Tuesday, 19 July 2011

Cummins India to make Phaltan a true megasite

Cummins India, in the midst of setting up an integrated manufacturing locationl called its megasite at Phaltan, about 108 kms from Pune, is already looking to expand from its present 150 acre- domestic tariff area and 36 acre SEZ. By December, it expects to be a 300 acre location and a 500 acre sprawl in another couple of years. 

"We have already acquired 36 acres in the MIDC-promoted SEZ and will take another 48 acres, which means a commitment for 85 acres in the SEZ. The SEZ will need another 30-40 acres by year end so that the entire SEZ will be spread over 100-150 acres," Dinesh Castellino, vice president and company secretary, Cummins India, said, indicating that by year end, Cummins will hold 300 acres at Phaltan, equally divided between domestic and exports units. 

In the next couple of years, the Cummins megasite at Phaltan will be a 500 acre location Mr Castellino said. "Our investment in additional land will be around Rs. 10-12 crore," he added. 

Cummins India had declared that the Phaltan megasite would have nearly 10 facilties, representing almost all Cummins group companies present in India in one location. At present, three plants are operational, the Tata Cummins plant for the B series and the ISB electronic engines for automotive application, a high horse power rebuild centre which rebuilds mechanical and electronic engines from 19-60 litres and repairs all Cummins engines, a ReCon, or re-conditioning plant which will remanufacture parts and engines upto 19 litres. 

Coming up next at the Phaltan site are three projects, a common Parts Distribution Centre for all Cummins businesses in India; an engine upfit plant to cater to the requirements of sectors like construction, compressor and marine. This plant will also manufacture the C series engines with a capacity to make 20,000 engines annually, in addition to upfitting mechanical and electronic B and L engines. 

Following these will be a unit to manufacture high horsepower engines as well as an expansion on the power generation side of the business, making generator sets and drives in the low and medium horsepower range for exports. Hence, this is expected to be in the SEZ, with an initial capacity to manufacture 36,000 units annually, rising to over 50,000 when it matures. 

The Rs. 4190 crore Cummins India operates in four businesses, industrial, automotive, power generation and distribution. Given its growth projections the company plans to hire 700 people this year. 

Earlier in the year, Cummins Inc chairman, Tim Solso, told reporters after inaugurating the first three plants at Phaltan, that they have invested US $150 million in three factories out of a total commitment of $500 million over the next few years.


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