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Carborundum Universal Ltd. (CUMI)

Carborundum Universal Ltd. (CUMI) is an industrial ceramic material-based product and serviceprovider. The Company operates through three business segments: Abrasives, Ceramics and

Electrominerals. Abrasive segment comprises of bonded, coated, processed cloth, polymers,

power tools and coolants. Ceramics comprises of super refractories, industrial ceramics,

anticorrosives and bioceramics. Electrominerals include the abrasive/refractory grains and the

captive power generation from hydel power plant.

History

Carborundum Universal Limited (CUMI) was founded in 1954 as a tripartite collaboration

between the Murugappa Group, Carborundum Inc, USA, and the Universal Grinding Wheel CoLtd, UK.

CUMI pioneered the manufacture of coated and bonded abrasives in India, besides super

refractories, electro minerals, industrial ceramics and ceramic fibres. In sync with the global

vision, CUMI is expanding its product spread. The Company makes over 20,000 varieties of

products manufactured at 25 locations across India, Russia, South Africa, Australia, China,

Thailand and Canada. CUMI exports its products to 43 countries spread across the globe. All the

manufacturing facilities of CUMI are ISO 9001:2008 and ISO 14001: 2004 certified for quality

standards and environment-friendly manufacturing practices.

Analysis of Strategic plan of CUMI

1.Product development:CUMI is equipped with a state-of-the-art Research and Development centre that works

aggressively on product development and efficiency enhancement. Its in-house R&D and

collaborative research with leading research institutions have ensured market leadership

in India and abroad. To enlarge its presence in the burgeoning power sector, the company

commissioned a green field plant for the manufacture of metalized ceramic components,at Hosur, in September 2008. With a capacity to manufacture 500,000 cylinders per

annum, this fully automated state-of-the art facility, has advanced process and quality

control systems that are on par with international standards.


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The company started construction of the first phase of the new 10,000 tonnes silicon

carbide microgrits plant, at Cochin SEZ, which would enable CUMI to cater to the

burgeoning demand for speciality grains for the photovoltaic industry, and help leverage

its position as the second largest producer of silicon carbide in the world.

2.Global Acquisitions and DiversificationThe Company has a commanding list of subsidiaries across the globe that

include Volzhsky Abrasive Works-Russia, CUMI Australia Pty Ltd, Foskor Zirconia

Pty Ltd-South Africa, CUMI Middle East-RAK, CUMI Canada Inc, CUMI America

Inc, Sterling Abrasives Limited-Ahmedabad, Net Access India Limited, Southern

Energy Development Corporation Limited (SEDCO), CUMI Abrasives and

Ceramics China Limited (CACCL), Cellaris Refractories India Limited and CUMI

International Limited, Cyprus. CUMI's joint ventures include Wendt (India)

Limitedmanufacturing super abrasives, Murugappa Morgan Thermal Ceramics -

manufacturers of ceramic fibre and Ciria India Limited - specialising in design and

installation of refractory liners for petrochemical and fertiliser industries. This unique

strength allows the Company to serve diverse markets and geographies leveraging the

local strength of its partners.

3.Cost ControlFor CUMI, controlling cost is necessary only in periods of recession but it is considered

as a discipline and a work culture. CUMI's largest division, Abrasives, demonstrates a

fiscal discipline and innovative cost management that has been the focal point of profit

sustainability. Here small teams across the division work continuously to mitigate loss,

reduce cost or control breakages, thereby increasing product and process efficiencies.

These initiatives help to lessen the impact of the cost push in fuel and raw materials. This

model of prudent fiscal management was institutionalized across the company as part of

the best practices, aiming at elimination of non-value adding activities. CUMI also has

manufacturing practices like Lean and Six Sigma in place to improve its cost

competitiveness.

4.Capacity ExpansionCUMI has been following capacity augmentation strategy for a long time which has

helped company to cater to the ever increasing market needs. Last year, a modern, 2,400

tonnes fired refractories plant at Katpadi Taluk, Tamilnadu was established.


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Spread over an area of 22 acres, this automated plant with advanced process controls and

batching systems, is designed to reduce cycle time, improve productivity and ensure zero

defect products. Built to international quality standards, this world class facility is the

first in India and among the very few worldwide, to have batch kilns, with firing

capabilities at 18000C for refractory manufacture.

The plant manufactures a wide range of highly specialised refractories such as High

Alumina, Mullite, High Temperature Insulation products, for various industries such as

Ceramics, Glass, Iron & Steel, Non Ferrous and Chemical Process industries.

Over past 8 years, other expansion plans include Automated thin wheel facility at Hosur

and Chennai, Modern silicon carbide micro grit plant in Koratty, Modern polymer

manufacturing facility near Chennai and World Class facility for wear resistant liner tiles

in Hosur. Capital investment of over Rs 4 billion has been made for modernization as

well as expansion of existing manufacturing facilities.

5.Retaining EmployeesCUMIs believes We retain our people because we believe they are our greatest assets.

CUMI continues to invest in its people, imparting skills and training them for seamless

integration into job roles that define a global work culture. Strategic workshops are being

conducted to align and energize the top management and 'lead to grow' initiatives

nurtured new incumbents, instilling institutional integration. Across the Company,

mentoring programs engage senior management in transition skills and fast track

programmes in leadership to create a talent pipeline. Companywide role specific

programmes are held to train employees across locations, to face the challenges of a

changing economic order and market dynamics.

The Company won the 'Employer Branding Award' instituted by the World HR Congress

in 5 categories: Training and Development, Managing Health in Work place, Innovation

in Recruitment, HR Strategy in line with Business and Talent Management.

CUMI reiterates its commitment to its workforce by its employee responsive policies.The focus is to build people capability and synergies in skills that are required for a

Corporation aspiring to become global.

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