Vienna-based RHI Magnesita is investing Rs 3,600 crore in the Indian market over the next two-three years to increase its production capacity and modernise plants.
The company has utilised a portion of the Rs 3,600-crore capital expenditure to acquire two refractory assets in India, Borgas told PTI here.
“We have earmarked a Rs 3,600 crore investment in India. This would go towards organic and inorganic capacity expansion and modernisation of the Indian manufacturing facilities,” the CEO said, adding that the capital infusion will be through its subsidiary RHI Magnesita India Ltd.
RHI Magnesita India is a manufacturer and supplier of refractory products, systems, and solutions for industries such as steel, cement, non-ferrous metals, and glass.
The company recently completed the acquisition of Dalmia OCL and the refractory business of Hi-Tech Chemicals for Rs 1,708 crore and Rs 621 crore, respectively.
The refractory building capacity of the company is at 5 lakh tonnes per annum (LTPA), of which 1.5 LTPA remains unutilised capacity ready to serve the additional requirements of the Indian market, he said.
According to Borgas, the company is looking to modernise the newly acquired assets in India by increasing automation and deploying machinery of international standards.
Additionally, AI (artificial intelligence) and data-driven digital technologies are being brought to India for improved refractory performance as part of its plans, he added.
Refractory is a specialised heat-resistant material used in making cement, steel, copper, aluminium, non-ferrous metals and glass. Due to its special properties, it can handle high temperatures of up to 1,200 degrees, and magnesia and alumina are the key raw materials required to produce it.
Post-acquisition, the share of the company in the domestic refractory industry has increased to 30 per cent, Pramod Sagar, Managing Director of RHI Magnesita India, said.
On his outlook for the sector, Sagar said in India, there is consumption-led growth. The government has announced a steel capacity target of 300 million tonnes. It had also announced an enhanced capex of Rs 10 lakh crore in the Union Budget. All this augurs well for the industry.
“Increased infra spend will increase the demand for products manufactured by our consumer industries,” he said.