BIZ-REFRACTORY

The refractory and steel

sectors need to work closely with each other to reduce

dependence on imports and cut production costs, a top official

of the Indian Refractory Makers Association (IRMA) said.

If India wants to achieve its ambitious target of 300

million tonne of steel production by 2030, the only way

forward is synergy between the two sectors, said Sameer

Nagpal, Head, Advocacy of IRMA.

Though the Indian refractory industry was minuscule

compared to its steel counterpart, it is critical in the

production of the metal, he said, adding, the steel sector

consumes about 65 to 70 per cent of refractories.

"Unless the issues related to the refractory industry

are addressed, the government's steel production target might

get hampered," Nagpal, who is also the CEO (Refractory

Business) of the Dalmia Bharat Group, told PTI on Sunday.

At present, the refractory sector is largely dependent

on China for raw-material procurement, much like the steel

industry that imports around 40 per cent of low-cost finished

products from that country.

Nagpal, however, said following the implementation of

new environmental rules in China, the inflow of raw materials

has been disrupted, affecting the refractory companies.

Batting for zero per cent duty on raw materials, he

said domestic refractory companies are on expansion mode

through the inorganic route, and the industry is expected to

garner an investment of USD 100-150 million, mainly in the

eastern part of the country in the next three to five years.

The IRMA functionary said most of the acquisitions are

likely to be in Europe, which will also help in latest

technology transfers.

Nagpal said that India can become a refractory hub if

the right steps in favour of the sector are initiated, such as

making it a part of the Steel Research and Technology Mission

of India (SRTMI), which has already attracted an initial

corpus of Rs 200 crore.

He also said that a proposal has been mooted to set up

a refractory centre of excellence.

On Dalmia Bharat Group's expansion plans for the

refractory business, Nagpal said it is eyeing overseas

acquisitions, too, particularly in Europe and Egypt.

"Our negotiations are underway with three companies in

Europe and Egypt. At least one of them will be finalised by

the next quarter," he said.

India's current refractory capacity stands at 1.5

million tonne per annum.