CUMMINS

INDIA LTD.

CHAIRMAN: MARK LEVETT MANAGING DIRECTOR: ASHWATH RAM

ABOUT THE COMPANY

• Part of the US based $23.8 billion Cummins Inc.

• Cummins India accounts for nearly INR 5,526 crore in net sales.

• Headquartered in Pune, Maharashtra.

• Market Leader in India with a market share of close to 38%.

• It designs, manufactures, distributes and services diesel & alternative

fuel engines , diesel and alternative-fueled power generator sets, as well as
related components and technology.

• Consists of 3 Generator OEMs, 22 dealerships, and more than 120 dealership

branches across India.

• Exports account for nearly 31% of the company’s revenue.

• Major competitors include Caterpillar India Pvt Ltd., Kohler-SDMO, and MTU,
Kirloskar-Oil Engines, Mahindra & Mahindra.
FINANCIAL PERFORMANCE 2018-19
Net Profit of Cummins
in 2018-2019 YoY …
80000
70000 Standalone
60000
In the fiscal year Net profit before tax Free Cash Flow
2018-19, Standalone (excluding exceptional
net sales forConsolidated of
your Company were at items) at

`4,952 Crores
`5,526 Crores `1,030 Crores 784
` Crores

Launch of Phaltan town’s ranking moved up from the Cummins College of

264th position to the 75th in the Western Engineering for
Cummins Zone of the Women in Pune was
Powers SwachhSurvekshan Adjudged 44th
Women 2019 competition by the Outlook magazine

Global Priority Areas

Cummins focuses its employee
engagement and financial resources in
three global priority areas:
Environment Education Equality of Opportunity
Organized into 4 business segments

Distribution Engine Business

Business Unit: Unit:
Provides sales, Responsible for
service and support to designing &
customers, with 22 manufacturing diesel
dealerships, 120+ and natural gas
branch offices and powered engines.
more than 450 service
touch points.

Components Power Systems

Business Unit: Business Unit:
Consists of 4 Provides high horse
businesses: Cummins power engines and
Filtration, Cummins power generation
Turbo Technology, with generator sets,
Cummins Emission alternators, and other
Solutions and Fuel components.
Systems.
Subsidiaries, Joint Ventures, and Associates

Cummins Sales and Service Pvt Ltd. (wholly owned)

2012 • Cummins Sales & Service Private Limited focuses on sales and service of Cummins engines, parts,
accessories and providing service support to the engines in Delhi, parts of Uttar Pradesh and Uttarakhand.

Cummins Research and Technology India Pvt Ltd.

2003 • Cummins Research and Technology India Private Limited, is a joint venture between Cummins Inc. and
Cummins India Limited. The entity provides world-class engineering design and analysis solutions to
Cummins group entities and its joint ventures worldwide.

Valvoline Cummins Pvt Ltd.

1994 • It is a pioneer of global technology, manufacturing a complete range of premium lubricants for engines,
equipment and various industrial applications.

Cummins Generator Technologies India Pvt Ltd.

1991 • Cummins Generator Technologies India Pvt. Ltd. manufactures the world’s broadest range of AC generators from 5 kVA to
over 10,000 kVA under the STAMFORD and AvK product brands, and is backed by a committed customer support network
worldwide.
Pricing Strategy

• The pricing strategy of the Cummins focuses on setting the list price, credit terms,
payment period and discounts.

• The Higher segment products of Cummins India are priced a bit higher as
compared to its peers as it used cost plus pricing.

• Innovation and investment in R&D, along with Cummins being a market leader
lets the company demand higher price.

• The company earns better margins, due to its strong sourcing & premium pricing
of its products.

• Under the Consumer Driven Modularisation Strategy, Cummins has changed

the approach from providing regular gen-set models to all customers, and
modifying the engine features slightly to suit the special needs of each customer
like farmers, hospitals, small retailers, etc.

• Since many of the major customers that Cummins caters to include Governmental
institutions, and the defence sector, it is essential to minimise the price to meet
the requirements.
 Segmentation

Cummins Inc. has segmented its customers based on the following factors
mentioned below.

