RHI's Vizag plant begins production

Austria-based refractory manufacturer, the RHI Group, on Wednesday started commercial production at its first manufacturing facility in India at Visakhapatnam.

The company has set up the refractory manufacturing plant along with RV Raju, previously associated with the Rassi Group. Spread over 25 acres at Parawada near Visakhapatnam, RHI Clasil Limited has an annual production capacity of 40,000 tonne.

"We have provided technology and taken 51 per cent equity in the Vizag's project," Andreas Meier, chairman and chief executive officer, RHI group, told mediapersons here.

Currently, the market share of the RHI Group in the world refractory business is 11 per cent. Even before setting up this unit, RHI was importing refractory to India and marketing it here.

In the year 2006, RHI imported about Rs 223 crore worth of refractory to India and sold it to various steel and cement factories, he said.

"In the coming days, steel and cement production will grow significantly in India and this prompted us to set up this high-end quality refractory manufacturing unit at Visakhapatnam," he said.

About 66 per cent of the Vizag unit's production would be exported to other countries, and the remaining would be marketed here, he added.

RV Raju, chairman and managing director, RHI Clasil, said the company would double the capacity soon. The RHI group currently has 31 manufacturing facilities worldwide with an annual turnover of Rs 7,500 crore.