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Grindwell Norton Ltd.

BSE: 506076 Sector: Engineering
NSE: GRINDWELL ISIN Code: INE536A01023
BSE 00:00 | 01 Apr 454.25 -5.15
(-1.12%)
OPEN

462.95

HIGH

469.00

LOW

449.00

NSE 00:00 | 01 Apr 453.45 -2.75
(-0.60%)
OPEN

456.20

HIGH

469.70

LOW

447.15

OPEN 462.95
PREVIOUS CLOSE 459.40
VOLUME 227
52-Week high 699.00
52-Week low 369.20
P/E 28.09
Mkt Cap.(Rs cr) 5,029
Buy Price 447.00
Buy Qty 15.00
Sell Price 469.00
Sell Qty 38.00
OPEN 462.95
CLOSE 459.40
VOLUME 227
52-Week high 699.00
52-Week low 369.20
P/E 28.09
Mkt Cap.(Rs cr) 5,029
Buy Price 447.00
Buy Qty 15.00
Sell Price 469.00
Sell Qty 38.00

Grindwell Norton Ltd. (GRINDWELL) - Company History

Grindwell Norton Limited (GNL) is a subsidiary of Compagnie de Saint-Gobain (Saint-Gobain) a transnational group with its headquarters in Paris and with sales of Euro 41.8 billion in 2019. Saint-Gobain has reorganized its businesses into two broad areas: Construction or Building related businesses that serve Regional markets and businesses that serve Global markets. The businesses that serve Global markets fall within the High Performance Solutions sector of Saint-Gobain. GNO's businesses are part of the High Performance Solutions sector. Within GNO the businesses are divided into two major segments: Abrasives and Ceramics & Plastics. The main businesses in GNL segment are Silicon Carbide High Performance Refractories and Performance Plastics. The Abrasives business has four manufacturing sites: Mora (near Mumbai) Bengaluru Nagpur and Bated (Himachal Pradesh). All the sites are certified under ISO 9001 ISO 14001 and OHSAS 18001. Saint-Gobain is a major player worldwide in Abrasives. Besides GNO has a contract manufacturing facility.Silicon Carbide (SiC) is manufactured at GNL's plant located at Tirupati in Andhra Pradesh. SiC is also manufactured by the company's subsidiary Saint-Gobain Ceramic Materials Bhutan Private Limited at its plant near Phuentsholing in Bhutan. Both the plants are certified under ISO 9001 ISO 14001 and OHSAS 18001.High Performance Refractories (HPR) has two plants: one is located at Bengaluru and other at Halol near Vadodara in Gujarat. Both the plants are certified under ISO 9001 ISO 14001 and OHSAS 18001.The Performance Plastics business produces and markets more than 800 standard and custom-made polymer products through three business segments: Engineered Components (ENC) Fluid Systems (FLS) and Composites (CMP). GNL has a plant for ENC and FLS products situated at Bengaluru. This plant is certified under ISO 9001 ISO 14001 OHSAS 18001 and TS 1694.Originally registered as a private limited company in the early forties GNL was later converted into a public limited company in 1950. Grindwell Norton is the pioneer in the manufacture of industrial abrasives by setting up the first grinding-wheel factory. The company has commissioned its first silicon carbide plant in 1972 and the second one in 1979. In the early 1970s it started manufacturing coated discs (sander discs). The zircona aluminium oxide discs are sold under the Zircon brand. In 1983 a jumbo coated-abrasive plant was commissioned. To indigenise production a unit for centralised lubricating systems was set up in 1989-90 with technical assistance from Lincoln Germany. The company commissioned a small super abrasive resin bond wheel plant at Bangalore in Jan.'95. For its forays into industrial and engineered ceramics it has technical collaborations with the Saint-Gobain group France and SEPR. The fused cast refractory was set up in Mar.'95. A new plant for manufacturing non-woven abrasives was inaugurated in Mar.'96 at Bangalore. The expansion of the high performance refractories plant was also completed 1998-99.The installed capacity of Abrasive Grains & refractories have been reduced due to the restructuring of Ceramics Business and discontinuation of manufacturing operations of Fused Cast Refractories. The company has sold its Fused Cast Refractories business to M/s SEPR Refractories India Ltd for a consideration of Rs.68.83 Million during the year 2002.The year 2003 was pretty good for the company in respect of refractories business. The volumes and profit were above the projections. This business was certified under ISO 9001:2000 during the year 2003. During the financial year ended 31 March 2014 Grindwell Norton's Abrasives business took the lead in increasing prices but in a very competitive market where suppliers seemed more concerned with maintaining volumes than margins the improvement in price realization fell significantly short of what was required to offset the cost increases. Under the circumstances the company's management did well to limit the drop in volumes and margins. During the year the new Non-woven plant in Bangalore was fully commissioned and the Bonded Abrasives' expansion project at Nagpur which was slowed down last year was also completed and commissioned.The company's new High Performance Refractories plant in Halol (Gujarat) stabilized during the year.Production in the grain plant of Grindwell Norton's subsidiary in Bhutan which was commissioned in 2013 stabilized and the subsidiary started selling Silicon Carbide grains directly to its customers.During the year under review Grindwell Norton invested Rs.4.31 crore in the equity capital of Saint-Gobain Research India Limited (SGRI).The Scheme of Amalgamation involving the merger of SEPR Refractories India Ltd. Saint-Gobain Crystals & Detectors India Ltd. and Saint-Gobain Sekurit India Ltd. which was approved by the Board of Directors on 19 April 2013 was approved by the shareholders in the Court Convened Meeting held on 27 November 2013 with the requisite majority. However as per SEBI Circular dated 4 February 2013 read with Circular dated 21 May 2013 the requisite majority of public shareholders (other than Promoter and Promoter group) did not approve the Scheme. Consequently the Scheme of Amalgamation was not acted uponDuring the financial year ended 31 March 2015 Grindwell Norton's Abrasives business focused on new products and new markets to reverse the drop in volumes in the past two years. The workers' union of Grindwell Norton's Bengaluru plant went on strike for a period of 20 days in November 2015 due to an impasse in the wage negotiations. The management had taken all steps to meet customer requirements during the strike period and there was no major impact on the financial performance of the company due to the strike.Consequent to the approval of the shareholders through postal ballot and e-voting on July 7 2016 Grindwell Norton issued 55360000 bonus shares in the ratio of 1:1. The bonus shares were allotted on July 22 2016.Production of Silicon Carbide at the company's Tirupati plant continued to be affected during the financial year ended 31 March 2017 due to reduced power supply from Andhra Pradesh Gas Power Corporation Limited for much of the year. During the year ended 31 March 2018 the company's Abrasives business unit continued to focus on new products and new markets. The 'Next Level' initiative continued to engage the employees at all levels and there was progress on several dimensions.In Silicon Carbide business Grindwell Norton's Tirupati plant benefited from improved availability of power in the first half of the year.