Table of Contents
Table of Contents
Table of Contents
CONTENTS
PAGE
1. Executive Summary
2
2. Introduction
a. Objectives of the study
4
b. Research Methodology
5
c. Scope of the Study
6
d. Limitations
7
3. Company Profile
8
4. Data Analysis and Interpretation
19
5. Findings
45
Page | 1
6. Conclusion
66
7. Reference
68
EXECUTIVE SUMMARY
The ceramic industry in India has got huge opportunities but has
not been much explored. The United States of America and China
are the leading countries in the production of ceramic powders.
Page | 2
Realizing the huge potential Carborundum Universal Ltd. has
come up with their set of ceramic thermal plasma powders.
INTRODUCTION
Page | 3
increases life span of the metals and reduces wear and tear. It
also helps to create a thermal barrier on metal parts.
Page | 4
To conduct a market research on Ceramic powders.
To conduct a study on supply chain of the company and
propose a better one for global customer.
To propose a business model for the company
To conduct a study on ceramic plasma thermal spray
powders and its future scope in various fields .
RESEARCH METHODOLOGY
RESEARCH DESIGN
The study conducted was descriptive in nature.
SOURCES OF DATA
The data obtained was both primary and secondary, was obtained
from various sources like internet, company and reference books.
Page | 5
As there are only limited players globally in this field and this
being a niche segment data collection was possible only
through the internet and details provided by the company.
The other source of getting information regarding the
product was from books on ceramic powder.
Page | 6
CUMI has been engaged in the production of Ceramic powders for
the past 10 years and being the sole producer in India, it has not
been able to capture a fare share in the Indian market.
LIMITATIONS
Time and cost were the main limiting factor in the study.
Ceramic powder being a less explored product, it was
impossible to get more details about the market and other
information.
Page | 7
While research other companies and suppliers were reluctant
to provide information regarding this product which affected
the effectiveness of the report.
And like any other research the limitation of personal bias of
respondents limits the scope of the study.
COMPANY PROFILE
Page | 8
Corporate Group:
Murugappa Group
Page | 9
including Engineering, Abrasives, Finance, General Insurance,
Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products
and Nutraceuticals, its 29 companies have manufacturing
facilities spread across 13 states in India. The organization fosters
an environment of professionalism and has a workforce of over
32,000 employees. The Group has forged strong joint venture
alliances with leading international companies like DBS Bank,
Mitsui Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien
has consolidated its status as one of the fastest growing
diversified business houses in India.
The group is also the first business group in Asia to have been
awarded the 'IMD Distinguished Family Business Award' by the
internationally renowned Management Development Institute
located in Lausanne, Switzerland.
Value Chain
Page | 11
History of CUMI:
1954 -1963 -
1964-1973
1974-1983
1984-1993
Page | 12
Expansion of bonded abrasive plant at Hosur with a modern
facility for vitrified grinding wheels.
Silicon carbide plant at Koratty and Refractories plant at
Ranipet, India.
Industrial ceramic plant at Hosur, India.
Acquisition of 40% interest in Wendt (India) Ltd, a joint
venture with Wendt Gmbh, Germany for super abrasives.
1994-2003
2004-2010
Page | 13
Establishment of state of the art coated abrasive plant at
Sriperambudur, Chennai.
Acquisition of monolithic refractory facility in Jabalpur, India
Acquisition of Volzhsky abrasive works Russia.
Acquisition of technical ceramics unit at Aurangabad.
Acquisition of 51% holdings Foskor Zirconia (Pty) Ltd. South
Africa, worlds largest manufacturer of Zirconia .
World class facility for wear resistence liner tiles, Hosur.
Manufacturing facility for Thin Wheels, Uttarkhand.
Manufacturing facility for Power Tools at Jigani, Bangalore.
Commissioning of a modern 1000 tonne vitrified bonded
abrasives plant and 2000 tonne organic bonded abrasive
facility in China.
Setting up of a modern facility for manufacture of
anticorrosive products at Serkaddu, India.
Establishment of automated silicon carbide grit plant in
Cochin SEZ.
Business Line :
Page | 14
Coated Abrasives
Bonded Abrasives
Super Abrasives
Allied Products
Electro Minerals
Page | 15
The key success factors in this industry are cost and quality. Entry
barriers are high capital investment, limited market and
technology. Availability of alternatives and product differentiation
are the main challenges in this business.