Firmographics Tiers Needs

• Cummins has grouped it’s • In this segment, the • This segment is grouped
customers based on the customers are segmented by the customers’ needs.
geographical locations based on how their goals Ex: Power Generation,
and sector of the match with that of Marine segments need a
customer. Ex: Railways, Cummins’. Ex: Cummins particular need that can
Mining and Construction. generators used for be fulfilled by Cummins’
construction purposes. products.
Targeting
Branding Strategy

• Innovative Design and state of the art technology.

• Major R&D takes place in India.

• Provides fit-to-market (custom) products and services to fulfil the demand

varying from sector to sector.

• Alternative fuel technology, for example, Bharat Earth Movers Ltd (BEML)
uses electric dump trucks powered by Cummins’ engines (Leading to
opening up of avenues in the high tonnage dump truck in India).

• Strict compliance with emission norms.

• POWER COMMAND CLOUD application: Smart and efficient remote

monitoring solution to enable customers to monitor, manage and maintain
their gen-sets anytime, anywhere by providing real time information,
hence providing convenience and peace of mind.
Branding Strategy (Continued)

• 24X7 Cummins Care initiative.

• Field Service Management mobile application also launched to digitize

onsite service delivery process.

• PARTS ON WHEELS to ensure availability of genuine spare parts in

remote locations.

• Flagship programs: CUSTOMER CONNECT and CUSTOMER TALK

helped in creating a connection with customers from all markets.

• AMaZe: Accelerated Move Towards Zero Defect program to achieve

zero defect in quality, and closed over 560 projects yielding more than 32%
YOY improvements across key quality performance indicators
 Branding Strategy

Cummins’ new branding strategy:

Cummins
Generator
Technologies
(formerly
Newage)

Cummins
Cummins
Emission
Fuel Systems
Solutions

Cummins

Cummins
Cummins
Filtration
Power
(formerly
Generation
Fleet guard)
Promotional and Integrated Marketing Communication
Strategies
Cummins In Digital

• Onsite delivery process was completely digitized with the launch of

Field Service Management mobile app.

• Cummins Connected Diagnostics

• With the app, you can view notifications about engine faults directly on
your smartphone, including prioritized fault codes, probable root cause
and recommended actions to maximize your uptime.
• It also connects you to the nearest qualified service location and Cummins
Care.

• QuickServe Mobile
• Cummins QuickServe Online (QSOL) is your best source for Cummins
parts, service and maintenance help
• The QSOL app provides easy, on-to-go access to part options, parts
catalogs, a fault code analyzer and engine data plate information for more
than 15 million Cummins serial numbers.
• It contains a fault code analyzer which will help the technicians.
Promotional and Integrated Marketing Communication Strategies

• Rapid Response Team created to address field critical issues and reduce
engine downtime with remote diagnosis tools.

• Parts on Wheels & the Service Van initiatives helped in reaching the
customer and therefore improving service as well as parts penetration.

• 24X7 CUMMINS CARE initiative for customers to register their complaints

through a toll free number, round the clock for 365 days a year, ensuring a call
closure within 72 hours.
 Promotional and Integrated Marketing Communication
Strategies

Fig. Cummins in digital: QuickServe

Fig. Cummins in digital: Field Service Management
Mobile App

Fig. Cummins launches India’s first mobile training

fleet on BS-VI technology
Sales and Distribution strategy

• The Distribution Segment drives a comprehensive global distribution

strategy and channel management.
•
• The Distribution Business provides sales, service and support to all the
customers through the largest number of certified service and support
locations of any engine manufacturer.

• Cummins has the technical expertise and experience to deliver fast, high-
quality repairs, planned maintenance and upgrade solutions.

• The local distributor locations offer a complete range of Cummins

products and Cummins genuine parts – supporting parts availability and
the custom engineering requirements necessary to keep customers
operating 24/7.
References

https://www.cumminsindia.com

https://cumminsindia.com/investors/annual-reports

https://www.cumminsindia.com/sites/india/files/CIL_Analyst_Meet-
Feb11_2014.pdf

https://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG104.htm

https://economictimes.indiatimes.com/markets/stocks/news/clarity-on-margins-
makes-cummins-a-decent-buy/articleshow/64059478.cms?from=mdr