Magicrete completes acquisition process of majority stake in Maxlite

Building product AAC Blocks company Magicrete has completed the acquisition of a majority stake in Maxlite.

Magicrete, which also produces construction chemicals, and precast construction solutions, did not disclose the amount of stake acquired or the deal value.

Maxlite is a Bengaluru-headquartered AAC Blocks manufacturer operating two facilities in Karnataka and Tamil Nadu, with a combined annual capacity of 500,000 cubic metres.

Through the acquisition, Magicrete said the total installed capacity will go up to 1.8 million cubic meters per annum, resulting in a solidified position in the AAC Blocks industry.

AAC Blocks are resource-efficient alternatives to traditional red clay bricks which offer superior thermal insulation and reduce the construction time and structural load. 

Approximately ten times larger than clay bricks, these are manufactures using waste fly ash, which results in them consuming 70 per cent less energy. 

The increasing adoption of AAC Blocks in recent years has been instrumental in promoting energy-efficient construction practices.

As part of the acquisition, R Darshan Kumar, Managing Director of Maxlite will be spearheading the operations in South India.

Sourabh Bansal, Co-founder and Managing Director of Magicrete said, "This strategic move marks a significant leap in our pan-India growth trajectory. We are highly optimistic about the myriad opportunities, and the synergies between the two companies that will unfold in the near future.

Magicrete is backed by  notable investors including Motilal Oswal Private Equity, India SME, and Mukul Agrawal.