@Aman_Mutkule wrote:
Market Share of Top Players
Key Market Players
Cummins India Ltd.
Cummins India Ltd is a subsidiary of Cummins Inc, USA, which is the global Power leader in Diesel & alternative fueled electric generators. Cummins entered India, in the early 1960’s with Joint Venture with Kirloskar Oil Engines Ltd. Today, the co. is the sole subsidiary of Cummins Inc, USA. Cummins is the market leader in India and enjoys roughly 39% of the market share alone. The business of Cummins is primarily derived from 3 activities, and these are:
- Engine Business: Cummins manufactures from engines from 60 HP for low, medium & heavy duty on-highway commercial vehicles, off-highway commercial equipment industry.
- Power System Business: They design & manufactures High Horse power Engines from 700 HP to 4500 HP for Marine, Railways, Defense & Mining Applications.
- Distribution Business: This segment is specifically for providing products, packages, services & solutions for the up time of Cummins equipment.
The company is present largely in the middle, Heavy duty and High voltage segments. It is trying to penetrate in the Lower segment as well. It supplies its engines to its OEM’s who further assemble that into generators. These OEM’s are:
- Sudhir Power Ltd: Sudhir has been the OEM of Cummins for the past 3 decades. Sudhir is a leading supplier/ dealer of diesel generator of Cummins in the regions of Delhi NCR, Punjab, Himachal Pradesh, Gujarat, Madhya Pradesh & Jammu Kashmir.
- Powerica Ltd: Powerica has been working as an OEM partner of Cummins since, 1984. It supplies the Cummins generator in the South & Western India.
- Jakson Ltd: Jakson Power manufactures & sales Cummins powered diesel generators in the North & North Eastern regions.
⇒ The company’s plant in SEZ has entered 6th year, whereby its tax liability has increased from 22% to 27%, the companies tax shall increase further after 3 years.
⇒ The company has leadership position in the industry & also, benefits immensely from the technological support provided by its parent co.
⇒ The company has strong exports, which are nearly 31% of its revenue.
⇒ The Higher segment products of Cummins India are priced a bit higher as compared to its peers. The company earns better margins, due to its strong sourcing & premium pricing of its products.
Caterpillar Inc.
Caterpillar has been active in India since 1930s. They brand their products as “CAT”. ‘Perkins’ is a subsidiary of Caterpillar company. Caterpillar caters to the requirement of different industry, with its products & service for Mining & Quarries, Power Generation, Construction, Road works, Rail & Petroleum industry. It largely operates in India through its 2 dealers, i.e. TIPL (Tractors India P Ltd), GMMCO, who further handle 8 dealers.
- Tractors India P Ltd (TIPL): TIPL operates as the authorized CAT dealer in North and East India and Bhutan. TIPL sells and services an extensive range of Cat equipment for construction, mining and several infrastructure applications. The enduring partnership of over 72 years with Caterpillar provides TIPL with the desired competitive edge and that too entirely customer centric.
- GMMCO: GMMCO, a CK Birla group company, is the no. 1 dealer of Caterpillar products in India. It provides Diesel Gensets rating from 200 kVA to 7150 kVA and Gas Gensets rating from 77.5 kVA to 5000 kVA. Apart from Gensets, GMMCO provides with the engines for powering various on highway & off highway automotives.
Kirloskar Oil Engines Ltd.
Incorporated in the year 1946, Kirloskar Oil Engines is the flagship company of the Kirloskar group. Kirloskar Oil Engines’ specializes in the manufacture of both air-cooled and liquid-cooled diesel engines and generating sets across a wide range of power output from 2kVA to 1010kVA.
⇒ Also, they offer engines that can run on alternative fuels such as Bio-diesel, Natural Gas, Bio gas & Straight Vegetable Oil (SVO).
⇒ Apart from Gensets, the company produces Engines for Agriculture, Industrial & Other heavy industries.
⇒ The company derives nearly 35% of its revenues from the sale of Gensets.
⇒ The company is chaired by Mr. Atul Kirloskar and is managed by Mr. Nihal G. Kulkarni.
⇒ The company took over La Gajjar Machineries (LGM), last year. LGM produces electric pumps for Domestic & Export markets. Its popular brands are ‘Varuna’ & ‘Raindrop’.
Mahindra & Mahindra
Mahindra & Mahindra Ltd ventured into Power Generation in 2001-02. The company brands its product as ‘Mahendra Powerol’. The company manufactures Diesel generators in the range of 5 kVA to 625 kVA, has huge presence in the Telecom sectors, it enjoys ~60% share in the Telecom sector and is clearly, an industry leader in this particular segment.
Greaves Cotton Ltd.
Greaves Cotton is chaired by Mr.Karan Thapar (of Thapar Group), the company is primarily engaged in the manufacturing of Auto Engines, but it also has diversified its product offerings and provides Gensets in the range of 2.5 kVA to 500 kVA. The company assembles the Power Generators for the use by various industries.
⇒ The company is the market leader in the Diesel Engines for commercial vehicles.
⇒ The company supplies Engines for Commercial Vehicles like 3 wheelers to Piaggio, Atul Autos.
⇒ It has nearly 75% market share in the 3 wheeler engine segment. Apart from 3 wheeler engines, it supplies engines to Tata Motors for its commercial vehicles.
⇒ The company has recently formed a Technological Alliance with Pinnacle Engines of US & Altigreen Propulsion Labs of Bangalore, to manufacture engines compliant with BSVI norms. The co. announced wider product portfolio, in order to de-risk its dependency on single cylinder engines. In its attempt, it will beef up its capabilities in areas of Generators, Energy & after- market products by entering into B2C segment.
Honda Siel Power Products Ltd.
The company is a subsidiary of Honda Motor Co. Japan, and was incorporated in 1985. The company is engaged in the production of Portable genset, Water Pumps, Tillers and General Purpose Engine. It has its manufacturing facility in Greater Noida.
⇒ The company is quite export oriented with its products being exported to America, Middle East, Africa & other countries.
⇒ The company produces genertors that run on petrol, rising prices of petrol can be a concern for the consumers.
⇒ The demand for Portable Gensets is on a downward trend. The company is low on debt, cash positive and has a good dividend payout record.
⇒ The company makes payments ~7-8% of its revenues to its parent company. These payments are in the form of Royalty, Model fees, Technical Information, etc.
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