Industrial Ceramics
Page | 16
Industrial ceramics
Anticorrosion products
Bio-ceramics
Super Refractories
Page | 17
a shape and form due to size and larger area to be covered.
Monolithics are used in cement, steel, foundries, carbon black,
ferrous, non ferrous and also integrated steel plants.
Rs. million
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Revenue
Sales 7151 6606 5268 4242 3565 3142 2843 2834 2857 2571
Other Income (a) 515 847 214 484 156 180 311 97 106 180
Profitability
Profit Before Interest & tax 1133 1541 925 1035 554 445 529 425 471 492
Page | 18
(PBIT)
Profit Before Tax (PBT) 861 1372 853 1007 524 402 455 309 358 349
Profit After Tax (PAT) 597 972 587 766 384 317 366 215 232 260
PBIT / Gross Sales (%) 15.8% 23.3% 17.6 24.4 15.5 14.2 18.6 15.0 16.5 19.1
PBT / Sales (%) 12.0% 20.8% 16.2 23.7 14.7 12.8 16.0 10.9 12.5 13.6
Assets Employed
Fixed Assets (b) 3682 3218 2462 1645 1060 865 911 989 972 1013
Investments 1722 1698 897 511 478 452 502 559 373 364
Net Current Assets 2325 1867 1371 1087 935 908 901 917 892 898
Total Assets 7729 6783 4730 3243 2474 2225 2314 2465 2237 2274
Fixed Asset Turnover (times) 1.9 2.1 2.1 2.6 3.4 3.6 3.1 2.9 2.9 2.5
Return on Capital Employed
14.7% 22.7% 19.5 31.9 22.4 20.0 22.9 17.2 21.1 21.6
(%)
Funds Employed
Paid up share capital 187 187 187 187 93 93 93 93 93 121
Reserves (c) 3694 3304 2522 2156 1866 1589 1403 1171 1179 1373
Networth 3881 3490 2709 2343 1959 1682 1497 1265 1272 1494
Loan Funds 3480 3010 1815 723 406 404 658 1016 965 781
Net Deferred Tax Liability 368 283 207 177 139 139 159 185 - -
Total Funds Employed 7729 6783 4730 3243 2474 2225 2314 2465 2237 2274
Debt to Equity Ratio 0.9 0.9 0.7 0.3 0.2 0.2 0.4 0.8 0.8 0.5
Investor Parameters
Dividend (%) 100% 100% 75 180(d) 100 125(d) 100 75 70 60
(e)
EPS ( Rs. 2 Face Value) 6.4 10.4 6.3 8.2(f) 8.2 6.8 7.8 4.6 4.2 4.3
Book value (on Rs. 2 Face
42 37 29.0 25.1 41.9 36.2 32.2 27.2 27.2 24.6
Value) (e)
Return on Net Worth (%) 15.4% 27.8% 21.7 32.7 19.6 18.8 24.4 17.0 18.2 17.4
Page | 19
Dividend for the year 2004 includes a special dividend of 25% and that
for the year 2006 includes a special dividend of 120%
EPS & Book value up to the year 2004 recomputed based on split face
value of Rs. 2
DATA ANALYSIS
&
Page | 20
INTERPRETATION
PRODUCT
CERAMIC POWDERS (plasma thermal spray powders)
INTRODUCTION:
Plasma spray is the most versatile of the thermal spray process.
Plasma is capable of spraying all materials that are considered
spray able. In plasma spray devices, an arc is formed in between
two electrodes in a plasma forming gas, which usually consists of
either argon/hydrogen or argon/helium. As the plasma gas is
heated by the arc, it expands and is accelerated through a shaped
nozzle, creating velocities up to MACH 2. Temperatures in the arc
zone approach 36,000F (20,000K). Temperatures in the plasma
jet are still 18,000F (10,000K) several centimeters form the exit
of the nozzle.
Page | 21
MATERIALS
INDUSTRIES
Page | 22
applications in aerospace, automotive, medical devices,
agriculture communication, etc.
Page | 23
The plasma spray process is most commonly used in normal
atmospheric conditions and referred as APS. Some plasma
spraying is conducted in protective environments using vacuum
chambers normally back filled with a protective gas at low
pressure, this is referred as VPS or LPPS.
