presentation to analysts
DESCRIPTION
Presentation to AnalystSTRANSCRIPT
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 183
Cummins India Ltd ndash Update
2010June 14 2010
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 283
Index
Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 383
Index
Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 483
A Journey Through Time
KirloskarCumminsLtd
1962 1967
CumminsDiesel Sales
amp Service(CDSampS)
FleetguardFiltersLtd
1987 1989
Newage
JV withCrompton
TataCumminsLtd
1993
CumminsIndia
Limited(CSS)
1997
CumminsIndia Ltd
1998
Valvoline
CumminsLtd
NelsonEnggLtd
2000 2002
KPITCummins
InfosystemsLtd
CumminsResearch ampTechnology
India Ltd
2003
CumminsExhaustIndia Ltd
1994
Tata
HolsetLtd
CumminsTurbo
Technologies
CumminsGenerator
Technologies
2008 - 09
CumminsTechnologies
India Ltd
CTT(I)
ReCon
CES
Megasite
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 583
Cummins in India
Engine Value Packages (60-2700 HP)Auto Construction MiningCompressors Pumps Marine RailOil amp Gas Defense
Power GenerationGensets (15-2000 kVA) RentalsEnergy ManagementCaptive Power Plants
Components amp ConsumablesFiltration Exhaust Systems
Turbochargers AlternatorsLubricants
ServicesEngines GensetsITITES RampD Sourcing
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
ValvolineCummins
New Delhi
CTIL ndash CTT CTIL ndash PSMI (SEZ)
Dewas Pithampur
Gensets Cummins
ExhaustDaman
Tata Cummins Fleetguard FiltersJamshedpur
Cummins GeneratorTechnologiesAhmednagarRanjangaon
Fleetguard FiltersHosur
Cummins India Ltd Cummins Generator Technologies KPIT Cummins Cummins Business Services International Purchasing Office Fleetguard Filters Pvt Ltd Cummins Research amp Technology India CTIL ndash PSMI (DTA) CTIL - CES Megasite
Pune
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 683
Strategic
Leadership Team
Dinesh
Castellino
LegalFacilities amp HSE
Nagarajan
Balanaga
Human Resources
KC Ravi
GovernmentRelations
Rajiv Batra
Finance ITStrategy
Raj Menon
Chief OperatingOfficer
Querish
Shipchandler
InternalAudit
Anant Talaulicar President ndash Components Group and
Managing Director ndash India ABO
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 783
Ravi Pandit
KPIT CumminsSadashiv Pandit
Fleetguard Filters
Naveen GuptaValvoline
Cummins Ltd
Beau Lintereur
PowerGeneration
Business
Sandeep
Sinha
ReCon India
IndustrialEngine
Business
Arun
Ramachandran
Automotive
Business
Sandeep
Chaudhry
Tata Cummins
Operations
Raj Menon
Chief Operating Officer ndash India ABO
PradeepBhargava
CumminsGenerator
Technologies
Nitin MantriCummins Turbo
Technologies
Bijoy BoseIPO
Craig BarnesCRTI amp Eng
Manoj SolankiCEIL amp CES
SenthilKumaran
CBS
Amit Kumar
Distribution
Business
KN Harish
QualityChampion
Operating
Leadership Team
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 283
Index
Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 383
Index
Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 483
A Journey Through Time
KirloskarCumminsLtd
1962 1967
CumminsDiesel Sales
amp Service(CDSampS)
FleetguardFiltersLtd
1987 1989
Newage
JV withCrompton
TataCumminsLtd
1993
CumminsIndia
Limited(CSS)
1997
CumminsIndia Ltd
1998
Valvoline
CumminsLtd
NelsonEnggLtd
2000 2002
KPITCummins
InfosystemsLtd
CumminsResearch ampTechnology
India Ltd
2003
CumminsExhaustIndia Ltd
1994
Tata
HolsetLtd
CumminsTurbo
Technologies
CumminsGenerator
Technologies
2008 - 09
