Carborundum Universal to Wind Down Loss-Making German Abrasives Subsidiary

Carborundum Universal Limited ( (IN:CARBORUNIV) ) has provided an update.

Carborundum Universal Limited has announced that its Cyprus-based subsidiary, CUMI International Limited, has approved the voluntary winding down of its German step-down subsidiary, CUMI AWUKO Abrasives GmbH. The move follows prolonged underperformance driven by product and market limitations, intensified price competition amid global overcapacity, low capacity utilization, and rising inventories in its coated abrasives business.

The company cited elevated input costs, including energy and labor, along with geopolitical and macroeconomic headwinds, as key factors undermining the viability of the German unit despite multiple turnaround efforts and capital support. Management emphasized that the subsidiary is not material to the group and expects the financial impact of the winding down to be in the range of Rs.110 crore to Rs.130 crore, while indicating that the broader operations of Carborundum Universal are not expected to be adversely affected.

More about Carborundum Universal Limited

Carborundum Universal Limited is a materials and manufacturing company operating in the abrasives sector through various subsidiaries. Its step-down subsidiary CUMI AWUKO Abrasives GmbH in Germany manufactures coated abrasives used primarily for wood and leather applications, serving niche industrial markets that are sensitive to pricing, capacity utilization, and input cost pressures.

Average Trading Volume: 23,857

Technical Sentiment Signal: Sell

Current Market Cap: 147.9B INR

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