Plasma spraying has the advantage that it can spray very high
melting point materials such as refractory metals like tungsten
and ceramics like zirconia unlike combustion processes. Plasma
sprayed coatings are generally much denser, stronger and
cleaner than the other thermal spray processes with the
exception of HVOF and detonation processes. Plasma spray
coatings probably account for the widest range of thermal spray
coatings and applications and makes this process the most
versatile.
Page | 24
Used primarily on turbine combustion liners and airfoils
Thermal barrier coatings in rocket and jet engines.
Page | 25
3MB Type Plasma Gun
Page | 26
CERAMIC POWDERS
Oxide Ceramic Powders have become very important thermal
spray materials because of their excellent performance of thermal
insulation and resistance to high-temperature oxidation, have
been doped in these powders to improve the phase structural
stability and toughness of the ceramic coatings.
Oxide Ceramic coatings produced by plasma spray or high
velocity oxygen fuel (HVOF) spray are characterized by high
hardness, high bonding strength, resistance to high-temperature
oxidation, wear, corrosion and thermal shock as well as good
thermal insulation properties. Ceramic Powder has lower heat
conductivity and greater thermal shock resistance properties than
Alumina, and is, therefore, used mainly for thermal barrier
coating.
Page | 27
Some Types Of Ceramic Powder/ Plasma Powder :
Aluminium oxide
Chrome oxide
Titanium oxide
Zirconium oxide
Yttrium oxide
Page | 28
Grinding chamber with
Al2O3 coating.
Page | 29
Airplane turbines coated with ceramic powders.
Zirconium Oxide:
Page | 30
Pratt Whitney PWA 1312 SNECMA DMR 33.089 (Special Order as
Metco 201B-NS-
U. S. Military Naval OS10604
Recommended for combustion applications. Abrasive wear
resistant up to approx. 900C (1650F). Coatings resist wetting
and corrosive effects of molten metal. Applications: diesel engine
pistons, valves, cylinder heads and coatings for casting molds and
troughs.
Page | 31
Chemistry: ZrO2 24MgO
Particle Size: -90 +11 m (-170 mesh +11 m)
Morphology: Spheroidal, HOSP
Specifications: Jet Avion JA 1346 Pratt Whitney PWA 1333
Rolls-Royce MSRR 9507/21
Recommended for combustion applications. Abrasive wear
resistant up to approx. 900C (1650F). Coatings resist wetting
and corrosive effects of molten metal. Applications: diesel engine
pistons, valves, cylinder heads and coatings for casting moldsand
troughs.
Page | 32
Light Helicopter LHM 3314, Type 1 Rolls-Royce MSRR 9507/46
Rolls-Royce Allison EMS 56722 Rolls-Royce Allison EPS 10479
SNECMA DMR 33.098 Volvo PM 819-55
Williams WIMS 652
Powders are spheroidal with excellent flowability, chemical
homogeneity, structural stability and high purity. Coatings have
excellent thermal shock and insulating features. Primarily used as
a thermal barrier coating for turbine combustion liners and
airfoils.
Page | 33
Chemistry: ZrO2 8Y2O3
Particle Size: -125 +11 m (-120 mesh +11 m)
Page | 34
Specifications: Alstom HMHD 658042 Alstom HMHD 658043
Powder with reduced fines. Powder particles are spheroidal with
excellent flowability, chemical homogeneity, structural
stabilityand high purity. Coatings have excellent thermal shock
and insulating features. Used primarily on turbine combustion
linersand airfoils.
Aluminum oxide:
Page | 35
has been used in many applications. Medium to coarse grades
can be used as a cutting medium such as knife edge seals in
turbine applications. High purity grades (white alumina) exhibit
excellent dielectric characteristics. Blends with small to moderate
amounts of titanium oxide increase overall coating toughness.
Page | 36
Chemistry: Al2O3 3TiO2
Particle Size: -22 +5 m
Morphology: Angular / Blocky, Fused and Crushed
Specifications: GE A50TF87, Class C Volvo PM 819-00
Good resistance to abrasive wear, sliding wear, friction and
oxidation up to approx. 1100C (2040F). Coatings are particularly
suitable for applications in the textile or synthetic fiber
manufacturing industries, where surface resistance is required on
partsused for the guiding and handling of thread. Can be used in
many environments including most acids and alkalis.
