Annual Report 2010 - 2011
Year’s Summary Striking Gold i Chairman’s Statement xiii Financial Statements Consolidated Financial Statements & Auditor’s Report Standalone Financial Statements & Auditor’s Report Director’s Report
23 50 Financial Track Record 87
General Shareholder Information
Corporate Governance & Auditor’s Certiﬁcate
Record Sales. A growth graph climbing a new high. Produc on lines clocking op mum u liza on. In 2010-11 CUMI struck gold. Abrasives, Electrominerals and Ceramics - each of the business divisions rode the wave of a buoyant market, turning in record sales and proﬁts. CUMI’s plant at Volzhsky, Russia, also touched gold, ramping up growth volumes and reaching the milestone of 50 years of opera ons. Across geographies, CUMI expanded its footprint with exports out of India nearing the Rs 2 billion mark. CUMI mined gold from a demand driven market, with innova ve products and enhanced customer touch points. The company invested in new ventures, enhanced capaci es, automated processes and explored new market segments. Across loca ons, people eﬃciencies kept pace and stayed connected to the golden run. For CUMI, striking gold seemed eﬀortless and part of a pioneer’s preroga ve.
CUMI’s plant at Volzhsky, Russia, celebrated its Golden Jubilee on 22nd April, 2011 marking a momentous milestone in its history. The ﬁ ng ﬁnale was the apprecia on by the Governor of the Province on the company’s employee friendly policies, robust business model and the strong commitment to environment and community. Inves ng in new expansions was another indica on of CUMI’s long term and sustained commitment to the business in Russia. Mr Sergey Kostrov, General Director, VAW, was honoured as the Best CEO in the province, a recogni on of the outstanding all round performance of the company.
New Products, New Markets
Each of CUMI’s businesses focused on developing applica on speciﬁc products to address diﬀerent customer segments. The electrominerals business con nued to beneﬁt from the growth in the photo voltaic sector, achieving a growth of 100% in this market segment. The Azures® brand of high performance, sintered alumina abrasive grains, with uniform submicron crystals and unique fracture characteris cs expanded market space in bonded and coated abrasives used in high speed rail track grinding, roll grinding and precision grinding in bearing, cranksha , turbine blade and gear manufacturing industries. The Foskor zirconia plant at Phalaborwa, South Africa expanded into new geographies with its fused stabilized zirconia products. Manufactured from a uniform blend of monoclinic and cubic zirconia through co-fusion of selected grades of raw materials, these products found a ready demand in slide gate refractories for con nuous cas ng of steel, refractory nozzles, engineered ceramics, ceramic ﬁlters and thermal spray powders. The super refractory segment posted record growth with strong oﬀtake from glass, ceramics, iron and steel and carbon black industries. The division bagged large project orders for refractory design and installa on services for mineral and chemical process industries and expanded market share in iron and steel plants in Southern India, through specialised ﬁred products, precast shapes and cost eﬀec ve monolithic refractory products. In an -corrosive products, polymer concrete cells registered volume growth in the export market.
The Abrasives division leveraged its applica on engineering exper se to oﬀer a range of high technology products for major OEM’s and user industries. The range of diﬀeren ated, customer speciﬁc product oﬀerings contributed to a steep increase in sales volumes. The new vitriﬁed range of precision grinding products developed during the year included: single and mul rib gear grinding wheels using the VCA2 and...