Cummins India plans greenfield facility

Diesel engines and power generation equipment manufacturer Cummins India Ltd has planned a greenfield facility to expand its capacity.

The new unit is expected to be double the size of the company's present facility at Kothrud, Pune.

Cummins India managing director Anant Talaulicar told reporters after the company's annual general meeting on Thursday that the new project will come on a site of about 200 acres and will manufacture all the products and systems manufactured presently at the Kothrud plant.

The project is part of the company's strategy to double its revenues by 2010, he said.

The estimated investment for the plant would be in the range of Rs 250 crore and it is expected to go operational in about 20 months time, he informed.

Talaulicar said the location for the new plant is yet to be finalised. "The decision about the location will be based on several factors including the proximity to the present facilities, closeness to vendors, market or availability of fiscal and tax benefits," he said.

Besides this greenfield project, the company has undertaken expansion at the Kothrud plant and Pirangut near Pune where smaller capacity products are made.

Group company Cummins Generation Technologies (formerly CG New Age) has set up a plant in Ranjangaon near Pune to make 50,000 alternators per year. The plant is set up on a 10 acre plot of land, the total investment being Rs 24 crore, he said.

Talaulicar informed that the company exported components worth $200 million to the US based parent Cummins Inc through the multinational's international purchasing office. This volume is expected to grow to $500 million by the year 2010, he indicated.

The company earned 39 per cent higher sales income at Rs 542.34 crore in April-June quarter of 2007-08 compared to the same quarter last year.

The net profit before tax for the quarter rose by 28 per cent to Rs 89.3 crore compared to the same period last year. Profit after tax grew by 28 per cent to Rs 64 crore compared to the same period last year.