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Cummins Eyes Engine Exports, Sales Growth In 2010
2010-01-07         http://www.eobus.com    

The Cummins group aims to start exporting its automobile engines and expects automotive sales to increase by 15% in 2010, a senior executive of its listed unit said Thursday.

"We are developing our ISBe engines which are compliant for Euro IV, Euro V and Euro VI standards," Anant J. Talaulicar, chairman and managing director of Cummins India Ltd. (500480.BY), told Dow Jones Newswires.

"We are now concentrating on the domestic market and may then export the engines," he added.

Cummins India is a subsidiary of U.S.-based engine maker Cummins Inc. (CMI).

Separately, Arun Ramachandran, vice president of automotive business for the group, said the group had total automotive sales of INR15 billion in 2009.

The group reports its results according to the calendar year.

Talaulicar said overall group revenue--which was at INR75 billion last year--is expected to grow by 15% this fiscal year.

The Cummins group has interests ranging from making engines to providing software services. The group has nine companies including a joint venture with Tata Motors Ltd., called Tata Cummins Ltd.

Cummins India already has the ISBe engines running in some of the Prima Trucks, which Tata Motors launched Wednesday.

The group--which supplies 90% of its automotive engines to Tata Motors--is also in talks with Swedish bus and truck maker Volvo AB (VOLV-B.SK) to supply engines driven by compressed natural gas for its buses in India.

Talaulicar said also the group has already invested $50 million in its plant at Phaltan in the western state of Maharashtra and will invest $250 million over the next five years.

"Half of the total investment will be spent on the industry park which is exclusively built for export of components," he said, adding that the park would start operating in the second half of 2011.

The group currently has a capacity to make 120,000 engines a year and this would be scaled up by 60,000 by the end of December, Talaulicar added.



Editor: eobus.com



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