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Acquisition to enhance technology and geographical access

Chennai, NFAPost: CUMI Abrasives GmbH, a step down wholly owned subsidiary of Murugappa Group-owned Carborundum Universal Limited (CUMI), has entered into a binding Share Purchase Agreement to buy 100% stake in RHODIUS Abrasives, Germany (RHODIUS) on 02 February 2022 at an Enterprise Value of Rs 464 crore. The transaction is expected to be completed by the end of March 2022.

Talking about the acquisition, CUMI Managing Director N Ananthaseshan said RHODIUS has over seven decades of experience manufacturing high-performance grinding and cutting consumables for machining of metal and stones.

“RHODIUS brings in a vast and innovative product line up with various patented benefits that create unique selling opportunities. RHODIUS is a strong proprietary brand with great reputation and has long-standing dealer relationships across EMEA and USA. More than 70% of its revenue is generated through exports to over 100 countries,” said CUMI Managing Director N Ananthaseshan.

CUMI Managing Director N Ananthaseshan said the company believes that the expertise and portfolio of CUMI and RHODIUS complement each other well and the acquisition will significantly aid CUMI in global market expansion. He also said the company is delighted to be working with the RHODIUS
team to fulfil its global plans.

CUMI Director Finance and Strategy Sridharan Rangarajan said acquisition of RHODIUS along with just concluded AWUKO Abrasives asset purchase aligns with CUMI’s strategic expansion plans.

“RHODIUS concluded 2021 with a Sales of Euro 62.5 million along with a healthy return profile.
RHODIUS is a producer of the world’s thinnest cutting wheel with extensive innovative capabilities
including more cuts per battery charge. With its highly automated production process, it sets industry benchmark,” said Sridharan Rangarajan.

Sridharan Rangarajan said the Indian Market for Thin Wheels is expected to grow fast with the Gati Sakthi programme of the Government of India.

“We expect growth in the USA market with US Government committed spend on infrastructure. Similar trends are visible in other geographies. A CUMI-RHODIUS alliance will be timely to capture these opportunities. We see synergies in assured grain supply, market access in India and Russia, and making CUMI’s products available through RHODIUS’s distribution network,” said CUMI Director Finance and Strategy Sridharan Rangarajan.

RHODIUS Managing Partner Bernd Lichter said CUMI offers RHODIUS Abrasives a unique platform with important strategic advantages, especially in the areas of depth of product range, raw
materials and global distribution.

“This will elevate RHODIUS’s growth strategy to the next level,” said RHODIUS Managing Partner Bernd Lichter. Investec was the exclusive financial advisor to CUMI and CapitalMind represented RHODIUS on the transaction.

About CUMI

Carborundum Universal Limited (CUMI), established as a tripartite in 1954, is a leading materials
sciences engineering solutions provider. CUMI’s consolidated revenue is Rs 2,631 Crores and PAT of
Rs 284 Crores for the financial year FY 21.

CUMI, part of the Murugappa Group, is listed on the NSE and BSE. CUMI is a Mines to Market Company whose integrated operations include mining, power generation, fusion, manufacturing, marketing and distribution.

CUMI has over 5,000 employees worldwide who collaborate, innovate and develop high-quality material solutions and world-class services in abrasives, electro minerals, refractories and ceramics, serving customers in diverse industries including engineering, fabrication, auto and auto components, infrastructure, steel, glass, power generation and distribution, mining and aerospace. CUMI has a wide geographical presence spanning five continents and exports products to over 43 countries.

About Murugappa Group

Founded in 1900, the Rs 417 Billion (INR 41,713 Crores) Murugappa Group is one of India’s leading
business conglomerates. The Group has 29 businesses including ten listed Companies traded in NSE &
BSE.

Headquartered in Chennai, the major Companies of the Group include Carborundum Universal
Ltd., CG Power and Industrial Solutions Ltd., Cholamandalam Financial Holdings Ltd., Cholamandalam
Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd.,
Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry
Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd. and Wendt (India) Ltd.

The Group holds leadership position in several product lines including Abrasives, Technical Ceramics, Electro Minerals, Auto Components & Systems, Bicycles, Fertilizers, Sugar, Tea and Spirulina (Nutraceuticals).

The Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor,
Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of
professionalism and has a workforce of over 51,000 employees.
For more details, visit https://www.murugappa.com/

About RHODIUS-Abrasives

Since 1952, RHODIUS Abrasives, part of RHODIUS Group, have been manufacturing in the Eifel region
of Germany high-performance tools for the machining of metal and stone, which are used in over 100
countries worldwide.

“To make the work of those using our tools a little easier each and every day”- is the guiding principle at Rhodius Abrasives. It is thus one of the leading tool specialists for machine
cutting and grinding of metal. In 2021, Rhodius Abrasives generated a revenue of EUR 62.5 million
employing more than 300 employees worldwide.

About the RHODIUS Group

The RHODIUS group of companies is one of the largest mid-sized companies in the Eifel region of
Germany. The owner-managed family business and the products of the RHODIUS brands have been
writing a success story of tradition and innovation for more than 190 years and over several
generations.

The overarching holding company, Gebrüder RHODIUS GmbH & Co.KG, professionally supports the
business activities of the operating companies as a service partner and competence center.

d.busch@rhodius.de

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