RHI Magnesita will invest roughly Rs 36 billion in India over the next two to three years to expand production capacity and modernise factories, according to the company's worldwide CEO Stefan Borgas.
According to CEO Stefan Borgas, RHI Magnesita used a portion of its Rs 36 billion capital investment to acquire two refractory assets in India. "We have set aside Rs 36 billion for investment in India. This would be used to expand organic and inorganic capacity and modernise Indian manufacturing facilities "The cash infusion will be made through RHI Magnesita India, according to the CEO.
The company manufactures and supplies refractory goods, systems, and solutions to industries like steel, cement, nonferrous metals, and glass.
It recently finalised the acquisitions of Dalmia OCL and Hi-Tech Chemicals' refractory division for Rs 17.08 billion and Rs 6.21 billion, respectively. He stated that the company's refractory building capacity is 5 lakh tonnes per annum (LTPA), with 1.5 LTPA remaining unutilized capacity ready to satisfy the increased requirements of the Indian market.
The corporation intends to modernise its newly acquired assets in India by enhancing automation and introducing international-standard machinery. AI (artificial intelligence) and data-driven digital technologies are being brought to India as part of its objectives for greater refractory performance, he noted.
Refractory is a type of heat-resistant material that is used in the production of cement, steel, copper, aluminium, nonferrous metals, and glass. It can withstand high temperatures of up to 1,200 degrees due to its unique qualities, and the primary raw ingredients required to create it are magnesia and alumina.
According to Pramod Sagar, Managing Director of RHI Magnesita India, the company's stake of the local refractory industry has climbed to 30% since the acquisition.
In terms of his view for the sector, Sagar stated that India is seeing consumption-led development. The government has set a target of 300 million tonnes of steel capacity. In the Union Budget, it also announced an increase in capex of 10 lakh crore. This bodes good for the industry.
"Increased infra spend will increase the demand for products manufactured by our consumer industries," he said.
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