The Hindu Business Line : Refractories: Growth all the way

It’s been a long journey for the Indian refractory industry since the first factory line production of refractories started in Kolkata – or Calcutta as the city was called then – in the year 1874.

Today, the industry comprises over 100 established units, with 11 large plants, 24 medium-scale units and the rest in the small-scale sector. However, while the refractory industry in India took off in the late 19th century, the real growth came in th e late 1950s when the public sector steel plants were set up and Tata Steel embarked upon its expansion plans.

Currently, the Indian refractory industry has an aggregate production capacity of 20 lakh tonnes per annum. The capacity utilisation, however, currently stands at around 60 per cent, or 11.5-12 lakh tones per annum.

About 75 per cent of the refractories that are manufactured find application in the steel industry, 12 per cent in the cement industry, 5-6 per cent in non-ferrous industries, three per cent in the glass industry and the balance in other industries.

Necessarily, refractories are used either where high temperature or high rate of abrasion / corrosion/erosion is involved. Traditionally, refractories are made of naturally-occuring minerals, such as bauxite, kyanite, magnesite, fireclay, chrome ore, etc. Lately, however, the industry has been using man-made raw materials, such as brown-fused alumina, tabular alumina, fused magnesia, silicon carbide, magnesia alumina, etc.

Size of industry

Dr J.J Irani, former MD of Tata Steel

The size of the Indian refractory industry has been pegged at Rs 2,300 crore and it is stated to be growing at 8-10 per cent per annum. Although the specific consumption of refractories has gone down from 30 kg per tonne of steel about 20 years ago to 12-13 kg on an average for the steel industry as a whole and as low as 7-8 kg in the case of some more efficient steel units, the scope for growth is good in view of the continuing growth in the Indian economy and the government’s focus on infrastructure development.

Says Dr J.J. Irani, Director of Tata Sons and Former Managing Director of Tata Steel: “With the government aiming to invest more and more on infrastructure development, the steel industry in the country is slated to grow to, possibly, 120 million tonnes or even up to 150 million tonnes by 2015. According to most reports, the cement, aluminium and other industries are also to grow to unprecedented heights. This should be good news for refractory producers in India”.

According to Dr Irani, Refractory producers in India “have to rise to the occasion by providing ready, regular, speedy and consistent supplies”. It would also be important for Indian refractory manufacturers to focus on their raw materials security, he says.

Industry insiders do acknowledge that raw materials security is a concern especially with China imposing quantitative restrictions on export of raw materials and also jacking up prices over the last year or so. Cheaper refractory imports from China are also putting a pressure on the industry’s margins.

Hiring and retaining skilled manpower is a major challenge that the Indian refractory industry has to cope with.

The industry is now trying to boost exports by positioning India refractories “between China on the one hand and European producers on the other”. Indian refractory exports stood at Rs 313.65 crore in 2006-07. The industry is represented by its national organisation, the Indian Refractory Makers Association.

Indian Refractory Makers Association

Set up in the year 1958, the Indian Refractory Makers Association or IRMA is the national organisation of refractory manufacturing companies and is celebrating its Golden Jubilee this year. It is the national organisation of companies designing, engineering, installing and maintaining refractories for cost-effective and value-added operations in the manufacture of steel, non-ferrous metals, cement, glass, ceramic products, calcinations of lime and other non-metallic minerals, chemicals & fertilisers, boilers & incinerators and a host of other applications.

At present, IRMA’s membership comprises 85 refractory manufacturing units, including associate members that produce equipment, accessories, instruments and raw materials that are used the manufacture of refractories. IRMA member-companies produce firebricks, high alumina, carbon basic, zircon, zircon mullite and silicon carbide refractories as also specialty products such as monolithics, slide gate plate & auxiliaries, continuous casting refractories, etc.

These refractory products find application in various types and zones of high-temperature kilns and furnaces in steel, cement, glass, non-ferrous and other such industries. At least two IRMA member-companies have set up plants abroad while one has taken over some units in the US and UK.

The main function of IRMA is to work for the healthy growth of the refractory industry in India. A wide range of insulating and other qualities of refractories capable of withstanding high-temperature erosion/corrosion in various furnaces and kilns used in steel, cement non-ferrous metals and such industries is manufactured by the Indian refractory industry.

The principal services of IRMA include providing trade information, representing to the authorities on issues of common concern to members, extending advisory services to the members on import/export policy, legal aspects relating to taxes and duties, preparing background reports, organising seminars and conferences, etc.

IRMA also encourages its members on issues such as quality management, energy conservation, exports, HRD, etc.

To showcase Indian refractories to the global community as also to expose the Indian refractory community to a wider audience and latest developments in refractory technology, IRMA has, since 1994, organised the Indian International Refractories Congress (IREFCON) every two years.

The biennial event is also aimed at facilitating interaction between refractory producers and users and sharing of information, ideas and their experiences.

IREFCON 2008, which is currently being held, is set to become a landmark event for the Indian refractory industry.

Over 450 delegates are participating in IREFCON 2008, including 60 from overseas countries such as the US, France, Germany, Canada, China, Russia, Korea, Malaysia, etc.

Nine theme lectures have been lined up even as 50 oral presentations and 14 poster presentations will be made at the event. The keynote address at IREFCON 2008 was delivered by Prof. Michel Rigaud of the University of Montreal, Canada, and globally-renowned expert on refractories.