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The Cummins group will invest $ 500 million in India over the next five years, in expanding and adding businesses which will include manufacture of light duty diesel engines, power generation systems and emission solutions devices, Mr Tim Solso, Chairman and CEO, Cummins Inc has said.
“We will invest wherever there is opportunity. India presently accounts for 10% of our business worldwide, and this will become larger,” Mr Solso said. Amongst the new plans on the anvil is a plant for the manufacture of 2.8 litre and 3.8 litre light diesel engines that will be set up in a year's time.
On Friday, Cummins in India inaugurated its new project at Phaltan near Pune with the launch of three new plants. These are a second factory of Tata Cummins Ltd, an engine rebuild centre and a reconditioning facility for engines and components which have involved an investment of Rs 500 crore.
Located on 300 acres of land, half the acreage at Phaltan is set up as a Domestic Tariff Area, while the remaining will operate as a Special Economic Zone. The Tata Cummins plant will produce engines for commercial vehicles, power generation and industrial market and has current installed capacity of 60,000 engines annually. “The capacity will be ramped up to 90,000 units by September and we are deliberating on increasing it to 120,000 in a year’s time,” Mr Anant Talaulicar, Managing Director, Cummins Group in India said,
The Cummins India Limited Rebuild Centre will rebuild high horsepower engines from 19 litres to 60 litres and has a capacity of rebuilding 40 engines per day. The Cummins Technologies India Ltd Recon plant will recondition engines below 19 litres as well as engine components.
Cummins India has a set a target of achieving a turnover of Rs 18,000 crore (Rs 8000 crore during 2010) by 2015, Mr Talaulicar said, adding that the Phaltan project was a key building block for the projected growth.
Elaborating on the plans for Phaltan, he said that there will be ten factories here, including a power generator factory and a second Recon plant in the export zone. He identified manufacture of fuel systems and emission solutions devices as some of the new businesses that will also come to India in the near future.
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