Carborundum Universal Limited (CUMI) was founded in 1954 as a tripartite collaboration between the Murugappa Group, The Carborundum Co., USA and the Universal Grinding Wheel Co. Ltd., U.K. With state-of-the art facilities and strategic alliances with global partners, CUMI has achieved a reputation for quality and innovation. CUMI is one of the five manufacturers in the world with fully integrated operations that include mining, fusioning, wind and hydro power stations, manufacturing, marketing and distribution. Almost all of CUMI’s manufacturing facilities have received the ISO 9001 accreditation for quality standards. A well connected marketing and distribution network of offices and warehouses in India and abroad, ensure that service to customers is given prime importance.

CUMI’s constant innovation and product upgradation, through in-house R&D and strategic alliances with global leaders in grinding technology, have not only ensured it market leadership in India and abroad, but also international recognition as a manufacturer of quality abrasives and a provider of total grinding solutions. CUMI’s products are being exported to more than 50 countries spread across North America, Europe, Australia, South Africa and Asia.

Business area of the company

The Company pioneered the manufacture of Coated Abrasives and Bonded Abrasives in India in addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics and Ceramic Fibres. Today, the Company’s range varieties of Abrasives, Ceramics, Refractory products and electro-minerals manufactured across several locations in and outside the country.

Abrasives: An Abrasive is a substance which grinds, cleans, scours, abrades or removes solid material by rubbing action or by impact. Abrasives are mineral like materials available in different shapes, sizes and types according to need. Abrasive materials and Abrasive products are utilized in several end user industries such as manufacture of Machinery, Electrical & Electronic equipment, Transportation and Metal fabrication among others.

Electro Minerals: The major product groups of this segment are Fused Alumina (comprising Brown and White Alumina), Silicon Carbide (crude, macro and fine), Fused Zirconia, Alumina Zirconia, Pearl Zirconia and Zircon Mullite. The Company also manufactures a range of ‘specialities’ like Semi Friable, Azure-S and fine powders for niche markets. The operations are carried out through eight manufacturing facilities located in India, Russia and South Africa.

Industrial Ceramics: The Ceramics product group offers products which harness the heat resistance / containment, wear resistance and insulation properties of ceramics and also corrosion resistance properties of various materials.

Super Refractories: Refractory is a material that will retain its shape and chemical identity when subjected to high temperatures and is used in applications that require extreme resistance to heat, such as furnace linings. Refractory products are basically used in industries for heat resistant and containment. CUMI’s manufactures Super Refractories (which can be in two forms fired refractories and monolithics) and also Refractory Fibre.

Awards and recognitions

2017-18

The Company’s Electro Minerals division received an award for ‘Strong Commitment to HR Excellence Award’ by the CII for the year 2017-18.
ICAI - Silver Award for Annual Report 2017-18 for Excellence in Financial Reporting
CUMI’s Annual Report for the Financial year 2017-18 has been adjudged as the Best Presented Annual Report among the Annual Reports published in the South Asian Countries.
In October 2017, the Company received the ‘Golden Peacock Award for Excellence in Corporate Governance’ for the year 2017.
The Company receiving the Runner up award in ‘Most Diversified Exporter’ category at the ECGC Indian Exporters’ Excellence Awards 2017.
In March 2018, the Industrial Ceramics division, Hosur Plant received the Japan Institute of Plant Management (JIPM) Award for TPM Excellence, Category A.
In March 2018, the Abrasives Division, Maraimalai Nagar received the Japan Institute of Plant Management (JIPM) Award for consistent TPM Commitment.
In March 2018, the Bonded Abrasives Division, Hosur Plant received the Japan Institute of Plant Management (JIPM) Award for TPM Excellence, Category A.
In March 2018, the Coated Abrasives Division, Sriperumbudur Plant received the Japan Institute of Plant Management (JIPM) Award for Excellence in Consistent TPM commitment.

2018-19

In March 2019, CUMI received the Golden Peacock Award instituted by the Institute of Directors under the category - Innovative Product for its Non-Woven products.
CUMI won 1st place in Young HR Managers Competition for South Region by CII. Category - Employee Engagement, initiative presented was Catalyst - CUMI’s Mentoring Platform
CUMI’s Annual Report for the Financial year 2018-19 has been adjudged by ICAI as winner in the category ‘Silver Shield’ of ICAI’s Awards for Excellence in Financial Reporting.
The Company’s Electro-minerals Division has received the IEI Centenary Excellence Award 2019, from Shri Nitin Gadkari, Minister for Road Transport & Highways of India, Shipping & MSME in a function held at Le Meridian, Delhi.

