HIL Limited, Siporex, Magicrete and Biltech Dominate the AAC Block Market in India

Brick, AAC block and concrete block industry forms the backbone of the booming Indian construction sector. India is the second largest brick manufacturer in the world after China. Indian brick industry is almost entirely unorganized and characterized by the presence of large number of small scale manufacturers which compete with one another at the regional level.

Demand for real estate is growing in India with bright prospects for the economy. Property developers in major cities are using clay brick in the new multi-storey buildings in India as the cost of these bricks is low and the bricks have long durability.

One of the factors for such high demand for clay brick in the construction sector is the price of the bricks which are cheaper in terms of price as compared to their substitutes such as AAC blocks. AAC blocks are the latest innovation in bricks space in India and the product is still in its initial stages of main scale adoption.

Solid concrete block is the most commonly used concrete block and has the highest market share in overall concrete block segment. These blocks are commonly used to build load bearing walls due to its density and compressive strength of 5newton/metre square which is high than hollow blocks, this is the main reason of being leader in concrete block segment.

Hollow concrete blocks helps in reducing joints in building and therefore leads to less usage of mortar and is therefore more cost effective. Hollow block makes it easier to pass electrical and plumbing fixtures through the hollow space between the bricks.

Zig-Zag, HDK and DDK firing processes are almost similar with essential variations in brick setting patterns where the kiln basic structure remains same.

The main objective of a manufacturer is to make profit on the product he sells therefore the basic cost of manufacturing a brick and other associated costs are considered to decide the price of the brick. The basic cost of manufacturing includes cost of raw material, labor cost, cost of capital invested in business and other miscellaneous charges incurred for production. After calculating the production cost, administrative charges and transportation costs are included to get an estimate of the price it can be sold after considering the margin of company and its distributors and retailers.

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