AD-Times

2018-19

COMPANY NAME:
CUMMINS
Engineering Industry – Bird’s Eye View

• The engineering sector is the largest of the industrial sectors in India and can
be broadly categorised into two parts - heavy engineering and light
engineering.

• Turnover of capital goods industry is estimated to have reached US$ 70

billion in 2017

• The Government of India has appointed the Engineering Export Promotion

Council (EEPC) as the apex body in charge of promotion of engineering
goods, products and services from India

• India became a permanent member of the Washington Accord (WA) in June

2014. The country is now a part of an exclusive group of 17 countries who
are permanent signatories of the WA, an elite international agreement on
engineering studies and mobility of engineers.

Reference – IBEF
Engineering Industry – Bird’s Eye View
Turnover of capital goods industry is estimated to have reached US$ 70 billion in
2017.
India exports its engineering goods mostly to the US and Europe, which accounts
for over 60 per cent of the total exports.

Reference – IBEF
Engineering Industry – Bird’s Eye View
The electrical equipment industry observed a witnessed a record seven-year high
growth of 12.8% in 2017-18, on the back of increase in government spending to
improve power distribution.
Construction equipment industry of India is expected to grow over 18% in 2018-
19.

Reference – IBEF
Engineering Industry – Bird’s Eye View
In the last few years, India has emerged as a global engineering hub. Several
global manufacturing majors have partnered with Indian firms in setting up
successful engineering units across the country.
One of the key areas of focus for domestic players has also been technology up-
gradation. Several firms have formed strategic alliances with technology suppliers
to upgrade their production and processing capabilities.

Reference – IBEF
Engineering Industry – Bird’s Eye View
Under ‘Smart Cities Initiative’, the Ministry of Urban Development announced
partnership with Bloomberg Philanthropies in June 2015, to facilitate creation of
quality urban infrastructure.
The “Make in India” campaign is focused on making India a global manufacturing
hub to ensure that the manufacturing sector which contributes to about 16 per
cent of India’s GDP increases to around 25 per cent in 2022.
100% FDI has encouraged a lot of companies to invest in the Indian market .

Reference – IBEF
 Cummins India – Introduction
Cummins India is a group of complementary business units that design,
manufacture, distribute and service engines and related technologies.

Part of the US $20.4 billion 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 Cr. in 2017 and employing more than 10,000
individuals.

The seven entities 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.
Cummins Sales and Service Pvt. Ltd.

Reference – cumminsindia.com
Cummins India - History
Cummins India – Goals

Reference – cumminsindia.com
Cummins India – Financials

Annual Sales Net Profit Free Cash Flow

Reference – cumminsindia.com
Cummins India – Value Creation

Reference – cumminsindia.com
 Cummins India – Growth
The chart depicts the comparable movement of Cummins India Limited’s
Equity Shares against BSE sensex, during the year ended March 31, 2018.

Reference – cumminsindia.com
Cummins India – Shareholding

Reference – cumminsindia.com
Cummins India – Peer Comparison
The revenue growth of CIL is likely to be supported by growth from the data
centre, pick-up in road construction and higher oil prices. The company has
been continuously gaining market share in the domestic engine market with
an overall market share of 40 per cent and 70 per cent in the HHP segment.

Reference – Economic Times

Cummins India – Mission/Vision/Values

Mission:
“Making people’s lives better by powering a more prosperous world.”

Vision:
Innovating for our customers to power their success

Values:
• Integrity - Doing what you say you will do and doing what is right
• Diversity and Inclusion - Valuing and including our differences in decision
making is our competitive advantage
• Caring - Demonstrating awareness and consideration for the wellbeing of
others
• Excellence - Always delivering superior results
• Team Work - Collaborating across teams, functions, businesses and
borders to deliver the best work

Reference – cumminsindia.com
Cummins India – Positive Impact

Reference – cumminsindia.com
 Cummins India – STP

Segmentation:
• People and businesses who want Diesel engines and related technology
around the world

Targeting:
• Customers expecting top quality design, manufacture, distribution network,
service and related technologies, including fuel systems, controls, air
handling, filtration, emission solutions and electrical power generation
systems.

