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RHI Magnesita’ Acquired Dalmia Bharat Refractories Limited
Tuesday, February 28, 2023
RHI Magnesita/AT announced early in January 2023 the completion of the acquisition of the Indian refractory business of Dalmia Bharat Refractories Limited (DBRL) via a Share Swap Agreement. Consequently, Dalmia OCL Limited (DOCL), the Indian refractory business of DBRL, stands as a 100 % subsidiary of RHI Magnesita India Limited. DOCL is one of India’s leading refractory players and a long-term trusted partner to customers in the region.
The acquisition will significantly increase RHI Magnesita’s presence in the fast-growing Indian refractory market, with forecast steel production growth in India of 12 % in 2022 and a 7–8 % compound annual growth rate until 2030. Through the consolidation of DBRL’s production into RHI Magnesita’s existing operations, significant network optimisation synergies will be captured. The company employs approximately 1200 people in India and has production capacity of more than 300 000 t of refractory annually, from five refractory plants and raw material sites. The acquisition will add production capacities in important industrial regions in the South and West of India where RHI Magnesita currently has no assets.
Stefan Borgas, CEO of RHI Magnesita, said: “The integration of DOCL into our RHI Magnesita India business will result in us further strengthening our position as a responsible market leader in India, building it as the growth hub for the wider region. We are investing in technological advancement across the value chain to make our network in India more modern and sustainable. The integration will open opportunities for us to create a talent pool in India that is ready to serve the global refractory industry." Parmod Sagar, CEO and Managing Director of RHI Magnesita India, said: “As a trusted and reliable business partner, the integration of the Dalmia Bharat Refractories business into our network will underline our position as the leading player in the Indian refractory market. This transaction represents a strong commitment from the senior management to continue strengthening the company’s operations in India and to further expand our footprint in the region.”
Commenting on the transaction, Sameer Nagpal, Managing Director & CEO of DBRL said: “We were able to scale up the business over the last few years on the back of product breadth and service capabilities, establishing ourselves as a reliable Indian player. For the next phase of growth of this business it is imperative to have access to technology which RHI Magnesita, being a global leader, brings to the table. We believe our business can be optimally utilised to serve Indian customers by becoming a part of RHI Magnesita’s network.”
