Cummins India Limited

Company Overview

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• Cummins India Limited (CIL), is an India-based company engaged in the manufacturing and marketing of diesel and natural gas engines. It was incorporated in 1962, when Cummins Engine Company Inc and Kirloskar Oil Engines Limited established a jointly owned manufacturing facility in Pune, India, under the name Kirloskar Cummins Limited (KCL).
• In 1997, Cummins Inc increased its stake to 51% in KCL, as a result of which, KCL was renamed as Cummins India Limited (CIL).
• The company offers power generation generator sets, automotive components, and other parts and services.
• The company primarily operates in India, where it is headquartered in Pune, and employs around 3,395 people.
• The company operates through four business units: industrial engine business unit, power generation business unit, automotive business unit and distribution business unit.

Mergers & Acquisitions

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• In 2002, the company acquired CG Newage Electrical Ltd (CGNEL) from Crompton Greaves Ltd (38% interest) and Janpath Investments & Holdings Ltd (2.5% interest)
• CIL formed a 50:50 joint venture company named Cummins SVAM Sales & Service Limited with SVAM Power Plants Private Limited, a dealer of CIL, in 2012.

Major Rivals

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Key People

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Major Products & Brands

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Products

• Internal combustion engines: Industrial diesel engines, Automotive engines, ReCon engines, Recreational and commercial marine engines
• Gensets: Diesel generator sets, Gas generator sets, Alternators, Power electronics, Marine generator sets
• Components: Fuel systems, Turbo chargers, Emissions and filtration equipment

Parts

Lubricants, Cummins Pulse Ultra Plus and Pulse Ultra Lite batteries, Maintenance kits and B check kits, Engine repair and overhaul kits, Filtration exhaust and emission solutions, Fluid cooler Exhaust gas boiler, Chiller, Centrifuge, Hot and fresh water generators

Solutions

Repowering and replacement solutions

Brands

Valvoline; Cummins Pulse Ultra Plus; Pulse Ultra Lite

Company News

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• In 2013, the company opened the Phaltan Midrange Upfit Center (PMUC) at CIL's site in Phaltan, Maharashtra, India.
• It also opened a new plant for manufacturing low horsepower generator sets at CIL's site in Phaltan. Also in the same year, the company opened Phaltan high horsepower plant at CIL's site in Phaltan.

Vision

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"Making people's lives better by unleashing the Power of Cummins."

Mission

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• Motivating people to act like owners working together.
• Exceeding customer expectations by always being first to market with the best products.
• Partnering with our customers to make sure that they succeed.
• Demanding that everything we do leads to a cleaner, healthier, safer environment.
• Creating wealth for all stakeholders.

SWOT Analysis

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Strengths        

• Leading manufacturer of Diesel Engines
• Strong R&D facility and product pipeline
• Has entered into related businesses like filters, turbochargers, batteries etc
• Significant presence in many developing countries
• Cummins has over 5,000 facilities in 197 countries and territories

Weaknesses

• Heavy dependence on few suppliers
• Limited market share due to tough competition

Opportunities

• Rise in the demand for Diesel engines worldwide
• Strategic joint ventures with Fluid companies, Original Equipment Manufacturers (OEMs) etc. could pave the way for independent business units
• Tightening of Emission standards
• Growth in filtration market

Threats

• Intense competitive pressure
• Potential Currency exchange losses