BuildMyGhar.com a Magicrete venture Launched at Acetech Mumbai 2015
Mr. Saurabh Bansal and Mr. Puneet Mittal (Co-founders, Magicrete) have been nominated for ‘Outstanding Start Up’ award category in ‘Forbes India Leadership Awards 2015’
When Sourabh Bansal wanted to start a business after graduating from IIT-Kharagpur in 2007, his first option was real estate because he believed that “all the rich people were part of real estate”.
An undergraduate degree holder in industrial engineering, he founded Magicrete Building Solutions Pvt. Ltd along with Puneet Mittal and Sidharth Bansal in 2008.
“I thought, ‘If not real estate, why not accessory to the field?’ Plus I had knowledge that there were AAC (autoclaved aerated concrete) blocks being manufactured abroad. I wanted to bring it to India,” said Sourabh Bansal, chief executive and co-founder of Magicrete, which manufactures large brick-like blocks made of fly ash and other hazardous industrial wastes—which are either gathered adjacent to power plants, causing nuisance to villagers, or dumped into nearby ponds.
These AAC blocks, usually nine times the size of a normal brick, are priced between Rs.3,500 and Rs.4,000, and have been supplied to more than 1,500 projects across India.
The Surat-based start-up, backed by angel investor Motilal Oswal, also manufactures factory cast concrete. In this method, entire parts of the concrete walls are produced in the factory and fixed onsite using connectors and grooves.
Magicrete is undertaking three villa projects for which it will provide pre-cast systems for over 400 villas.
Magicrete: Building Blocks not Bricks: When Sourabh Bansal received an unusually large order of Lime from Sipora, a manufacturer of bricks & construction blocks in Pune, he was intrigued. Why would anyone need such a huge order of this building material?
Bansal, is the non-executive director of Raw Edge, a Surat based company that supplies chemical & minerals to industrial manufacturers. While investigating the reason behind Siporex large order, he cam upon a nascent market: Aerated Autoclave Blocks, stronger and more sustainable alternative to clay bricks. He started researching the brick markets and realized that, barring 3 or 4 manufacturers, vast majority of India uses the labor-intensive method of baking clay bricks in kiln.
Brick-making is one of the most unorganized sectors in India. Every year, India produces over 200 billion bricks from 100,000 brick kilns. This kiln-dominated industry is also, according to the United Nations Environment Program, the biggest industrial consumer of coal in India—over 25 million tons of coal per year. To be clear, brick-making also does not have any similarity to the steel or cement industry, where there is a clear structure with dominant players.
Sourabh Bansal, a graduate from IIT Kharagpur, was one of those who had identified these markers when he was looking for a business idea right after his graduation in the year 2007. “I wanted to look at creating efficiencies across environment, labor and supply chain in the building materials space,” says Bansal. “In that space, the bricks industry had the most number of these inefficiencies,” he says. Having seen what India’s brick-makers were doing, Bansal looked at processes being used in other parts of the world. Here, he found out about Autoclaved Aerated Concrete blocks (AAC blocks). An alternative to clay bricks, these bricks were first developed back in the 1920s in Sweden.
An AAC block, Bansal says, can be 70 percent lighter and up to nine to ten times bigger than a clay brick. They are also well known for their thermal insulation properties. “These blocks are porous in nature. There is a honey comb-like structure inside the block. This is responsible for its light weight and the thermal insulation it provides,” Bansal explains. While these bricks were being manufactured in India, Bansal found that they were primarily being used for high-cost niche projects.
MUMBAI:Brokerage house Motilal Oswals private equity arm today said it has invested Rs 35 crore in Magicrete Building Solutions, a concrete blocks maker. Magicrete, incorporated in 2008, is the second largest manufacturer of autoclave aerated concrete (AAC) blocks and recently forayed into offering gypsum plaster and dry mortar, Motilal Oswal BSE -1.10 % Private Equity (MOPE) said. However, it did not specify the percentage of stake it will be taking in Magicrete. The statement said the company is aiming to become the largest manufacturer in its field by the end of the next financial year. “This investment will help institutionalise our business, accelerate our growth and enhance our brand with all stakeholders,” MOPE Managing Director Sourabh Bansal said. The MOPE investment has been done through the India Business Excellence Fund II and India Business Excellence Fund IIA it manages, the statement said.
Magicrete Building Solutions today successfully completed the expansion of its Aerated Autoclaved Concrete (AAC) manufacturing facility to 400,000 cubic meters from the initial capacity of 150,000 cubic meters in 2009. The production facility is located in Navsari (near Surat) and supplies AAC blocks and panels to all the major construction markets in the Western part of India. With the completion of this expansion, Magicrete now has the largest AAC production facility at a single location in India. Magicrete is also rated among the top three manufacturers of AAC in the country. The Company continues to place strong emphasis on product quality and believes in continuous innovation to meet the requirements of it esteemed customers.
Magicrete Building Solutions, a leading manufacturer of AAC blocks, successfully concluded the second annual team meet in Silvassa. More than 150 members of team from across all the functions of sales, marketing, production, accounting / finance were part of the annual celebrations . The top performers in each of the functions were recognized for their untiring efforts by the company. PVS Srikant, Head of marketing in Mumbai region, who was one of recipient of the award, praised the efforts of the Company in inculcating a culture of team spirit and meritocracy across the organization. The annual event has become one of the important days in the journey of the company and is keenly awaited by the entire team.
Magicrete AAC blocks are bigger in size then conventional bricks, resulting in lesser number of joints. Less joints result in lesser quantity of mortar required, resulting in saving of mortar. Magicrete Building Solutions was featured in a CNBC Awaaz Entreprenuer which was telecast on CNBC, a leading business channel in the country, as one of the rapidly growing companies in India. The founders of the Company, Mr. Sourabh Bansal and Mr. Puneet Mittal, gave a plant overview and also demonstrated the eco-friendly benefits of Aerated Autoclave Concrete (AAC) over traditional clay bricks. The CNBC team congratulated the Magicrete team for the growth of the Company. The benefit to the real estate and construction industry in terms of cost were also highlighted during the episode.
Magicrete Building Solutions launches Aerated Autoclaved Concrete (AAC), an eco-friendly and cost effective substitute of traditional clay bricks at affordable prices in the Indian market during “Economic Times Acetech 2009″. Acetech is the largest building material exhibition in the country where most of the leading players in building materials participate with their latest offerings. Magicrete commenced commercial production in June, 2009 and already supplies AAC blocks in the Western part of India. More than 1,000 visitors visited the Magicrete exhibition stall during the three day event where the Company demonstrated the features and benefits of the product. Some of the leading stalwarts of the real estate industry like Mr. Surendra Hiranandani, Founder of Hiranandan Construction Group, lauded the efforts by the Company in the introduction of innovative building materials for the construction industry.
Economic Times in partnership with IndiaMart organized “Economic Times Leaders of Tomorrow 2012″ to identify and award fast growing small and medium sized enterprise in the country which have the potential to become large enterprises in the future. Magicrete Building Solutions, a leading player in the innovative building materials, was part of the top 50 companies selected in India from a list of over 5,000 companies. This demonstrates the robustness of the business model of the company and recognizes the efforts of the young team leading the company.