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Cummins

June 17, 2011 – 5:49 pm

Business Profile
Cummins Inc. (Cummins) is an international power company that designs, manufactures, services and distributes natural gas and diesel engines, systems that generates electric power and component products related to engine, including emissions and filtration solutions, air handling and controls systems and fuel systems. Cummins has four business operating segments such as Engine, Components, Power Generation, and Distribution.

The company was incorporated in 1919 and has headquartered in the Columbus, Indiana. The company has listed on New York Stock Exchange under the ticker of “CMI “. In 2006 Net sales of the company were 11,362 million as compared to 9,918 million in 2005.

Cummins has acquired remaining shares in Tata Holset Limited (from Tata Group of Companies), in February 2007. It was renamed as Cummins Turbo Technologies. Cummins deals in various markets worldwide and have various joint ventures and relationship with several manufacturers such as PACCAR Inc., DaimlerChrysler, International Truck and Engine Corporation, CNH Global N.V, Volvo AB, Tata Motors Ltd., Volkswagen, Ford, Komatsu etc.

Engine Segment
Engine segment produces natural gas and diesel-powered engines for truck, bus, light automotive, agricultural, recreational vehicle, mining, marine, construction, gas and oil and equipment markets for government. Company produces various products that have Displacement to 91 liters and the horsepower from 31 to 3,500. Apart from these products company also provides new services and parts and also remanufactured engines and parts. This segment is largest segment of the company and in 2006 segment has reported 55% of total sales.

Cummins manufactures various diesel engines ranging from 310 horsepower to 600 horsepower Cummins produces ISX and ISM engines. The company manufactures various products of diesel engines for medium-duty that ranging from 200 hp to 400 hp helping customers of delivery truck worldwide. Cummins sells ISC and ISB engines and its components to truck manufacturers and dealers in Europe, South America and Asia. The company also produces ISB, ISL and ISC diesel engines, its fueled counterparts, for transit buses, shuttle buses and school buses worldwide

Cummins’ heavy-duty, high-horsepower and mid-range engines that provide power to various equipments in agricultural, mining, construction, rail, government, gas and oil, power generation, recreational and commercial marine applications. The company has various OEM customers in Europe, North America, South Korea, China and Japan. The company’s engines are marketed to commercial and recreational boat builders, in Europe, Asia and North America. Cummins produces various products of high-horsepower and high performance engines for applications in mining.
Power Generation Segment

In 2006 this segment has represented 18% of total sales. Power Generation segment provides power generation components, services and systems for customer to fulfill needs for generation power, standby power, and auxiliary power in various applications in specialty mobile.

The products of power generation segment are marketed under Onan and Cummins Power Generation brands, and also include alternative-fuel and diesel electrical generator for institutional, consumer and commercial applications, including office buildings, factories, municipalities, hospitals, utilities, universities, boats, homes and RVs. Cummins also offers auxiliary generator for RVs, recreational marine and commercial vehicles applications. Cummins rental business offers power equipment for prime and standby power purposes, on rental basis.

CGT (Cummins Generating Technologies) operates in various alternator industry. It supplies products internally and to various other generator assemblers.
Components Segment

Cummins’ Components segment produces exhaust and filtration systems for highway heavy-duty components. It also provides filtration products and components for passenger car and industrial applications, small engine exhaust systems equipment and gas turbines silencing systems. Apart from these products, Cummins operates emission solutions unit, to develop exhaust systems and after treatment. In 2006, sales of Components segment were approximately 17% of total sales.

Cummins produces more than 30,000 products, like air coolant, hydraulic and fuel filters, coolant additives and antifreeze, catalysts, controllers, particulate filters, and various other filtration products to OEMs, distributors and markets for end-user. Cummins Turbo Technologies Ltd is a Cummins’ fully owned subsidiary that designs, manufactures, markets turbochargers used in light-duty diesel and commercial applications.
Distribution Segment

In 2006, sales of Distribution segment were 10% of total sales of the company. Cummins offers service and parts to its various customers, and service solutions, such as maintenance contracts, integrated products and engineering services. Cummins’ distributors are in various key markets, such as India, China, Australia, Japan, United Kingdom, South Africa and Middle East. Cummins distributors develop and serve dealers, primarily OEM dealers, by providing, tools, training, technical support, product information and parts.
The Company have network such as partially owned dealer and distributors, in North America. Internationally, Cummins have network including partially owned as well as fully owned distributors. With the help of these network Cummins offers service and parts to customers.

Cummins have various competitors such as Caterpillar, Inc., Mack Trucks, Inc., Volvo, DaimlerChrysler, Generac, Kohler, Emerson Electric Co., Meccalte, Marathon Electric, Donaldson Company, Inc., Mann and Hummel Group, Clarcor Inc., Tokyo Roki Co., Ltd., Bosch, Tenneco, Honeywell International and Borg-Warner.