Cummins enters "consumer segment" with launch of new engines
By Usha Somayaji | 31 May 2000
The Cummins group has made its foray into a new segment of the diesel engine market with its recent launch of the "S - Series" of engines in the 30 to 62.5 KVA range. Branded "Little Master", the new S Series engines come with Stamford alternators, four cylinders, 3.8 litre capacity, are lightweight and compact, and are Euro II emission norms compliant. The engines are designed on a 'plug-in and use' platform, and are de-skilled for easy operations.
This move virtually marks the group's entry into the "consumer" segment of diesel engines, since the company, hitherto, had been catering to the needs of the industrial sector, for larger engines. Until two years ago, Cummins manufactured and sold engines in the 100 KVA - 1250 KVA range, and did not have a presence either in the very large category, or the smaller end category.
Last year the company made an entry into the high-end market by marketing engines in the 2000 KVA range. Simultaneously, it seeded the smaller end of the market by introducing engines in the smaller range -- 75 KVA. These small engines were sourced from Tata Cummins, a sister company at Jamshedpur.
The new series of engines, however, meets the needs of a new segment altogether, and are targeted at small establishments. Optimised as power generating sets, the engines will find use in small-scale industries, hotels, hospitals, farmhouses, commercial and residential complexes, etc. Hence, for Cummins, it virtually becomes a consumer product.
"This is a momentous occasion for us. It opens a whole new market with tremendous potential," said Cummins India chairman Mr. Ravi Venkatesan, on the occasion of the launch. According to Mr. J.L Deshmukh, managing director, Cummins India, the new range of small engines will help the company meet a large market demand at the lower end.
The new S Series of engines in the 30 - 62.5 KVA range will be obtained from Telco and optimised for power generation by Cummins at Power Systems India Ltd, a Cummins group plant at Daman.
Power Systems is a Rs 10 crore, 50:50 joint venture between Cummins India Ltd and Cummins Diesel Sales and Service (I) Ltd (CDS&S), a wholly owned sales and support arm of Cummins India.
According to Mr. Venkatesan, these engines are also likely to be exported to the overseas market, since they have elicited considerable interest in the overseas markets, especially China, Brazil and Australia.
The company will make 3500 engines in the first year, doubling it thereafter. Initial plant capacity will be 10,000 units per year. The new engines will be marketed through Cummins' exclusive OEM network. CDS&S will also provide the after sales support.
