Project report for Manufacturing of AAC Blocks

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AAC (Autoclaved Aerated Concrete) is a non-combustible, lime-based cementitious construction material that is gaining traction in new markets around the world. AAC has gained recognition in new markets around the world as a single part construction material. Residential, multi-storey homes, commercial, and industrial construction will all benefit from AAC goods. Real ingredients such as sand, lime, and water are used to create the products. Aerated concrete is created by processing these raw materials to create a construction material with a wide number of air pores. AAC's outstanding material properties are due to fine pores (nearly 70% of the product) and the strong structure of calcium silicate hydrate. The AAC has a low bulk density, strong thermal insulation and sound absorption properties, a certain strength and process ability, and a diverse variety of raw materials. The reuse of fly ash, in particular, allows for the extensive use of industrial residue, decreases emissions, does not deplete agriculture, and offers good social and economic benefits. Standard clay brick wall materials may be replaced with AAC.

For several years, AAC has been backed by national policies on wall expansion, tax reform, and environmental policy. In a nutshell, AAC has played a major role in the production of modern construction materials and has a wide business potential. This is an area where new businesses can get involved. In India, the AAC block market was fiercely competitive and driven by a few major players who had built up substantial manufacturing ability to handle market requirements. As of FY'2016, the top four companies controlled a most of the market share of the overall AAC block business, with HIL Limited becoming the biggest player with the highest market share, Siporex was the second largest player, led by Magicrete and Biltech . JK Lakshmi Cement and UltraTech Cement were the two most recent entrants to the industry, while other small to medium - size companies held the remaining market share.

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Market potential & Strategy

During the projected timeline, the worldwide autoclaved aerated concrete (AAC) manufacturing market is expected to rise at a Compound annual growth rate of 6.0 percent, from USD 18.8 billion in 2020 to USD 25.2 billion in 2025. The AAC industry is growing due to rising urbanisation and industrialization, infrastructure expansion, the demand for lightweight construction materials, growing preferences for low-cost housing, and an ever-increasing emphasis on green and soundproof buildings. India is no exception with similar types of trends observed in the domestic Market. In 2019, the blocks category led the AAC market. The need for AAC blocks in both residential and non-residential industries is driving this segment. Apart from their insulating properties, AAC blocks have the benefit of being fast and simple to assemble, since the material can be shaped, refinished, and cut to size on site.

The residential sector is expected to be higher than the industrial market. The need for lightweight and environmentally sustainable building materials in residential construction accounts for the wide market size of this category. Thanks to its reliability and outstanding features, AAC building materials have become an essential component of the construction industry. AAC is expected to maintain its gigantic market share until 2025. The key factors for the growth of the AAC market in the area are the region's increasing population and urban growth.  The region's supply of these materials is boosted by low labour costs and convenient access to raw materials. In a nutshell, the iron is hot enough to be nailed at present with numerous of promising opportunities.


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