Calderys India May Go South, East In The Mid-Term

Calderys India, a leader in monolithic refractories, serves industries ranging from iron and steel, cement and power to petrochemicals. However, with its main focus being on the steel industry, the latest developments plaguing the latter as well as the current macro-economic parameters are having a rub-off effect on the company too. However, Calderys India, looking into the future, is eyeing newer export geographies like Pakistan and putting more stress on the domestic cement industry where it already commands 40 percent share in monolithics, apart from upgrading its current facilities to bring in better energy efficiency and cost optimisation, Hakimuddin Ali, Chairman, Imerys India and Managing Director, Calderys BU India & Middle East, informs Madhumita Mookerji. Excerpts from an interview:

- Madhumita Mookerji

How has the performance of the steel industry over the last few years impacted Calderys’ performance? What strategies has it adopted to survive the recession?

The iron and steel industry has been going through a tough phase since the last couple of years, owing to issues such as cheap imports, raw material aspects and stringent government regulations because of increasing non-performing assets (NPAs).

Increase in stressed assets and NPAs and insolvency proceedings by the National Company Law Tribunal (NCLT) against key steel players have impacted domestic steel production. As steel accounts for 70 percent of the total refractory consumption, there has been significant impact on the refractory industry too.

Calderys’ segmental growth in iron and steel has shown a marginal increase in calendar year (CY) 2016 compared to 2015.

Our niche product offerings such as shotcrete for torpedo ladles, robotic shotcrete repair for blast furnace stack, trough management and focus on total management solutions will be key growth factors in the coming time.

What is Calderys’ current turnover and growth targets?

Net revenues of Calderys India was `563 crore in financial year (FY) 2016-17. Our prime focus is the iron and steel segment with total management solutions in ladles, convertors, electric arc furnaces (EAFs), snorkels and RH degassers. Further, we aim to strengthen our position in the cement segment where we have more than 40 percent share in monolithics.

What is Calderys’ product portfolio like and which are its bestsellers and why?

Calderys offers complete refractory solutions based on monolithics, ready shapes and accessories, from conception to installation and caters to all industry segments.