CumminsTechnologies
India Ltd
CTT(I)
ReCon
CES
Megasite
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 583
Cummins in India
Engine Value Packages (60-2700 HP)Auto Construction MiningCompressors Pumps Marine RailOil amp Gas Defense
Power GenerationGensets (15-2000 kVA) RentalsEnergy ManagementCaptive Power Plants
Components amp ConsumablesFiltration Exhaust Systems
Turbochargers AlternatorsLubricants
ServicesEngines GensetsITITES RampD Sourcing
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
ValvolineCummins
New Delhi
CTIL ndash CTT CTIL ndash PSMI (SEZ)
Dewas Pithampur
Gensets Cummins
ExhaustDaman
Tata Cummins Fleetguard FiltersJamshedpur
Cummins GeneratorTechnologiesAhmednagarRanjangaon
Fleetguard FiltersHosur
Cummins India Ltd Cummins Generator Technologies KPIT Cummins Cummins Business Services International Purchasing Office Fleetguard Filters Pvt Ltd Cummins Research amp Technology India CTIL ndash PSMI (DTA) CTIL - CES Megasite
Pune
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 683
Strategic
Leadership Team
Dinesh
Castellino
LegalFacilities amp HSE
Nagarajan
Balanaga
Human Resources
KC Ravi
GovernmentRelations
Rajiv Batra
Finance ITStrategy
Raj Menon
Chief OperatingOfficer
Querish
Shipchandler
InternalAudit
Anant Talaulicar President ndash Components Group and
Managing Director ndash India ABO
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 783
Ravi Pandit
KPIT CumminsSadashiv Pandit
Fleetguard Filters
Naveen GuptaValvoline
Cummins Ltd
Beau Lintereur
PowerGeneration
Business
Sandeep
Sinha
ReCon India
IndustrialEngine
Business
Arun
Ramachandran
Automotive
Business
Sandeep
Chaudhry
Tata Cummins
Operations
Raj Menon
Chief Operating Officer ndash India ABO
PradeepBhargava
CumminsGenerator
Technologies
Nitin MantriCummins Turbo
Technologies
Bijoy BoseIPO
Craig BarnesCRTI amp Eng
Manoj SolankiCEIL amp CES
SenthilKumaran
CBS
Amit Kumar
Distribution
Business
KN Harish
QualityChampion
Operating
Leadership Team
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 383
Index
Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 483
A Journey Through Time
KirloskarCumminsLtd
1962 1967
CumminsDiesel Sales
amp Service(CDSampS)
FleetguardFiltersLtd
1987 1989
Newage
JV withCrompton
TataCumminsLtd
1993
CumminsIndia
Limited(CSS)
1997
CumminsIndia Ltd
1998
Valvoline
CumminsLtd
NelsonEnggLtd
2000 2002
KPITCummins
InfosystemsLtd
CumminsResearch ampTechnology
India Ltd
2003
CumminsExhaustIndia Ltd
1994
Tata
HolsetLtd
CumminsTurbo
Technologies
CumminsGenerator
Technologies
2008 - 09
CumminsTechnologies
India Ltd
CTT(I)
ReCon
CES
Megasite
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 583
Cummins in India
Engine Value Packages (60-2700 HP)Auto Construction MiningCompressors Pumps Marine RailOil amp Gas Defense
Power GenerationGensets (15-2000 kVA) RentalsEnergy ManagementCaptive Power Plants
Components amp ConsumablesFiltration Exhaust Systems
Turbochargers AlternatorsLubricants
ServicesEngines GensetsITITES RampD Sourcing
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
ValvolineCummins
New Delhi
CTIL ndash CTT CTIL ndash PSMI (SEZ)
Dewas Pithampur
Gensets Cummins
ExhaustDaman
Tata Cummins Fleetguard FiltersJamshedpur
Cummins GeneratorTechnologiesAhmednagarRanjangaon
Fleetguard FiltersHosur
Cummins India Ltd Cummins Generator Technologies KPIT Cummins Cummins Business Services International Purchasing Office Fleetguard Filters Pvt Ltd Cummins Research amp Technology India CTIL ndash PSMI (DTA) CTIL - CES Megasite
