RHI Magnesita's two Indian arms merge into Orient Refractories

New Delhi, May 19 PTI Vienna-based RHI Magnesita on Wednesday said its subsidiaries RHI Clasil and RHI India have merged into its another unit Orient Refractories.

New Delhi, May 19 (PTI) Vienna-based RHI Magnesita on Wednesday said its subsidiaries RHI Clasil and RHI India have merged into its another unit Orient Refractories. RHI Magnesita is the parent firm of the three Indian subsidiaries -- RHI Clasil, RHI India and Orient Refractories Ltd (ORL), a manufacturer and supplier of high-grade refractory products.

The National Company Law Tribunal (NCLT), Mumbai sanctioned the scheme of amalgamation of the three companies through an order dated May 5, 2021, RHI Magnesita said in a statement.

Subsequently, RHI Clasil and RHI India shall stand merged into ORL, it said. ORL is listed on BSE and NSE.

''The integration of the three separate legal entities would enable us to synergize, simplify and consolidate our strength in India to serve our ever growing customers better. ''RHI Magnesita is going to provide customers with one single refractory solutions platform offering the industry's most comprehensive product and solutions portfolio as an end-to-end solution provider,'' Parmod Sagar, MD and CEO of ORL said. Sagar, who is also the Regional President of RHI Magnesita, further said the integration also results in improved allocation of capital and optimization of cash flows contributing to the overall growth prospects of the new integrated company.

Besides, it will help in creation of a larger asset base and enhancement of shareholder value pursuant to economies of scale and business efficiencies, he said.

According to the statement, on July 31, 2018, ORL's board had approved the amalgamation scheme which was also approved by the shareholders and creditors of ORL on May 17, 2019.

The board of ORL in its next meeting would decide on the further course of action related to the amalgamation, including fixing of the effective date of the amalgamation, it said.

ORL is a leading manufacturer and supplier of high-grade refractory products and solutions. Besides India, the company has a customer base in more than 70 countries.

In India, ORL has two manufacturing facilities at Bhiwadi and Cuttack where it manufactures specialty refractory products and magnesia carbon bricks. A refractory is an equipment which can handle the high-temperature required for manufacturing hot steel. Besides, it is used by glass makers, aluminum, cement players etc. PTI ABI ANU ANU

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