Murugappa Group firm Carborundum Universal Limited (CUMI) is looking to acquire 49 per cent equity stake its joint venture Cellaris Refractories India Ltd (CRIL) from the Israel-based partner Cellaris Ltd, according to a stock market disclosure. Currently, CUMI owns 51 per cent stake in CRIL.
CUMI has signed a letter of intent with Cellaris to buy 6,725,250 equity shares representing the remaining 49 per cent of the equity capital held by Cellaris in CRIL, subject to necessary approvals, the filing said.
Following the stake acquisition, CRIL will become the wholly owned subsidiary of CUMI.
CRIL was set up for the production of light weight alumina cells for refractory/insulation application.
“The change in ownership is expected to speed up scaling up at CRIL and will ensure continuity of operations and product development,” CUMI said in the filing.
Cellaris is involved in the development, manufacturing and marketing of ceramic foams. It also offers Lite-Cell line of non fibrous, highly porous, ultra light ceramic products for high temperature applications, including furnace insulation, kiln furniture, burner blocks, special atmospheres, light weight kiln cars, flat hanging roof, and heating modules.
Founded in 1954, Chennai-based CUMI is a fully vertically integrated abrasives, electro-minerals, ceramics, refractory firm with operations in Australia, Canada, China, India, Middle East, Russia, South Africa, Thailand and the US.
In the quarter ended March 31, 2014, CUMI registered a total income from operations of Rs 536.37 crore with a net profit of Rs 26.16 crore.
On Tuesday morning, shares of CUMI were trading at Rs 170.20 per share, up 1.58 per cent compared with their previous close, on the BSE.
(Edited by Joby Puthuparampil Johnson)