Carborundam Universal (Cumi), part of the $3.03-billion Murugappa Group, is all set to test waters in the fast-growing renewable energy market with plans being lined up for manfucturing equipment for solar power as well as other green technology industries. Cumi, a key player in abrasive, electrominerals and refractory businesses, will be getting into designing and manufacturing of products for solar photovoltaic, water conservation, and other green-technology industries. ?The company has sought shareholders nod to enter the renewable energy segment. Most probably the company will have a joint venture in place for this new segment of business,? said a source close to the development.
In line with the announcement of Jawaharlal Nehru Solar Mission in 2010, which aims to accelerate the solar energy production in India to 20 GW by 2012, Cumi has firmed plans to leverage the incentives provided by the government, the source said adding, the company expects that this would be a very promising sector to invest in.
?Given the company’s strength in material science, it is well positioned to supply products addressing solar power, water conservation, and preservation and therefore, these activities can be conveniently and advantageously combined with the existing business of the company,? Cumi said in note to its shareholders. Apart from mechineries for solar power industry such as mono and multi crystaline and thin film panels, photovoltaic wafers, modules, concentrated type solar cells, the company will be getting into manufactuing of many other products such as kilns, ovens and heating equipment.
Cumi had posted a 23% increase in its consolidated net sales at R408 crore for the third quarter ended December 31, 2010 as against R327 crore in the same quarter last fiscal. The growth was largely driven by abrasives, which grew by 62%. The strong growth particularly in Indian and Russian markets boosted the growth in abrasives with consolidated sales figrues touching at R185 crore in Q3 as compared to R114 crore.
While ceramics sales registered a growth of around 11% at R85 crore as against R77 crore, electrominerals sales stood at R145 crore in the quarter.
The comapny’s joint ventures in the refractory business namely Murugappa Morgan Thermal Ceramics Ltd and Ciria India Ltd had also registered an 8% growth in turnover. Close to 53% of company’s sales were contributed by exports and overseas operations.