Carborundum Universal Limited has informed the Exchange about Capacity addition
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Carborundum Universal (CUMI) has started commercial production at its new cutting and grinding wheels (Thin Wheel) facility in Hosur on 16th March 2026. The plant uses manufacturing lines and technology acquired from DRONCO GmbH, Germany (acquired in 2023) and is being positioned as a Centre of Excellence. The new facility adds 46 million wheels per annum of capacity, doubling CUMI's total cutting and grinding wheel capacity from 45 million to over 90 million wheels annually. The investment was Rs. 83 crore (excluding land), funded entirely through internal accruals, and at peak utilisation the plant is expected to generate Rs. 160 crore in turnover. The existing plants at Roorkee and Chennai were running at 86% annualised utilisation till Feb 2026, indicating strong demand. Products will serve fabrication, construction, general engineering and allied sectors in both domestic and export markets.
Positive for shareholders - the capacity expansion directly addresses high existing utilisation (86%) and opens a clear revenue growth runway of up to Rs. 160 crore from this plant alone. Since the Rs. 83 crore investment was funded internally without debt, it preserves balance sheet strength while setting up a multi-year growth lever. The DRONCO technology base also strengthens CUMI's competitive position in the global abrasives market.