RHI Magnesita India to pump Rs 450 cr for brownfield expansion

30 Nov 2021 CW Team

Refractory maker RHI Magnesita India is planning to pump in about Rs 450 crore for the brownfield development of its current plants across India in the coming two to three years.

It is additionally scouting for purchases to increase its production capacity in the nation.

The firm, which is into production and supply of high-grade refractory products, systems and solutions, presently has three manufacturing units at Vizag (Andhra Pradesh), Bhiwadi (Rajasthan) and Cuttack (Odisha).

It has a yearly generation capacity of about 1.42 lakh tonne across the three units. Plans are going on to increase production capacity to about 2.8 lakh tonne by 2023 end.

As per Stefan Borgas, CEO of RHI Magnesita, the firm has recently increased the capacity of its Vizag plant by approximately 30% at an investment of Rs 50 crore.

Presently, India is the only real growth market in the refractory industry (globally), and it is the most vital focus area for them. They are further working on beginning production of certain high-end products in the Bhiwadi facility, which is presently imported into India from their European and American facilities. It would result in import substitution of these products.

Apart from organic development, the firm is additionally looking to procure one or two firms in the domestic market for increasing capacity.

Parmod Sagar, MD and CEO, RHI Magnesita India, told the media that they have three to four goals (for procurement), and they are in advanced stages of discussion (with some of them), and they believe something should fructify in the coming six-to-twelve months.

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