Carborundum Universal to buy PLUSS Advanced for ₹115 crore

September 6, 2021: Murugappa Group company Carborundum Universal (CUMI) will buy a controlling stake (72 percent) in PLUSS Advanced Technologies (PLUSS), a speciality materials research and manufacturing company, at an initial investment of ₹115 crore, before October 31, 2021. 

"CUMI being a material science-oriented company, PCM (phase change material) will provide opportunities in emerging areas of material science with applications in energy storage and conservation in life sciences, health care, food, agriculture, buildings, refrigeration equipment and HVAC," CUMI noted in the regulatory filing.  

The standalone revenue from operations of PLUSS stood at ₹36.31 crore for the financial year 2020-21 compared to ₹27.04 crore in FY 2019-20 and ₹28.65 crore in FY 2018-19. 

Gurugram-headquartered PLUSS is engaged 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 that 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.

With over 180 employees, PLUSS has a manufacturing footprint over three facilities situated in Bawal, Gurugram, with dedicated laboratories recognised by the Department of Scientific & Industrial Research.

N Ananthaseshan, managing director, 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. 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 speciality PCM products and solutions.”

Sridharan Rangarajan, director – finance and Strategy, CUMI, said, “PLUSS is a niche technology company with good growth prospects. Opportunities in the 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."

PLUSS started as a bootstrapped business in 1994. Now, the company is entering phase 3 of its growth, where the focus is on the quick introduction of commercialised products through infrastructure creation, continuous innovation, license technologies and strategic partnerships.

Samit Jain, managing director, PLUSS, said, “With CUMI’s experience in material sciences, its global footprint, and its investment capabilities, we are confident of accelerating the progress of PLUSS."

CUMI, established as a tripartite in 1954, is a leading materials sciences engineering solutions provider. CUMI’s consolidated revenue is ₹2,631 crore and PAT of ₹284 crore for the financial year FY 21.