Carborundum Universal (CUMI) has plans for two new facilities in India to make thin wheels, and high purity silicon carbide with an outlay of Rs 350 crore in FY25.

In FY24, CUMI acquired the assets, brand and technology of abrasive product manufacturer Dronco of Germany, similar to another German firm Rhodius acquired by CUMI in February 2022. This facility in India will use Rhodius technology, and will have a capacity to produce 50 million thin wheels, with the potential to generate revenue worth Rs 250-300 crore from FY27.

The Murugappa group firm will also set up a six-tpm high-purity silicon carbide facility in Kerala, which is expected to start in about 18 months. The carbide facility will serve the semiconductor segment, whereas high-purity silicon carbide will be used in the technical ceramics field. The company has tied up with an anchor customers to facilitate this. Capacity will be scaled up as per utilisation.

Besides, the firm will set up IT infrastructure and safety-related capex.