RHI Magnesita India targets 40% refractories market share in 4 year

RHI Magnesita India, a major refractory producer, has set an ambitious goal of securing 40 per cent of the refractories market within the next four years. This endeavour is underpinned by strategic acquisitions and substantial investments aimed at expanding their portfolio of value-added products.

Notably, RHI Magnesita India enjoys a strong position in terms of raw material security, providing reliable alternatives to Chinese suppliers in case of any geopolitical disruptions, as highlighted by a senior company official.

In an interview with PTI, Parmod Sagar, MD & CEO of RHI Magnesita India, expressed optimism regarding the steel sector, as major steel producers anticipate India's steel capacity to increase by at least 120 million tonnes over the next seven years. Sagar underlined their status as a dependable refractory partner for steel manufacturers, supported by backward integration from their global parent company and diverse raw material sources to mitigate potential disruptions in the Chinese supply chain.

Currently holding a 30 per cent share in the Indian refractory market, estimated at approximately Rs 13,500 crore annually, RHI Magnesita India is well-prepared to increase its market share to 40 per cent in the coming four years. This growth is driven by rising demand and the synergies derived from recent acquisitions, including the Indian refractory business of Dalmia Bharat Refractories Ltd and Hi-Tech Chemicals.

To further enhance its operations, RHI Magnesita India plans to invest Rs 200-300 crore in modernising the five Dalmia plants over the next three years to meet world-class standards. This modernization effort is expected to bolster both domestic and export markets, with the goal of doubling export levels in 3-4 years.

Following these acquisitions, RHI Magnesita India's refractory capacity has significantly increased, now totalling 5.3 lakh tonnes. The company's expansion has resulted in nine manufacturing plants in India, with an average capacity utilization of 60 per cent. While the existing capacity is deemed sufficient for the next few years, the company remains open to further acquisition opportunities.

RHI Magnesita India is also actively engaged in innovation to decarbonize the steel industry by developing green refractory products that incorporate recycling and technology solutions. The company is working alongside industry associations and the government to promote decarbonization and ensure raw material security, aligning with the vision of achieving a 300 million steel capacity target by 2030.

Regarding revenue expectations, the company is projecting around Rs 4,000 crore for the current fiscal year, a notable increase from the Rs 2,005 crore achieved in FY23. This growth is attributed to the recent acquisitions, and RHI Magnesita India aims to maintain an 8-10 per cent growth rate, despite the high base established post-acquisitions.