Cummins India is fundamentally an engine company - it designs, builds and services the diesel and natural-gas engines that keep India’s factories running, its hospitals lit and its data centres online when the grid fails. Born in 1962 as the oldest Cummins entity in India and headquartered in Pune, it operates as a publicly listed subsidiary of the US giant Cummins Inc., with a 61-year legacy of powering the country under a “Make in India for the world” approach. The recurring pattern that explains everything else is this: the company takes a proprietary engine platform developed with its global parent, localises almost every significant component in its own Indian plants, sells the finished genset or engine into a domestic market it knows intimately, and then locks in decades of aftermarket revenue by servicing that installed base through a network it controls - a flywheel that turns one-time product sales into a recurring, high-touch service relationship. # Business segments Five engines at different stages - a hydrocarbon cash cow, two consumer platforms at national scale, and a green-energy bet under construction - each built with the cash flows of the one before. ## 1. Power Generation: the backup that powers India’s growth **Diesel generators are the company’s largest and most dependable business, selling over 25,000 units a year into a market where grid reliability is still a promise, not a given.** - **The product is a complete power plant in a box** - the company designs and manufactures diesel and natural-gas generator sets that provide backup, prime or continuous power to commercial buildings, factories, hospitals, telecom towers and infrastructure projects. In FY25 alone it delivered over 23,000 CPCBIV+ gensets, providing more than 7,000 MW of power to customers. - **Data centres are the single biggest growth lever** - hyperscale, colocation and edge data centres together contribute roughly a quarter of Power Generation revenues, and the company has installed over 300 MW of backup power solutions in this segment, including 118 MW specifically for hyperscalers. It sees this as a five-to-eight-year double-digit growth opportunity and is already positioned with every major data centre player in India. - **Emission rules act as a forced upgrade cycle** - the shift to CPCB IV+ norms, described as the most stringent in the global power generation industry, has made older gensets obsolete and created demand for new engines with after-treatment products like diesel particulate filters and selective catalytic reduction. The company was among the first to launch a full range of compliant products, turning a regulatory burden into a competitive advantage. - **A dealer network that doubles as a moat** - the business has expanded its Powergen dealer network from 86 to 113 dealers in FY 2023-24 and further to 117 dealers in FY 2024-25, creating a distribution reach that is hard for new entrants to replicate quickly. - **Battery storage is the new adjacency** - in mid-2025 the company launched a Battery Energy Storage System (BESS) line, offering containerised lithium ferrophosphate batteries from 200 kWh to 2 MWh with integrated liquid cooling and a three-tier fire safety system, targeting customers who want clean backup without diesel. ## 2. Distribution: the aftermarket engine that never stops **Every engine sold becomes a decades-long annuity - the Distribution business supports over half a million engines in the field and turns service into a science.** - **An installed base that guarantees demand** - the business supports more than 5,09,975 engines covering over 2.27 lakh customers, selling spare parts, lubricants, filters, service contracts and extended warranties throughout each engine’s lifecycle. That base converts one-time product sales into a recurring revenue stream that is largely independent of the economic cycle. - **A service network with a response-time promise** - 18 dealerships with over 450 service touchpoints and more than 3,500 trained engineers give the company a physical presence that pure-play manufacturers cannot match. It offers a 2-hour Service Response Guarantee to key Powergen customers and logged a record 7.2 lakh service calls in a single year, over 80% of them for preventive maintenance. - **Telematics turns service from reactive to predictive** - new CPCBIV+ gensets come with built-in telematics for real-time monitoring, and the company runs a Command Center for Telematics and Rapid Response Team that offers 24x7 live monitoring and service guarantees based on live data. This shifts the model from “break-fix” to “predict and prevent,” raising uptime and locking in customers. - **It sells everything that touches the engine** - beyond genuine Cummins parts, the business has expanded into allied products like Diesel Exhaust Fluid for CPCBIV+ gensets, Retrofit Emission Control Devices to help customers meet pollution norms, Dual Fuel Kits, extended warranties branded “Ashwasan,” and even brake linings and clutches for on-highway vehicles. The strategy is to capture every rupee spent on keeping an engine running. - **Customer loyalty is measured and managed** - the business achieved a Net Promoter Score of 90% in FY25, and has consistently ranked first across all Cummins regions globally, a metric it uses to prove that its service quality is not just claimed but verified. ## 3. Industrial: the engine room for India’s infrastructure **When India builds railways, mines coal, expands its navy or drills for gas, Cummins supplies the engines that make the machines move - a portfolio of niche, high-specification power applications.