2019-20

In September 2019, CUMI Industrial Ceramics division was awarded the CSIR Diamond Jubilee Technology 2018 for the technology of Metallization of Ceramics.
CII Kai-Zen Award - Innovative Category; Carborundum Universal Limited, Maraimalai Nagar participated in Innovative Kaizen Category in the theme of “To develop Innovative New Resin for Abrasive Manufacturing through Robust Design Approach” Mr. G. Ananda Kumar and Mrs. C. Meenakshi participated and emerged as 2nd WINNER.
Maniyar Hydel plant won the ‘Safety Award 2019 for Outstanding Performance in Industrial Safety’’ from Kerala State Factories& Boilers Department under Small Factories category in March 2020.
CUMI-SEZ White Fused Alumina plant won the ‘Suraksha Puraskar’ from National Safety Council (Kerala Chapter) under Small Factories category in March 2020.
Maniyar Hydel plant won the ‘Sreshta Suraksha Puraskar’ from National Safety Council (Kerala Chapter) under Small Factories category in March 2020.

Milestones

1954 - 1963

Incorporated as a joint venture between Carborundum Company, USA.
Universal Grinding Wheel Company, UK and the Murugappa Group, India.
Acquired a Coated Abrasives facility from Ajax Products Pvt. Ltd.
Bonded Abrasives facility set up at Chennai, India.
Bauxite mining at Bhatia, Gujarat, India.

1964 - 1973

Manufacture of Super Refractories at Chennai, India.
Brown Aluminium Oxide grains plant at Edappally, India.
Calcination facility at Okha, Gujarat, India.

1974 - 1983

Acquisition of Eastern Abrasives Ltd, a Coated Abrasives manufacturer in Kolkata, India.
Second Bonded Abrasives plant at Hosur, near Bengaluru, India.
Established MMTCL as a joint venture with Morgan Group plc. for ceramic fibres.

1984 - 1993

Expansion of Bonded Abrasives plant at Hosur, India with a modern facility for vitrified grinding wheels.
Silicon Carbide plant at Koratty, India & Refractories plant at Ranipet, India.
Industrial Ceramics plant at Hosur, India.
Acquisition of 40% interest in Wendt (India) Ltd., a company manufacturing Super Abrasives.

1994 - 2003

12 MW Hydel project at Maniyar, Kerala, India.
Second unit at Edapally, India for manufacture of Brown Aluminium Oxide grains.
Acquired a controlling interest in Sterling Abrasives Limited, Ahmedabad, India.
Acquired a controlling interest in Cutfast Abrasive Tools Limited and Cutfast Polymers Limited and subsequent mergers.
Established CUMI America Inc., USA & CUMI Australia Pty. Ltd.
Established a 5.5 MW natural gas based thermal power plant in Nallur, Tamil Nadu, India, through SEDCO.
Acquired Prodorite Anti-Corrosives Ltd., a leading player in anti-corrosion engineering.
Cloth processing facility at Maraimalainagar, Tamil Nadu.

2004 - 2013

Modern Silicon Carbide micro grit plant in Koratty, India.
Modern polymer manufacturing facility near Chennai, India.
Establishment of CUMI Middle East.
Establishment of state-of-the-art Coated Abrasives plant at Sriperumbudur, Chennai, India.
Acquisition of Monolothic Refractory facility in Jabalpur, India.
Acquisition of Volzhsky Abrasive Works, Russia.
Acquisition of 51% holding in Foskor Zirconia (Pty) Ltd, South Africa.
Establishment of world class facility for wear resistant liner tiles at Hosur, India.
Manufacturing facility for Thin Wheels at Uttarkhand, India.
Manufacturing facility for Power Tools at Jigani, Bengaluru, India.
Commissioning of a modern 1,000 tonne Vitrified Bonded Abrasives plant and
2,000 tonne Organic Bonded Abrasives facility in China.
Establishment of state-of-the-art Metallised Cylinders plant at Hosur, India.
Establishment of state-of-the-art Super Refractories plant II at Serkaddu, India.
Setting up of a modern facility for manufacture of anti-corrosive products at Serkaddu, India.
Establishment of automated Silicon Carbide Micro Grit plant in Cochin SEZ, India.
Acquisition of Thukela Refractories Isithebe Pty Ltd, South Africa, a fused mineral manufacturing facility in South Africa.
Setting up of the Ceramic Foam Refractories plant at Kochi, in collaboration with Cellaris Ltd, Israel.

2014-2018

Establishment of CUMI Europe.
Commencement of Toll manufacturing model operations in China.
Amalgamation of Cellaris Refractories with CUMI.
Doubled the capacity of the Metallized Cylinder plant in Hosur, with the machinery and technology acquired from NTK, Japan.
A state-of-the-art Surface Technology Centre was opened at the Bonded Abrasives Plant at Tiruvottiyur.
Inaugurated a Centre of Excellence for Research in Technical Ceramics for industrial & advanced applications at Hosur, Tamil Nadu.
Commissioned three fusion plants at its Electro-mineral Complex at Kochi, Kerala.

Market Cap	22,368 Cr	ROE	15.7%
P/E Ratio(TTM)	49.9	EPS(TTM)	0.0
P/B Ratio	7.7	Dividend Yield	0.3%
Industry P/E	56.9	Book Value	153.0
		Face Value	1.0

Fundamentals