Positioning
• Exceed expectations, consistently; Exceeding customer expectations by
always being first to market with the best products

Reference – cumminsindia.com
 Cummins India – Product-lines

New Launches:

• Cummins in India announced the inauguration of its new state-of-the-art

technical centre on 1 March 2018. Located in Pune, Maharashtra, it is equipped
with world-class laboratories, engine test cells and engineering facilities.

• Cummins in India participated in Auto Expo on 8th Feb 2018, where they
displayed the all-new BS-VI emission compliant engines, turbocharger
technologies, exhaust after-treatment technologies and solutions for BS-VI
compliant engines.
Reference – cumminsindia.com
Cummins India – Product Timeline

Reference – cumminsindia.com
Cummins India – Strategy

Reference – cumminsindia.com
 Cummins India – SWOT
Strength:
• Integrated player with full diesel product line
• Global technology with localization capabilities
• Distribution strength with pan-India coverage and after sale support
• Strong research and development
• A strong brand equity
• Rising urbanisation, growing consumerism and increasing infrastructure
investment

Weakness:
• High dependence on few suppliers
• Tough competition
• Company’s manufacturing portfolio being focused on the domestic market,
potentially limiting export opportunities

Reference – cumminsindia.com
 Cummins India – SWOT
Opportunity:
• Industrial segment is seeing fastest growth driven by rail and construction
equipment businesses.
• Long-term key growth areas would be telematics, electrification, renewables,
alternative fuel and advanced analytics.
• Medium-term performance will continue to be driven by engine development,
which is a core business.

Threat:
• Exports were weak due to falling oil price, which impacted the company’s
finances and growth in key markets like the Middle East and Africa
• India transitioning to new emission norms affecting power genset and
construction equipment businesses

Reference – cumminsindia.com
Cummins India – Brand Communication
One of the examples of the
evolution of the logo with
changing Brand communication
is Valvoline.

Though the design has

changed through the ages their
message remains consistent: V
symbol as a metaphor for
blending two types of oil.

Reference – beachpackagingdesign.com
 News
• With reference to our communication dated August 6, 2018, we wish to
inform you that Ms. Nicole McDonald (DIN 07369062) has been re-
appointed as an Alternate Director to Ms. Suzanne Wells (DIN
06954891) effective August 9, 2018.

• Cummins India’s Q1FY19 numbers are in-line with estimates. Sales

have decreased by 1% yoy to Rs1,328cr. EBITDA has increased by
9.9% yoy to Rs214.7cr during the quarter from Rs195.3cr in Q1FY18.
EBITDA margin improved by ~160bps yoy to 16.2% in Q1FY19. Adjusted
net profit (adjusted for exceptional gains in Q1FY18) grew by 10.2% yoy
to Rs183cr.

• Cummins College is also accredited by NAAC at “A” grade in 2017 for

next five years.

Reference – Google News

Summer Intern(2017) Interaction
• Number of shortlists – 70-90
• Shortlist criteria(if any) – no criteria mentioned, no trend observed
• Selection Process – GD, interview , HR round
• Selected: Marketing - 5, Operations - 3, Finance - 1, HR - 2
• GD topic - How effective is democracy in India , Privatization of Air India
(general topics with GK involved)

• Number of shortlist from GD to PI - interview (20), HR round (8)

• Typical PI questions- tell me something about yourself, personal profile,

projects, why Cummins, why this industry, why b2b(interview built up as
per candidate answers)

• Type of summer project – sop for one of marketing teams to collect

market research (voice of consumer), define intervals, target, process,
do a pilot research, offer recommendations about process. Talk more to
internal stake holders for setting a process in order for them