Jul 18 2010 - Leading abrasives and industrial ceramics manufacturer Carborundum Universal aims to get back to high growth trajectory from this financial year as it sees significant growth potential in the domestic market, both in terms of top line as well as margins. The company expects 20 per cent plus top line growth in this financial year.
"The financial year 2009-10 was a very average year despite all the difficulties. However, this year we hope for significant growth in top line and better margins as most of our Indian plants are running out of capacity and we are confident of coming back to 20 per cent plus growth trajectory," Carborundum Universal managing director K Srinivasan said.
The company, which has embarked on an estimated Rs 490 crore expansion in Russia, India and South Africa, had posted a CAGR of 27 per cent during 2005-06 to 2008-09. Excluding overseas acquisitions, the company's CAGR was 17 per cent during this period. In 2009-10, the company grew just about 12 per cent on a standalone basis and 7.5 per cent on consolidated basis mainly due to sluggish global sales.
Besides its ongoing investments such as $75 million in the 100,000 tonnes silicon carbide facility in Russia, $7 million for 4,500 tonnes capacity addition in South Africa, $8 million for 7,200 tonnes microgrit capacity ramp up in Cochin for the PV industry and Rs 75 crore in a JV with Gujarat Mineral Development Corporation for manufacturing brown-fused alumina in Gujarat, Carborundum has also planned a capex of Rs 75 crore for its subsidiaries this year.
The company operates in three areas - abrasives, electro minerals and ceramics. In abrasives, the company expects significant growth in top line and margins in the domestic market while the global market position is likely to be bad this year too. In electro minerals, the company expects growth in both domestic and international markets.
In its third business vertical, ceramics, the company intends to improve volumes and margins with additional capacity of metallised cylinders, meant for high-power transmission segments. In super refractories, the company looks to achieve higher capacity utilisation and better margins.
"The financial year 2009-10 was a very average year despite all the difficulties. However, this year we hope for significant growth in top line and better margins as most of our Indian plants are running out of capacity and we are confident of coming back to 20 per cent plus growth trajectory," Carborundum Universal managing director K Srinivasan said.
The company, which has embarked on an estimated Rs 490 crore expansion in Russia, India and South Africa, had posted a CAGR of 27 per cent during 2005-06 to 2008-09. Excluding overseas acquisitions, the company's CAGR was 17 per cent during this period. In 2009-10, the company grew just about 12 per cent on a standalone basis and 7.5 per cent on consolidated basis mainly due to sluggish global sales.
Besides its ongoing investments such as $75 million in the 100,000 tonnes silicon carbide facility in Russia, $7 million for 4,500 tonnes capacity addition in South Africa, $8 million for 7,200 tonnes microgrit capacity ramp up in Cochin for the PV industry and Rs 75 crore in a JV with Gujarat Mineral Development Corporation for manufacturing brown-fused alumina in Gujarat, Carborundum has also planned a capex of Rs 75 crore for its subsidiaries this year.
The company operates in three areas - abrasives, electro minerals and ceramics. In abrasives, the company expects significant growth in top line and margins in the domestic market while the global market position is likely to be bad this year too. In electro minerals, the company expects growth in both domestic and international markets.
In its third business vertical, ceramics, the company intends to improve volumes and margins with additional capacity of metallised cylinders, meant for high-power transmission segments. In super refractories, the company looks to achieve higher capacity utilisation and better margins.
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