Pune
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 683
Strategic
Leadership Team
Dinesh
Castellino
LegalFacilities amp HSE
Nagarajan
Balanaga
Human Resources
KC Ravi
GovernmentRelations
Rajiv Batra
Finance ITStrategy
Raj Menon
Chief OperatingOfficer
Querish
Shipchandler
InternalAudit
Anant Talaulicar President ndash Components Group and
Managing Director ndash India ABO
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 783
Ravi Pandit
KPIT CumminsSadashiv Pandit
Fleetguard Filters
Naveen GuptaValvoline
Cummins Ltd
Beau Lintereur
PowerGeneration
Business
Sandeep
Sinha
ReCon India
IndustrialEngine
Business
Arun
Ramachandran
Automotive
Business
Sandeep
Chaudhry
Tata Cummins
Operations
Raj Menon
Chief Operating Officer ndash India ABO
PradeepBhargava
CumminsGenerator
Technologies
Nitin MantriCummins Turbo
Technologies
Bijoy BoseIPO
Craig BarnesCRTI amp Eng
Manoj SolankiCEIL amp CES
SenthilKumaran
CBS
Amit Kumar
Distribution
Business
KN Harish
QualityChampion
Operating
Leadership Team
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 483
A Journey Through Time
KirloskarCumminsLtd
1962 1967
CumminsDiesel Sales
amp Service(CDSampS)
FleetguardFiltersLtd
1987 1989
Newage
JV withCrompton
TataCumminsLtd
1993
CumminsIndia
Limited(CSS)
1997
CumminsIndia Ltd
1998
Valvoline
CumminsLtd
NelsonEnggLtd
2000 2002
KPITCummins
InfosystemsLtd
CumminsResearch ampTechnology
India Ltd
2003
CumminsExhaustIndia Ltd
1994
Tata
HolsetLtd
CumminsTurbo
Technologies
CumminsGenerator
Technologies
2008 - 09
CumminsTechnologies
India Ltd
CTT(I)
ReCon
CES
Megasite
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 583
Cummins in India
Engine Value Packages (60-2700 HP)Auto Construction MiningCompressors Pumps Marine RailOil amp Gas Defense
Power GenerationGensets (15-2000 kVA) RentalsEnergy ManagementCaptive Power Plants
Components amp ConsumablesFiltration Exhaust Systems
Turbochargers AlternatorsLubricants
ServicesEngines GensetsITITES RampD Sourcing
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
ValvolineCummins
New Delhi
CTIL ndash CTT CTIL ndash PSMI (SEZ)
Dewas Pithampur
Gensets Cummins
ExhaustDaman
Tata Cummins Fleetguard FiltersJamshedpur
Cummins GeneratorTechnologiesAhmednagarRanjangaon
Fleetguard FiltersHosur
Cummins India Ltd Cummins Generator Technologies KPIT Cummins Cummins Business Services International Purchasing Office Fleetguard Filters Pvt Ltd Cummins Research amp Technology India CTIL ndash PSMI (DTA) CTIL - CES Megasite
Pune
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 683
Strategic
Leadership Team
Dinesh
Castellino
LegalFacilities amp HSE
Nagarajan
Balanaga
Human Resources
KC Ravi
GovernmentRelations
Rajiv Batra
Finance ITStrategy
Raj Menon
Chief OperatingOfficer
Querish
Shipchandler
InternalAudit
Anant Talaulicar President ndash Components Group and
Managing Director ndash India ABO
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 783
Ravi Pandit
KPIT CumminsSadashiv Pandit
Fleetguard Filters
Naveen GuptaValvoline
Cummins Ltd
Beau Lintereur
PowerGeneration
Business
Sandeep
Sinha
ReCon India
IndustrialEngine
Business
Arun
Ramachandran
Automotive
Business
Sandeep
Chaudhry
Tata Cummins
Operations
Raj Menon
Chief Operating Officer ndash India ABO
PradeepBhargava
CumminsGenerator
Technologies
Nitin MantriCummins Turbo
Technologies
Bijoy BoseIPO
Craig BarnesCRTI amp Eng
