Global engine and power generation product manufacturer, Cummins Group, announced plans to invest around $1 billion (₹8,229 crore) in India and employ 4,000 people over the next decade. This move is in preparation for the shift from traditional fossil fuel engines to those fueled by hydrogen and other green energy options.
What Happened? Speaking to ET, Ashwath Ram, Managing Director of Cummins Group, India, noted that the company has previously invested $1 billion (₹8,229 crore) in India over the past 15 years. The company intends to make a similar investment in the next decade to transition from existing technologies to newer ones.
Notably, much of Cummins’ automotive business in India operates through Tata Cummins, with additional investment funnelled through subsidiary companies. In April, Cummins confirmed an agreement with Tata Motors to manufacture a variety of low-to-zero emission technology products in India over the coming years.
These two firms established a new business entity, TCPL Green Energy Solutions (GES), which will start operations in the 2025 fiscal year.
Simultaneously, Cummins India (CIL) plans to double its investment to around ₹350-400 crores annually. This boost will assist various automakers in their transition towards green mobility.
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Additionally, as a participant in the government’s productivity-linked incentive (PLI) scheme, Cummins Group intends to invest ₹1,000 crores in India over the next five years.
With increasingly stringent emissions legislation, Cummins has climbed the value chain to become a manufacturer of sophisticated, electronically-intensive parts. Ram also highlighted that the upcoming shift in emission standards could result in a 30-50% price increase in gensets, potentially driving a boost in sales and EBITDA.
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