Cummins India Ltd Share Price

History of Cummins India Ltd

Cummins India Limited was erstwhile incorporated in 1962 with the name 'Kirloskar Cummins Limited'. The primary promoter is Cummins Inc., which holds a 51% stake in the Company. The name of the Company was changed from Kirloskar Cummins Limited to Cummins India Limited on September 10, 1997. The Company is a leading manufacturer of diesel and natural gas engines. The Company is engaged in the business of manufacturing, trading and selling of engines and allied activities. It presently operates in three business segments: Engine, Power Systems, and Distribution. The Engine Business manufactures engines from 60 HP for low, medium and heavy-duty on-highway commercial vehicle markets and off-highway commercial equipment industry spanning construction and compressor. The Power Systems Business ...designs and manufactures high horsepower engines from 700 HP to 4500 HP for marine, railways, defense and mining applications as well as power generation systems comprising of integrated generator sets in the range of 7.5 kVA to 3750 kVA including transfer switches, paralleling switchgear and controls for use in standby, prime and continuous rated systems. The Distribution Business was acquired in 1967, with the objective of providing products, packages, services and solutions for uptime of Cummins equipments. Through its country-wide network of 31 authorized dealerships, over 200 branch offices and 450 service touch points, the business provides parts, new and rebuilt engines, batteries, services and customer support solutions to products manufactured by Cummins. This network offers a strong team of more than 5,000 company trained engineers and technicians who handle service events of 3,50,000 engines on the field, serving over 1,00,000 customers across various markets in India, Nepal and Bhutan. The Company is a 51% subsidiary of Cummins Inc. USA., the world's largest independent designer and manufacturer of diesel engines above 200 HP. The company started their operations in Pune. The partnership continued to flourish, till up till 1997, when the Kirloskar sold their ownership in the company. Also, Cummins Inc. increased their stake to 51% and the rest being traded on the Bombay Stock Exchange. This led to the formation of Cummins India Ltd, a consolidated subsidiary of Cummins Inc. In the year 1987, the joint venture Fleetguard Filters Pvt Ltd was formed between Cummins Filtration Inc. and Perfect Sealing Systems Pvt Ltd to manufacture air, fuel, oil and water filters for Cummins and other engine manufacturers. In the year 1989, the company started another joint venture with Crompton Greaves & Newage, and formed 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 Limited. Three manufacturing facilities, 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. In the year 1993, Cummins Inc. and Tata Motors Ltd formed another joint venture, Tata Cummins Ltd to produce mid-range engines for Tata Motors' commercial vehicles. With a manufacturing plant at Jamshedpur and a second plant at Phaltan in Maharashtra, Tata Cummins Limited remains a significant contributor to Cummins' profitable growth in India. In the year 1998, Valvoline Cummins Ltd was started as 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 the year 2002, Cummins Infotech Ltd was merged into KPIT Infosystems Ltd to form KPIT Cummins Infosystems Ltd, a global IT consulting and product engineering partner to manufacturing and financial services organizations. In the year 2003, Cummins Research Technology India Ltd was started in Pune 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. In the year 2008, Cummins Technologies India Ltd was formed. During the year 2009-10, as per the scheme of amalgamation, Cummins Sales & Services India Ltd (CSS) and Cummins Auto Services Ltd (CASL) were amalgamated with the company with effect from April 01, 2008. The scheme became operative on April 1, 2009. On 26 January 2011, Cummins Inc. announced that it has entered into an agreement to sell its exhaust business to Global Tube, a portfolio company of Wind Point Partners, a private equity firm headquartered in Chicago. Consequently, the joint venture partners in India; Cummins India Limited and Cummins Filtration Inc. USA will be divesting their shares in Cummins Exhaust India Limited. In April 2011, the company divested their entire 2 million shares held in Cummins Exhaust India Ltd for a consideration of Rs 5,344 lakh. On 4 August 2011, Cummins India announced that the company's Board of Directors has recommended issue of Bonus Shares in the proportion of 2:5 i.e. 2 (two) Bonus equity shares of Rs. 2/- each for every 5 (five) existing equity shares of Rs. 2/- each fully paid up, by capitalization of reserves of the company. In 2011, Cummins SVAM Sales and Service Ltd. was incorporated as a 50:50 joint venture dealership between Cummins India Ltd. and SVAM.On 9 May 2012, the Power Generation Business of Cummins India announced a price increase of up to 3 percent for its diesel generator sets and generator set engines in the range of 7.5 kVA and 3000 kVA, owing to the current industry dynamics and projected market conditions. The price increase will be effective from 1 June 2012. On 29 November 2012, the power generation business of Cummins India announced a price increase of up to 3 percent for its diesel generator sets and generator set engines in the range of 7.5 kVA and 3000 kVA. The price increase will be effective from 1 January 2013. On 18 December 2013, Cummins India announced the launch of its power generation product line, compliant with the new environmental