Cummins India Ltd
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BSE Code:
500480
NSE Code:
CUMMINSIND
Business Profile
Business Profile
Part of the $5.7 billion Cummins Inc., Cummins India (CUMMINS), formerly known as Kirloskar Cummins, commenced operations at Pune, India in 1962. The company manufactures internal combustion engines, namely diesel engines of all sizes and capacities, reciprocating piston engines, gas turbine engines, gasoline engines, ..etc. The diesel engines have applications covering a wide range of market segments such as power generation, construction and mining, oil fields, marine, locomotive and automotive.
The company derives a major chunk of its revenues from the power sector. It also manufactures turbochargers in collaboration with Holset Engineering, UK, and flameproof diesel engines (used in hazardous industries) in collaboration with Pyroban, UK. The manufacturing facilities are based at Pune plant-I, spread over 93.2 acres, which is a complete integrated engine manufacturing plant. An R&D tech center with investment of over Rs 170 million has also been set up. Cummins India exports engines to countries like USA, UK, France, Germany, Belgium, Holland, Singapore and Korea.
Cummins Research and Technology India (CRTI), a 50:50 JV between CUMMINS and Cummins Inc., USA will engage in providing IT-enabled services in the field of mechanical development for diesel engines and related components. Cummins India is planning to set up a greenfield facility, with an investment of up to Rs 2.5 billion for expanding its capacity. The new unit is expected to be two times the size of the company`s present plant in Kothrud, Pune. The new facility is expected to be operational in about 20 months.
Tata Cummins, a JV with the Tata group, will soon start making ISB engines as per the MoU signed with Cummins Inc. This will increase the number of engines produced and strengthen Cummins position in a fast growing medium and heavy-duty commercial vehicle market in India.
Financials
Cummins India registered a 26.06% growth in net profit to Rs 640.2 million for the quarter ended June 2007 from a profit of Rs 507.87 million for the quarter ended June 2006.
Net sales rose 38.55% to Rs 5,423.4 million for the quarter ended June 2007 from Rs 3,914.5 million for the quarter ended June 2006.
Total income rose 38.70% to Rs 5,654.9 million for the quarter ended June 2007 from Rs 4,077.03 million for the quarter ended June 2006.
The earnings per share (EPS) of the company stood at Rs 3.23 for the quarter ended June 2007.
Recent Developments
27-JUL-07
Cummins India is planning to set up a greenfield facility with an investment of up to Rs 2.5 billion for expanding its capacity. The new unit is expected to be two times the size of the company`s present plant in Kothrud, Pune. The plant will be established on a land of around 200 acres and will manufacture all the products and systems manufactured presently at the Kothrud plant. However, location of the plant is yet to be finalized. The new facility is expected to be operational in about 20 months.
03-JAN-07
Cummins India is planning to implement its various applications to establish an integrated supply and delivery chain across its business processes. The company would use Oracle`s enterprise resource planning applications, supply chain planning, iSupplier portal, purchasing and order management to standardize its business processes, which would provide transparency and better control at lower costs. The implementation is expected to be completed by July 2007.