Cummins Group’s 50-year saga of success in India

Cummins in India, a leading manufacturer of engines, generators and related components and technologies, completed 50 years (1962-2012) of its operations in India in April. Cummins’ presence in India stems from a joint venture incorporated in 1962. Ground was broken for a factory in Pune the same year and the plant began manufacturing engines at the beginning of 1964. In 1997, Cummins Inc. increased its stake to 51 per cent with the rest being traded on the Bombay Stock Exchange. With this, the joint venture became a consolidated subsidiary of Cummins Inc. and continues till date as Cummins India Ltd. By 2004, Cummins had formed multiple legal entities in India, including joint ventures.

Today, Cummins has grown to incorporate eight legal entities (including affiliated) which collectively operate 20 manufacturing facilities and employ close to 14,000 individuals across as many as 200 locations in the country. These eight entities are Cummins India Ltd., Cummins Generator Technologies India Ltd., Cummins Technologies India Ltd., Cummins Research & Technology India Ltd., Fleetguard Filters Pvt. Ltd., Tata Cummins Ltd., Valvoline Cummins Ltd., and KPIT Cummins Infosystems Ltd. Cummins in India reported combined sales of approximately Rs. 10,500 crores in 2011.

Cummins India Ltd. has grown to become the country’s leading manufacturer of diesel and natural gas engines. Comprising four business units – Industrial Engine, Power Generation, Distribution, and Automotive – Cummins India is also the largest entity of the Cummins Group in India.

* The Industrial Engine Business caters to the industrial sector with its broad spectrum of diesel engines ranging from 18 hp to 3500 hp. The range is designed to power varied market segments such as Construction, Mining, Compressor, Marine, Rail, Agriculture, Pumps, Oil & Gas, Power Generation and Defence.

* The Power Generation Business addresses standby and prime power needs through the design and manufacture of pre-integrated generator sets, transfer switches, paralleling equipment and controls.

* The Automotive Business integrates Cummins’ diesel and natural gas engines with related technologies such as filtration, exhaust, turbo, fuel and coolant systems and lube oil to serve the commercial vehicle segment in India.

* The fourth business, Distribution, operates under the brand name ‘Cummins Sales and Service India’. Acquired in 1967 with the objective of providing products, packages, services and solutions for uptime of Cummins equipments, it has since been engaged in sale of engines and providing after-market support to customers in India, Nepal and Bhutan.

In 1987, the joint venture Fleetguard Filters Pvt. Ltd. was formed between Cummins Filtration Inc. and Perfect Sealing Systems Pvt. Ltd. More than two decades later, the entity, with three manufacturing locations, at Pune, Hosur and Jamshedpur, continues to manufacture air, fuel, oil and water filters for Cummins and other engine manufacturers.

In 1989, another joint venture was started between Crompton Greaves & Newage to form CG Newage Ltd. Crompton sold its holding to Cummins in 2002. In 2006, Cummins took over completely, and the entity began operating under the name of Cummins Generator Technologies India Ltd. Three manufacturing facilities, one each in Pune, Ahmednagar and Ranjangaon, manufacture alternators ranging from 5 to 2000 kVA. Aligned with the Corporation’s initiatives towards a cleaner and healthier environment, the plant in Ranjangaon set up in 2007 is the first green plant in India.

Another joint venture, Tata Cummins Ltd., was formed between Cummins Inc. and Tata Motors in 1993 to produce mid-range engines for the latter’s commercial vehicles. With a manufacturing plant at Jamshedpur and a second plant at Phaltan in Maharashtra, Tata Cummins remains a significant contributor to Cummins’ profitable growth in India.

Valvoline Cummins Ltd., started in 1998, is a 50:50 joint venture between Cummins India Ltd. and Ashland that manufactures automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive filters, specialty products, greases and cooling system products. The entity is headquartered in Delhi, with a manufacturing facility at Panvel.

In 2002, Cummins Infotech was merged into KPIT Infosystems to form KPIT Cummins Infosystems Ltd., a global IT consulting and product engineering partner to manufacturing and financial services organizations. The company is headquartered in Pune.

Cummins Research Technology India Ltd. was started in Pune in 2003 as part of a global effort to perform low-cost, high-quality engineering work. It was the first, and so far the only Cummins research center to be built without physical laboratories. The facility uses the latest computer technology to support design and analysis for Cummins worldwide.

