In its first international acquisition, refractory or heat-resistant material business Dalmia-OCL said it has bought Germany-based GSB Group GmbH operating in the same segment for $17 mn (15 million euros or Rs 122 crore at current exchange rate).
Dalmia-OCL, a unit of Dalmia Bharat Group, makes refractories or heat-resistant substances that are used, among other things, for lining metallurgical vessels that play an important role in steel production.
Sameer Nagpal, chief executive of Dalmia-OCL, said the acquisition comes at a time when the European market is consolidating and opening up opportunities for a company like theirs. He said, “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.”
Nagpal added that the acquisition will also make Dalmia-OCL one of the specialised manufacturers of refractories, for cleaner steel production, a focus area for Indian steel makers as well.
GSB has production sites at Bochum in Germany and Bhilai (Chhattisgarh) in India.
Dalmia-OCL claims to be the second-largest refractory company in India, with a production capacity of 250,000 tonnes a year.
The company expects a revenue of Rs 800 crore this year.
Dalmia-OCL offers refractories in over 40 countries, catering to various industries including iron and steel, cement, glass, non-ferrous metals, energy and petrochemicals.
It has four manufacturing plants in India and one in China.
Dalmia Bharat Group has presence in sectors including cement, sugar, refractories and power.
