The $5.3 billion US-based Cummins Engine Company Inc has assigned its local arm, Cummins India Ltd (CIL), to be the sole world-wide manufacturer and supplier for the new Quantum-60 high-horse power engines for power generation.
Besides, CIL will also be the sole supplier of K-50 and K-38 natural gas engines to Cummins' North American markets and other countries.
The move to assign CIL as the sole manufacturer and supplier of a range of diesel and natural gas-based engines to meet Cummins world-wide requirement is expected to garner substantial export earnings to the local unit.
Bangladesh is another natural gas engines market where CIL recently made its entry. The high-powered Quantum-60 diesel engine is being jointly developed by CIL and its parent company and will be soon launched in the market. It will feature the latest technology in diesel engines for both industrial application and power generation, including fuel efficiency, electronic operations, low emissions and durability.
"The joint project work done by Cummins India and Cummins USA for the development of the Quantum-60 series is significant in that it represents an advanced state of development and capability of CIL's research and development activities. This type of capability will continue to be enhanced to provide technologically advanced, world class engines for both the local and international markets," R L Moore, chairman and managing director of CIL said.
CIL has decided to substantially increase the allocation for capital expenditure alone towards research and development to over Rs 5 crore in the current year.
The Quantum-60 series engines for industrial use will have upto 2700 horse power output and for power generation of up to 1.5 MW prime rating.
At present, CIL is also the sole world-wide manufacturer and supplier of V-28 diesel engines. CIL's V-28 is a major export earner. Although its total turnover dipped by 7 per cent to Rs 743 crore in 1997-98 as compared to Rs 800 crore the previous year, export income went up by 16 per cent to Rs 146 crore from Rs 126 crore. However in the first quarter ended June 1998, CIL's overall sales dropped by 9 per cent, mainly due to the sluggish growth in the domestic market and a sharp drop in exports of V-28 engines south Asian countries.
According to Moore, the local diesel engine industry witnessed a reduction in market size of approximately 12 per cent in 1997-98, while CIL's total market share rose to 60 per cent.
