SCP, located in Horseheads, NY, USA, specializes in producing high-quality Nitride Bonded Silicon Carbide (NBSiC) products. Their product range serves industries such as power generation, mining, material handling/processing, non-ferrous molten metal transfer, and petrochemical refineries.

The company will get access to SCP’s extensive customer network in the US to market its products to industries such as glass, super alloys, petrochemicals, non-ferrous and heat treatment. Additional synergies are expected out of opportunities to supply CUMI’s grade of raw materials to SCP and in joint development of products and technologies.

The said transaction will be completed by31 October 2024.

Sridharan Rangarajan, managing director of CUMI said, “Acquisition of SCP aligns with CUMI’s strategic expansion plans. SCP concluded 2023 with sales of USD 4.2 million with a healthy profit and return profile

CUMI would leverage SCP’s superior nitriding furnace design, patterning and tooling capabilities to address the Indian market for critical thermal applications majorly in power, steel and mining sectors. CUMI would tap into SCP’s extensive customer network in Americas to market its products to industries such as glass, super alloys, petrochemicals, non-ferrous and heat treatment. Additional synergies are expected out of opportunities to supply CUMI’s grade of raw materials to SCP and in joint development of products and technologies.”

Joshua Dahlman, president of SCP, and Rick Cleveland, vice president of SCP, shared, “Joining CUMI strengthens SCP to grow its business with an expanded product portfolio and additional market access. Combining the strengths of CUMI and SCP will help develop newer products and bring synergies in market reach. We are thrilled to become part of CUMI.”

Meanwhile, the company has also entered into a share subscription and shareholders’ agreement with Amplus Energy Solutions PTE, Singapore and Grian Energy (GEPL) to invest Rs 8 crore in GEPL. The company will acquire 4.19% stake for accessing the contracted capacity of around 10 MW in the captive power plant of GEPL.

The proposed investment is aligned with the sustainability goals of the company which operates power intensive facilities in its manufacturing process. This investment would aid the company to source clean green energy thereby reducing the carbon foot print. The said acquisition will be completed in March 2025.

Carborundum Universal is engaged in the business of manufactures and sells mainly Abrasives, Ceramics (Industrial Ceramics, Refractories) and Electrominerals.

The company’s consolidated net profit fell marginally to Rs 112.96 crore in Q1 FY25 as compared with Rs 113.23 crore in Q1 FY24. Net sales decline marginally to Rs 1,184.10 crore in Q1 FY25 compared with Rs 1190.94 crore in corresponding quarter last year.