ACC plans to set up cement brick units.

In a bid to retain its retail rural market share and enhance focus on value-added products, ACC plans to open a series of cement brick-making units in partnership with dealers and social organisations.

While ACC will provide the expertise and technical support, the joint venture partner, which gets to retain 80 per cent of the profit, would own and operate the units. Each plant calls for an investment of ₹2-2.6 crore.

The brick units have to compulsorily source cement from ACC which has opened 19 brick units largely in the northern and eastern part of India. It plans to set up another 26 in seven months.

Speaking to BusinessLine, Danish Rashid, Head-Business Development, said the brick units have opened the doors to new sales channel in a few places with each unit consuming about 100 tonnes of cement a month.

On an average, a cement brick unit will be able to cater to one district though there are exceptions. With a margin of ₹1 per brick and an average production of 55 lakh per year, the payback period is four years though there are units which sell about 2.6 crore bricks a year, said Rashid.

HBL