The Collaborative International Dictionary of English v.0.48:

granulate \gran"u*late\ (gr[a^]n"[-u]*l[=a]t), v. t. [imp. & p.
   p. Granulated (gr[a^]n"[-u]*l[=a]`t[e^]d); p. pr. & vb. n.
   Granulating (gr[a^]n"[-u]*l[=a]`t[i^]ng).] [See Granule.]
   1. To form into grains or small masses; as, to granulate
      powder, sugar, or metal.
      [1913 Webster]

   2. To raise in granules or small asperities; to make rough on
      the surface.
      [1913 Webster]