Carborundum Universal Ltd (CUMI) said its step down wholly owned subsidiary CUMI Abrasives GmbH has entered into a share purchase agreement with RHODIUS Abrasives, Germany at an enterprise value of Euro 55 million (about Rs 464 crore).
“RHODIUS has over seven decades of experience manufacturing high performance grinding and cutting consumables for machining of metal and stones. RHODIUS brings in a vast and innovative product line up with various patented benefits that create unique selling opportunities”, CUMI Managing Director, N Ananthaseshan said.
More than 70 per cent of RHODIUS revenue was generated through exports to over 100 countries, he said.
“We believe that the expertise and portfolio of CUMI and RHODIUS complement each other well and the acquisition will significantly aid CUMI in global market expansion. We are delighted to be working with the RHODIUS team to fulfill our global plans”, he said.
According to CUMI Director Finance and Strategy, Sridharan Rangarajan RHODIUS concluded the year 2021 with sales of Euro 62.5 million along with a healthy return profile. RHODIUS is a producer of world’s thinnest cutting wheel with extensive innovative capabilities including more cuts per battery charge. The Indian market for Thin wheels was expected to grow fast with the Centre’s ‘Gati Sakti’ programme, he said.
“A CUMI-RHODIUS alliance will be timely to capture these opportunities. We see synergies in assured grain supply, market access in India and Russia, and making CUMI’s products available through RHODIUS’s distribution network”, he said.