Refractories Sector Analysis: Deep Dive Into Monolithisch India Limited

Small Summary

The Refractories sector in India is experiencing robust growth, primarily driven by the expanding steel industry, particularly the secondary steel segment. India, as the world's second-largest crude steel producer, has ambitious targets to nearly double its steel output to 300 MT by 2030, which directly fuels demand for refractories like ramming mass. Monolithisch India Limited, a key player in this market, demonstrates exceptional financial performance with historical CAGRs for Revenue, EBITDA, and PAT exceeding 50% and projected growth rates remaining strong through FY28. The company strategically serves over 80% of integrated steel plants and major secondary steel players, maintaining a competitive edge through consistent quality, strategic pricing, and aggressive capacity expansion. Its focus on operational efficiency, R&D, and cautious market-driven expansion, coupled with a debt-free status, positions it for sustained growth amidst an evolving competitive landscape and inherent industry risks such as raw material price volatility and customer concentration.

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A. Industry Overview & Market Landscape

The refractories industry in India is intrinsically linked to the growth and performance of its end-user industries, predominantly the steel sector. Refractories are essential non-metallic materials capable of withstanding high temperatures, crucial for lining furnaces, kilns, incinerators, and reactors. They are vital for various high-temperature processes in industries such as steel, cement, glass, non-ferrous metals, and petrochemicals. The provided data primarily focuses on ramming mass, a specific type of refractory used in induction furnaces, which are prevalent in the secondary steel production segment.

Total Addressable Market Size And Growth Rates

The Indian refractories market is experiencing significant tailwinds from the country's burgeoning steel industry. India is currently the 2nd largest crude steel producer globally, a position that underscores the substantial demand for refractories.

• Crude Steel Production: India's crude steel output was 151.1 MT in 2024-25. The nation has set an ambitious target to reach 300 MT by 2030, indicating a projected growth rate of approximately 8.5% CAGR from 2025 to 2030. This aggressive expansion in steel production directly translates into increased demand for refractories.
• Per Capita Steel Consumption: India's per capita steel consumption stood at 100 kg in 2025, significantly below the global average of 221 kg. The government aims to increase this to 160 kg by 2030, suggesting a strong domestic demand pull for steel, which in turn drives refractory consumption.
• Ramming Mass Market Size: The current ramming mass market size in India is estimated at around 3-3.5 lakh tons a month. This is projected to grow to around 4-4.5 lakh tons a month by 2030. This represents a potential growth of 28.5% to 40% over approximately five years, or an annual growth rate of roughly 5-7% CAGR for ramming mass specifically. This growth is slightly lower than the overall steel production target, possibly indicating efficiency improvements in refractory consumption or a shift in steelmaking processes.
• Current India Steel Production: The current total steel production in India is estimated to be between 170 million to 180 million tons. This figure provides a broader context for the 2024-25 crude steel output and the 2030 target.

Market Structure And Segmentation

The refractories market is segmented by product type (e.g., ramming mass, bricks, castables) and by the type of furnace/process they serve.

• Steel Production by Furnace Type: The data provides a breakdown of steel production methods, which is critical for understanding refractory demand:
  • BOF (Basic Oxygen Furnace): 55%
  • EAF (Electric Arc Furnace): 25%
  • BF (Blast Furnace): 18%
  • Others: 2% This segmentation highlights that BOF and EAF processes dominate steel production. Monolithisch India Limited primarily focuses on ramming mass, which is predominantly used in induction furnaces for secondary steel production.
• Secondary Steel Production: Secondary steel production, primarily through induction furnaces, accounts for a significant 38% of total steel production in India. This segment is a major driver for ramming mass demand. The rapid growth of secondary steel manufacturing, with maximum expansions occurring in the induction furnace process, is a key growth driver for companies like Monolithisch.
• Ramming Mass Consumption: For secondary steel production, 25 to 30 kg of ramming mass is required per ton of secondary steel. This metric is crucial for calculating the total demand for ramming mass based on secondary steel output.