Editor's Note

Dear Readers,

At a time when businesses find it quite challenging to thrive alone, mergers and acquisitions become the best strategy not only to get them go successfully, but also to give them larger exposures. RHI Magnesita’s Indian subsidiary Orient Refractories has been renamed as RHI Magnesita India, following the merger of two Indian arms RHI Clasil Pvt. Ltd. and RHI India Pvt. Ltd. into Orient Refractories Ltd. in June 2021. The August newsletter of Iron & Steel Review shares excerpts from an exclusive interview of Parmod Sagar, Managing Director and Chief Executive Officer of the newly formed RHI Magnesita India Ltd., where he tells us about the significance of this merger.

India’s ace steelmaker Tata Steel has bagged a prestigious award and leading global technology provider Danieli has won a major project from the world’s one of the biggest steel companies. The August newsletter shares the details with us.

How has been the performance of India’s steel industry during June 2021? Read the August newsletter and stay updated.

Santosh Mahanti, Editor & CMD

CONTENTS


“The merger has given birth to the largest public listed refractory company in the country – RHI Magnesita India Ltd.”

RHI Magnesita’s Indian subsidiary Orient Refractories Ltd. (ORL) has been renamed as RHI Magnesita India Ltd. This is subsequent to the merger of two unlisted entities of RHI Magnesita in India – RHI Clasil Pvt. Ltd. and RHI India Pvt. Ltd. into ORL in June 2021.

The following is an edited excerpt from the interview with Parmod Sagar, MD & CEO of RHI Magnesita India Ltd., which appears in Iron & Steel Review’s August issue.

Congratulations on completing the merger of the Indian entities of RHI Magnesita. What has changed for the Indian operations with this merger?

It took us more than two years to go through the legal and procedural exercise to eventually complete the amalgamation. The merger of the two unlisted companies of us in India into the listed entity Orient Refractories Ltd. has given birth to the largest public listed refractory company in the country – RHI Magnesita India Ltd. The integration has enabled us to synergise, simplify and consolidate our strength in India to serve our ever-growing customers better. It has enhanced the business and operational synergies by pooling of management expertise, technologies and other resources between the businesses. RHI Magnesita India is now providing customers with one single refractory solutions platform offering the industry’s most comprehensive and modern product, service and technology solutions portfolio.

How do the financials of the company stake up post-merger? What is the financial forecast for the merged company in the current year?

We clocked a revenue of INR 1,383 Crores for FY 2020-21. Despite a highly challenging year severely impacted by COVID-19 and subsequent lockdowns, we could maintain our PAT to 2019 levels with a marginal increment. We posted a net profit of about INR 137 Crores for FY’21. Considering the current buoyant demand situation, particularly from the steel sector, we expect to deliver double-digit growth in the current year, both in topline and bottom line.

                                                                                                                                                                     Read more…


Iron & Steel summary for June 2021

An R&D collaborative project with private sector participation on development of steel slag-based cost-effective eco-friendly fertilisers for sustainable agriculture and inclusive growth led by ICAR-IARI in association with industrial partners, namely SAIL (20%), Tata Steel (20%) and JSW (20%), has been approved with balance 40% funding by the government.

Production & consumption scenario

Crude steel output rose by 0.5% in June 2021 over May 2021. During June 2021, production and consumption of finished steel declined by 0.2% and 0.8%, respectively, on an M-o-M basis.

Export-import scenario

During the month under review, export and import increased by 10.6% and 2.2%, respectively, over May 2021. India was a net exporter of finished steel during June 2021.

                                                                                                                               Click here to access the full report



Tata Steel’s OMQ Division wins the Greentech Energy Conservation Award 2021

Tata Steel’s Ores, Mines & Quarries (OMQ) Division has received the prestigious ‘Greentech Energy Conservation Award 2021’ during the two-day Greentech Safety Culture & Energy Summit 2021 organised by the Greentech Foundation at Sonmarg, Jammu & Kashmir.

On behalf of the company, Sanjay Kumar Roy, Head Power Distribution, OMQ Division, Tata Steel, along with Pramod Kumar Singh, Senior Manager (EEI), Equipment & Maintenance, Noamundi & Katamati, Tata Steel, received the award from Dharam Pal, IAS, Advisor to Administrator, Chandigarh and Kamlesh Sharan, Founder & CEO, Greentech Foundation.

During the summit, Shri Sanjay Kumar Roy also presented a paper on “Energy Conservation steps taken by Tata Steel at OMQ Division”.

Tata Steel’s OMQ Division received the award for its outstanding achievements in energy conservation. The award is a reflection of the concerted and multiple efforts made by the division in energy conservation, including setting up a 3 MW Solar Power Plant to reduce the carbon footprint and generate power in a sustainable manner, installation of solar operated tube-wells for the community, replacement of energy source from diesel to battery for operation of air conditioning system in the Heavy Earth Moving Machinery, installation of VVF drive and energy-efficient motors in the processing plant, etc. The environmental policy of Tata Steel emphasises efficient use of natural resources & energy, waste avoidance and recycling measures.

D. B. Sundara Ramam, Vice President, Raw Materials, Tata Steel, said, “We are honoured to be recognised for our efforts towards energy conservation and adoption of innovative environmental management practices across the OMQ Division. We are implementing the concept of responsible mining to harmonise economic growth and environmental protection across all our mining locations. As a responsible corporate, we will continue to work towards sustainable development for a better tomorrow.”


Danieli Corus receives ironmaking and steelmaking projects from ArcelorMittal Temirtau

ArcelorMittal Temirtau has contracted Danieli Corus to implement new ironmaking and steelmaking projects at the Temirtau steel plant in Kazakhstan.

The project includes the modernisation of hot blast stoves #8 and #10 serving blast furnace #3, a conversion from a hemispherical to a mushroom-dome design, the installation of a ceramic burner, and the application of the proven Danieli Corus design featuring expansion allowance in the refractory construction. Hot blast stove #9 is also being revamped by Danieli Corus.

Moreover, following the commissioning of the new 300-t converter #3 at Temirtau, ArcelorMittal ordered the replacement of the other two 300-t converters. Like for converter #3, these vessels will be equipped with a maintenance-free suspension system based on vertical and horizontal, patented Daniella elements.

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