MOSL: THE CORNER OFFICE (CUMMINS INDIA) — Focus on profitable growth in core segments-New growth drivers

THE CORNER OFFICE (Cummins India) — Focus on profitable growth in core segments; New growth drivers: Telematics I Electrification I Alternative Fuels

Mr Sandeep Sinha, Managing Director

Mr Sinha was appointed Managing Director from February 1, 2018, before which he was Chief Operating Officer (COO) for Cummins India since January 2015. Earlier, he served as Vice President of the Industrial Engine Business in India. He focused on several key areas like safety, quality, operational and supply-chain excellence. He has also contributed in the start-up of multiple plants at the Cummins Megasite in Phaltan, India.

Mr Sinha has more than 15 years of experience with Cummins, and has assumed various leadership roles across entities, including the New and ReCon Parts business in India and corporate strategy in the US. He is an engineering graduate from the Manipal Institute of Technology, and has worked with Saint Gobain India for six years. He then pursued his graduate degree in Business Administration from the Kelley School of Business, Indiana University.

 We met Mr Sandeep Sinha, Managing Director of Cummins India (KKC). In our interaction, the emphasis was on driving profitable growth in the core segments, namely engines, components/spares, exports and power generation. New growth markets are telematics, electrification and alternative fuels. Our key takeaways:

 Focus on profitable growth in core segments

KKC intends to grow its core segments via: (a) market share gains, (b) content growth, and (c) new product introductions. It is targeting market share gains in end markets like hospitality, data centers, commercial realty and construction. Content growth is driven by offering more solutions to an existing customer – for example, in the road construction industry, KKC supplies the DG sets for backup power, engines for use in excavators, loaders, road rollers, and asphalt-laying machines while also providing connected solutions. Similarly, for the rail segment, it earlier supplied only the engines – it has moved on to supplying generators along with the engines and now provides  ‘silent DG sets’. In the marine segment, KKC has started supplying the entire propulsion system v/s only the engines, earlier. Lastly, in terms of new products, KKC is already working on CPCB-3/BS-VI emission-compliant engines to be introduced in 2020 and very few competitors would be able to adapt to the new norms; BS-VI will have near-zero emission. DG sets will not be a commoditized market post these norms – this in turn, is expected to benefit KKC.  Moreover, CPCB-3 compliant engines are likely to be all electronic (largely mechanical engines, currently), where margins are higher and competition is lower.