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CUMI to produce ceramic colours

Our Bureau

CHENNAI, July 20

CARBORUNDUM Universal Ltd (CUMI) has set up a pilot plant here at a cost of Rs 2.5 crore for manufacturing ceramic colours. The product has application in sanitaryware, tableware and tile industries.

Company officials told Business Line today that trial production is on in the pilot project and commercial production would begin sometime towards the end of this year.

The products are to be marketed under the brand name `Huecera' (hues for ceramics).

Captive power generation units and export have helped Carborundum Universal hold its forte even as the user industries continue to in a slowdown phase.

In the quarter ended June 30, 2001, CUMI achieved a turnover of Rs 60.80 crore, slightly higher than Rs 60.51 crore achieved in the corresponding quarter of last year.

Net profit was also higher, at Rs 3.48 crore, as against Rs 3.15 crore previously.

At the company's annual general meeting, CUMI's Executive Chairman, Mr M. V. Murugappan, said that the company's exports had increased to Rs 7.7 crore from Rs 4.5 crore in the first quarter of last year, ``which helped offset the drop in domestic sales'' .

On acquisitions abroad, he said that the company was in negotiations with two parties in Europe, and that nothing had been finalised as yet.

CUMI's Director, Mr M. M. Murugappan, said that the companies considered for acquisition were marketing companies.

Company officials said that the company was still on the look out for a buyer for the refractories unit at Palakkad. They said that the industrial ceramics unit at Hosur had turned the corner and had made cash profits last year.