Wendt (India) Limited is a leading manufacturer of super abrasives, high-precision grinding tools, honing machines, and special-purpose equipment. Established in 1980 as a joint venture between Wendt GmbH and Carborundum Universal Limited, the company has built a strong reputation in the automotive, aerospace, tool-making, and engineering industries. With a diversified product portfolio, Wendt India specializes in diamond and CBN grinding wheels, dressing tools, precision components, and advanced manufacturing solutions. The company also provides technical support, training, and consultancy services to help customers optimize their machining processes. Headquartered in Hosur, India, Wendt India is known for its innovation-driven approach and commitment to delivering high-performance abrasives and precision grinding solutions.
Interesting event is happening in the company. One of promoters having 37.5% is selling its shares. Wendt GmbH is selling its entire 37.5% stake in Wendt India through an Offer for Sale (OFS), marking a full exit from the company. The sale is happening at a steep discount, the floor price has been set at ₹6,500 per share. A total of 7.5 Lakh shares are being sold.
An Offer for Sale (OFS) is a way for a company’s major shareholders like promoters or the government to sell their shares directly to the public through the stock exchange. Unlike an IPO, where new shares are issued, an OFS involves selling existing shares, meaning no fresh capital is raised for the company. It’s a quick and transparent process, often used by companies to comply with regulations or by the government to reduce its stake in public sector enterprises. Investors can bid for shares at or above a set minimum price, and the shares are allocated based on demand.
Overnight the promoter holding in this Wendt India is going to drop from 75% to 37.5%, and public (non-promoter) holding is going to increase from 25% to 62.5%. Usually this is considered negative for any listed company, but this might prove beneficial.
Yesterday the OFS completed on on the BSE, with an oversubscription.
Whats Next? There should be no impact to the business but some interesting event might happen in coming months years.
- The stock by itself is trading at lowest levels in a year.
- Selling overhang is gone.
- Liquidity will increase massively. The stock has 20 lakh outstanding shares. Earlier only 5 lakh were held by non-promoters, this increases to 12.5 lakh now.
- Lone Indian Promoter Carborundum Universal Limited is already listed. It now holds 37.5% and sole Promoter of Wendt (India) Limited in similar line of business. Will they consolidate and merge?
Wendt (India) Limited (WIL) has been a leader in super abrasives and precision grinding solutions for over four decades. The company provides advanced manufacturing services to high-tech industries and has built a strong presence in domestic and international markets.
- Established: 1980
- FY24 Net Revenue: ₹22,482 lakhs
- Export Share: 30.2%
- Manufacturing Facility: Hosur, India
- International Presence: Re-profiling unit in Thailand and Insert Grinding unit in Pune
- Zero-debt company with a strong balance sheet
Historical Growth and Key Milestones
- 1980: Established as a joint venture between Wendt GmbH and The House of Khataus
- 1983: Listed on BSE
- 1991: Murugappa Group (CUMI) acquired the Khatau stake
- 2005: Set up 100% subsidiary in Thailand
- 2010: Wendt GmbH’s parent firm acquired by 3M
- 2016: Acquired Diamond Dresser Tool business from Star Diamond Tools
Business Segments
Super Abrasives (59% of FY24 Revenue)
- Offers diamond and CBN grinding wheels, rotary dressers, hones, and segmented products
- FY24 Revenue: ₹13,315 lakhs
- FY24 EBIT: ₹3,114 lakhs
- Key industries: Auto, Steel, Bearings, Engineering
Machines and Accessories (21% of FY24 Revenue)
- CNC grinders for carbide and steel parts
- FY24 Revenue: ₹4,732 lakhs
- FY24 EBIT: ₹1,111 lakhs
- Strong market presence in automotive, defense, and aerospace industries
Precision Products (12% of FY24 Revenue)
- Certified precision-ground parts for aerospace and auto industries
- FY24 Revenue: ₹2,733 lakhs
- FY24 EBIT: ₹399 lakhs
- Key focus on vanes, silicon nitride rollers, rotors, and rings
Financial Performance
- FY24 Net Revenue: ₹22,482 lakhs (+13% CAGR)
- FY24 PAT Margin: 18.2%
- Earnings Per Share: ₹204.8
- Return on Equity (ROE): 20.4%
- Dividend Per Share: ₹50.0
Industry and Market Outlook
- The global super abrasives market is projected to grow at a 9% CAGR to reach USD 14 billion by 2030.
- Indian electronics market is expected to grow at 25-30% CAGR to become a USD 625 billion industry by 2030.
- Indian aerospace and defense market is projected to reach USD 70 billion by 2030.
- Strong policy support through Make in India and Atmanirbhar Bharat initiatives.
Manufacturing and R&D Strengths
- State-of-the-art manufacturing facility spread across 16.38 acres with 490+ employees.
- R&D Investments in FY24: ₹421 lakhs (1.3% of sales).
- Technology absorption for advanced grinding machines and processes.
- Received DSIR recognition from the Government of India for its in-house R&D center.
Transaction Update & Stake Sale
Wendt GmbH (a subsidiary of 3M) decided to exit Wendt India by selling its 37.5% stake via Offer for Sale (OFS). This will allow Wendt India to gain absolute ownership of the “Wendt” brand, trademarks, and technology.
- WIL to acquire Wendt GmbH’s trademarks worldwide for up to EUR 3.8 million (~₹34 crores).
- Post-transaction, Wendt GmbH will reclassify as a public shareholder.
Disclaimer: Investments in securities markets are subject to market risks. Please read all related documents carefully before investing. The information provided in this article is for educational and informational purposes only and should not be considered as investment advice or a recommendation to buy or sell any securities. The author is not a SEBI-registered research analyst or investment advisor. Investors should conduct their own research and consult with a qualified financial professional before making any investment decisions.
No Personal and Family Holdings as of now.
Reference - Latest WENDT INDIA presentation