Carborundum Universal Ltd (CUMI), part of the Chennai-based Murugappa group, is in the process of finalising three joint ventures (JVs) for its proposed renewable energy material manufacturing plants. The company would announce two of the three joint ventures in a couple of months, said a senior executive of the company.
"These would be mid-size joint ventures providing inputs to the renewable energy industry. We are in the advanced stages of negotiation with some companies to finalise two joint ventures. The third JV would take some more time," said K Srinivasan, managing director, CUMI.
The company is currently into manufacturing abrasives, ceramics and super refractories, and has recently sought stakeholders' approval for its entry into the renewable energy material manufacturing industry.
The company's main focus in the segment would be to serve manufacturing inputs to solar energy industry. It is looking at supply of material parts for renewable energy generators including silicon wafers and materials for processing silicon wafers. It already supplies micro silicon carbide powder used in silicon wafers to global customers. However, the company would stay away from manufacturing of solar panels or power, he added.
The JVs would be established in its own 25-acre central government-approved renewable energy SEZ (special economic zone) in Kochi, Kerala. The investment in the JVs would be announced once the partnership deals are made public. On a consolidated basis, CUMI announced a capex of Rs 150 crore for the current fiscal. This does not include the investment in JVs. Over and above, we expect the investment in this segment also to be significant, said Srinivasan.
While the partner is expected to bring in its brand and intellectual property (IP), CUMI has its strength in access to certain raw materials and process knowledge and capability. Further, the positioning in SEZ would give it an advantage in Indian market along with other Asian countries, he added.
Plans are to engage in business related to silicon and non-silicon based solar power, mono and multi crystalline and thin film panels, photovoltaic wafers, cells, modules, systems, installations and concentrator type solar cells, modules and systems, among others, for industrial, domestic, agricultural, defense and any other applications.