Consolidated Operating Performance

Off-take from CUMI witnessed a 12% growth in sales CUMI’s consolidated abrasives sales registered an increase of 19% for the quarter. Sales for the quarter was Rs.148 Crores (Rs.124 Crores for the corresponding period of last year). This growth was made possible by the revival in user industry demand mainly in India and Russia.

Off-take from CUMI witnessed a 12% growth in sales. Off take was strong both in the mass market and in the customer segments. With a view to increase operating margins, product mix was realigned to address higher margin segments. Sales growth was stronger in the bonded abrasives segment as compared to the coated segment, where competition continues to be intense. Exports out of India witnessed a growth of over 46%, primarily driven by the increase in exports to Asian Markets. The strategy of focusing on specific products for the export market has started paying good dividends. The profitability of the Indian operations witnessed an improvement, as a result of the initiatives taken to improve raw material consumption efficiencies, optimizing raw material sourcing and improvement in power and fuel consumption matrices.

Sterling Abrasives, which addresses niche segments in bonded abrasives markets registered a 45% growth in sales. Wendt India, the joint venture with Wendt Gmbh, which addresses the super red abrasives market, registered a 72% growth in sales.