Dalmila OCL recenlty announced to demerge its entire refractory business under one single roof named Dalmia Bharat Refractories Ltd (DBRL). The new entity is expecting a 20-25 per cent growth in the business in the fiscal year 2022-23. THe company is bullish on the positive sentiment which is backed by a steady demand from Indian steel and cement sectors. The company is also aiming to rope in more global customers, who might be looking for an alternative to China. According to a report from Hindu Business Line, Sameer Nagpal, MD and CEO of DBRL has grown around 20-25 per cent in the pre-pandemic years and is likely to close FY23 with a turnover close to Rs 1,200 crore. The company management is hopeful of doubling the revenue by 2025. The refractory industry is still going through uncertainty and turbulence. The circumstance in China continues to remain volatile and the rise in ocean freight is a big challenge for the industry. Even in Europe, the spike in energy cost is playing out and reduction in steel production is hurting the markets. However, the company finds a comfort seat in India, which is likely to be the growth driver for the production of steel and cement.

Nagpal said that the company is already above 20-25 per cent above the pre-pandemic levels and expects similar growth in FY23.Refractory products are vital in all high-temperature processes in the making of metals, cement, glass and ceramics. The steel industry is one of the biggest consumers of these products, accounting for up to two thirds of the total production. However, the domestic refractory industry is highly dependent on China for raw materials such as magnesite and bauxite. DBRL has diversified its source base and has created a stock of raw material to meet the growing demand. Nagpal said that the company would be able to build on the two mega trends, which includes the growth in Indian market and rejigging of the supply chain away from China. Consolidation of Company Dalmia Bharat Group recently announced to demerge all of its domestic refractory business into a single consolidated entity and named it Dalmia Bharat Refractory Limited. Post consolidation, the three entities namely - Refractory unit of Dalmia Cement Bharat, GSB India and Dalmia Bharat Refractories - will be transitioned into DBRL. The company plans to list itself on BSE during the financial year starting on April 1, 2022. It is also exploring inorganic growth possibilities in Europe which has a large steel producing capacity. After the merger process, DBRL will be able to accelerate capex, allocate larger resources to Research and Development (R&D) and quicken its digital transformation to serve its growing customer base. The consolidation is aimed at strengthening DBRL’s financial standing, increasing its investment capabilities, expanding its talent base, and positioning the new entity as a trustworthy and long-term partner for its customers in steel, cement and other industries having high temperature processes.