As India’s manufacturing sector accelerates towards unprecedented growth, the refractory industry stands at the heart of this transformation, powering high- temperature industrial processes crucial for sectors like steel, cement, and energy. In this exclusive interview, Parmod Sagar, Chairman and Managing Director of RHI Magnesita India, shares his insights on the evolution of the refractory industry, the role of technology and sustainability, and how companies can navigate challenges while seizing the exciting opportunities ahead. From raw material sourcing to workforce development, Sagar offers a comprehensive view of how RHI Magnesita is positioning itself as a leader in this dynamic sector.

As a leader in the refractory industry, how do you assess the sector’s evolution over the past decade, and what major shifts do you foresee in the next 5 to 10 years?

Over the last ten years, the indispensable role of refractory industry has come to the forefront as rapid industrialization, particularly in developing and emerging economies in Asia, has driven increased demand for high-performance materials. Improved technology and best-practice sustainability have equally influenced the industry, emphasising resource efficiency and reducing carbon emissions. The shift toward more sustainable solutions and adoption of technology  are now significant drivers of innovation in the sector.

The industry has invested in advancements in manufacturing techniques, enabling faster production cycles and reduced waste. Enhanced collaboration among global players has further accelerated knowledge sharing, fostering innovative approaches to addressing industry challenges. Companies are also exploring alternative materials to meet the rising demand for environmentally friendly solutions, ensuring long-term visibility.

Increased adoption of technology including digital solutions would play an influential role in production efficiency and quality improvements. Also, industries are focusing more on sustainability, leading to a growing demand for high-performance, energy-efficient refractories. RHI Magnesita is working in the same direction to meet these evolving needs.

The Indian manufacturing sector is experiencing unprecedented growth. From your perspective, what are the key challenges and opportunities for companies in the refractory business in this dynamic environment?

Indian manufacturing is advancing at a fast pace, particularly in the steel, cement, and non-ferrous metal sectors. This growth offers both challenges and opportunities for the refractory business. The biggest challenge is the volatility in raw material prices, which could impact production costs.  Moreover, fluctuating global trade dynamics and geopolitical and geoeconomic uncertainties leading to disruptions in supply chain are additional challenges that companies must navigate. Balancing quality with cost-effectiveness while being agile and resilient to navigate evolving market dynamics will be a persistent challenge.

However, this dynamic environment offers tremendous opportunities. The demand for high-quality refractories has increased with India's increased focus on the infrastructure sector as an engine for economic growth. Participating in "Aatmanirbhar Bharat" offers compelling opportunities  to strengthen indigenous enterprises and reduce dependency on imports by improving supply chains. The focus on creating self-reliant ecosystems will likely spur domestic innovation and investment in advanced technologies, fostering growth in the refractory industry. Companies prioritising strategic partnerships and sustainable practices will be well-positioned to leverage these opportunities for long-term success.

Refractories are central to high-temperature industrial processes, yet they often operate behind the scenes. How can the industry better communicate the importance of refractories to sectors like steel, cement, and non-ferrous metals?

Refractories are crucial elements in efficient and safe operations of high-temperature industrial processes, yet their significance is often overlooked. For instance, refractories help to save energy, extend the furnace lifespan, and decrease emissions - all factors that end up affecting the bottom line.

Despite their crucial role, the majority of the stakeholders remain unaware of refractories' role as an ‘enabler of modern life’ . Educating stakeholders through industry forums, workshops, and detailed publications can bridge this gap. Engaging in public awareness forums highlighting the connection between refractories and everyday life could also elevate their perceived value.

The end-user industries understand the critical requirement of refractory for their production processes. However, there is further scope to demonstrate the tangible benefits of high-quality refractories in the steel, cement, and non-ferrous metals sectors through case studies, and data-driven insights. Close collaboration with our customers are increasing and gaining an understanding of evolving requirements to help establish how our solutions add efficiency, safety, and sustainability. Furthermore, fostering partnerships with academic institutions and research organisations can drive innovation and generate fresh insights, ultimately reinforcing the essential role of refractories in industrial success.

In an increasingly globalized market, how can companies balance the need to maintain world-class product quality while managing cost pressures from both local and international competitors?

In a globalized market, world-class quality has to be balanced with cost pressures. Companies need to invest in innovation and technology to enhance production processes, improve material efficiency, and cut costs. At RHI Magnesita, vertical integration secures raw material supply at competitive prices and ensures product quality while mitigating external cost pressures.

Additionally, adopting predictive analytics and advanced monitoring systems can optimise resource usage and minimise operational bottlenecks. Companies must also foster agility in decision-making to quickly adapt to fluctuating market conditions and emerging consumer demands.

Besides that, concentration on long-term relationships with customers and the provision of custom solutions would help bring in value beyond cost, hence making the difference even more significant. Operational efficiency and resource allocation are crucial strategies to address cost pressures effectively.

The shift towards sustainability is impacting almost every sector. How do you see the refractory industry integrating sustainability into both its product offerings and operational practices, and what challenges does the industry face in doing so?

Sustainability is increasingly central to the refractory industry. At RHI Magnesita, we have built sustainability into our product offers through the development of low-emission refractories and solutions that increase energy efficiency. This is particularly well illustrated through our carbon footprint reduction and use of secondary raw materials. Our commitment extends to recycling initiatives, where we reprocess used refractories to power our manufacturing facilities, aligning our operations with global sustainability goals.

