Key Quantitative Details
- Joint venture ownership structure: RHI Magnesita will hold 51% stake, Khemka Refractories will hold 49% stake
- Expected closing timeline: Third quarter of 2026
- Location of new facility: Eastern state of Odisha, India
Parties Involved
- RHI Magnesita India Ltd (BSE: 534076, NSE: RHIM) - Leading manufacturer and supplier of high-grade refractory products, systems and solutions
- Khemka Refractories Pvt. Ltd. - Renowned refractory raw-materials manufacturer in India, ISO 9001:2015 certified organization
Purpose and Rationale
The joint venture aims to:
- Accelerate circular business models and establish a greenfield refractory recycling facility in Odisha
- Support rapidly growing demand for closed-loop sustainable solutions in the Indian refractory market
- Create an integrated recycling supply chain strategically located in the heart of India's steel production
- Focus on recovery, processing and reuse of spent refractory materials
- Increase availability of high-value raw materials for refractories and other markets
- Provide customers with customized recycling and enhanced sustainability solutions
- Reduce dependence on virgin raw materials required for refractory manufacturing
- Improve resource efficiency and contribute to lower carbon emissions across industrial value chains
Management Commentary
Parmod Sagar, Chairman, MD & CEO, RHI Magnesita India Ltd: "India is one of the world's fastest-growing industrial markets... We believe the time is right to build an ethically compliant circular economy platform that brings trust, quality, innovation, consistency and scale to raw materials management... Through this green-field joint venture, we are laying the foundation for a circular economy platform with globally leading processing technology and best-in class infrastructure."
Alok Khemka, Director, Khemka Refractories Pvt. Ltd.: "We are delighted to partner with RHI Magnesita in this pioneering initiative... With our operational capabilities, strategic location in Odisha and well-established supply and partner network, we are well-positioned to support the development of a robust recycling platform."
Operational Details
- The facility will combine RHI Magnesita's global expertise in refractory recycling with Khemka Refractories' regional presence and supplier network
- Khemka Refractories operates 4 manufacturing plants and 1 R&D centre in Odisha
- RHI Magnesita India has 8 manufacturing plants, 2 mines, 2 mechanism units, and 35 site offices across India
Conditions and Timeline
- Transaction is subject to customary closing conditions
- Expected to close in the third quarter of 2026