Carborundum signs agreement for acquiring industrial ceramics divison of IVP Limited

Chennai, 21st August, 2007: Carborundum Universal Limited (CUMI) has entered into a Business Purchase Agreement with IVP Limited to acquire their Industrial Ceramics Division, as a going concern, subject to fulfillment of statutory and other formalities. The deal is expected to be concluded shortly.

The Ceramics Division of IVP Ltd., located at Aurangabad manufactures a range of High Alumina Engineered Ceramic products like Ignitors, seals, thread guides, nozzles etc with technology from Feldmuhle Germany. The plant has the capacity to produce about Rs 12 crore of the above products.

CUMI is today the largest High Alumina Ceramic manufacturing company in India. CUMI would bring to this business its market access, scale of operations and management. This will benefit the IVP-Ceramics customers and employees.

The addition of the IVP Ceramic products to the CUMI portfolio will enhance its product offerings in this space and make it more attractive to both the domestic and international customers.

About the Murugappa Group
Headquartered in Chennai, the USD $2 billion (Rs.8500 crore) Murugappa Group is India's leading business conglomerate. Market leaders in diverse areas of business including engineering, abrasives, finance, general insurance, sanitaryware, cycles, sugar, farm inputs, fertilizers, plantations, bio-products and nutraceuticals, its 29 registered companies have manufacturing facilities spread across 12 states in India. The organization fosters an environment of professionalism and has a workforce of over 28,000 employees.

The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, Cerdak, DBS Bank, Mitsui Sumitomo and Groupe Chimique Tunisien and has consolidated its status as one of the fastest growing diversified business houses in India.

For further information, please contact:
V Ramesh
Sr. V.P. and Chief Financial Officer
CUMI
Tel: 044 - 42216132 / 99400 57663
Email: BalasubramanianK@tii.murugappa.com

Chandrika Raman
Asst. General Manager-Group Corporate Communications - Murugappa Group
Tel: 044 2530 6535 / 98400 71172
Email: chandrikaR@corp.murugappa.com