India Business Excellence Fund II and India Business Excellence Fund IIA, funds managed and/or advised by Motilal Oswal Private Equity Advisors Pvt Ltd (MOPE), on Tuesday, said they are investing Rs 35 crore in the Surat-based Magicrete Building Solutions Pvt Ltd, the second largest manufacturer of Autoclave Aerated Concrete (AAC) blocks in India.
Magicrete, started in 2008, is primarily in the business of manufacturing AAC blocks under the brand ‘Magicrete’ and has recently forayed into offering gypsum plaster and dry mortar under the brand ‘Magicplast’ and ‘Magicbond’, respectively. Within four years, it has emerged as the second largest manufacturer of AAC Blocks, Sourabh Bansal, Managing Director, Magicrete, said in a statement here.
He said MOPE funds will help the company institutionalise its business, accelerate growth and enhance brand with all stakeholders.
Funds managed and/or advised by MOPE focus on first-generation entrepreneurs, especially in Tier-II and Tier-III cities. The first fund by MOPE supported eight first-generation entrepreneurs, primarily in such cities.
Magicrete was started by Sourabh Bansal, a fresh graduate from IIT, in 2008, along with Puneet Mittal, a chartered accountant, and later joined by Sidharth Bansal, an IIT-IIM alumnus. Financing for the business was provided by a group of angel investors in Surat. Three more friends from IIT Kharagpur — P.V.S. Srikant, Gaurav Senger and Siddharth Dev Sharma — also joined the business.
Raamdeo Agrawal, Chairman, MOPE, said he was excited to be partnering with Sourabh Bansal and his team. “The industry is poised for phenomenal growth for the next several years.”
Magicrete is engaged in business of innovative building materials and prefabricated construction technologies. AAC blocks are emerging as an alternative to red bricks for wall construction across India, both for residential and commercial building. AAC blocks have price parity with red bricks and allow for faster execution, involving less labour, reduced construction costs and are environment-friendly. Although this industry is at a nascent stage in India, AAC blocks are widely used in Europe, China, Japan and West Asia.