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AAC blocks are eco-friendly and sustainable

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Narayan Saboo, Chairman, Bigbloc Construction, discusses the qualities of AAC blocks and its environmentally friendly properties.

What is the composition of Autoclaved Aerated Concrete (AAC) blocks?
AAC is a lightweight, precast, cellular concrete. It is a green building material composed of fly ash, gypsum, lime, portland cement, water and aluminum powder. AAC blocks are made in rectangular prism shape only.

What is the core functionality of the blocks?
AAC blocks are widely used in the construction of apartments and other types of residential properties, industrial and commercial buildings. Owing to their excellent heat insulation capacity and thermal resistance, AAC blocks find application in interior and exterior construction.

What brings strength and durability to these blocks?
These materials include cement, lime, fly ash, gypsum, aluminum powder and some other additives. The precise combination and proportion of these materials contribute to their overall strength.

How do you ensure quality standards?
We make AAC blocks as per BIS code IS 2185 Part 3, guidelines in IS code to ensure quality standards.

What are the key advantages of using these blocks as building materials?
AAC blocks are eco-friendly and sustainable. They are lightweight, thermally insulated, energy efficient and fire resistant. Their other qualities include acoustics performance, easy workability, design flexibility and faster construction. AAC Blocks are one-third in weight as compared to red bricks thereby reducing the dead load on the building and resulting in huge saving of structural costs. Also, as the size is equivalent to almost nine red bricks, construction is much faster; the labour required is less; joints in the wall are also less thereby resulting in mortar savings, too.

How does it impact the environment?
AAC blocks are eco-friendly and sustainable. They are green lightweight building materials, with less transport cost. This material warms the room during the winter and cools it during the summer, reducing air-conditioning system usage by at least 25 per cent. Non-toxic and pest repellent, they prevent soil erosion and consume less water. Use of red bricks results in an upper layer of soil erosion, which makes the land barren or infertile in the long run.

What innovations can we expect from you?
We are starting with the manufacturing of ALC panels, which is further advancement of technology as ALC panels are a new age building material that is a further advancement of AAC Blocks.
Panels are reinforced with steel and they will make construction much faster, too. Also, we are looking to get many other new age building materials in our partnership with SCG.

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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