Gujarat to ensure steady supply of fly ash – main material for manufacturing AAC blocks. Area between Ahmedabad and Baroda would be really good considering logistics and availability of fly ash, water and other resources.

I am already in talks with people who have experience working with AAC industry and intend to set up a resource pool that might prove useful to those who want to set up AAC blocks factories.

Availability of AAC blocks and business opportunities

Buildings constructed using Autoclaved Aerated Concrete (AAC) blocks

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  1. Hi ,

    I am looking for business opportunities and particularly considering AAC factory. I would be really glad if you could revert to me with the basic technical requirements such as the equipment, layout, etc. and also financial details pertaining to the set up.
    Thanks in advance.

    • Dear Suyodhan,

      Thank you for your response on my website. I’ll email you a brief overview report to give you a basic idea about the project. Kindly note that capacity mentioned there might be different than what you are planning.

      Regards,

      Vishal Kansagra
      (+91) 76986 17371

  2. Hi Vishal sir,
    I heard that this AAC block are non ecofriendly. That leaves arsenic asid after water falls on them. So tell me about that sir.

    • Dear Mukesh,

      Thank you for your response on my website. I think you are mistaken. AAC blocks are ecofriendly and do not produce Arsenic or similar compounds after coming in contact with water. You might be aware that AAC blocks are cured using high pressure steam. So if contact with water would lead to formation of Arsenic, then autoclaves used at factories would be stuffed with it. Kindly ignore such drivel.

      Regards,

      Vishal Kansagra
      (+91) 76986 17371

  3. Dear sir,
    I am interested for a distribution of aac blocks can you please provide me the rate comparison of different co.’s & Co. Nearer to my city dehradun

    • Dear Umesh,

      Thank you for your response on my website. I do not maintain a rate list for different companies. Moreover rates may vary based on logistics. It would be better if you contact manufacturers near you area directly and discuss with them.

      Regards,

      Vishal Kansagra
      (+91) 76986 17371

  4. Dear sir,
    I am interested for a distribution of aac blocks can you please provide me the certain information about this. i am form tirupati-chittoor(dst),A.P

    • Dear Manojkumar,

      Thank you for your response on our website. Kindly contact AAC manufacturers in your area to check with them for distribution of AAC blocks.

      Regards,

      Vishal Kansagra
      (+91) 76986 17371