The Conversation STEFAN BORGAS, CEO OF RHI MAGNESITA

FOR STEFAN BORGAS, THE CEO OF REFRACTORY PRODUCTS SUPPLIER, THE $3.5 BILLION RHI MAGNESITA, BEING AT THE HELM MEANS HUNTING CONSTANTLY FOR STRATEGIES TO EXPAND IN THIS LOW-GROWTH INDUSTRY. THE HEAD OF THE VIENNA-BASED COMPANY EXPLAINS THE NEED TO TAP THE CIRCULAR ECONOMY OPPORTUNITY AND FORAY INTO DIGITAL SERVICES IN REFRACTORY VALUE CHAIN WITH INDIA AS ITS BASE.

- ASHUTOSH KUMAR

MARKET TRENDS

RHI Magnesita provides refractory materials to cement, glass, steel and copper industries worldwide. How are Indian and global refractory markets changing by demand and growth? 

Refractory materials, and services, machinery and equipment that go into it, are essential building blocks of modern life and society. Materials such as cement, steel, glass, copper and nickel cannot be made without refractories. The service that we provide, the heat management, is essential. The industry is, as a result, driven by demand for these materials. About 50% is driven by construction and global infrastructure development, 15% by transportation such as cars and trains and another 15% by machinery industry. That's the demand mix from our customers.

So, what is going on in these sectors? At the moment, construction and transportation industries worldwide are at a 15-year low because of high-interest rates. Construction industry is subdued and transport is transitioning from combustion tech to electrification. A lot of consumers are waiting to adapt to this transition. From global demand perspective, it is a difficult time.

India is the opposite. It's the one light tower in the world really, together with Middle East and, maybe, Africa. Essentially, India is the shining light in this period of economic darkness.

So, what is different here? India is hopefully entering a sustained phase of massive development led by government efforts in last 10 years. The potential was always there, but in last 10 years, there has been a remarkable improvement. Focus, efforts, demography and education are relatively better developed in India than its counterparts. We have a fantastic opportunity here and we see that in the growth numbers. While the world is shrinking, India is growing by 6%.