Growing demand for hollow blocks drives industry expansion

Amid a surging demand for environmentally-sustainable building materials and as an alternative to traditional bricks, hollow concrete blocks have emerged as a game-changer, gaining traction for their cost-effectiveness, durability, and green credentials. 

With a steady rise in demand, major manufacturers are now ramping up their production capacities, reshaping the industry landscape.

Since the introduction of environmentally sustainable blocks in 1998 by Concord, the market has experienced an exponential growth in its size. The sector is currently valued at Tk120 crore, hosting a constellation of 30-35 companies, including industry stalwarts like Mir Group and Concord Group. 

In line with government initiatives to phase out clay bricks by FY2024-2025, the hollow block industry is experiencing a massive boost in adoption. This policy shift is driving both construction companies and individuals to choose hollow blocks over traditional clay bricks.

In response to the escalating demand for hollow blocks, companies are bolstering their manufacturing capabilities. By expanding their factories and incorporating cutting-edge German machinery, the industry leaders are positioning themselves to capture the burgeoning market demand.

Chief Marketing Officer of Concord Group, Anup Kumar Sarker, highlights the company's commitment to innovation. 

"Our capacity was to produce 97,600 blocks per 8 hours. With new German machines, we now produce an additional 74,000 pieces in the same timeframe," he said. 

Concord Group continues to maintain its leading market share, currently commanding a 60% stake.

Meanwhile, Mir Concrete Products, sister concern of Mir Group, that holds over 30% market share, recently secured a Tk10 crore loan from United Finance under the "Environment Friendly Brick Production" refinancing scheme. 

This capital infusion is aimed at expanding their production capacity from 30,000 units per day at present in their Narayanganj factory and meeting the ever-growing client demand. 

Naba E Zaheer, managing director of Mir Group, emphasised their dedication to harmonising industrial growth with ecological stewardship, aligned with the vision of a Smart and Sustainable Bangladesh.

"Also, we have plans to set up another mega concrete block factory in Khulna in the near future," he said. 

Beyond the financial investments, these companies are also committed to contributing to a greener future. 

"We have always recognised the importance of reducing our carbon footprint and promoting eco-friendly practices", said Zaheer, adding, "Our journey, backed by the support of United Finance, will redefine industry standards and ensure a sustainable future." 

Moreover, industry players are not just focused on production but are also actively involved in spreading awareness about the ecological advantages of hollow blocks. 

The benefits of hollow blocks extend beyond the ecological sphere. These blocks are not only cost-effective but also durable, boasting earthquake, heat, and salinity resistance, along with lower water absorption, according to Nafizur Rahman, principal research officer of the Housing and Building Research Institute (HBRI). 

The durability of hollow blocks, coupled with their reduced weight compared to conventional bricks, makes them an attractive choice for construction projects of varying scales, he opined.

Highlighting the economic advantages of hollow blocks, Md Enamul Haque, factory manager of Green Block in Chattogram, said, "The weight of a 400x200mm block is 16 kg. Nine ordinary bricks are needed to fill the same amount of space, which would be 27kg. On the other hand, the price of a block is Tk60 while the price of nine bricks is around Tk90."