In its first ever international acquisition Dalmia-OCL, the refractory manufacturing company of the ₹ 10,000 crore Dalmia Bharat Group announced the acquisition of GSB Group GmbH, a German-based speciality refractory maker and a global leader in lance production, which is essential for clean steel production. Dalmia-OCL is the India's second largest refractory company with a production capacity of 250,000 tonnes per annum (TPA). The company expects to close this financial year with revenue of ₹ 800 crore, of which, around ₹ 500 crore is likely to be contributed by the steel segment.
As disclosed by the company Dalmia-OCL purchased German refractory maker GSB Group GmbH for 15 million Euros (about ₹ 122 crore) as a part of a strategy move to expand foothold in Europe. The fund required for this buyout would be funded partially by debt and internal accruals. The acquisition will give Dalmia-OCL the access to Europe’s steel and refractory industry, and technology required to manufacture cleaner steel. Presently, GSB Group has two refractory production sites: Bhilai (India) and Bochum (Germany).
“We are delighted as this acquisition marks our group’s first major step in Europe where consolidation in the market has opened new doors for a company like ours. Dalmia-OCL’s end-to-end refractory portfolio and GSB’s access to European steel customers will make this combination a strong competitor in Europe”, Sameer Nagpal, CEO, Dalmia-OCL said. stage”.
“This acquisition will also make us one of the specialized manufacturers of refractories, for cleaner steel production, a focus area for Indian steel makers too. It will give us newer resources and talents in Europe which will help strengthen our capability in India, which is the fastest growing market for refractories in the world”, Mr.Nagpal added.
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Refractories are the fundamental pre-requisites for any high temperature operation. Whether metallurgical or non-metallurgical, a refractory lining is necessarily required for their containment and retention of heat etc.
Read: Uses and Applications of Refractories and Refractory Products in our Daily Life
Dalmia-OCL represents two entities Dalmia Refractories and OCL Refractories that together cater to a wide range of industries including Iron & Steel, Cement, Glass, Non-ferrous metals, Alloys amongst others. With five raw material mines, four manufacturing plants and a specialized refractory R&D Center in India supplemented by a manufacturing unit in China, Dalmia-OCL offers the most comprehensive range of refractory products covering almost every application.
The company believes that the domestic steel industry is expected to produce 300 million tonnes per annum (MTPA) of steel by 2030 from the existing 100 MTPA and so, in the coming years there will be a huge demand for refractory. With an ambition to tap this opportunity, owing to massive demand for refractory, and Dalmia Bharat Group have started working on their business rigorously. The company is also targeting the growing consumption of high grade steel in specialized sectors, including automobiles and home appliances industry.