Carborundum Universal Limited has announced the voluntary winding up of its German subsidiary, CUMI AWUKO Abrasives GmbH (CAAG), due to continued underperformance and mounting losses. The decision was approved by the board of CUMI International Limited, Cyprus, the holding company of CAAG, on 30th March 2026.
CAAG, which specialises in manufacturing coated abrasives for wood and leather applications, has faced significant financial challenges due to product and market limitations, intensified price competition, low utilisation, and inventory buildup. The global overcapacity and geopolitical crises have further exacerbated the situation, leading to high input costs such as energy and labour.
Despite several turnaround plans aimed at cost-saving measures, improving operational efficiencies, and exploring new revenue streams, the subsidiary has shown no signs of recovery. The structural market challenges and increased cost pressures have rendered the viability of CAAG’s future operations highly uncertain.
CAAG is not considered a material subsidiary of Carborundum Universal, and the company believes that its winding down will not adversely affect its overall business. The estimated financial impact of the closure is projected to be between ₹110 crore and ₹130 crore, subject to changes depending on asset realisation and other obligations.
Carborundum Universal has assured that all necessary steps in the liquidation process will be adhered to in accordance with German laws before the entity is officially wound down.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Arunika Jain and reviewed by Markets Desk before publication.