Cummins Inc., the Columbus-based maker of diesel truck engines and generators, expects to boost India sales about 40 percent
this year as economic growth spurs road traffic and demand for electricity.
Sales may climb to about $1.9 billion from $1.35 billion last year, Anant Talaulicar, managing director of the company’s India area organization, told reporters in New Delhi on Monday. The company gets about half of India sales from engines fitted in trucks, buses, excavators, mining and marine equipment and about 30 percent from generators, he said.
“All these markets are doing exceedingly well,” Talaulicar said. “We see that momentum continue to build up.”
Cummins and its ventures, which include a tie-up with Tata Motors Ltd., plan to spend about $300 million over the next five years to build factories for engines, components and generators in India, Talaulicar said. Automakers such as Nissan Motor Co. and General Motors Co. have also boosted capacity in Asia’s third-biggest economy, where the government expects growth to accelerate to 8.5 percent in the year to March 2011.
Cummins has acquired land in the western state of Maharashtra, where subsidiaries and ventures are setting up plants, Talaulicar said. The proximity will allow different units to cut costs by sharing resources, he said.
Cummins India Ltd., 51 percent owned by Cummins, rose 2.9 percent to 587.3 rupees at the close of trading in Mumbai. The company has gained 36 percent this year compared with a 1.8 percent rise for the benchmark Sensitive Index, or Sensex, of the Bombay Stock Exchange.