Page | 40
Chrome Oxide:
Chemistry: Cr2O3
Particle Size: -15 +5 m
Morphology: Blocky, Chemically Smoothed
Dense, corrosion resistant coatings used on pump seal areas,
grounds, rolls and wear rings. Recommended for resistance
towear by abrasive grains, hard surfaces, particle erosion and
cavitation. Coatings are insoluble in acids, alkalis and alcohol.
Applications include anilox rolls, pump seal lands and seats,
ground rolls subject to sliding and abrasive wear and wear rings.
Chemistry: Cr2O3
Particle Size: -106 +11 m (-140 mesh +11 m)
Morphology: Angular / Blocky, Sintered and Crushed
Specifications: Pratt Whitney PWA 1325 Rolls-Royce MSRR
9507/53
Dense, corrosion resistant coatings used on pump seal areas,
grounds, rolls and wear rings. Recommended for resistance to
Page | 41
wear by abrasive grains, hard surfaces, particle erosion and
cavitation. Coatings are insoluble in acids, alkalis and alcohol.
Titanium Oxide :
Titanium oxide and its alloys produce coatings that are generally
tougher, but with lower hardness, than coatings of alumina.
Applications for titanium oxide based coatings are sliding wear
resistance where lubricity is needed. Coatings should not be used
at services temperatures that exceed 540 C (1000 F) to avoid
potential cracking as a result of phase transformation. Higher
concentrations of chromium oxide or alumina will increase the
wear resistance of titanium oxide. Air plasma spray produces
Page | 42
higher quality, denser coatings that can be ground to smoother
finishes than those produced using combustion powder spray.
Page | 43
Morphology: Blend Produces hard coatings with excellent
resistance to abrasion, wear, heat and corrosion. Applications: dry
cell battery core mandrels and drum doctor blades.
Alumina:
Aluminium Titanate:
Page | 44
Aluminum Titanate Powder Description:
2) Nanoparticles
Page | 45
Aluminum Titanium Oxide Description:
Page | 46
Market Opportunities
Page | 48
FINDINGS
Page | 49
Ceramic powder shipment % in world -2003 data
Page | 50
Smooth hard surface, improved
Fiber Passing
Roller Alumna Titania 250 microns frictional coefficient for yarn fiber
Oxide sliding.
Alumina -
Titania corrosive media
Reciprocating Alumina
Spindle Titania
resistance in granite
industry.
fluid in Petro-chemical
Industries
Page | 51
SUPPLY CHAIN AND LOGISTICS:
Page | 52
Business model :
Business type :
Ceramic powers
Competitors:
Current details :
Business Proposal :
Page | 53
worldwide. As , CUMI has its units worldwide it would be
easier to develop a better distribution channel and supply
ceramic powders to the leading ceramic powder
manufacturers of the world at a competitive price than other
companies and thus acquiring more sales .
Get into business tie-ups with some of the leading suppliers
and manufacturers of plasma spray machines such as
plasma spray guns and thereby opening new channels of
sale and indirectly obtaining new customers and increasing
the sales .
Get into business focusing on the major applicants of
ceramic powders like diesel engine manufacturers, turbine
engine manufacturers, textile industry equipment
manufacturers, paper industry equipment manufacturers
,and develop a proper marketing strategy so that the
companies are aware of the advantages of the ceramic
powders and their applications. For this CUMI must attain all
the necessary approvals and certifications so as to gain the
trust of the companies.
Page | 54
Major Plasma spray powder manufacturers :
Canada Egypt
USA Nigeria
Brazil Kenya
Argentina South Africa
Norway UAE
UK Russia
Netherlands China
Belgium Bangladesh
France India
Spain Sri Lanka
Germany Malaysia
Switzerland Singapore
Poland Japan
Austria South Korea
Italy Taiwan
Romania Australia
Greece New Zealand
Turkey
Page | 55
Page | 56
the heat of compression to initiate ignition to burn the fuel,
which is injected into the combustion chamber. This is in
contrast to spark-ignition engines such as a petrol
engine (gasoline engine) or gas engine (using a gaseous fuel
as opposed to gasoline), which uses a spark plug to ignite an
air-fuel mixture. The engine was developed by Rudolf
Diesel in 1893.
