Wendt India Limited will acquire the absolute ownership of the “Wendt” brand and trademarks

 About the company 

  • Wendt India Limited (Wendt/company), established in 1980, was originally promoted by Mr. S. C. Khatau and Wendt GmbH of Germany. 
  • The company started its operations by setting up a super-abrasives manufacturing facility at Hosur (Tamil Nadu) for grinding wheels and tools with technological support from Wendt GmbH. In 1991, Carborundum Universal Limited (CUMI, a Murugappa Group company), a leading conventional abrasives player in India, acquired 30% in the company from Mr S. C. Khatau and subsequently an additional ~10% from the open market to expand its presence in the super-abrasives segment. 
  • Currently, the company is jointly held by CUMI and Wendt GmbH, with each holding a 37.50% stake in the company (as on December 31, 2024).
  •  In addition to the potential divestiture by Wendt GmbH, the company has entered into a trademark assignment agreement with Wendt GmbH and has acquired the absolute ownership of the ‘Wendt’ brand and trademarks with over 60 registrations in 40 countries, owned by Wendt GmbH and/or its affiliates worldwide in accordance with the agreement, for Euro 3.8 million.
  • Wendt India Limited will acquire the absolute ownership of the “Wendt” brand and trademarks
    • Subject to shareholders approval, the company will acquire from Wendt GmbH, the absolute ownership of brands and trademarks worldwide with over 60 registrations in 40 countries, free and clear of any encumbrances for an amount not exceeding EUR3.8m (~INR34crs.)
  • Global super abrasive market expected to grow at ~9% CAGR and reach USD14bn
    • Indian electronics market to grow at 25-30% CAGR FY23-30E to become a USD480-625bn market driven by rising demand of consumer electronics
    • High reserves supports increasing exploration activities which in turn boost demand for super abrasives
    • Indian auto ancillary market to grow at 18-20% CAGR FY24-30E to become USD200m market driven by govt. policy initiatives, rising vehicle demand
    • Increasing demand for grinding & polishing application in metal fabrication, auto construction and electronic machines 
    • Indian Aerospace and Defense market is projected to reach USD70bn by FY30, driven by burgeoning demand for advanced infrastructure, govt. thrust 
  • Wendt (India) Limited (WIL) is a market leader in super abrasives and a reliable grinding solution provider with a track record of over four decades
    • External credit rating of AA(-) stable (Long term rating) and A1(+) low credit risk & stable (Short term) by ICRA
    • Zero-debt company with strong balance sheet and unbroken dividend track record
    • Significant export sales to US, UK, Germany, South Korea, Taiwan, and Australia
    • Direct sales channel with professional service provided by highly trained application-oriented sales engineers
    • One of the market leaders in super abrasives sector in India
    • Comprehensive product offering of tools, machines and precision parts
    • Provides grinding solutions & high-end manufacturing services to various high-tech industries 
  • One of the leading players in domestic super-abrasive segment
    • WIL is one of the leading players in the domestic super abrasive industry in India. 
    • The company’s established presence in the industry as well as its strong research and development (R&D) and technical capabilities enable it to maintain a healthy market position in the industry. 
    • WIL’s presence in machine tools and precision components also augurs well for the company.  
  • R&D competencies and latest initiatives to capture the future growth trend
    • Technology absorption for manufacture, sales and service of insert grinding machines 
    • Strong process competence like sintering, vitrification, vacuum brazing, and electro-plasting 
    • Testing and validation capabilities for high performance super abrasive materials  
    • Automotive and others
      • Wheels for solar glass & automotive glass grinding
      • Wheels for round tool industry grinding wheels
      • Single pass honing tool for automotive industries 
    • Semiconductor and Medical
      • Wheels for ingot grinding
      • Wheels for wafer grinding
      • Design and development of testing machines for back grinding wheel
      • Development of elastic bonds for orthopedic implant grinding 
  • Negative: Inherent volatility in end-user industry
    • WIL’s revenues are vulnerable to the cyclicality and volatility in performance in enduser industries like auto, steel, ceramics, glass, cutting tools, engineering, etc, where its products find application
    • While the company is focussing on increasing its share of revenues from other industries, the ability to achieve material diversification remains to be seen. 
  • Super Abrasive (59% of total FY24 Net revenue1 )
    •  Industries like auto, auto ancillaries, steel, bearings, engineering, cutting tools etc. contributed to the growth / domestic sales
    • Exploring new opportunities in medical, consumer electronics / semiconductors via technical collaborations and new product development
    • Exports to US, UK, Germany, Indonesia, South Korea, etc.
    • The company is focusing on identifying, targeting and onboarding new distributors, including industry specific distributors like glass, aerospace, steel in targeted countries 
    • Accelerate export sales by focusing on six high potential countries
    • Develop new products for high growth markets like solar glass, semiconductor and healthcare
    • Offers customized diamond / CBN grinding wheels in various bonding systems, rotary dressers, stationary dressers, hones and segmented products 
  • Machines and Accessories(21% of total FY24 Net revenue1 )
    • Machine sales in export markets have achieved good growth and wide customer acceptance
    • Focus on improving operational efficiency through Total Employee Involvement (TEI), relay-out of shop to increase the number of assembly bays 
    • The Company's strategy of dynamic contract review and micro level planning has won customer recognition 
    • Key end markets include Automotive, Defense & Aerospace, Cutting tools and Power
    • Timely execution and delivery ensured by better planning, bulk ordering of parts, advanced schedule release for timely execution, and standardization of design parts
    • Majority of the machines are sold to steel industry followed by cutting tools, engineering and auto industries
    • Regain premier market share in carbide insert machine industry through inert periphery grinding machines
    • Offers CNC Horizontal & Vertical Honing Machines, Cylindrical Grinders, Creep Feed Grinding, Rotary Surface Grinding - Horizontal & Vertical  
  • Precision Products(12% of total FY24 Net revenue1 ) 
    • Aims to accelerate business in Indian 3D Printing market and facilitate complex designs and production of parts
    • Established insert grinding facility in Pune to capture the strong trend in the fuel injector space & carbide insert grinding
    • Expanding into new products like silicon nitride roller, rotors and rings etc. and started regular billing
    • Develop low-cost vanes for steering, hydraulics, compressor for refrigeration and air conditioning industry 

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