Chennai-based Carborundum Universal Ltd (CUMI), part of the $ 3.8-billion Murugappa group, is planning to expand its production capacity and create new products with an investment of Rs 150 crore .
"Of the total budget, Rs 80 crore will be spent on the electro-minerals division, Rs 40 crore on abrasive products and the rest for other divisions," CUMI managing drector K Srinivasan said on Friday on the sidelines of its annual general meeting, here.
Besides, the company is also planning to invest an additional Rs 50 crore in setting up a special economic zone (SEZ) in Kerala, to manufacture renewable energy materials, he added.
It has identified a foreign partner in the renewable energy segment. However, it refused to disclose the name.
As part of the restructuring of international business, it is planning to bring all the international subsidiaries-CUMI Australia Private Limited, CUMI Canada Inc and CUMI America Inc, under the CUMI International Limited, he adds. At present, around 44 per cent of its revenue comes from the overseas businesses.
The company has reported Rs 953.4 crore revenue for the full year ended on March 31, 2011, as against Rs 761.9 crore a year ago, registering a 25 per cent increase.
At present 44 per cent of the revenue is contributed by company’s overseas businesses, said Srinivasan.
As part of restructuring the international business, the company is planning to bring all international subsidiaries under CUMI International Ltd including CUMI Australia Pty. Limited, CUMI Canada Inc and CUMI America Inc.
Commenting on the company’s proposed SEZ in Kerala, Srinivasan said, the company has identified a foreign partner, whose name he declined to revile to set up a manufacturing facility for raw materials, which are used in renewable energy.
The company is planning to form two joint ventures, said Srinivasan, and would attract investment of around Rs 50 crore.
The company is looking at the supplying material parts for renewable energy generators including silicon wafers and materials for processing silicon wafers, eyeing the growth potential of renewable energy industry in the country.
It is presently supplying micro silicon carbide powder, used in silicon wafers for global customers.
