The Cummins Group plans to invest about USD 1 billion into its India operations and hire 4,000 people over the next decade as the global manufacturer of engines and power generation products braces for the transition from the traditional fossil fuel engines to those powered by hydrogen and other green energy choices.
“We have invested a billion dollars in India over the past 15 years,” said Ashwath Ram, MD, Cummins Group, India. “We plan to invest a similar amount over the next decade to be able to transition from the current technologies to new ones.”
Most of the automotive business of Cummins in India is via Tata Cummins, and some of the investment is also done through subsidiary companies. In April this year, Cummins signed a definitive agreement with Tata Motors to manufacture a range of low-to zero-emissions technology products in India over the next few years.
The two companies have set up a new business entity called TCPL Green Energy Solutions (GES), and it will become operational in FY25. Meanwhile, the listed entity Cummins India (CIL) is looking to double its investment in the coming years to 350 crore to 400 crore per annum as it partners with various automakers in the latter’s switch to green mobility.
“Our investment is set to go up significantly, doubling in the coming years as compared with the past two to three years. There are many more technology intensive products being developed which will increase our capex cycle,” said Ram.
A participant in the government’s productivity-linked incentive (PLI) scheme, Cummins Group plans to invest Rs1,000 crore in India over a five-year period starting from FY 2022-23. This includes investment in technology and doesn’t account for the capex in creating infrastructure, said Ram.
Cummins has been a beneficiary of stricter legislation on emissions. The advancements have helped the company move up the value chain and become a manufacturer of sophisticated parts high in electronic content. India is no longer lagging the world in terms of emission standards, said Ram, citing an instance of the switch over to Central Pollution Control Board (CPCB) II to CPCB IV + genset norms. Effective July 1, the norms will make gensets more fuel efficient and costlier.
