Rhi Magnesita India is forming a joint venture with Khemka Refractories Private Limited to establish a new refractory recycling facility in Odisha. Rhi Magnesita will hold a 51% stake in the JV.
Rhi Magnesita India Forms Joint Venture for Refractory Recycling Facility
Rhi Magnesita India will hold a 51% stake in a new venture.
Khemka Refractories Private Limited will own the remaining 49%.
Reader Takeaway: Expands sustainable operations;JV control maintained.
What just happened
Rhi Magnesita India Ltd. has received Board approval to form a Joint Venture (JV) with Khemka Refractories Private Limited. The JV will establish a greenfield refractory recycling facility in Odisha, India. Rhi Magnesita India will hold a 51% ownership stake, with Khemka Refractories holding 49%.
Why this matters
This move accelerates the company's adoption of circular business models, enhancing supply chain resilience and promoting sustainable industrial growth in India. The JV combines Rhi Magnesita’s global recycling expertise with Khemka Refractories’ regional presence and supplier network.
The backstory
Rhi Magnesita India is a leading producer of refractory products. Khemka Refractories Private Limited is a regional player in the same industry. The JV aims to leverage their combined strengths.
What changes now
The JV entity will initially be a wholly-owned subsidiary of Rhi Magnesita India, with Khemka Refractories subscribing to its 49% stake post-incorporation. Rhi Magnesita will invest in equity shares at Re 1 per share for initial incorporation.
Risks to watch
The formation of the JV is contingent on approvals from the Ministry of Corporate Affairs and other regulatory bodies. While not a related party transaction initially, it will be considered as such once the JV becomes a subsidiary.
Peer comparison
While specific refractory recycling JVs among peers were not detailed in the filing, Rhi Magnesita's focus aligns with the growing industry trend towards sustainability and circular economy principles.
Context metrics (time-bound)
Consolidated turnover for the fiscal year ending 2025-26 is projected at ₹4,019.95 crore for Rhi Magnesita India Ltd. and ₹487.26 crore for Khemka Refractories Private Limited.
What to track next
Investors should monitor the progress of regulatory approvals for the JV incorporation and the subsequent commencement of the greenfield project's operations. Updates on the ESG and supply chain de-risking strategy will be key.