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RHI Magnesita to acquire the India refractory business of Dalmia

19 Nov 2022

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In accordance with our 2025 Corporate Strategy, RHI Magnesita is focalizing its efforts to increase its footprint in growth markets such as India. To further strengthen our efforts in this direction, we signed an agreement to acquire the Indian refractory business of Dalmia Bharat Refractories Limited (“DBRL”). DBRL is one of India’s leading refractory players and a long-term trusted partner to customers in the region.

This integration 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 optimization synergies will be captured. This will further add production capacities in important industrial regions in the south and west of India where RHI Magnesita currently has no assets. The integration will add almost 320,000 tons of capacity to RHI Magnesita India production footprint, particularly in magnesia carbon and alumina bricks.

“I am very pleased to announce this highly value creating acquisition which will accelerate our development in the fast-growing Indian refractory market,” said CEO Stefan Borgas upon the announcement. “It is another step in the execution of our Group strategy. We see material financial and operational benefits from the addition of the Dalmia Bharat Refractories business to our existing network, which will enable us to increasingly serve our customers with a ‘local for local’ approach in India and offer a broader range of products, in particular in the Industrial segment, in which RHI Magnesita is currently under-represented. This transaction demonstrates our ability to continue to grow our business in India where the outlook for the refractory industry is strong, at a time when demand in other geographies is weakening.”

Parmod Sagar, MD & CEO RHI Magnesita India Ltd., added: “As a trusted and reliable business partner, the integration of Dalmia Bharat Refractories 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.”

RHI Magnesita is in the process of integrating the business of DBRL. Further information regarding the integrated entity and updated customer points of contacts will be communicated to the customers in due course after the closure of acquisition.