Calcutta, Dec 6: Carborundum Universal's (Cumi) unit at Visakhapatnam in Andhra Pradesh is likely to be sold to Vesuvius India Ltd, the subsidiary of Cookson Group plc, for a maximum consideration of Rs 6 crore for the fixed assets and the value of net current assets as on the date of the transfer.The Andhra unit of Cumi manufactures monolithic refractories primarily for the steel industry. With sluggishness in the steel industry, the performance of the unit did not meet the expectations of the Cumi management.
Besides, the management realised that ``success of monolithics business is primarily dependent on product systems management which demands high skill base in servicing the application of the products to the user industries.''Cumi's strength has been in the supply of refractory materials only. The other manufacturer of monolithic refractories, KSR International of the Bajoria group, was recently acquired by Vesuvius India.
The Cumi management has confirmed (in the notice convening an extraordinary general meeting on December 13,1999) that it is ``negotiating with Vesuvius India for the proposed sale of the undertaking at Visakhapatnam as a going concern together with all assets and liabilities along with the use of all licences, permits, consents, approvals as also the rights, benefits and obligations attached to the unit.''
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