~By Steel360 Bureau
RHI Magnesita, the global leader in refractory products and solutions, has decided to develop India as its manufacturing, R&D, technical excellence and supply chain hub for the South Asia, West Asia and Africa markets. In a recent organisational restructuring, West Asia and Africa operations of the company have been clubbed together with India to create a single business unit with regional headquarters at Gurugram. The region contributed approximately 530 million Euro to the global revenues of the company in last calendar year.
Commenting on the development, Parmod Sagar, President, India, West Asia and Africa, said, “This strategic move would immensely contribute to the “Atmanirbhar Bharat” initiative in both short and long terms. As a part of the exercise, we would be setting up a world class regional R&D centre at Bhiwadi, Rajasthan, attached to one of our four Indian manufacturing facilities. The construction of the centre has already started.”
As part of the restructuring, an integrated regional Commercial, Supply Chain Management and Market Intelligence centre would be functional at its regional headquarters in Gurugram within the next three months. Additionally a regional shared service centre (Integrated Business Centre) would be set up in India by next year.
“We have tasted initial success in the magnesia carbon bricks plant at Cuttack, which we operationalised last year. The plant has helped us reach those segments which we could not reach through our import supplies earlier. We would be scaling up capacity in the plant to double it to 36,000 tons in the next 6-9 months,” Sagar added.
Also, an intra-group technology transfer arrangement is being made with some of the RHI Magnesita group plants in Europe and Brazil, as a result of which some of the specialised as well as high-end products would soon be made in the Indian facilities. So far, these set of products had to be imported to make it available to the Indian customers. This would further lead to an expansion and upliftment of the production capacities of the company in India in the near as well as mid-term.
RHI Magnesita is the global player in 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. With a turnover of Euro 2.9 billion, 33 sites, 13,650 employees, RHI Magnesita serves customers in more than 125 countries. Its shares have a premium listing on the London Stock Exchange and are a constituent of the FTSE 250 index. RHI Magnesita has been operating in India through its three subsidiaries – the BSE/NSE listed Orient Refractories Ltd, RHI Clasil Pvt Ltd and RHI India Pvt Ltd.
The India business of RHIM is about INR 2000 crore which is almost 20% of the refractory market size in India. It has four manufacturing facilities in India – refractory products plants at Vizag, Bhiwadi, Cuttack and a refractory equipment and mechanics development factory in Mumbai.