RHI Magnesita India Partners with Khemka Refractories to Establish Greenfield Recycling Facility in Odisha

RHI Magnesita India Limited (NSE: RHIM | BSE: 534076), a leading manufacturer and supplier of high-grade refractory products, systems, and solutions, announced today that its Board of Directors has approved a Joint Venture (JV) Agreement with Khemka Refractories Private Limited. The partnership aims to accelerate circular business models and establish a state-of-the-art, greenfield refractory recycling facility in the eastern state of Odisha.

Strategic Joint Venture Structure & Ownership Split

According to the regulatory filings, the new entity will operate in the refractory industry, bundling industrial minerals and specialized recycling activities. The corporate structure will follow a two-step implementation process:

Initial Allotment: The JV company will initially be incorporated as a wholly-owned subsidiary of RHI Magnesita India Limited, with an initial nominal cash subscription of 10,000 equity shares valued at Re 1/- each.

Final Shareholding Ratio: Post-incorporation, the joint venture company will issue and allot shares to achieve a final ownership split of 51% for RHI Magnesita India and 49% for Khemka Refractories.

Rationale: Strengthening Supply Chains via Circular Economy Models

The joint venture unites RHI Magnesita's global technical expertise in high-end refractory recycling with Khemka Refractories' long-standing regional operating footprint, secondary raw material processing capabilities, and established supplier network.

The upcoming Odisha facility is strategically positioned to reinforce industrial supply chain resilience across India. By recycling spent refractories back into the manufacturing lifecycle, the partnership intends to secure high-quality alternative raw material streams, lowering overall dependency on primary mining while helping heavy industrial clients hit their sustainability targets.

Key Terms of the JV Agreement

The transaction is an independent, arm's-length commercial agreement and does not fall under the purview of Related Party Transactions for RHI Magnesita India. The brief corporate terms highlighted in the disclosure include:

Board Governance: Each venture partner retains the explicit right to appoint and replace its respective nominee directors on the board of the new entity.

Capital Protection: Any future issuances of shares or convertible securities must first be offered to existing shareholders via pre-emptive rights. Major alterations to the capital structure will strictly require shareholder consensus.

Corporate Scale: The partnership bridges two significant financial players. RHI Magnesita India reported a consolidated turnover of ₹4,01,994.50 lakhs ($4,019.9 crore) for the financial year 2025-26, while Khemka Refractories clocked a consolidated turnover of ₹48,725.77 lakhs ($487.2 crore) during the same period.

Parmod Sagar, Chairman, MD & CEO, RHI Magnesita India Ltd., said, "India is one of the world's fastestgrowing industrial markets, and as the market leader in refractories, RHI Magnesita is committed to deepening its technological investment in the country. We believe the time is right to build an ethically compliant circular economy platform that brings trust, quality, innovation, consistency and scale to raw materials management for refractories and other industrial markets. Through this green-field joint venture, we are laying the foundation for a circular economy platform with globally leading processing technology and best-in class infrastructure. We will advance circularity, avoid waste and create long-term supply security and superior value for our customers in line with our 4PRO Solutions proposition. A closed material cycle is essential for sustainable business and the responsible use of valuable resources benefiting all stakeholders."

Alok Khemka, Director, Khemka Refractories Pvt. Ltd., said "We are delighted to partner with RHI Magnesita in this pioneering initiative for the Indian refractory market. With our operational capabilities, strategic location in Odisha and well-established supply and partner network, we are well-positioned to support the development of a robust recycling platform. Together, we aim to focus on scaling operations, process depth and quality consistency in the Indian recycling market while ensuring secure access to critical secondary raw materials."

The proposed Odisha facility will combine RHI Magnesita's global expertise in refractory recycling and Khemka Refractories' long-standing regional presence and supplier network. The facility is expected to play a critical role in strengthening supply chain resilience, supporting sustainable industrial growth and accelerating the transition towards a circular economy in India.

Under the agreement, RHI Magnesita will hold a 51% stake in the joint venture, with Khemka Refractories holding the remaining 49%. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2026.

Shares of RHI Magnesita India Limited was last trading in BSE at Rs. 377.85 as compared to the previous close of Rs. 379.55. The total number of shares traded during the day was 14170 in over 413 trades.

The stock hit an intraday high of Rs. 385.00 and intraday low of 373.50. The net turnover during the day was Rs. 5363475.00.

Source : Equity Bulls

Keywords

RHIMagnesitaIndia INE743M01012 Partnership KhemkaRefractories GreenfieldRecyclingFacility Odisha