Wendt India Limited announces final dividend for FY 2008-2009

Chennai, 27 March 2009: The board of directors of Wendt (India) Limited, a joint venture between Wendt GmbH, Germany and the Carborundum Universal Ltd of Murugappa Group have recommended a final dividend of 100% (Rs. 10/- per equity share of face of Rs. 10/- each) on the equity shares for the financial year ended 31-03-2009. Together with the interim dividend already paid in March 2009 @ 100% , the total dividend for the year amounts to 200% (Rs. 20/- per equity share of face of Rs. 10/- each) .The directors maintained the dividend @ 200% like previous year despite a general recessionary trend prevailing across the globe.

Owing to global economic slowdown, the company’s top line declined by 5% compared to last year. While export sales recorded an appreciable growth of 14%, the domestic sales witnessed a drop of 12% compared to previous year due to lower demand from auto and auto component customers who are the major customers for the company.

However the profit before tax and profit after tax registered a growth of 3% and 5% compared to previous year due to other income and overall operational efficiency and improvements.

The company has taken the present recession as a challenge and an opportunity for growth. A capital expenditure of Rs.750 lakh was incurred during the year (last year Rs.440 lakh) to tap the potential for its products in power, infrastructure and petro chemical industries.

During the year, the company has incorporated a 100% wholly owned subsidiary company in Sharjah, UAE for rendering re-profiling services and for trading in its products to serve GCC countries and North African countries.

The company, with its two wholly subsidiary companies in UAE and Thailand, is planning to grow its exports sizably in the coming years, particularly in South East Asia and Middle East.

About Wendt India
A joint venture with Wendt GmbH, Germany, part of Winterthur technology group AG, Wendt (India), manufactures a world renowned range of Super-abrasive products made of Diamond (DIA) and Cubic Boron Nitride (CBN). From advanced grinders to super abrasive grinding wheels, dressing tools, honing sticks, PCD/PCBN tools, precision components and related tools for special applications, Wendt offers its customers complete solutions that are appropriate to their needs. These find applications with a wide spectrum of industries from automobile, auto components, cutting tool, construction, engineering, steel, tile, ferrite, glass, ceramics, textile, paper to aerospace. Wendt is recognized by its global customers as a total grinding / honing solution provider, continuously addressing their ever changing needs and expectations. Wendt also manufactures high-end grinding machines including CNC Rotary Surface Grinders customized for precision component grinding, wheel profiling and dressing machines for wire rod mills and carbide / HSS rotary tool manufacturers. It also represents Wendt GmbH as a service provider for their high end special purpose grinding machines for India and South East Asia.

To address the South East Asian and Middle East markets, Wendt (India) Limited also has its 100% owned subsidiaries Wendt Grinding Technologies Ltd., in Thailand, and Wendt Middle East FZE in UAE with primary focus to service the customers in the respective regions.

For further information, please contact:
Rajesh Khanna
Chief Executive Officer
Wendt India Ltd
Tel: 09845444780

Chandrika Raman
Asst General Manager
Group Corporate Communications
Murugappa Group
Tel: 25306535 / 98400 71172
chandrikaR@corp.murugappa.com

top