The Hindu : Business : Carborundum to expand business

Online edition of India's National Newspaper
Friday, Aug 27, 2004

Business

Business

Carborundum to expand business

By Our Staff Correspondent

The Chairman of Carborundum Universal, M. M. Murugappan (left), with the Managing Director, Ramesh Agarwal, at a press conference in Chennai on Thursday. - Photo: Bijoy Ghosh

CHENNAI, AUG. 26. Carborundum Universal (CUMI) was planning to invest around Rs. 25 to 30 crores for expansion of its business over a three-year period, said Ramesh Agarwal, Managing Director of the company.

At a press conference here today, Mr. Agarwal said the investment was necessitated in view of the expansion in both domestic and international markets. The investment would be in its three business divisions — abrasives, ceramics and electrominerals. The company would invest Rs. 8-10 crores in its ceramic plant at Hosur.

Mr. Agarwal said to continue its innovations in material sciences, CUMI had developed an in-house research and development centre, which catered to technology and new product development needs of its business. The company would be investing nearly Rs. 5 crores in this project, he added.

At present, CUMI was having 29 per cent share in the abrasives industry. In 2003-04, the abrasives and ceramics business segments registered significant growth. Sales from the electrominerals segments, however, were lower due to a strategic shift in focus from low-end to high-end product line, he said. The total sales from the three segments were - abrasive Rs. 237.50 crores, ceramics Rs. 52.10 crores and electrominerals Rs. 50 crores.

Mr. Agarwal said CUMI's growth model was partnership driven and the company had entered various sustainable partnerships, collaborations and joint ventures that had helped expand its product profile. He said the company was consciously targeting an export thrust to achieve sales of 20 per cent through an increased distribution in Europe, Middle East and China.

This growth would be achieved in the next three-year period. These would be the initial steps for emerging as an important player in the global abrasives market, he added.

As the company was entering the Golden Jubliee year, the Chairman of CUMI, M. M. Murugappan said that CUMI was the only Indian company making inroads in the global abrasives and ceramics market through a strong foothold in Australia and the U.S.

He said CUMI manufactured over 20,000 varieties of abrasives in seven locations across India.

Printer friendly page
Send this article to Friends by E-Mail

Business