CUMI to acquire controlling stake in PLUSS Advanced Technologies

Carborundum Universal Limited (CUMI) has entered into definitive agreements for acquiring a controlling stake in PLUSS Advanced Technologies Private Limited (PLUSS), a specialty materials research and manufacturing company, at an initial investment of INR. 115 Crores.

PLUSS is involved in the fields of Phase Change Materials (PCM) for thermal energy storage and speciality polymeric additives for polymer recycling and enhancing mechanical properties. PCMs are substances which absorb or release energy during phase transition, from solid to liquid and vice versa. PLUSS plays a key role in the Cold Chain logistics of Sputnik V COVID Vaccines.

Talking about the proposed investment, Mr. N. Ananthaseshan, Managing Director of CUMI said, "Acquisition of PLUSS fits in well with CUMI's long term goal of pursuing opportunities that leverage material science sustainably. PCMs are thermal energy storage materials with versatile applications that serve the UN Sustainable Development Goals of Industry, Innovation & Infrastructure, Sustainable Cities & Communities, Zero Hunger and Affordable & Clean Energy. CUMI has six decades of experience in processing varied materials, manufacturing and distribution across geographies. Leveraging these strengths, we plan to offer global customers, a broad range of specialty PCM products and solutions."

Mr. Sridharan Rangarajan, Director Finance and Strategy of CUMI said, "PLUSS is a niche technology company with good growth prospects. Opportunities in pharma cold chain, refrigeration & food supply chain, medical devices, buildings and HVAC are emerging in India as well as globally. PLUSS with CUMI's global footprint and investment support is well poised to address these opportunities."

Speaking on this occasion, Mr. Samit Jain, Managing Director of PLUSS said, "We started as a bootstrapped businessin 1994. Now, we are getting into Phase 3 of growth, where our focus is on quick introduction of commercialized products through infrastructure creation, continuous innovation, license technologies and strategic partnerships. We welcome the investment from CUMI, part of the Murugappa Group, as our Strategic Partner. With CUMI's experience in material sciences, global footprint and coupled with their investment capabilities, we are confident of accelerating the progress of PLUSS."

Shares of Carborundum Universal Ltd., was last trading in BSE at Rs. 762 as compared to the previous close of Rs. 737.8. The total number of shares traded during the day was 18810 in over 2133 trades.

The stock hit an intraday high of Rs. 774.8 and intraday low of 739.45. The net turnover during the day was Rs. 14343169.

Source : Equity Bulls

Keywords