Pune-based engineering firm Cummins India will set up a new power generation facility at Phaltan in Maharashtra by spending about Rs 150 crore on the plant, which will manufacture generators with capacities of 200 kVA (kilovolt-ampere) and below. It is looking at a capacity of 40,000 units per annum by 2013. The investment will be done in three phases, the first of which will be completed by April. In Phase I, the plant will have a capacity of 10,000-15,000 units. Cummins’ existing generator facility at Pirangut near Pune has a capacity to produce 15,000 units a year.
It will export all the units produced in Phaltan. The generators will be targeted at individual customers, restaurants and retail outlets. Exports accounted for about 25-30% of Cummins’ overall sales between April and June. Cummins will this fiscal also commission four other facilities including a parts distribution centre and reconditioning factory at the Megasite, which it began work on over two years back. The company has spent Rs 500-600 crore along with its joint venture partners on these since last fiscal. Cummins has outlined a capex of $300 million over the next five years.
For the quarter ended June 30, Cummins India’s sales rose an impressive 45% from the corresponding period last year to about Rs 910 crore, while net profit surged 56% to Rs 140 crore.