RHI Magnesita India Ltd has entered into a joint venture with Khemka Refractories Pvt Ltd to establish a greenfield refractory recycling facility in Odisha. The partnership aims to accelerate circular business models and create a scalable recycling ecosystem in the eastern state. Strategically located near major industrial manufacturers, the facility will support the growing demand for closed-loop sustainable solutions in the Indian refractory market by focusing on the recovery, processing, and reuse of spent refractory materials.

Joint Venture Structure and Operations

The joint venture company will be incorporated as a wholly owned subsidiary of RHI Magnesita India initially, with 49% of the shares subsequently issued to Khemka Refractories. This structure results in a 51-49 ownership split, positioning RHI Magnesita India as the majority stakeholder. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2026. The agreement grants each party the right to appoint and replace its nominee director, while any changes to the capital structure require shareholder approval.

Strategic Rationale

The facility will combine RHI Magnesita's global expertise in refractory recycling with Khemka Refractories' long-standing regional presence and supplier network. The collaboration aims to reduce dependence on virgin raw materials, improve resource efficiency, and contribute to lower carbon emissions across industrial value chains. Parmod Sagar, Chairman, MD & CEO of RHI Magnesita India Ltd., stated that the initiative lays the foundation for a circular economy platform with globally leading processing technology. Alok Khemka, Director of Khemka Refractories Pvt Ltd, highlighted the partnership's focus on scaling operations and ensuring secure access to critical secondary raw materials.

Company Profiles

RHI Magnesita India Ltd is the leading manufacturer and supplier of high-grade refractory products, systems, and solutions for high-temperature processes exceeding 1,200°C. The company operates 8 state-of-the-art manufacturing plants, 2 mines, and a world-class R&D centre at Bhiwadi. Khemka Refractories Pvt Ltd is an ISO 9001:2015 certified manufacturer of refractory products and raw materials, operating 4 manufacturing plants and 1 R&D centre in Odisha.