The Hindu Business Line : CUMI to ramp up exports, invest in new technologies

CARBORUNDUM Universal Ltd, belonging to the Murugappa Group, is focussing on the next phase of accelerated growth through market expansion, technology, products and sustainable partnerships in its golden jubilee year in 2004.

Speaking to reporters here on Friday, Mr Ramesh Agarwal, Managing Director, Carborundum Universal (CUMI), said the immediate focus was leveraging global opportunities from China and Europe.

The company plans to increase its exports from 10 per cent of the turnover currently to 20 per cent in three years, he said.

Further growth will come from investments of Rs 25 crore - Rs 30 crore a year in future technologies.

Mr Agarwal, who was here in connection with the golden jubilee celebrations, said CUMI has emerged as a major Indian company in the global abrasives and ceramics market owing to its investments in material sciences, consistent returns to stakeholders through a profitable growth pattern and global partnerships.

CUMI, he said, is a major player in the domestic market for brown and white fused aluminium oxide and silicon carbide, which are produced the in Edappally and Koratty grain manufacturing plants in Kerala.

These plants cater to a major part of the raw material needs of the company's abrasives division.

Referring to CUMI's Kerala operations, the Chairman, Mr M.M. Murugappan, said the company was willing to invest further in the State provided the Government gives alternate power at reasonable costs.

The company has so far invested Rs 50 crore in the State. This includes the 12-MW hydel power plant in Maniyar at a cost of Rs 20 crore, which partly serves the power requirements in the Edappally and Koratty plants.

However, the availability of power is low and the company is not in a position to produce 12 MW from the Maniyar plant due to shortage of water.

The company's request to give sanction to set up one more power plant is pending with the Government, Mr Murugappan said.

Last year, the company achieved a turnover of Rs 52 crore from the State, which is expected to touch Rs 62 crore this year, he said.