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Our Bureau

New Delhi , Sept. 3

CUMMINS Inc, the US-based diesel engine major, plans to buy engines and auto components worth more than $150 million from India during the current year. According to Mr Ignacio Garcia, Vice-President (engine business global purchasing), Cummins Inc, out of this figure auto components would account for about $80 million.

"The sourcing of auto components alone could rise to about $120-130 million in the next 2-3 years. Cummins has been and will continue to be focused on developing suppliers in India as it has been doing in the last three decades," he added.

Incidentally, Cummins India is already the sole supplier of the 28-litre, 38-litre and 50-litre diesel engines for power generation applications for its global network. The company may add more products to this list, particularly those that require a higher level of engineering skills.

Cummins Inc has 11 subsidiaries in India, making diesel engines and turbo-chargers and offering after-sales and software consulting services, with revenues sales of $600 million in 2003. The $8 billion company expects to increase the revenues of its India operations to $1 billion by 2007. According to Mr Anant Talaulicar, Managing Director of Cummins India Ltd, with good growth expected in both domestic and export markets the company's revenues are expected to rise 15-20 per cent in the current year. Exports, which are set to double this year, would account for a substantial proportion of the growth. Over the next 3-5 years, Cummins India expects its domestic business to expand by 12-15 per cent a year and exports to jump 20 per cent annually.

Mr Talaulicar added that the company had cash reserves of about Rs 300 crore and would take a decision by December-end on how to use the cash reserves — by either investing it in new assets or returning it to shareholders.

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