norms. On 11 August 2016, the Power Systems business of Cummins India announced the launch of the new 250 kVA generator set based on the L9 (8.9 litres) engine platform. With this launch the company adds another technologically advanced solution to its existing 7.5 kVA to 3750 kVA range of generator sets, the widest range offered to the Indian market by a single manufacturer. As on 31 March 2017,the company has one subsidiary,one associate and two joint venture companies,namely i. Cummins Sales & Service Private Limited,ii. Cummins Research and Technology India Private Limited,iii. Valvoline Cummins Private Limited,iv, Cummins Generator Technologies India Private Limited. The Company was presented with the 'Best Supplier' award by BEML in 2017 for the last two consecutive years - 2015 & 2016. During the FY2018,in order to provide dedicated installation and commissioning support to Indian Railways, your Company inaugurated a site office at Integral Coach Factory (ICF), Chennai. During the FY2019, the Company enhanced its position in the Construction & Compressor segments with a sustained growth of 28% by volume in FY 2018-19 over FY 2017-18. The company,for the second consecutive year,has provided over 4000MW of backup power to customers across India. The company's power generation SEZ plant bagged Golden Peacock Occupational Health and Safety Award for Innovative Environmental project title at Confederation of Indian Industry (CII) Environmental Best Practice Awards, 2019. As on 31 March 2020,the company has one subsidiary,one associate and two joint venture companies. The outbreak of COVID-19 turned into global pandemic in March 2020 and held the world at its standstill. Consequent lockdown announced across India resulted in temporary suspension of operations and temporary closure of offices, branch offices and plants/manufacturing facilities of the Company in line with the government/local authorities' directions. As the restrictions were eased out, Company while closely monitoring the situation and following safety guideline, started staggered manufacturing at its plants. In FY 2021, the Company ensured seamless supplies of Diesel Electric Tower Cars (DETC) thereby supporting Indian Railways in its 100% electrification of broad-gauge network. Aligning with Indian Railways' initiatives to promote international cooperation, it supplied engines for export of rail equipment to Mozambique, Nepal, and Sri Lanka. In the 60 ton dump truck segment, it made further inroads in 150 ton and 205 ton segment and expanded into new applications like the 100 ton excavator and underground mining dump trucks. It continued strong partnership with the Indian Navy through the timely delivery of fully integrated 1 MW gensets for the Navy's stealth missile destroyer vessel and survey vessels. These were specially designed to meet exacting naval standards. It added a new Original Equipment Manufacturer (OEM) and delivered record growth in gas compressors to the city gas distribution infrastructure. It completed FM/UL certification testing of 5.9 liter and 6.7 liter engine platforms for the global fire pumps segment. It improved volume share through strong customer partnerships. Continued focus on improving share in the Construction segment. Company has now moved from mechanical to new- generation electronic 4-cylinder and 6-cylinder engines to address the onset of Bharat Stage IV (BSIV) emission norms from April 2021 for Construction Equipment Vehicle (CEV) applications. These new engines are certified ahead of launch timelines. During FY'21, the Company introduced the following products that delivered better value to customers across fast-growing segments: In the High Horsepower segment, the Company was awarded the full execution of gensets for a large hyperscale Data Center coming up in India. It launched a compact 50 kVA genset for a special purpose defense application to strengthen ties with India's Defense sector. It launched a feature rich PSO600 controller for the Low Horsepower range of 82.5-125 kVA gensets that enables intelligent fault detection, and provides better shielding of genset against voltage or current surge, irregular loads and more. The Company launched fit-for-market products like the B3.3 and QSB7 gensets in the unregulated regions. Though global markets were impacted by the COVID-19 pandemic, power generation segments such as Data Centers, Healthcare, Telecom and Rental offered growth opportunities and it catered to these segments by maximizing delivery/ramping up capacity. The Company clinched major deals for the supply of low kVA Gensets for the 5G telecom network upgrade in the Asia Pacific region. The Company announced the 'Dealer Support Package' to inject liquidity into the 4S channel, which helped dealer partners stay afloat. To ensure that the maximum possible workforce was available to support customers, it devised and implemented a policy that allowed engineers to work from their home locations. The Company launched Cummins Ashwasan - a comprehensive package providing service coverage for five years. It focused on enhancing reach in the on-highway segment via channel footprint expansion; and reached 58 distributors with 92 primary and 5,400+ secondary (Retailers) touch points by the end of 2020. Its focus on customer engagement resulted in achieving growth through full equipment maintenance of Tower Wagon for Railways and BSVI engines, and aftertreatment systems for the automotive bus segment. It expanded portfolio of clutches, filters, BSIV long blocks, coolants for the highway segment and launched special, fit-for-market 12K and 24K overhaul kits for gas