Indian Economy News

The engine manufacturer, Cummins will invest US$ 1 billion in India

  • IBEF
  • June 15, 2023

In order to prepare for the switch from conventional fossil fuel engines to those propelled by hydrogen and other green energy options, the Cummins Group plans to invest about US$ 1 billion and hire 4,000 people in its operations in India over the next ten years.

Managing Director (MD), Cummins Group, India, Mr. Ashwath Ram stated that the company has invested US$ 1 billion in India over the past 15 years, and it plans to invest a similar amount over the next decade to be able to transition from the current technologies to new ones.

Tata Cummins handles the majority of Cummins' automotive business in India, and some investments are also made through subsidiary firms. Cummins and Tata Motors struck a legally binding agreement in April 2023 to jointly produce a variety of low- to zero-emissions technology products in India during the ensuing few years. The two companies have set up a new business entity called Tata Consumer Products Limited (TCPL) Green Energy Solutions (GES), and it will become operational in FY25.

Meanwhile, the listed entity Cummins India Limited (CIL) is looking to double its investment in the coming years to US$ 42.67 million (Rs. 350 crore) to US$ 48.77 million (Rs. 400 crore) per annum as it partners with various automakers in the latter's switch to green mobility.
Mr. Ashwath Ram further mentioned that their investment is set to go up significantly, doubling in the coming years as compared with the past 2-3 years. There are many more technology-intensive products being developed which will increase our capex cycle.

Cummins made infrastructure-building investments throughout the last ten years. To support entry into new markets and segments as well as the electrification of the business, this has evolved to investing in growth-based goods. CIL will use internal accruals to achieve the funding requirement. The benefits of tougher pollution regulations have gone to Cummins. The improvements have enabled the business to climb the value chain and turn into a producer of complex parts with high electrical content.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.