A bottom up approach for floor planning using the method of composite block formation using Macro Modules is presented. The process involves a recursive technique of bounding rectangle formation after searching the solution space using various number of composite block elements. The algorithm is efficient enough to reduce the dead space in range of 85-99 % and much quicker i.e. from 10 to 100 times faster as compared to standard iterative approaches to carryout floor planning in Electronic Design Automation tools.