Bharat Refractories Limited (BRL) merged with the Steel Authority of India Limited (SAIL). BRL, which has four plants in Jharkhand and Chhattisgarh, produces approximately 95,000 metric tons of refractories per year. SAIL currently consumes about 85-90% of BRL’s production. With BRL becoming a captive unit of SAIL following the merger, the steelmaker will be able to utilize BRL’s excess capacity for its present and future requirement of refractories. The merger also gives BRL the opportunity to upgrade its technology.
According to SAIL, the captive in-house refractory-making capability will provide a strategic advantage at a time when the company is expanding its production capacity. BRL was incurring financial losses over the years due to aging equipment and lack of capital investment. Since 2007, however, the company became more profitable.