Murugappa group company CUL will pick up majority stake in world's third largest manufacturer of zirconia at undisclosed amount.
Carborundum will infuse funds through its investment subsidiary against the issue of new shares. The remaining stake will be held by Foskor and two other South Africa-based entities.
The company expects to obtain regulatory approvals by the end of this month and the transaction will reflect on its financial from August 1, company secretary Dhanvanth Kumar said.
About Rs. 20-25 crore will be spent on developing this venture over the next 18 months, he added.
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Foskor Zirconia, with an installed capacity of 4,200 tonnes, manufactures zirconia and fumed silica, and is the third largest producer of zirconia in the world. In 2007/08 it had sales of $16 million.