News
Chennai, 3 July, 2008: Carborundum Universal Ltd, India, (CUMI), has entered into an Agreement with Foskor (Proprietary) Limited, South Africa to acquire 51per cent equity stake in Foskor Zirconia (Proprietary) Limited, Phalaborwa, South Africa, (FZL). This agreement is subject to regulatory approvals in South Africa.
With a 4200 tons per annum installed capacity for Zirconia, FZL is the 3rd largest producer of Zirconia in the world. Fumed silica is also produced as a by-product of the furnace operation. This investment will be a good platform for CUMI to address the growing minerals business. The sales of FZL in 2007-08 were US $ 16 million.
Foskor was seeking a strategic partner to take FZL to its next phase of expansion and growth. CUMI is one amongst the two companies globally with interests in Abrasives, Ceramics, Refractories and Minerals and was hence a logical choice.
CUMI is a fully vertically integrated company with operations in Australia, Canada, China, Russia, Middle East, US and in India. CUMI brings to FZL its mineral processing knowledge, its brands, market access, application engineering expertise and global management practices. This will help FZL to grow its range of products and business.
While CUMI through its investment subsidiary, will hold a 51per cent stake in FZL, the balance 49per cent will be held by Foskor (Proprietary) Limited and two other South Africa based entities. This change is expected to benefit FZL’s customers, employees and the community in Phalaborwa.
About CUMI
CUMI is one of the flagship companies of the USD 2.4 billion Murugappa Group. The company has pioneered the manufacture of coated and bonded abrasives in India and has made forays into other material science areas such as ceramics (Industrial Ceramics, Ceramic Fibre Refractory and Bonded Refractories) and electrominerals. CUMI is the largest company in the abrasives business in India.
About the Murugappa Group
Headquartered in Chennai, the Rs. 9582 Crore (USD 2.4 billion) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Sanitaryware, Plantations, Bio-products and Nutraceuticals, its 29 registered companies have manufacturing facilities spread across 14 states in India. The organisation fosters an environment of professionalism and has a workforce of over 32,000 employees. The Group has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Cargill, Roca and Groupe Chimique Tunisien has consolidated its status as one of the fastest growing diversified business houses in India