Carborundum Universal to restructure Chinese joint venture
By IANSFriday, July 31, 2009
CHENNAI - Abrasives and ceramics manufacturer Carborundum Universal (CUMI) is planning to restructure its Chinese operations by hiving off its abrasives business into a new subsidiary.
“The Chinese operations registered a steep decline due to lower export sales of abrasives and diamond tools. For optimising the operations, the company is exploring demerger of the abrasives and the diamond and diamond tool businesses of the Chinese joint venture,” the company said in a statement.
“The abrasives business would be housed in a new 100-percent subsidiary of Carborundum in China.”
CUMI, part of the $3-billion Murugappa group, holds 49 percent stake in the Chinese venture, Jingri Cumi Super Hard Metal Co that manufacturers synthetic diamonds, tools and abrasives.
The 3,000-tonne-per-annum Chinese plant was commissioned in 2007.
CUMI’s two other overseas operations were also affected in the first quarter this fiscal due to the economic downturn.
The company reported a net profit of Rs.19.2 crore for the quarter ended June 30 as compared to Rs.19.9 crore recorded in the like period last year.
CUMI’s consolidated revenue stood at Rs.282 crore in the quarter, down from Rs.296 crore a year ago.
On a standalone basis CUMI posted a turnover and net profit of Rs.162.5 crore and Rs.13.9 crore respectively.