Cummins Technologies India Ltd. was formed in 2008. Under it are five divisions – Cummins Turbo Technologies, Cummins Emission Solutions, ReCon Parts India, Cummins Business Services and Cummins Fuel Systems India.

* In 1995, the Tata Group and Holset, a Cummins-owned company, collaborated to form a joint venture, Tata Holset Ltd., to produce turbochargers at a plant in Dewas. When Cummins rebranded its entities in 2006, Tata Holset became part of Cummins Turbo Technologies. Today it has facilities in Pune, Dewas, Pithampur and Rudrapur.

* Cummins Emission Solutions is engaged in the design, integration, manufacture and distribution of exhaust after-treatment systems and components for ‘on and off-highway’ medium, heavy and high horsepower engine markets. Working with technology partners, the business provides these solutions for Cummins and other engine manufacturers, while applying its expertise in providing a range of products, from packaging to integrated systems.

* ReCon Parts India began operations in 2008 with manufacturing facilities in Pithampur and Ranjangaon. It offers reconditioned engines and components, including fuel pumps, injectors, cylinder heads, turbochargers, cam followers, water pumps, and other parts. It also has a plant in Phaltan.

* Cummins Business Services, based in Nashville, Tennessee, handles shared services like payroll, travel and customer care. It has branches around the world, including in India.

Mr. Anant J. Talaulicar, Managing Director, Cummins Group in India, said: “Completing fifty glorious years evokes a great sense of pride for not only all of us in India, but also the larger Cummins family across the world. With combined sales of $2.3B in 2011, our businesses in India continue to grow profitably at double digit rates. Cummins in India is the subcontinent’s largest diesel and natural gas engine and generator manufacturer, and with the Megasite project fully underway at Phaltan, we are strongly positioned to achieving our future growth targets of becoming a $7B group in five years. With a collective base of 14,000 employees, in four wholly or majority owned and four joint venture entities, we are privileged to have grown significantly as an employer of choice in our sector in the country.”

The Cummins Megasite at Phaltan was conceived four years ago to house ongoing and future expansions of the Cummins Group in India. In March 2008, three Cummins entities were awarded the ‘Mega Project’ status by the Maharashtra Government for their projects at the Cummins Megasite. Cummins had launched three facilities – the second manufacturing facility of Tata Cummins Ltd., an engine rebuild center and a reconditioning facility for remanufacturing engines and components – in January 2011. Later, in August, Parts Distribution Centre was inaugurated with an aim to enhance supply chain efficiency in aftermarket parts distribution.

This was followed by the groundbreaking of the fifth facility, an Industrial Engine Upfit Centre for upfitting diesel and natural gas mechanical and electronic B and L series engines. The facility will also manufacture C series engines which will serve power generation, industrial and automotive application. This facility will manufacture 20,000 engines annually.

Cummins is also establishing an ‘India Technical Center’ at the Kothrud Campus in Pune. This will significantly enhance the group’s engineering capabilities while focusing on designing technologies and solutions that further its mission of demanding that everything it does leads to a cleaner, healthier and safer environment.

The 50-year historic journey

1962 : Formation of Kirloskar Cummins Ltd., now Cummins India Ltd., headquartered in Pune with manufacturing facilities in Kothrud, Pirangut, Daman, Pune – Nagar Road, Lonikand and Phaltan.

1967 : Formation of Cummins Diesel Sales & Service India Ltd., now Cummins Sales and Service India, a part of Cummins India Ltd.

1987 : Formation of Fleetguard Filters Pvt. Ltd., headquartered in Pune, with manufacturing facilities in Pune, Hosur and Jamshedpur.

1989 : Formation of Newage JV with Crompton, now Cummins Generator Technologies, headquartered in Pune with manufacturing facilities in Ahmednagar and Rangangaon.

1993 : Formation of Tata Cummins Ltd., headquartered in Jamshedpur with manufacturing units in Jamshedpur and Phaltan.

1994 : Formation of Tata Holset Ltd., now Cummins Technologies India Ltd., headquartered in Pune with manufacturing facilities in Dewas, Pithampur and Phaltan.

1998 : Formation of Valvoline Cummins Ltd., headquartered in Delhi with its manufacturing facility in Mumbai.

2002 : Formation of KPIT Cummins Infosystems Ltd. (Pune).

2003 : Formation of Cummins Research & Technology India Ltd. (Pune)