CUMI underlines role in Defence Indiegenization

India’s defence sector has reached a pivotal moment, with production hitting ₹1.5 lakh crore this year and long-term targets set at ₹3 lakh crore. Mission Sudarshan Chakra, the country’s most ambitious indigenous air defence programme, will require a full ecosystem of advanced materials, thermal systems, and integrated platforms.

In an interview, Subbu Venkatachalam, Head of Defence, Aerospace, Carborundum Universal Limited, explains how CUMI is positioned at the core of this shift. It is among the few Indian companies producing zirconia-based thermal barrier coatings for jet engines, ceramic armour for naval helicopters. All of this is delivered within India, supporting the country’s goal of reducing foreign dependency and scaling high-value defence exports.

Can you throw light on CUMI Murugappa (Carborundum Universal Limited) and its mission in the defence sector?

Carborundum Universal Limited (CUMI) is part of the 120-year-old Murugappa Group which has been recognised among the top 10 business conglomerates in India. Established as a tripartite joint-venture in 1954, CUMI is a leading materials science engineering solutions provider that operates as a fully integrated enterprise. We are listed on the NSE and BSE.

Our operations include power generation, fusion, manufacturing, marketing and distribution. We have over 5,500 employees worldwide who collaborate, innovate and develop high-quality material solutions across our business verticals - Abrasives, Electrominerals, Industrial Ceramics, Refractories and Energy Storage Materials.

We serve both retail and industrial customers across diverse industries including defence & aerospace, railways, automotive original equipment manufacturer (OEMs); auto components, construction, cement, general engineering, infrastructure, power generation and distribution, iron &; steel, mining, mineral processing, pharmaceuticals, and food processing. The company has a geographical presence spanning six continents and exports to 60 countries.

With our expertise in materials science spanning 7 decades, our core objective and mission in the defence sector is to engineer high-performance materials that can help save lives at the frontlines.

Our globally-benchmarked advanced ceramic solutions find applications in the army (body armour and vehicle armour), navy (naval vessels, aircraft carriers, and naval workshops, as well as the airforce (armour for helicopters).

Through indigenisation, our efforts are focused on domestic production of critical materials as Indian Defence looks to rapidly modernise. This will ensure global quality ‘Made in India’ and world-class processing at competitive prices. We are also working closely with several government entities and industry partners to jointly develop products and solutions that specifically address the unique challenges and requirements of Indian Defence prototypes. Hence, while our efforts are directed towards helping India achieve its long-term ambitions, our focus is on equipping our soldiers with the best in protection.

How important is your role in all future defence projects?

Being involved right from the start of the value chain, we play a key role in current and future defence projects.

● At our world-class R&D labs, our experts continue to discover new materials and identify new performance parameters to address. This ranges from advanced protection and lightweighting to better operational capabilities and superior strength.

● Our close collaborations with various DRDO labs help us understand the on-ground challenges of our soldiers as well as the Army’s requirements. We build to address current priorities while leaving room for future capabilities.

● By being among the few manufacturers of defence-critical materials in India, we are helping reduce import dependence and secure supply.

● We work closely with our MSME partners to not only bring in newer dimensions to solutions but also help them scale up. This is especially relevant given the MoD’s emphasis on energising MSMEs for greater innovation.

● We also support our industry partners by being involved in forward integration. Our expertise is not only in the area of component design but also extends to fabrication techniques.

● We are actively engaged with Centres of Excellence in top academic research institutions to further research in strategic areas.

Can you tell us more about your production, or do you also rely on MSMEs/start-ups?

We have an extensive manufacturing footprint across India, with all our facilities ISO certified. We design and develop advanced ceramic products at our state-of-the-art factory for Industrial Ceramics located in Hosur, around 40 km from Bengaluru. While the production is entirely done in-house, we have partnered with MSMEs and startups to support us with associate components. For instance, we have MSME partners who build our composite solutions, among others, located within the TN Defence Corridor zone in Hosur. They play an important role in our product reaching its final stage of precision in design and performance.

What is the scope of your work, and which are the different verticals you will be focusing on?

The scope of our work is fairly extensive. Beginning with the production and processing of raw materials (grains and powders), we work with our customers to customise the product as per their individual requirements. We are also involved in testing and qualifying our products in India as per global standards. In some cases, we are also involved in forward integration where we guide our customers on how to realise the product design or use specific products.

All our business verticals support or feed into one another. For instance, the Electrominerals division supplies the raw materials for all our businesses across industries. We do the same with Industrial Ceramics and Abrasives, which is our largest and oldest business. However, since many of these are already established, our present focus is on building our portfolio for the defence & aerospace business. We plan to expand production capacity by fivefold for armour ceramics in the coming year.

What is the current turnover of the company, and what is the forecast for future growth?

The current turnover of the company is Rs. 2827.6 crores. Future growth forecast looks strong as we aim to expand our business and customer base in key markets globally and across India, while bolstering domestic manufacturing capability and footprint. In fact, we are increasing the manufacturing capacity of armour ceramics at our Hosur factory early next year.

Which companies are your target customers both in India and internationally?

Our target customers in India and globally are spread across diverse industries - from engineering and fabrication to auto and auto components, infrastructure, steel, glass, power generation and distribution, mining, defence and aerospace.

What are the targets for the Make in India programme?

September 2024 marked a decade of the ‘Make in India’ initiative. The ambition of this program was to transform India into a global design and manufacturing powerhouse. The focus was to draw greater investments into India, kickstart innovation, and set up infrastructure at par with global standards. Self-reliance was the underlying objective – by expanding the contribution of the manufacturing sector to India’s GDP, reducing dependence on imports – especially in strategic sectors, and generating employment.

Through these efforts, India would be able to take its place on the international stage – highlighting our industrial might and potential.

Among the 27 sectors under Make in India 2.0, Aerospace and Defence feature prominently under ‘Manufacturing Sectors’. Relaxation of FDI norms in Defence Production has not only led to welcoming new tech into the sector but also introduced global capabilities across the board.

Production-linked schemes, initiatives such as iDEX and ADITI to give a boost to indigenous innovation from MSMEs and startups, and most importantly, indigenization of priority items under SRIJAN (14,000+) and the Positive Indigenisation Lists (3,000+) – have all given a definitive thrust to defence production and exports.

How do you see the Make in India evolving both in the private sector and public sector?

Make in India has opened up numerous avenues for participation and collaboration – both for the public and private sectors. It has also been a key driver of innovation. The inherent challenges that existed in the public sector, of slow development cycles pushing up costs, have been addressed with private sector entry. The private sector, for its part, brings its innovative thinking, R&D prowess, and faster product maturity cycles to contribute to nation-building. Private players can also benefit from established government testing facilities to speed up the process, while being economical.

Make in India will evolve in both spheres, witnessing a rise in Transfer of Technology to indigenize frontier technologies and the refinement of prototypes. The public-private-academia triad will make manufacturing a lean, high-performing machine with a seamless flow - research, prototype, refine, and evolve continually at a progressively faster pace.

What are the targets for Defence Production in India?

Steady expansion of the allocation towards defence expenditure and the government’s landmark initiatives have set defence production on a rapid, upward trajectory. This is clearly seen in the 174% increase in production in the last decade. Defence production touched a record Rs. 1.27 lakh crores in FY 2023 – 24, with exports crossing Rs. 21,000 crores.

India has fixed a defence production target of Rs. 3 lakh crores and Rs. 50,000 crores in exports, to be achieved by 2029.