RHI Magnesita India Limited has approved a joint venture agreement with Khemka Refractories Private Limited to build a greenfield refractory recycling plant in Odisha. RHI Magnesita India will hold a 51% majority stake in the venture, which aims to boost raw material circularity and safeguard operating margins against inflation.
The structural partnership establishes a strategic greenfield recycling platform in Odisha to enhance raw material sustainability and industrial circularity.
MUMBAI — RHI Magnesita India Limited ($RHIM.NS$) has formally approved entering into a joint venture agreement with Khemka Refractories Private Limited. The strategic corporate partnership aims to establish an advanced greenfield refractory recycling facility in the industrially significant state of Odisha.
The transaction marks a vital step forward in securing domestic supply chain integration, optimizing material lifecycle sustainability, and mitigating global raw material price volatility for commercial thermal lining operations.
RHI Magnesita India Outlines Joint Venture Governance
According to official regulatory filings submitted to the domestic stock exchanges on June 25, 2026, the Board of Directors of RHI Magnesita India Limited authorized the execution of the Joint Venture (JV) Agreement. Under the terms of the structured corporate arrangement, RHI Magnesita India will maintain operational control by holding a majority 51% stake in the newly formed venture. Khemka Refractories Private Limited will hold the remaining 49% stake.
To operationalize the joint venture, RHI Magnesita India will initially incorporate a new corporate entity as its wholly-owned subsidiary. Following the foundational setup phase, the company will issue and allot equity shares representing 49% of the share capital to Khemka Refractories, aligning the structural ownership with the finalized joint venture framework.
Strategic Location and Greenfield Investment Infrastructure
The targeted destination for the greenfield infrastructure project is Odisha, an eastern coastal state that serves as India's primary hub for steel manufacturing and heavy mineral extraction. Building a recycling facility within this core metallurgical corridor allows the joint venture to minimize freight logistics costs and maximize direct access to spent industrial refractory material from regional manufacturing plants.
The facility will specialize in processing spent materials—such as high-grade magnesia, alumina monolithics, and industrial bricks—and processing them back into high-performance industrial applications. This local processing network is expected to create direct environmental and financial efficiencies by redirecting industrial waste away from regional landfills and back into active production lines.
Industrial Impact and Market Context
For institutional investors, commercial steelmakers, and industrial consumer markets, the joint venture comes at a time when the sector faces significant margin compression. In its financial disclosures for the fiscal period ending March 31, 2026, RHI Magnesita India recorded a notable revenue milestone by surpassing ₹4,000 crores for the first time, marking a 9% year-over-year increase. However, intense local market competition, raw material cost inflation, and energy price volatility compressed its operating EBITDA margins down to 11.9%.
By investing in localized recycling operations with Khemka Refractories, the company intends to structurally protect its long-term profit margins. Implementing comprehensive circular business models reduces dependence on capital-intensive primary raw material imports, providing a defensive buffer against external geopolitical disruptions and volatile ocean freight markets.
Official Sources Section
The corporate notifications and structural project parameters detailed in this announcement have been verified using formal public disclosure reports. RHI Magnesita India Limited filed the required statutory documents under Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015. The official exchange compliance items were processed and dispatched via the automated compliance channels of the National Stock Exchange of India (NSE) and the BSE Limited under the supervision of the corporate secretarial division of RHI Magnesita India Limited.
Quote Section
"According to officials and the regulatory exchange disclosures, the Board of Directors has approved the proposal to enter into a Joint Venture Agreement with Khemka Refractories Private Limited to incorporate a new entity for setting up a greenfield refractory recycling facility in the State of Odisha, India."
Why It Matters
The integration of advanced recycling infrastructure translates directly to reduced operational costs for heavy industries like steel, cement, and non-ferrous metals processing. By turning spent linings into reusable industrial components, the partnership helps domestic manufacturers lower their carbon footprint and align with global environmental, social, and governance (ESG) benchmarks. For market investors, this initiative provides a structured mechanism to defend operating margins from the inflation cycles that typically affect primary commodity procurement.
Key Facts at a Glance
Partnership Entities: RHI Magnesita India Limited and Khemka Refractories Private Limited.
Equity Structure: RHI Magnesita India retains a 51% majority stake; Khemka Refractories holds a 49% minority stake.
Project Nature: Establishment of a greenfield refractory recycling facility.
Target Location: Odisha, India.
Regulatory Compliance: Filed under SEBI Regulation 30 guidelines on June 25, 2026.
FAQ Section
Q1: What is the primary objective of the joint venture between RHI Magnesita India and Khemka Refractories? A1: The joint venture will establish a greenfield refractory recycling facility to process spent refractory materials into reusable, high-grade industrial applications.
Q2: Where will the new recycling facility be located? A2: The facility will be constructed in the state of Odisha, positioning it close to major domestic steel and industrial manufacturing hubs.
Q3: What will the shareholding structure be under the joint venture agreement? A3: RHI Magnesita India Limited will hold a 51% majority stake, and Khemka Refractories Private Limited will hold a 49% stake.
Q4: How will the joint venture impact RHI Magnesita India's business operations? A4: The recycling plant will expand the company's circular business offerings, improve raw material security, and help lower production costs amid margin pressures.
Source: RHI Magnesita India Limited Disclosures, National Stock Exchange of India Ltd.
