Key Decision and Date
The Board of Directors of RHI Magnesita India Limited (RHIM) at its meeting held on Thursday, 25 June 2026, which concluded at 01:43 PM, approved entering into a Joint Venture Agreement with Khemka Refractories Private Limited.
Joint Venture Details
Parties Involved: RHI Magnesita India Limited and Khemka Refractories Private Limited (CIN: U26922OR2003PTC007353, Registered Office: Kamakhya Nagar, Dhenkanal, Odisha, India - 759018)
Purpose: To form a new Joint Venture Company to accelerate circular business models and establish a greenfield refractory recycling facility in the eastern state of Odisha, India.
JV Structure:
- The JV Company will initially be incorporated as a wholly owned subsidiary of RHIM
- Post incorporation, the JV Company will issue and allot 49% shares to Khemka
- Final shareholding ratio: RHIM - 51%, Khemka - 49%
Consideration: RHIM will subscribe to 10,000 equity shares of Re 1/- each by paying the same in cash at the time of incorporation.
Significant Terms of Agreement
- Each party has right to appoint and replace its nominee director
- Changes to capital structure require approval of shareholders
- Any new shares/securities must first be offered to existing shareholders
- No consideration is paid or received by either party in connection with the Joint Venture Agreement
Regulatory Status and Approvals
Current Status: Subject to receipt of requisite approvals under applicable laws and fulfilment of various terms and conditions specified in JV Agreement.
Required Approvals: Incorporation of JV Company needs to be approved by Ministry of Corporate Affairs (Registrar of Companies).
Related Party Status: The transaction does not currently fall within Related Party Transactions. However, post subscription by the Company, the JV Company will become a subsidiary company of RHIM and will be considered a related party.
Company Backgrounds
RHI Magnesita India Limited: Leading manufacturer and supplier of high-grade refractory products, systems and solutions with consolidated turnover of ₹4,01,994.50 lakhs during 2025-26.
Khemka Refractories Private Limited: Manufacturer of refractory products, materials trading and secondary raw material processing with consolidated turnover of ₹48,725.77 lakhs during 2025-26.
Rationale and Expected Benefits
The JV Company will combine RHIM's global expertise in refractory recycling with Khemka's long-standing regional presence and supplier network. The facility is expected to play a critical role in strengthening supply chain resilience, supporting sustainable industrial growth and accelerating the transition towards a circular economy in India.
Future Disclosures
The Company will furnish requisite disclosures to the exchanges upon incorporation of the JV Company and other updates as required under Listing Regulations.
Document References
- SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30 January 2026
- Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Part A of Schedule III of the Listing Regulations