Cummins Inc. is looking at sourcing $US150 million worth of components and engines from its Indian operations this year. Auto components are likely to account for about $80 million while the rest will be made up of diesel engine exports.

The company expects Indian auto components sourcing to rise to about $120-130 million within the next 2-3 years.

Cummins India is already the sole supplier of the 28-litre, 38-litre and 50-litre diesel engines for power generation applications for its global network. The company may add more products to the list, particularly those that require a higher level of engineering skill.

Cummins has 11 subsidiaries in India making diesel engines, turbochargers and operating after sale and software consulting services. The company’s Indian turnover was $600 million last year.

Cummins expects to increase revenues of its Indian operations to $1 billion by 2007 with strong growth expected in both domestic and export markets. Exports are expected to account for a substantial proportion of the growth.

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Over the next 3-5 years, Cummins India expects its domestic business to expand by 12-15% a year and exports to jump 20% annually.

Deepesh Rathore / Tilak Swarup