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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (8296)	10/12/1999 9:24:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Cummins to source diesel engines from Indian arm cdssindia.com Gouri Agtey Athale (ET) PUNE 12 OCTOBER CUMMINS India Ltd (CIL), the Rs 743-crore diesel engine and generating set manufacturer, is emerging as a global sourcing point for its US parent, Cummins Engine Company Inc. The company is already the exclusive manufacturer of four models of engines for the world market, JL Deskmukh, president-designate, CIL, said. Mr Deshmukh, who takes over as president of CIL from April 2, 2000, said the company was working on dual fuel, gas and compressed natural gas (CNG) engines for the US parent. These would have applications in the power generation, industrial and automotive businesses and would be in the range of 50 to 1,500 horse power (hp). Mr Deshmukh's appointment as president, after a four-year gap when the company did away with the post, reflects the US parent's efforts to increase its business in India. Also, the company has appointed YS Joshi as managing director of CIL subsidiary, Cummins Diesel Sales and Service India Ltd (CDS&S). A decision on the domestic production of the Cummins Wartsila range of high speed diesel engines, with a range of up to 3.5 MW, is expected to be taken in a year?s time. At present, these engines are marketed by the Indian arm of the global joint venture. CIL is expected to finalise in six months the plans to float a company for manufacturing internal combustion engines to mark its entry in the lower end, the 50-100 kva range. The company could be located in the union territory of Dadra and Nagar Haveli, for proximity to its OE customers, located primarily in the Silvassa and Daman areas and in Pondicherry. While admitting that 1998-99 had been a "very tough year", Mr Deshmukh said the situation had improved considerably during the last quarter. Production of engines, which had dropped to 20 per day, from the 1997-98 average of 30 per day, "bounced back" during January- March, recording an all-time high of 35 per day in February. Despite the improved production in the past three months, CIL?s turnover in 1998-99 is expected to be 13 per cent lower than the 1997-98 turnover of Rs 743 crore. CIL has identified exports as a thrust area, along with development of new products and upgradation of the existing products. Becoming a sourcing point for the US parent is also part of the strategy.CIL manufactures the V28, K38, N14 and Quantum 60 series for the world-wide needs of Cummins Engine Co. While exports received a major thrust in the fourth quarter, the full year figure is expected to be lower by about 13 to 14 per cent, at Rs 130 crore. This has been attributed to the South East Asian crisis which affected the business in the first half of the year. CIL invested about Rs 30-40 crore during the year for scheduled capacity expansion, and about Rs 16 crore in R&D.