Renacon AAC blocks expanding capacity

LN Revathy Coimbatore | Updated on January 24, 2020

Erode-based Renaatus Procon Pvt Ltd, which makes Renacon AAC blocks (Autoclaved Aerated Concrete), is exploring export prospects.

The company which has a manufacturing plant at Arcot near Chennai, recently commissioned a second unit at Tirunelveli and is planning to establish a third facility in the next two years.

G Suresh Kumar, Chief Executive Officer, Renacon, told BusinessLine that the investment on the plant at Tirunelveli SIPCOT was ₹50 crore. It would have a capacity of 18,000 cubic metres a month. At Arcot, it is 15,000 cubic metres.

“The demand for AAC blocks is huge, as these are seen as a viable alternative to conventional blocks, are lighter yet strong, bigger in size, need no internal plastering and, above all, offer cost savings of up to 20 per cent.”

The monthly demand is around 50,000 cu.m. in Tamil Nadu and “our market share in Kerala and TN is 35 per cent,” he said. “Major projects such as Chennai Metro and Chennai Airport use AAC blocks and we cater to most government projects in the State.”

With a dealership network of 110 and two depots — one each at Chennai and Coimbatore — the company is trying to cover the State.

It is targeting to achieve a turnover of ₹100 crore this fiscal year, up from ₹54 crore last fiscal.


“We have tied up with the Maldives Government’s State Trading Organisation for exporting the Renacon AAC blocks. We have so far (over the last three months) completed five shipments totalling more than 2,000 tonnes via the Tuticorin port.

“We also export Renaplast, which is a readymix plaster to the Maldives. We export the blocks to Sri Lanka,” he said.

Published on January 24, 2020

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