16 September 2002 – Cummins India, the 51 per cent subsidiary of US-based Cummins Inc, Friday decided to merge two of its profit-making subsidiaries – Cummins Power Solutions and Power Systems India – with itself.
The Annual General Meeting of CIL ratified the decision which it expects to bring synergies in manufacture of gensets engines.
While Power Systems India manufactures mid-range engine packages for power generation applications and compressed natural gas buses, Cummins Power Solutions provides services in the distributed generation market including power projects and power rentals.
Officials said the company has decided to manufacture sub-100 kV gensets to cater to the growing services sector including hospitals, restaurant, real estates and call centres. CIL has so far focussed on the 100 to 2000 kV genset market, they said, adding the company has started manufacturing 15 kV to 100 kV generators.
The company has also ventured into providing turnkey gensets to companies on “pay-as-you-use-basis”, officials said adding dual fuel generators using gas as feedstock for generation of power too are being manufactured.
The merger of two subsidiaries is also likely to offset the fall in exports this fiscal, they added. The study which was carried out in 8 locations covering 325 firms during August-September 2002, also noted that UPS was considered most critical as the foundation to developing a network uptime solution and over 83 per cent rated UPS as extremely critical to network uptime. With more than 85 per cent of the firms willing to invest in good quality uptime solutions, the MAIT-Emerson Network Power study said over 75 per cent of the respondents had invested in back-up power quality products. The study says this is the first time an effort has been made to qualify the cost of downtime to the Indian economy.