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The company’s ceramics division manufactures wear-resistant and heat-resistant products like industrial and capital consumables. This has translated into two product lines. Industrial Ceramics Industrial ceramics are high alumina ceramic products. These are used as grinding media, wear resistance products, liners and engineered ceramics. Its principal user industries are coal washeries, ceramic tile, power distribution equipment, power generation, cement and fluid handling. Cost and technology are the key success factors in the industry. Super Refractories Refractories are heat resistant and containment products. Super refractories represent high-end grades that can withstand extreme temperatures. The division has two broad product offerings:
The division caters to high temperature applications in the ceramic, non-ferrous, cement, iron and steel, fertiliser, carbon black, glass and chemical processing industries. The industrial ceramics unit was started in 1991 in technical collaboration with Coors Ceramics, USA. The unit's manufacturing plant is an ISO 9001:2000 accredited facility located in Hosur, Tamil Nadu. It is a major player in the industrial ceramics industry in India. Apart from CUMI, there are three other manufacturers. In addition, the domestic market is catered to by imports. In the metallised ceramics segment, CUMI is the only manufacturer in India. In the refractories business, CUMI operates in a niche segment viz. super refractories. There are two other players apart from CUMI in this product line. The operations of the industrial ceramics and refractories businesses were merged into a single business unit during the year under review. The ceramics unit is supported by the following facilities:
During the year, the industrial ceramics operations at Hosur received the commendation certificate from the Confederation of Indian Industry for its ‘Strong commitment to Total Quality Management’ on the journey towards ‘Business Excellence’.
The company’s ceramics division manufactures
wear-resistant and heat-resistant products in the form
of industrial consumables and capital consumables.
This has translated into two product lines, Industrial
Ceramics and Super refractories.
CUMI is a major player in the industrial ceramics industry and the only manufacturer of metallised ceramics in India. Apart from CUMI, there are three other manufacturers. In addition, the domestic market is catered to by imports. Cost and technology are the key success factors in the industry. In the refractories business, CUMI operates in a niche segment viz. super refractories. There are two other players apart from CUMI in this product line. Quality and customers support are the key success factors in the industry. The Industrial Ceramics business witnessed a challenging year with cost pressure due to high price increase in basic raw material viz. alumina. Fuel price and power cost increase further added to the cost pressure. Cost reduction measures were implemented and order booking was selective with focus on low-volume high- contribution segments, so as to reduce the pressure on operating margins. Production was impacted as a result of the installation work relating to the tunnel kiln. Export sales were mainly to CUMI Australia Pty. Ltd which serviced the mining industry in Australia. The Super Refractories business achieved sales growth of 21%. The growth was achieved on account of strong demand from user industries mainly ceramic, carbon black, cement and glass industries and also good offtake from the export markets. There has been a major cost push in key raw materials, ranging from 10 to 25% over 03-04 prices. Actions were initiated during the year to establish alternate sources of raw material to ensure availability at lower cost. In order to meet business growth objectives and customer expectations, capital investments were put in place during the year. An imported tunnel kiln was commissioned at the industrial ceramics plant. Production quality started stabilizing from March 05. With the tunnel kiln in place, consistent product quality has been achieved which will enhance performance of the product at the customer’s end. At the Super Refractories plant a new shuttle kiln was commissioned to service the increase in demand. A manufacturing facility at Okha (in Gujarat) for castables was also set-up. This locational advantage would help to target a higher share in the castables business. Areas for research have been identified for improving technical expertise. Work with an international consultant is underway for process improvement, cost reduction and quality improvement projects. Collaborative research projects have been taken up with leading research institutions in India. New products and new applications have been taken up for development based on customer requirements and future business prospects. The outlook is positive with the key user industries exhibiting good growth trends. The focus is mainly on projects and providing total solution to customers based on the application engineering knowledge acquired over the years. The capacity enhancement projects planned to ensure timely delivery with improved product quality will help to foster business prospects. Plans have been firmed up for new products and new markets in order to increase the customer base. The industry will continue to face pressure on cost due to expected increase in prices of few raw materials. Proactive cost reduction measures based on technical expertise and experience are in place to address this increase.
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