RHI Magnesita to acquire refractory division of Dalmia Bharat

24 Jul 2024 , 04:20 PM

According to Stefan Borgas, CEO of the Vienna-based company, who talked to ET, RHI Magnesita is in the process of buying the refractory division of Dalmia Bharat Refractories Limited (DBRL) in India for roughly Rs1,708 crore. He continued, “The share exchange arrangement is being made through RHI Magnesita India.”

“DBRL will move its operations to Dalmia OCL (DOCL). A share swap agreement states that RHI Magnesita will purchase all DOCL shares still in circulation in exchange for 27 million additional RHI Magnesita India Limited shares,” Borgas told ET.

The share consideration had a value of roughly Rs1,708 crore (or 208 million euros), according to RHI Magnesita India Limited’s issuing price of Rs632.5029 per share, the CEO stated.

According to Borgas, the acquisition will significantly expand RHI Magnesita’s market share in the rapidly expanding Indian refractory sector. Steel production in India is predicted to climb by 12% in 2022 and by 7-8% compound annual growth rate through 2030.

Refractory is utilized by a large variety of industries, including steel, cement, non-ferrous metals and glass during the manufacturing process.

In India, Magnesita employs about 1,200 people and can produce more than 3 lakh tonnes of refractory annually from five factories and raw material sources.

According to him, the acquisition will increase production capabilities in significant industrial areas in the south and west where RHI Magnesita currently lacked assets.

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