Murugappa Group’s abrasives and industrial ceramics maker Carborundum Universal Ltd (CUMI), through its step down wholly-owned subsidiary CUMI Abrasives GmbH, Germany has entered into an agreement to buy 100 per cent stake in RHODIUS Abrasives, Germany at an enterprise value of €55 million (about ₹464 crore). 

The acquisition is expected to enhance technology and geographical access for CUMI and the transaction is expected to be completed by the end of March 2022, according to a statement. 

RHODIUS Abrasives, part of RHODIUS Group, has been manufacturing, high-performance tools for the machining of metal and stone, which are used in over 100 countries worldwide, since 1952. In 2021, the company, which employs more than 300 employees globally, generated revenue of €62.5 million. 

The ₹2,631-crore CUMI believes that the expertise and portfolio of CUMI and RHODIUS complement each other well and the acquisition will significantly aid CUMI in global market expansion. 

“RHODIUS brings in a vast and innovative product line up with various patented benefits that create unique selling opportunities. RHODIUS is a strong proprietary brand with a great reputation and has long-standing dealer relationships across EMEA and USA. More than 70 per cent of its revenue is generated through exports to over 100 countries,” N Ananthaseshan, Managing Director of CUMI, said. 

RHODIUS is also a producer of the world’s thinnest cutting wheel with extensive innovative capabilities including more cuts per battery charge.

“The Indian market for thin wheels is expected to grow fast with the Gati Sakthi programme of the Government of India. We expect growth in the USA market with the US Government committed to spending on infrastructure. Similar trends are visible in other geographies. A CUMI-RHODIUS alliance will be a timely one to capture these opportunities. We see synergies in assured grain supply, market access in India and Russia, and making CUMI’s products available through RHODIUS’s distribution network,” said Sridharan Rangarajan, Director Finance and Strategy of CUMI. 

“CUMI offers RHODIUS Abrasives a unique platform with important strategic advantages, especially in the areas of depth of product range, raw materials and global distribution. This will elevate RHODIUS’s growth strategy to the next level,” said Bernd Lichter, Managing Partner at RHODIUS. 

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