Industry profile: The infrastructure sector is a vital driver of the Indian economy. The industry is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. Infrastructure includes power, bridges, dams, roads, and urban infrastructure development. In 2016, India jumped 19 places in World Bank’s Logistics Performance Index (LPI) 2016 to rank 35th amongst 160 countries. Government is a significant force in the sector. The union budget allocates large amounts of infrastructure, like Rs 16,000 crore (US$2.47 billion), towards the Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme. The scheme aims to achieve universal household electrification in the country. Rs 4,200 crore (US$ 648.75 billion) to increase the Green Energy Corridor Project’s capacity and other wind and solar power projects.
Company profile: Cummins India Limited was founded in 1962 and is based in Pune, India. Cummins India Limited is a subsidiary of Cummins Inc. Cummins in India is a Group of seven legal entities across 200 locations in the country with a combined turnover of Rs. 13,000 crores in 2017 and employing more than 10,000 individuals. The seven entities (including four joint ventures) are; Cummins India Ltd., Cummins Generator Technologies India Pvt. Ltd., Cummins Technologies India Pvt. Ltd., Fleetguard Filters Pvt. Ltd., Tata Cummins Pvt. Ltd., Valvoline Cummins Pvt. Ltd., and Cummins Sales and Service Pvt. Ltd. (formerly known as Cummins Svam Sales & Service Private Limited). Collectively, the Group operates 21 manufacturing facilities across India.
Cummins India Limited designs manufactures, distributes, and services engines and related technologies in India. The company operates through three business units: Engine Business, Power Systems Business, and Distribution Business. The Engine Business manufactures and markets diesel and natural gas engines ranging from 65 HP to 400 HP for the low, medium, and heavy-duty on-highway commercial vehicle markets, as well as the off-highway commercial equipment industry comprising construction and compressor. The Power Systems Business provides power generation systems in standby power and distributed power generation for individual and institutional customers in various segments, such as infrastructure, IT/ITES, data centers, realty, healthcare, and hospitality; and high horsepower engines for mining, marine, railways, oil and gas, and defense applications, as well as manufactures and exports open and enclosed low kilowatt generator sets. The Distribution Business offers products, services, and solutions for equipment and engines; and provides after-market support services to customers in India, Nepal, and Bhutan. The company also exports its products to the United States, the United Kingdom, Mexico, Singapore, and China.
Shareholding pattern BSE Filing
Financials and ratios: [table id=203 /]
Future Prospects: A company working in power and other diversified sector is very significant and helpful to the Indian economy. I need to say that this company knows what to do and what not to do. Being a global company, it enjoys some perks like high valuation and easy availability of parents and technology. Plus, it doesn’t need to think about growing inorganically. All that is with their parent. All in all, this is an excellent company to keep in the portfolio.
