As Foscor Zirconia losses mount, CUMI may sell stake in S Africa subsidiary

The plant produces between 2,800 to 3,000 tonnes of three grades of Zirconia, all of which is sold in Europe, India and the US

Caborundum Universal Ltd (CUMI) is looking at options, including selling its stake in Foscor Zirconia, a subsidiary in South Africa, as the business has not turned around over a period of time. The profit before interest and tax for the quarter ended June 30, 2019, was adversely impacted, amounting to about Rs 6 crore due to losses in this subsidiary.   

The company has two options -- one, to shift the factory to a location where it can produce at a lower cost and another, to sell if off to a buyer and move out. The company said that it