The biggest challenge, however, is balancing sustainability with the technical performance required by our customers. Refractories must withstand extreme conditions, and meeting environmental goals without compromising on quality requires continuous investment in research and development. Collaboration with stakeholders will remain a priority, for policies that ensure measures to restrict the environmentally harmful landfilling of used refractories and to promote recycling which in turn ensures the availability of secondary raw materials for the industry, contributing towards building a circular economy, will be key.

India’s growing infrastructure sector is expected to drive demand for refractories. What role do you see refractories playing in the future of large-scale infrastructure projects such as smart cities, urban transportation, and energy production?

Refractory industry will continue to play a key role in India’s booming infrastructure sector. Urbanization and infrastructure growth will upgrade big-ticket projects like smart cities and energy-production units and will increase demand for refractories.

Our products support India's ambitious infrastructure goals through better and more sustainable facilities. There is also growing demand for refractories in the current evolution of energy production and transport systems, with refractories experiencing higher temperatures and more rigorous operating conditions. With a focus on innovation, we aim to align our product development with these advanced requirements, ensuring refractories remain integral to the success of large-scale projects in India.

Innovation is a key theme across industries today. How is the refractory industry leveraging new technologies and R&D to develop refractories that meet the evolving demands of high-performance industries?

At RHI Magnesita, we are fundamentally driven by innovation, and we constantly invest in research and development to stay ahead of what the industry demands. Our R&D initiatives also focus on creating predictive models for material performance, allowing us to tailor products to specific industrial needs.These advancements help customers achieve greater operational reliability and sustainability. Moreover, we are also developing refractories that are more sustainable with greater energy efficiency, suitable to the needs of growing demand in the aluminum and steel, as well as cement sectors. Our R&D teams work on cutting-edge materials for delivering extreme performances that would enable customers to meet their operational requirements while supporting sustainability objectives. Collaboration with universities and research institutes further expands our innovation ecosystem, ensuring we remain at the forefront of technological advancements in the refractory industry.

Raw material sourcing and supply chain efficiency are crucial in the refractory industry. Given the current global uncertainties, how is the industry ensuring the stability and sustainability of its supply chains, and what strategies are being implemented to mitigate risks?

Global disruptions in supply chain, has highlighted the need for strategic policy initiatives to diversify the sourcing of critical refractory grade minerals to ensure raw material supply security for the sustainable growth.

The current global uncertainties pose risks of raw material sourcing and thus the inefficiency of supply chain operations. At RHI Magnesita, we mitigate these risks through vertical integration that enables us to control every operation in the supply chain - from raw material sourcing to final delivery of the product. In this regard, we establish long-term contracts with prime suppliers and acquire key assets holding raw materials to mitigate supply chain exposure to volatile markets. We are also leveraging technology to enhance supply chain transparency and traceability, ensuring accountability at every stage of the process. By adopting digital solutions, we can monitor real-time inventory levels and optimise procurement strategies.

Additionally, we further enhance our supply chain flexibility by diversifying suppliers and using advanced logistics technologies that monitor and optimize material flow. These strategies ensure stability and sustainability in a challenging global environment. Building strategic reserves of critical materials and fostering strong supplier relationships further bolsters our resilience against market fluctuations.

As the industry matures, what does the future hold in terms of workforce development and skills training? How is the industry fostering talent in an increasingly competitive labor market, particularly in the specialized field of refractories?

As the refractory industry evolves, it continues to require a skilled workforce. RHI Magnesita is focused on developing its workforce through training programs. We also prioritise talent attraction and retention by providing opportunities for career growth in this highly specialised field. Our initiatives include mentorship programmes, technical workshops, and on-the-job training modules designed to enhance employee expertise. At RHI Magnesita, diversity & inclusivity are strategic advantages, not mere obligations. At RHIM, we believe, D&I will also fuel growth by bringing fresh ideas, fostering innovation, and improving decision-making.

Making our industry more attractive for young talent worldwide, particularly women must continue. Diversification of our talents and leaders is essential for sustained performance growth for a global company that we are now.

We aim to build a workforce possessing the skills to drive innovations and sustainability in the refractory industry. This would only become possible through constant learning and development programs, which nurture expertly trained professionals in the sphere of materials science, engineering, and production technology, ultimately ensuring a robust talent pipeline for the industry.

Finally, what do you believe are the most exciting growth opportunities for the refractory industry in India, and how are companies positioning themselves to take full advantage of these trends over the next few years?

India remains a beacon of optimism in a world grappling with uncertainties. With ambitious infrastructure projects, rising steel production, and expanding manufacturing capabilities, 2025 promises significant growth for industries reliant on refractories. The push towards modernizing infrastructure like airports, roads, and cities will boost demand for top-quality high-performing refractory products This presents one of the greatest growth prospects that India's refractory sector can witness, as all this growth is especially contributed to by infrastructure and by steel, cement, and aluminum demand. All refractories supporting Indian sustainable development and energy efficiency, such as sustainable material composition, advanced production technologies, and AI integration, shall experience an increase in their demand. Companies are increasingly aligning their strategies to capture these emerging opportunities by investing in R&D and adopting cutting-edge technologies. The integration of AI and data analytics in manufacturing processes enables the production of high-performance refractories tailored to evolving market requirements, ensuring sustainable and efficient solutions.

We, as a market leader in the refractory industry will continue to increase our footprint in India by offering world-class products and solutions, while being committed to sustainability and technological advancement. We feel a great deal of potential in being associated with India's infrastructure boom and industrial growth. With dedicated efforts towards innovation and customer-centric solutions, we will continue to be a key contributor in India’s journey towards sustainable industrialisation and robust economic development.