The future of super abrasives, machining tools, and precision components in India is highly promising, with the sector witnessing robust growth driven by the country’s expanding manufacturing and industrial base. As India continues to position itself as a global hub for automotive, aerospace, and electronics production, the demand for advanced materials and high-precision components is set to rise.
Companies like Carborundum Universal, and HMT are at the forefront, while several startups are also innovating in niche areas. With the push for ‘Make in India’ and increasing investments in smart manufacturing technologies, such as automation and AI, the sector is poised for significant expansion. The growing focus on quality, efficiency, and sustainability presents immense growth potential for Indian manufacturers, offering opportunities both domestically and in international markets.
Share Price
The shares of Wendt India are currently trading at Rs. 14,556 down by 6.4% from its previous close of RS. 14,958. The shares also touched an intraday low of Rs. 14,000.40.
Joint Venture and Market Presence
Wendt India is a joint venture between 3M (via Wendt GmbH) and Carborundum Universal (Murugappa Group), with each holding a 37.5% stake in the company. With over 750 direct customers in the domestic market, Wendt India has a solid footprint across various high-demand sectors. Its ability to serve key industries with innovative and reliable products positions it for continued growth and success in the global market.
Recent Update
Intimation of Potential Stake Sale
The Company has received an intimation from its promoters, Carborundum Universal Limited (CUMI) and Wendt GmbH, regarding the execution of an agreement to amend the terms of their existing Shareholders Agreement.
This amendment facilitates Wendt GmbH’s disinvestment of its entire 37.5% shareholding in the Company, representing 37.5% of the outstanding equity as of December 31, 2024. The divestiture (Sell) will occur through one or more transactions in the open market.
Strategic Review and Divestiture Plans
Following a strategic review by Wendt GmbH, the Company has been informed of Wendt GmbH’s decision to divest its ownership interest in the Company. The proposed sale will allow Wendt GmbH to exit its stake, signaling a significant shift in its investment strategy. The divestiture is expected to impact the ownership structure of the Company, although the process will be conducted in accordance with regulatory requirements.
Trademark Assignment Agreement
In addition to the potential stake sale, the Company (Wendt India Ltd.) has entered into a Trademark Assignment Agreement with Wendt GmbH for the acquisition of the “Wendt” brand and trademarks, with over 60 registrations in 40 countries.
The Company will acquire these assets for a consideration not exceeding 3.8 million Euros. This transaction with Wendt GmbH, a related party, exceeds the thresholds and thus requires prior approval from the shareholders.
Stake owned by Carborundum Universal Limited
With this strategic sale by Wendt Gmbh, Carborundum Universal will turn out to be the largest stakeholder and promoter of the company. As of December 2024, Carborundum Universal owns a 37.5 % stake in the company.
About the Company
Wendt India is a leading manufacturer of Super Abrasives, Machining Tools, and Precision Components, recognized as a preferred supplier for a diverse range of industries, including automobile, auto components, engineering, aerospace, defense, and ceramics. The company provides cutting-edge Super Abrasive Tooling solutions, Grinding & Honing Machines, and Precision Components to its extensive customer base. Approximately 30% of its revenue is generated from the automotive sector, underscoring its strong position within this critical industry.
Written By: Dipangshu Kundu
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