Financial Daily from THE HINDU group of publications
Wednesday, Jul 17, 2002
Financial Daily from THE HINDU group of publications Wednesday, Jul 17, 2002 |
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Corporate
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Restructuring CUMI gets Rs 31 cr for Palakkad unit M. Ramesh
CHENNAI, July 16 CARBORUNDUM Universal Ltd has effected the sale of its electrocast refractories unit at Palakkad on April 17, for a consideration of Rs 31 crore. The sale of the unit to SERP Refractories India Ltd (part of the Saint-Gobain group) had been announced earlier, but the company had withheld information on the consideration. But the company's latest annual report discloses that the sale was for an amount of Rs 31 crore. It is, however, not clear as to what constitutes `profit on sale of undertaking', of the Rs 31 crore. Company officials said that the information would be disclosed later. This is the second time the company is selling a refractories unit. In 2000, Carborundum Universal made a Rs 3.45-crore profit on sale of its monolithic refractories unit at Vishakapatnam. The buyer was Vesuvius India. Carborundum Universal, part of the Murugappa group, manufactures three types of products, viz., abrasives (bonded and coated), industrial ceramics and refractories, and electrominerals. The annual report says that the market for abrasives, which slid into a slowdown phase in 2000, is now showing signs of picking up. The company expects the market to grow by 3.5 per cent this year.In industrial ceramics, the company sees opportunities in the high-value super refractories and threats from consolidation of global players "who have branded products, access to overseas process designers and R&D support". Carborundum Universal also recognises the threat from Chinese electrominerals. "Increase in cost of calcined alumina and electricity are continuing concerns", the report says. IT initiatives fruitful: The Murugappa group had made its first foray into IT-enabled services by its Rs 18-crore takeover of Webword Holdings & Management Pvt Ltd. Webword has two subsidiaries, Laserwords Pvt Ltd and Apex Abstracting & Editing Services Pvt Ltd. Laserwords achieved a turnover of Rs 15.66 crore and made a net profit of Rs 7.76 crore. Apex Abstracting's turnover was Rs 1.09 crore and net profit, Rs 2.94 lakh.
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