April 4, 2008 -- Rising input costs may slow growth for Cummins India Ltd as the company will spend Rs 100 crore this year to expand capacity for making more power generation and automotive engines, says Cummins India Area's vice president Anant J Talaulicar.
All ten Cummins group companies present in India will together spend Rs 200 crore towards the capital expenditure in the fiscal year 2008-09. With the increased capacity, the Cummins group plans to make 600 engines of 5.9 liter capacity each per day as compared to 400 engines per day currently. These engines are used for automotive purposes.
The group also plans to make 24 high-end engines of 38-50 liters capacity each per day against the 16 engines per day now. These engines are used for power generation. Cummins India may face a slower rate of profit growth in the current fiscal due to rising input costs, Talaulicar said.
Abstracted from Daily News & Analysis
