Dalmia-OCL, a part of Dalmia Bharat Group, Wednesday announced acquisition of German specialty refractory maker GSB Group GmbH for 15 million euros (nearly Rs 122 crore), which would help the company to expand in Europe.
With the acquisition, Dalmia-OCL will get access to the steel and refractory industry in Europe and technology to make cleaner steel.
Refractory is a specialised heat-resistant material used in making cement, steel, copper, aluminium etc.
GSB Group has two production sites -- at Bochum (Germany) and Bhilai (India).
Dalmia-OCL is betting on the growing steel demand in India, which would stimulate the consumption of refractories here.
"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," Dalmia-OCL CEO Sameer Nagpal said.
According to him, Dalmia Bharat Group is putting around 15 million euros for the acquisition and this would be funded with a "mix of debt and internal accruals."
Nagpal further said the acquisition will give the company newer resources and talents in Europe which will help strengthen "our capability in India, which is the fastest growing market for refractories in the world."