Cummins India Ltd
Cummins India Ltd (CUMMINSIND)

Cummins India Ltd (CUMMINSIND)

₹1215.92.76%

Key Stats

₹1200.1
Day's Price Range
₹1233.95
₹842
52-Week Price Range
₹1289.4
1 Month Return-2.34 %
3 Month Return7.18 %
1 Year Return32.44 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 5
37.06
EPS
Rank 3
₹31.92
BVPS
Rank 4
₹185.6
Dividend Yield
Rank 2
1.63%
ROE
Rank 8
16.87%
Price To Book Ratio
Rank 6
6.37
Debt To Asset
Rank 11
0.22

Company Information

Cummins India Ltd 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 heavyduty onhighway commercial vehicle markets and offhighway 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 countrywide 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 5000 company trained engineers and technicians who handle service events of 350000 engines on the field serving over 100000 customers across various markets in India Nepal and Bhutan.Cummins India Limited is a 51 percent subsidiary of Cummins Inc. USA. the worlds largest independent designer and manufacturer of diesel engines above 200 HP. Cummins India Ltd was incorporated in the year 1962 with the name Kirloskar Cummins Ltd. Kirloskar Oil Engines Ltd and Cummins Company Inc. Columbus USA promoted the company. 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 Corporations 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 midrange 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 lowcost highquality 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 200910 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 5344 lakh.On 4 August 2011 Cummins India announced that the companys 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 2017the company has one subsidiaryone associate and two joint venture companiesnamely i. Cummins Sales Service Private Limitedii. Cummins Research and Technology India Private Limitediii. Valvoline Cummins Private Limitediv 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 FY2018in 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 201819 over FY 201718. The companyfor the second consecutive yearhas provided over 4000MW of backup power to customers across India.The companys 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 2020the company has one subsidiaryone associate and two joint venture companies.The outbreak of COVID19 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 broadgauge 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 Navys stealth missile destroyer vessel and survey vessels. These were specially designed to meet exacting naval standards. It added a new Original Equipment ManufacturerOEM 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 4cylinder and 6cylinder 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 FY21 the Company introduced the following products that delivered better value to customers across fastgrowing 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 Indias Defense sector. It launched a feature rich PSO600 controller for the Low Horsepower range of 82.5125 kVA gensets that enables intelligent fault detection andprovides better shielding of genset against voltage or current surge irregular loads and more. The Company launched fitformarket products like the B3.3 and QSB7 gensets in the unregulated regions. Though global markets were impacted by the COVID19 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 onhighway segment via channel footprint expansion and reached 58 distributors with 92 primary and 5400 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 fitformarket 12K and 24K overhaul kits for gas compression customers. Its deep focus on repowering the competition engines by providing costeffective solutions in segments like Defense Railways and Power Generation led to enhanced customer satisfaction and growth in the whole goods portfolio. It expanded the firstfit 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 COVID19 levels. The Company launched ReCon First initiative to drive domestic consumption of reconditioned 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 cloudready for future requirements. It has launched KTA19G4 18.9 litre displacement 6cylinder 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 nondiesel 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.
OrganisationCummins India Ltd
HeadquartersPune
IndustryCapital Goods-Non Electrical Equipment