Refex Industries Limited launches RMC for five metro markets

Refex Industries Limited launched ready-mix concrete (RMC) operations at Charholi, Pune, on September 25, 2026, and plans a phased rollout across five metro markets using leased, automated plants. Management said the downstream business will use fly ash from its existing handling ecosystem and may begin affecting profitability after three to five months.

Why has Refex Industries entered RMC?

Refex Industries has entered RMC as a forward integration of its existing Ash & Coal Handling business. Management said the company already supplies ash to infrastructure companies and existing RMC plants, and the new activity is intended to extend its presence into construction materials while increasing fly-ash utilisation.

The company cited an industry estimate that India’s RMC market could grow from 240 million cubic metres, valued at Rs 1,25,000 crore, in 2025 to 317 million cubic metres, valued at Rs 1,74,000 crore, by 2031. This represents a projected compound annual growth rate of 7%, according to management’s October 29, 2026 earnings-call presentation.

RMC is positioned as a complementary activity rather than a replacement for Ash & Coal Handling. In the quarter ended September 30, 2026, Refex Industries said monsoon conditions in the Northeast and Central India reduced ash-handling volumes, although standalone revenue from continuing operations increased 36% year on year to Rs 560 crore.

Where is Refex Industries rolling out RMC plants?

Refex Industries began RMC operations at Charholi, Pune, on September 25, 2026, followed by locations at Hoskote in Karnataka and Kalyan near Mumbai. Management said it is progressing with a phased expansion across Mumbai, Bangalore, Hyderabad, Kolkata and Chennai, without providing a plant-count target or completion date for each market.

The locations named on the call show an initial network spanning Pune, Karnataka and the Mumbai region before the stated five-metro rollout is completed. Management did not disclose the production capacity, utilisation level, lease terms or revenue contribution of the Charholi, Hoskote or Kalyan operations.

Refex Industries said Anil Kulkarni, described by management as an industry veteran with 30 years of experience, leads the RMC business. The company is also building sales, quality and operations capabilities alongside a technology platform for batching, logistics, procurement and financial reporting.

How will Refex Industries operate an asset-light RMC model?

Refex Industries said it will use a capital-light, lease-based model rather than make significant investments in fixed assets. In the question-and-answer session, management described this as a zero-capex approach and said it would seek to balance expansion with unit economics, working-capital discipline and sustainable profitability.

The company did not disclose lease commitments, plant-level capital expenditure, working-capital requirements or the cost of establishing its initial sites. Management instead said the structure would allow it to scale selectively in markets it considers attractive without building a large owned fixed-asset base.

Automation is central to the proposed operating model. Refex Industries intends to use fully automated, technology-enabled and manless RMC plants to address labour shortages, improve operational efficiency and support consistent quality. Management set operating goals of 100% on-time delivery and zero cubic-metre failure, but did not report performance against those goals for the business launched on September 25.

What concrete products does Refex Industries plan to sell?

Refex Industries plans to offer fly-ash-blended and customised concrete rather than only supply commodity raw materials. Management said it is promoting green concrete through greater fly-ash use, supporting cement-industry decarbonisation efforts and developing mixes intended for durability in areas affected by water scarcity and deteriorating groundwater quality.

The company said its RMC offering will be tailored to customer needs, construction applications and project requirements. It did not disclose product specifications, customer contracts, order volumes or selling prices for these solution-led products in the quarter ended September 30, 2026.

Management also cited the company’s experience in logistics, material handling and industrial operations as support for RMC execution. In response to an analyst, management said its technology-driven approach could provide an operational edge over more people-driven models; this was management’s view rather than a reported financial outcome from the new segment.

When could Refex Industries report an RMC profit contribution?

Refex Industries expects the RMC business to show an impact on profitability within three to five months, according to management’s October 29 response to an analyst. Management said new plants require time to be set up, and it did not provide an RMC revenue target, earnings before interest, taxes, depreciation and amortisation margin target, or profit forecast.

The company’s disclosed financial results therefore remain primarily those of its established operations. For the half year ended September 30, 2026, standalone continuing-operations revenue was Rs 1,179 crore, compared with Rs 760 crore a year earlier, while profit after tax was Rs 133 crore, compared with Rs 86 crore.

Other reported businesses showed different sequential trends in the September quarter. Wind-energy revenue was Rs 201 crore, down from Rs 297 crore in the preceding quarter, while its earnings before interest, taxes, depreciation and amortisation changed to Rs 11.32 crore from a loss of Rs 3 crore. Mobility revenue rose to Rs 36 crore from Rs 33 crore, and its earnings before interest, taxes, depreciation and amortisation increased to Rs 1.3 crore from Rs 0.8 crore; RMC received no comparable segment disclosure.

Conclusion

Refex Industries is extending its ash-handling operations into RMC through leased plants, automated operations and higher fly-ash use. The September 25 launch at Charholi, followed by Hoskote and Kalyan, links its existing material-handling activities to a market management estimates could expand by 77 million cubic metres between 2025 and 2031.

The next development is execution of the phased rollout across Mumbai, Bangalore, Hyderabad, Kolkata and Chennai and whether the segment shows the profitability effect management expects within three to five months. Management’s stated operating targets of 100% on-time delivery and zero cubic-metre failure will also be measures of progress as the network expands.