The VRD-IFGL group will offer complete packages in converter, electric arc furnace, ladles including slide gate systems and tundish refractories to steel plants.

VRD is part of Austria's biggest industrial group RHI which recorded an annual turnover of Euro 1.6 billion in 1998 of which refractories alone accounted for Euro 1.2 billion, chief executive officer of VRD-Asia Pacific P Podesser said here on Wednesday.

RHI is an Austrian conglomerate with interests in refractories, engineering, insulating and waterproofing materials. Its refractory business has a 40 per cent market share in Europe and is on the verge of acquiring an US company which would raise its market share in the US to around 40 per cent, Podesser said.

VRD has a sales and marketing office in India. Its business turnover of $1 billion in India is expected to double in the next two years, Podesser said. He added that the group has joint manufacturing ventures in China and Indonesia apart from a 100 per cent subsidiary in Malaysia.

He did not rule out the possibility of VRD picking up equity stake in Indo Flogates in the near future. At a later stage, VRD proposes to source products from IFGL and Indo Flogates.

According to Podesser, the global refractories business is dominated by three industrial groups which have consolidated their presence mainly through acquisitions. Besides Vesuvius of UK, the other major competitor is the Kurusaki-Harima combine of Japan which is expected to become a single entity by April 2000.

Sisir Bajoria, the managing director of the Indo Flogates group, said the immediate benefits to the company would include commission on goods imported from VRD and contract supplies to steel producers like Steel Authority of India Ltd against joint bidding by the alliance partners.

According to tentative estimates, the turnover of the IFGL group (including Indo Flogates) is expected to double in the next two years from Rs 45 crore to Rs 90 crore. Bajoria said IFGL Refractories has been drastically restructured over the last couple of years and all debts have been repaid.