NEW DELHI: Siam Cement BigBlock Construction has started commercial production at its Rs 65-crore facility in Kheda, Gujarat, marking the beginning of its Indian operations, it said in an exchange filing on Monday.

Siam Cement Bigblock Construction, a joint venture between Thailand's SCG International Corporation Co Ltd and Gujarat-based Bigblock Construction Ltd, has set up a plant in Kheda district near Ahmedabad to manufacture AAC wall products for the Indian market, the filing said.

The joint venture has so far invested Rs 65 crore in the Kheda plant with an annual capacity of 2.5 cubic meters per annum. It will also introduce 8-12 feet large format AAC wall products and manufacture AAC blocks in India.

Bigblock Construction holds 52 per cent stake in the joint venture company, while SCG International holds 48 per cent stake. This is SCG Group's first investment in India.

Naresh Sabu, Managing Director, BigBlock Construction Limited, said, “Going forward, SCG and BigBlock will collaborate to strengthen the supply chain in India, leverage each other's capabilities and provide exceptional solutions to the construction industry on all building materials solutions. Will work together."

He said the second phase of the project has the potential to expand to 5 lakh cubic meters per year.

Bigblock Construction Limited is India's leading AAC block manufacturing company.

The company's shares were trading at Rs 236.70, up more than 6 per cent, on BSE.