The cost of setting up an AAC (Autoclaved Aerated Concrete) block plant varies depending on the scale of production, location, level of automation, and the quality of machinery used. For a small-scale AAC block plant, the initial investment typically starts from ₹50 lakhs to ₹1 crore, while medium to large-scale plants can range between ₹2 crores to ₹10 crores or more. The overall AAC block plant cost includes expenses for land acquisition, civil construction, raw materials (like fly ash, cement, lime, gypsum, and aluminum powder), labor, utilities, and most importantly, the machinery such as mixers, autoclaves, cutting machines, and molds. Automation level also plays a crucial role in the cost—fully automatic plants require higher upfront investment but offer long-term savings through increased efficiency and reduced labor. Besides installation, it’s essential to consider operational and maintenance costs, which influence the plant's long-term profitability. Many manufacturers offer turnkey solutions with customized machinery setups based on production capacity requirements, such as 50–500 cubic meters per day. Government subsidies and support for using eco-friendly materials can also help reduce the total cost. Entrepreneurs entering this sector should carefully plan budgeting, consider the local demand, and choose the right equipment supplier for a cost-effective and profitable operation. Investing in an AAC block plant is a smart move given the growing demand for lightweight, energy-efficient, and sustainable construction materials in residential, commercial, and industrial sectors.