RHI Magnesita Eyes $1 Billion Revenues From India, Middle East, Africa Region, Says CEO

RHI Magnesita is eyeing a $1 billion revenue from India, Middle East, and Africa region, the company's global Chief Executive Officer Stefan Borgas has said.

The global refractory player aims to achieve the revenue target over the next two-three years, Borgas said, adding that the India business is expected to be the biggest contributor to the projected $1-billion revenue.

"Five years ago, we sat with our Indian foundation team. At that time, we had a little over $100 million worth business. And we said it should be a $500 million business. I gave this vision to the team and the team took it seriously," he told PTI during an interaction.

Now, the same team talks about the business reaching $1 billion, which is not just limited to India but the markets of Africa and the Middle East in next two-three years, Borgas said.

On the factors that would contribute to increased revenues, he said the refractory market is expected to continue to grow at a CAGR of 6% over the next few years in this region.

The countries in this region are going to add capacities of steel, cement, glass, and copper, where refractory is a major component.

Speaking on the India market, the market here is an exception where 8% growth is expected. In India, RHI Magnesita plans to invest $40 million (Rs 333 crore) during the said period.

The investment would go towards de-bottlenecking, capital expenditure (capex), technology transformations, and new product offerings across its nine manufacturing facilities.

Vienna-based RHI Magnesita is a $3.5 billion refractory products supplier globally. Last year, it acquired Dalmia-OCL and Hi-Tech Chemicals for Rs 1,708 crore and Rs 621 crore, respectively, through its arm RHI Magnesita India.

RHI Magnesita in India owns three mines, two quartz mines in Odisha and one bauxite mine in Gujarat. The company is actively seeking new acquisitions, including bidding for new mines or acquiring existing ones for backward integration. PTI ABI TRB