With South India witnessing a lot of action in the realty sector and IT/ITeS industries, Cummins Power Generation, a business unit of Cummins India Ltd (CIL), is focusing on the region for growth. |
Cummins Power Generation offers back-up for industrial and business units of all sizes across sectors such as call centres, realty, hospitality, textiles, auto, ancillaries and IT. The power generation business is divided into six divisions "" high horse power, low horse power, energy solutions, rentals, consultancy and exports. |
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"In the last three years, there has been strong growth from the southern region, particularly, the realty and IT sectors. Today, we have three times the people in the field in South India when compared to five years ago. The IT/ITeS sector is a progressive market. We customise products for them. We see more growth opportunities in this region," Rampraveen Swaminathan, vice president (Power Generation Business), CIL, told Business Standard. |
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The company has installed diesel generators for major IT firms like Wipro and Infosys across their multiple locations in the country and at projects executed by RMZ Group, Puravankara Projects and DLF. |
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"Many special economic zones are being set up in Chennai, Bangalore and Hyderabad. Besides, DLF is foraying to the south in a big way. Having installed our products at all DLF projects, we are confident of more business from the south," he added. |
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Textile sector is another big market for the company in South India. However, the appreciating rupee against the US dollar has put on hold the expansion plans of many textile firms. "We do not expect the growth from the textiles sector to be significant this year. However, the IT and realty sectors are growing around 30 per cent year-on-year. The demand is very high," Swaminathan said. |
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The company produces power generation sets ranging from 10 kw to 2000 kw locally in India. |
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Last fiscal, the company had a total sales of Rs 1,841 crore, up 26 per cent over the previous year. The power generation business unit contributed in excess of 45 per cent to the sales. The company also exports generator sets to 60 countries worldwide. |
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"This business is witnessing robust growth. The exports are doubling every year," Swaminathan said. Part of the $11.4 billion Cummins Inc, CIL is a group of 11 entities. |
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In an effort to increase production of generators, CIL has planned expansion of its plant capacity at Pune to produce 36,000 units per year. Another plant in Daman will be ramped up to produce 18,000 units per year. |
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It has supplied gas and diesel generator sets aggregate to over 25,000 Mw in the past two decades. |
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"Our revenue guidance for the current fiscal is 13-14 per cent higher than the last year. We are optimistic about our growth prospects," he added. |
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