compression customers. Its deep focus on repowering the competition engines by providing cost-effective solutions in segments like Defense, Railways, and Power Generation led to enhanced customer satisfaction and growth in the whole goods portfolio. It expanded the first-fit Engine Business with new products and special packages developed specifically to the need of Automotive, Industrial, and Agricultural segments. Presently, the Company has been focusing on building a strong order board with parts order board at 2X times pre COVID-19 levels. The Company launched ReCon First' initiative to drive domestic consumption of re-conditioned parts for inwarranty replacements and ReCoin' scheme for channel partners to incentivize the commercial sale of ReCon products. It upgraded the existing Cummins Dealer Operating System (CDOS) to make it more versatile, fast, and cloud-ready for future requirements. It has launched KTA19-G4 18.9 litre displacement 6-cylinder Diesel Engine for specific power generation regions with ratings of 550kVA/500kWe. In addition, Company is leveraging channel synergy and assisting customers in Asia Pacific region in 5G telecom network upgrade. The following new products were developed as part of the initiatives during the year 2021: Rail engine product families to support the growing Rail Business; Marine engine product families to support the increasing commercial Marine Business; further enhancements of non-diesel product development capability such as use of alternative fuels are being explored in India; Telematics and Analytics capabilities have been developed to improve uptime and fuel efficiency performance of products; to enhance the position of Cummins in the Low kVA segment, Company introduced a new 40 kVA genset with X2.7 litre engine; and continues to strengthen channel presence through its GOEM partners who have added 12 number of additional sales dealers across various geographies. During the year 2022, a compact, electronic variant of 250 kVA prime genset was launched, powered by the QSB6.7 engine in this node. Company introduced new nodes of 1800 kVA Prime & 2000 kVA Standby ratings powered by K50 mechanical engine, were launched to cater to customer requirements in commercial realty, infrastructure, and manufacturing segments at competitive pricing. New products like Oversized Liner Sleeves, All Make Filters, Racor Filter, CNG Retrofit Kit, Dual Fuel Kit, Lithium-ion Battery and UPS Inverters were launched. Vishwasji, a visual rendition of a trusted expert and an attractive new packaging for our parts to create a unique identity and striking differentiation in the fiercely competitive retail world was also launched. It launched the largest Made in India' Diesel Genset powered by the QSK60-G23 engine delivering power output of 2500-2750 kVA. It launched BSIV certified electronic 4-cylinder and 6-cylinder engine platforms to address the upcoming CEV BSIV emission norms for the Off-highway Wheeled segment in India. During 2023, the Company delivered the largest genset of 1 MW for Hindustan Shipyard Ltd. (HSL) Diving Support Vessel for the Indian Navy. Dual Fuel Kits and Retrofit Emission Control Kit (RECDs) were launched in the Power Generation market. The 'Power Booster' service bundle was offered as a comprehensive, cost-effective solution for customers seeking a single point hasslefree service for their genset. The Company launched a new range of Cummins Brake Linings, Clutches, Power Booster Kit, Cummins Funnel Fuel Filter and CNG Kits On-highway segment. It launched Gensets fit for the Low Horsepower (LHP) Rental segment. It launched New Series of Fit-for-Market Gensets powered by B3.3, 6B, QSB7 and QSL9 engines for unregulated markets in - Africa Middle East, Asia Pacific and Latin America. In FY24, Cummins India launched CPCBIV+1 complaint Cummins powered gensets, upto 800kW with sophisticated technology and indigenous components. It installed and commissioned 2000+ units of CPCBIV+ gensets across India, including the iconic Ayodhya Ram Mandir. It introduced 38L electronic engine to North America and Central America markets. In collaboration with Repos Energy, the Company launched Data Automated Teller Ultimate Machine (DATUM), an IoT-enabled fuel storage device. It further launched a service solutions such as Rust Guardian, Clean Master & Hand CleanX. The Company launched four breakthrough solutions: Power Management Solutions (PMS), Cummins Retrofit Aftertreatment System (RAS), OptiNAS+ Hydraulic Filter and DGBLUE, a Diesel Exhaust Fluid (DEF), enabling smarter, cleaner and cost-efficient operations across industries in FY 2025. The Company was the among the first to start production and sales of CPCBIV+ gensets. It launched the OptiNAS+ Hydraulic Filter, using advanced technology to improve the performance and lifespan of heavy-duty machinery. In the defence sector, the Company launched and tested a prototype engine for a light tank for the Indian Army. It launched advanced 4-cylinder and 6-cylinder electronic engines to address the latest emission norms (CEV BSV5). It expanded the product with high-speed ratings of FM6 and UL7 -certified engines for the pumps segment in FY 2025. It launched Manthan Data Analytics to strengthen problem-solving capabilities. Introduced a new product line for the EU market, meeting the stringent Euro Stage V emission norms; exports have commenced in FY 2025. Launched >800 kWm gensets compliant with CAQM norms, contributing to improved air quality in targeted regions. Introduced 2000 kVA and 2500 kVA gensets with innovative engine upgrades, serving commercial, industrial and data center markets in FY 2025.