RHI Magnesita eyes 40% mkt share in Indian refractory sector by 2029

A mechanical engineer by profession, he has more than 3 decades of extensive experience of serving the steel and refractory industry. After more than seven years of gaining valuable insights in the steel industry, he transitioned to the refractories business, joining Orient Refractories Limited (ORL) and following the acquisition of ORL by RHI AG in 2013, he was appointed Managing Director & CEO of ORL RHI Magnesita India Limited, where he is the CMD now, the company is the leading supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass.

The company offers a wide range of high-quality refractory products and mixes to our customers in steel, cement & lime, non-ferrous metals, glass and other industries. From furnace to ladle to mould, RHI Magnesita provides the entire gamut of refractory products for the whole spectrum of high temperature manufacturing processes. All its products are custom made to suit the casting conditions and grade requirement of the product being cast and are a result of an intensive research and development effort. Speaking to Bizz Buzz, Parmod Sagar, Chairman & MD, RHI Magnesita India, explains the current scenario in the refractory industry and outlines the expansion, which the company has lined up for the second half of 2025

How has the refractory industry fared in the current fiscal nationally and globally?

Globally, geo-political disruptions have impacted businesses across industries. Such disruptions have collectively battered long-established supply chains and global trade networks. Rising bauxite and alumina prices due to a supply shortage for example, have resulted in cost inflation of alumina-based products, to reflect the higher cost of raw materials.

Even regions such as India, Southeast Asia and the Middle East, which we had anticipated to be “bright spots”, have also shown signs of short-term demand weakness. Our adaptability and commitment to grow have allowed us to navigate global challenges effectively, ensuring consistent value delivery to our customers. We have maintained our market leadership position demonstrating resilience despite market headwinds including pricing pressure from imported refractories and raw materials. The latter half of the fiscal year looks more promising, with anticipated growth led by our customers' planned commissioning of projects and infrastructure initiatives.

What are the current trends in the refractory industry? How are the challenges of procuring raw materials being mitigated by the company?

The refractory industry in India is poised for significant growth. End user industries such as steel, cement and industrial businesses have witnessed subdued customer activity due to seasonal slowdown, further exacerbated by cheaper imports, tepid demand in export markets, rising freight cost, has significantly increased the cost of imports and alumina-based raw materials. Despite these challenges, we remain optimistic about the upcoming quarters. We anticipate steel and cement production to ramp up, especially with the infrastructure push in India. While the supply chain disruptions and raw material price volatility remain challenging, the overall outlook remains positive, with steady growth anticipated.

RHI Magnesita India has adopted a proactive approach by securing long-term supply agreements with trusted global suppliers, investing in recycling technologies to reuse refractory waste, and strengthening our supply chain resilience by diversifying sourcing regions and creating strategic inventory buffers. Our backend integration with RHI Magnesita group on technology, R&D, global product range and service continue to support our strategic initiatives for a resilient and sustainable growth.

You said that the latter half of the fiscal year looks more promising. So, what are RHI Magnesita India’s plans for expanding its operations in the second half of FY25?

Leveraging synergies from recent acquisitions of Hi-tech and Dalmia, RHI Magnesita India aims to increase its market share to 40 per cent in the next four years. Recent acquisitions create a balanced portfolio of refractory products and a strong platform for growth in India and in under-represented product markets. This growth will be driven by our strategic focus leveraging synergies and enhancing our service offerings. We plan to capitalise on our strong global presence, diversified product portfolio, localisation of imported products, and favourable domestic industry growth and profitability in the Indian refractory industry.

RHI Magnesita has spent nearly Euro 300 million in the last 2 years in India to enhance RHIM’s local production footprint through mergers & acquisitions. This is part of the committed Euro 400 million of phased investment by FY 2026 to strengthen our production capacity in India. Post acquisitions and integrations, RHIM now has more than 5,00,000 tonnes of local refractory production capacity in India.

With the recent opening of RHI Magnesita India's new office in Gurugram, how does the company plan to expand its business operations, attract talent, and explore new opportunities for growth?

The new Gurugram office is a step towards fostering closer collaboration with customers and partners while establishing a strong corporate presence. India has been a key growth market, and setting up our new regional corporate office underlines our commitment to serve our customers more efficiently while driving sustainable, resilient and profitable growth. India stands out in the region for its IT capabilities, and vibrant young population of professionals helping us to attract the best of talent and foster their growth. We aim to utilise this location to expand our network and access opportunities in diverse markets, attract top-tier talent by offering a vibrant and dynamic workplace with career growth opportunities, along with driving innovation by hosting cross-functional teams focused on R&D, business development, and sustainability initiatives. The move reflects our vision to be closer to our customers and drive growth through local insights and global expertise.

What are the sectors within the refractory industry that have potential to grow and can be explored?

The infrastructure push in India, will require refractory industry to be an enabler for end-user industry such as steel, cement, non-ferrous metals and other industrial applications for the requisite infrastructure growth.

We anticipate steel and cement production to ramp up, especially with the support of Union Budget’s ‘Viksit Bharat’ initiative, which has allocated 3.4 per cent of Indian GDP to infrastructure development.

RHI Magnesita India now offers a compelling local-for-local market solutions for blast furnace and coke oven projects. We also have a vast majority of these projects which are facilitated by global OEMs, with whom we have established strong relationships locally and globally.

We have set up a new business vertical to service the Indian iron making industry. This vertical aim to support the iron making industry through strategic partnerships to jointly work on key challenges faced by the industry such as domestic refractory supply reliability, productivity and performance improvement of the iron making plants. This vertical offers a wider product offering across all segments and enables cross-selling opportunities.

The share is steadily increasing in DRI and Pellet by leveraging RHI Magnesita’s full-service solution package. Moreover, the acquired product portfolio can be further enhanced by leveraging group technology from other successful markets, creating a competitive advantage.

What are the elements that play a substantial role in RHIM India's growth in the country?

RHIM India as a market leader in the refractory industry has a comprehensive product portfolio with core competence in total refractory management and services.

There are several factors that contribute to our resilient, sustainable and profitable growth in India. Our customer-centric approach helps in understanding and addressing the specific needs of Indian industries and has been pivotal in terms of providing services to our customers.

Our manufacturing excellence through our state-of-the-art facilities and focus on localised production ensure quality and cost efficiency. Through our efforts on sustainability by adopting circular economy practices, such as recycling refractories, we are aligning with global and local environmental goals. For innovation, our focus on developing next-generation refractory materials has helped us stay ahead of market demands.