** - **Railways is a captive, specification-driven market** - the business delivers complete propulsion packages for Diesel Electric Tower Cars used to maintain overhead electric lines, engines for track maintenance machines and shunting locomotives, and Hotel Load Converters for auxiliary power on trains. It designed and supplied the first-ever “Made in India” propulsion system for DETCs to Indian Railways, and exported India-built DEMUs to Mozambique. - **Marine is defence-led and growing** - the business recorded its highest-ever annual marine sales in FY25, driven by orders from the Indian Navy for gensets up to 1.5 MW and propulsion engines up to 2.3 MW for multipurpose vessels. It also received its maiden order for a submarine genset application, a technically demanding qualification that opens a new long-cycle revenue stream. - **Construction and mining ride the infrastructure cycle** - the company is a leading engine supplier in the excavator segment and has strengthened its presence in heavy earth-moving machinery, supplying engines for dump trucks above 190 tons. Demand is underpinned by record coal production - India hit 892 million tonnes in FY23 - and Coal India’s target of one billion tonnes, which keeps mining fleets running and engines wearing out. - **Defence and oil & gas are small but sticky** - a prototype engine for the Indian Army’s Light Tank “ZORAWAR” project successfully completed field trials, and the business supplies engines for missile carrier vehicles, artillery guns and armoured personnel carriers. In oil and gas, it supplies gas compression engines to city gas distribution OEMs, a segment that grew 50% in FY22 on the back of government pipeline investment. ## 4. Exports: India as a global engine factory **The company sells high-horsepower and low-horsepower engines and gensets to 58 countries, using India as a low-cost manufacturing base for the Cummins global supply chain.** - **Two distinct export streams** - High Horsepower exports, including QSK60 and QSK95 engines, go predominantly to North and Central America, while Low Horsepower exports serve Latin America, Europe, the Middle East, Africa and Asia Pacific with smaller, fit-for-market gensets. - **“Fit-for-market” means designed for the buyer, not the showroom** - the company has launched a series of low kVA gensets purpose-built for unregulated markets, with products like the X2.5, X3.3, B3.3 and QSB7 gensets tailored to local price points and emission requirements in Africa, the Middle East, Asia Pacific and Latin America. It also launched the KTA19-G4, an 18.9-litre engine specifically for power generation markets in Africa and the Middle East. - **India is becoming the lead factory for certain product families** - many product lines are now only produced in India, and the company uses advantages from production-linked incentive schemes to bid for more global projects out of its Indian plants. India-developed CPCB4 products are being exported to both lagging and leading emission-regulated markets. - **The parent relationship is both customer and supplier** - the company purchases engines, gensets, turbochargers and components from Cummins Inc. and sells finished engines, gensets and parts back to it, making the export business partly an intra-group supply chain and partly an arms-length commercial operation. # Manufacturing and technology backbone **Five plants, one technology parent and a continuous cost-reduction engine underpin every segment - the company makes what it sells, and it makes it more efficiently each year.** - **A multi-plant footprint with specialised roles** - the company operates plants in Pune, Chennai, Pirangut and the Megasite in Phaltan, Maharashtra, with the Phaltan SEZ unit dedicated to manufacturing and exporting low-kilowatt generator sets. The legacy Kothrud plant in Pune was named Cummins’ inaugural “Operations Excellence Exemplar Site”. - **Localisation is already very high** - for both data centre products and CPCB IV+ engines, the most significant components are all localised in India; only parts without a meaningful Indian supply chain are imported. This insulates the business from currency swings and supply-chain disruptions. - **The India Technical Office is the local R&D engine** - it develops products for both domestic and export markets, including Hotel Load Converters for rail, the full CPCBIV+ range, Euro Stage V compliant products for export, and a next-generation diesel engine on a fuel-agnostic platform. It also works on alternate fuels, fuel cells, battery storage and hybrid engines, feeding the company’s “Destination Zero” zero-emissions strategy. # Group structure and partners **Cummins India sits inside a web of related-party relationships that supply its technology, its lubricants and its alternators - and it has just begun investing in captive renewable power.** - **The parent is the technology fountainhead** - Cummins Inc., USA, is the holding company and the source of proprietary engine technology, with Cummins India paying management fees for technology, management support and shared services. The parent invested a record $1 billion in R&D and engineering, a pool of innovation the Indian subsidiary can draw on. - **Key inputs come from group entities** - the company sources engines, turbochargers, parts and components from Cummins Inc. and from Tata Cummins Private Limited, and it buys certain products like the QSK60 engine from related party CTIPL (Cummins Technologies India Pvt. Ltd.). - **A lubricants joint venture and an alternator associate** - the 50:50 joint venture Valvoline Cummins Private Limited makes and sells lubricants and engine oils, while the associate company Cummins Generator Technologies India Private Limited (48.74% stake) designs and manufactures alternators - the other half of every genset. - **The distribution subsidiary has been sold** - the wholly owned subsidiary Cummins Sales and Service Private Limited, which handled sales and service in Northern India, was sold to PAL SVAM Power Solutions effective April 2025, simplifying the group structure. - **A captive renewable energy investment** - in late 2025 the company invested in Clean Max Yellowstone Private Limited, a special purpose vehicle that will build offsite solar and wind plants in Maharashtra and supply captive power to Cummins India’s factories, reducing both Scope 2 emissions and power costs under a Group Captive Model.