Industrial Economist (IE): Why did CUMI create a defence and aerospace division?
Subbu Venkatachalam (SV): From a business perspective, the timing was right. India is investing heavily in defence modernisation and the government has been pushing for localisation under Make in India. For CUMI, with decades of expertise in ceramics and composites, this was a natural adjacency. Protection systems are only as good as the materials used. We work with a library of advanced ceramics each suited for different levels of ballistic protection. The real business advantage lies in tailoring these materials to meet requirements while keeping costs competitive. That’s where our decades of expertise in industrial ceramics give us a clear edge.
IE: What are your key offerings?
SV: We operate on two fronts. First, we manufacture materials like alumina, silicon carbide and boron carbide used in vehicle armour and personnel protection. Second, carbon fibre reinforced polymer (CFRP) components, where we supply lightweight parts such as payload holders and landing gear for drones. Both areas are growth markets. Defence agencies worldwide are upgrading with lighter armour, while drone adoption is increasing rapidly in both defence and civilian sectors.
IE: What’s your approach to localisation and exports?
SV: Our supply chain is almost entirely Indian. Raw materials come from Kerala, ceramics are made in Hosur and carbon-fibre components in Ranipet. The only exception is boron carbide, which is imported. In alumina, silicon carbide and zirconia-based ceramics we are self-reliant. This localisation gives us strong control over quality, cost, and delivery timelines. In terms of sale, at this stage, our focus is firmly on India. With the armed forces modernising and policies driving indigenisation, the domestic opportunity is immense. Exports remain part of our long-term vision, but they’re regulated under Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET). Once we secure STANAG Level 6 certification and expand capacity, we will be ready to enter global markets.
IE: Can you highlight on your R&D efforts.
SV: R&D is central to our competitiveness and our model is to keep it tightly integrated to manufacturing. By developing materials in-house and scaling them in our own plants, we can manage costs better. We have five dedicated research centres, staffed with scientists and engineers, including women PhDs who specialise in materials. They research on new ceramic formulations and work with defence partners to meet evolving requirements. We also collaborate with DRDO and ISRO through technology transfers and joint projects. In addition, we are working with startups on testing and simulation software and experimenting with graphene and AI-led design tools. All of this helps us to deliver differentiated products quicker but without overspending.
IE: What are your expansion plans?
SV: The immediate priority is scaling our Hosur facility to produce 150 tonnes of silicon carbide annually. That gives us the capacity to meet large domestic tenders and subsequently international demand. We are also investing in advanced testing, simulation and R&D infrastructure to shorten development cycles. On the composites side, our Ranipet plant is being prepared for higher volumes as drone adoption grows. We want to ensure we can serve both defence and commercial markets as unmanned aerial vehicles become mainstream.
IE: What trends do you see shaping the future of this business?
SV: There are three. First, protection levels will continue to rise, which means demand for advanced ceramics like boron carbide and zirconia-toughened alumina will grow. Second, drones and unmanned systems will become mainstream, creating a strong market for lightweight composites. And third, digital tools such as AI and simulation will shorten product development cycles. For CUMI, the strategy is to stay ahead in material science, scale manufacturing, and be ready for these shifts.
IE: What are the main challenges in this market?
SV: The biggest challenge is testing infrastructure. India has very few ballistic labs slowing down the process and increasing cost. Sometimes we even have to import ammunition for testing. The other challenge is competition, particularly from China, which has scale advantages in ceramics. Our response is to focus on innovation, localisation and certification. We are applying AI in ballistic simulation. Before a product goes for live firing trials, we run AI-driven models to predict how a ceramic tile will behave under impact. That saves cost and reduces iterations.