Carborundum Universal Limited has officially commenced commercial production of cutting and grinding wheels at its new Hosur facility effective March 16, 2026. The company announced this milestone through a regulatory disclosure under Regulation 30 of SEBI Listing Regulations, marking a significant expansion that doubles its total annual manufacturing capacity.

Regulatory Disclosure and Capacity Details

The company filed the mandatory disclosure with BSE and NSE, providing comprehensive details about the capacity addition. The new facility significantly enhances CUMI's manufacturing capabilities in the cutting and grinding wheels segment.

Advanced Manufacturing Technology

The Hosur facility incorporates cutting-edge technology acquired from DRONCO GmbH, Germany. The manufacturing lines and technology have been relocated and commissioned at CUMI India's Hosur facility, establishing it as a Centre of Excellence for cutting and grinding wheel manufacturing operations.

Key technological features include:

• State-of-the-art mixing unit with SCADA based process controls
• Automated press lines integrated with unmanned oven handling and curing systems (U-Lines)
• Ambient control system ensuring stability in raw material characteristics
• Organization for the Safety of Abrasives (oSa) certification for meeting highest safety standards

Market Applications and Revenue Potential

The expanded product portfolio serves both domestic and international markets across multiple industrial sectors. The facility targets key consumer industries experiencing strong growth in the cutting and grinding wheels segment.

Strategic Rationale and Company Performance

The capacity addition aligns with growing demand from fabrication, construction, and general engineering industries, which are key consumers of cutting and grinding wheels. According to the regulatory filing, these industries are witnessing strong growth, creating opportunities for expanded market participation.

CUMI, part of the 125-year-old Murugappa Group, reported consolidated revenue of Rs. 4,834 crore and PAT of Rs. 293 crore for financial year 2024-25. The company operates as an integrated mines-to-market organization with over 10,000 employees worldwide, serving customers across diverse industries in over 60 countries.

Carborundum Universal Limited has completed the allotment of 27,936 equity shares under its Employee Stock Option Plan (ESOP) Scheme 2016. The allotment was executed on March 13, 2026, following the exercise of stock options by eligible option grantees within the company.

ESOP Allotment Details

The company has provided comprehensive details regarding the recent share allotment to both major stock exchanges:

Impact on Share Capital Structure

Consequent to this allotment, Carborundum Universal's equity structure has been updated. The total number of equity shares outstanding has reached 19,04,92,502, while the paid-up equity share capital stands at Rs. 19,04,92,502. This reflects the company's continued commitment to its employee incentive programs through structured stock option plans.

Regulatory Compliance

The company has fulfilled its regulatory obligations by formally notifying both BSE Limited and National Stock Exchange of India Limited about this corporate action. The communication was signed by Company Secretary Rekha Surendhiran and submitted to ensure complete transparency and compliance with listing requirements. The shares arising from the exercise of stock options were granted to option grantees under the established ESOP framework that has been operational since 2016.