The diesel engine has the highest thermal efficiency of any
regular internal or external combustion engine due to its
very high compression ratio. Low-speed Diesel engines (as
used in ships and other applications where overall engine
weight is relatively unimportant) often have a thermal
efficiency which exceeds 50 percent.
Diesel engines are manufactured in two stroke and four
stroke versions. They were originally used as a more efficient
replacement for stationary steam engines. Since the 1910s
they have been used in submarines and ships. Use in
locomotives, large trucks and electric generating plants
followed later. In the 1930s, they slowly began to be used in
a few automobiles. Since the 1970s, the use of diesel
engines in larger on-road and off-road vehicles in the USA
increased. As of 2007, about 50 percent of all new car sales
in Europe are diesel.
The world's largest diesel engine is currently
a Wrtsil Sulzer RT96-C Common Rail marine diesel of about
108,920 hp (81,220 kW) @ 102 rpm output.
Page | 57
Thailand with 69, Turkey with 194, Pakistan with 37 and
Belgium with 91.
Transportation:
Category:
Supplier Location:
Page | 58
Major advantages
Diesel engines have several advantages over other internal
combustion engines:
For any given partial load the fuel efficiency (mass burned
per energy produced) of a diesel engine remains nearly
constant, as opposed to petrol and turbine engines which use
proportionally more fuel with partial power outputs.
The Asia/Pacific region is now the worlds largest market for diesel
engines, surpassing Western Europe. Rising demand for diesel
engines in China, India, and South Korea drove growth in the
regional market. The Asia/Pacific share of the world diesel engine
market is forecast to exceed one-third by 2012. Imports of diesel
engines are expected to surge from 2007 to 2012, as regional
manufacturers are unable to keep up with demand. In 2012, only
Japan is forecast to post a substantial diesel engine trade surplus.
Although the regional light vehicle segment is projected to
expand at the fastest annual rate, the largest absolute gains will
occur in the heavy truck and bus segment. China alone is forecast
to account for almost 18 percent of new demand, from 2007 to
2012. North American market to outpace Western Europe, driven
by motor vehicle uses.
Caterpillar
Cummins
Detroit Diesel
Perkins
Perkins Remanufactured
John Deere
Yanmar
China
Germany
Basil
Russia
India
Sales Data :
1%
99%
Estimated profit :
STRENGTH: WEAKNESS:
STRATEGIC ISSUES :
Part of a well known and CUMI never explored the
prestigious Murugappa
STRATEGY: market of Ceramic powders
group. globally.
CUMI has its units all over In the last 10-20 years the
the world ,so this makes a company never tried to
better distribution channel make an expansion in this
The company has good field.
resources. Lack of approvals and other
Powders used for producing certifications for Ceramic
Ceramic powders are also powders to getting into
produced within the business with global
company. customers like Rolls Royce.
THREAT
OPPORTUNITY
Global competitors like
Indian market solely open
Sulzer Metco Inc., H.C.
for the company
Starck Inc., Pars Plasma
Large number of industries,
Coating.
applicants of ceramic Absence of an effective
powders.
strategic planning
Slow but gradual growth in Substitutes. For example,
demand of the product. electro plating and other
Business Model 1:
This business model suggests CUMIS tie-ups with other global
powder manufacturing companies like H.C.Starck and Suzler
Metco.
Sulzer
Metco I
Zibo
Tiancheng
Glaze
Cost Structure :
An agreed upon percentage of the profit would be shared among
the companies.
Revenue Streams :
Increased number of global customers as a result of shared
sales channels.
Better penetration into global market.
CUMI
Shared Joint Technic
Sales cooperati al
channels on Experti
HC
Business Model 2:
This business model suggests CUMI to focus on Ceramic powder
industry and its expansion world over by focusing on specific
industries like Diesel engine manufactures and manufacturing the
ceramic plasma powders, then outsourcing the sales and
marketing functions to an international trader of repute. The
options of looking at other small manufacturers of plasma
powders as trading partners also should be kept open. The
production planning, production and packaging are the value
addition done in house. The strengths and competencies of the
trader is brought in to expand CUMIs market reach due to lack of
sales resources.
CUMI Packing
&
Through international
traders
REFERENCES:
Online Database
www.cumi-murugappa.com
www.alibaba.com
www.hcstarck.com
www.predmaterials.com
www.ceramics-directory.com
www.quickmba.com
www.sulzermetco.com