Manoj SolankiCEIL amp CES
SenthilKumaran
CBS
Amit Kumar
Distribution
Business
KN Harish
QualityChampion
Operating
Leadership Team
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 583
Cummins in India
Engine Value Packages (60-2700 HP)Auto Construction MiningCompressors Pumps Marine RailOil amp Gas Defense
Power GenerationGensets (15-2000 kVA) RentalsEnergy ManagementCaptive Power Plants
Components amp ConsumablesFiltration Exhaust Systems
Turbochargers AlternatorsLubricants
ServicesEngines GensetsITITES RampD Sourcing
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
bull In India since 1962
bull 9 companies (4 JVrsquos)
bull More than 11000 employees
bull $13B unconsolidated sales (2009)
ValvolineCummins
New Delhi
CTIL ndash CTT CTIL ndash PSMI (SEZ)
Dewas Pithampur
Gensets Cummins
ExhaustDaman
Tata Cummins Fleetguard FiltersJamshedpur
Cummins GeneratorTechnologiesAhmednagarRanjangaon
Fleetguard FiltersHosur
Cummins India Ltd Cummins Generator Technologies KPIT Cummins Cummins Business Services International Purchasing Office Fleetguard Filters Pvt Ltd Cummins Research amp Technology India CTIL ndash PSMI (DTA) CTIL - CES Megasite
Pune
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 683
Strategic
Leadership Team
Dinesh
Castellino
LegalFacilities amp HSE
Nagarajan
Balanaga
Human Resources
KC Ravi
GovernmentRelations
Rajiv Batra
Finance ITStrategy
Raj Menon
Chief OperatingOfficer
Querish
Shipchandler
InternalAudit
Anant Talaulicar President ndash Components Group and
Managing Director ndash India ABO
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 783
Ravi Pandit
KPIT CumminsSadashiv Pandit
Fleetguard Filters
Naveen GuptaValvoline
Cummins Ltd
Beau Lintereur
PowerGeneration
Business
Sandeep
Sinha
ReCon India
IndustrialEngine
Business
Arun
Ramachandran
Automotive
Business
Sandeep
Chaudhry
Tata Cummins
Operations
Raj Menon
Chief Operating Officer ndash India ABO
PradeepBhargava
CumminsGenerator
Technologies
Nitin MantriCummins Turbo
Technologies
Bijoy BoseIPO
Craig BarnesCRTI amp Eng
Manoj SolankiCEIL amp CES
SenthilKumaran
CBS
Amit Kumar
Distribution
Business
KN Harish
QualityChampion
Operating
Leadership Team
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 683
Strategic
Leadership Team
Dinesh
Castellino
LegalFacilities amp HSE
Nagarajan
Balanaga
Human Resources
KC Ravi
GovernmentRelations
Rajiv Batra
Finance ITStrategy
Raj Menon
Chief OperatingOfficer
Querish
Shipchandler
InternalAudit
Anant Talaulicar President ndash Components Group and
Managing Director ndash India ABO
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 783
Ravi Pandit
KPIT CumminsSadashiv Pandit
Fleetguard Filters
Naveen GuptaValvoline
Cummins Ltd
Beau Lintereur
PowerGeneration
Business
Sandeep
Sinha
ReCon India
IndustrialEngine
Business
Arun
Ramachandran
Automotive
Business
Sandeep
Chaudhry
Tata Cummins
Operations
Raj Menon
Chief Operating Officer ndash India ABO
PradeepBhargava
CumminsGenerator
Technologies
Nitin MantriCummins Turbo
Technologies
Bijoy BoseIPO
Craig BarnesCRTI amp Eng
Manoj SolankiCEIL amp CES
SenthilKumaran
CBS
Amit Kumar
Distribution
Business
KN Harish
QualityChampion
Operating
Leadership Team
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 783
Ravi Pandit
KPIT CumminsSadashiv Pandit
Fleetguard Filters
Naveen GuptaValvoline
Cummins Ltd
Beau Lintereur
PowerGeneration
Business
Sandeep
Sinha
ReCon India
IndustrialEngine
Business
Arun
Ramachandran
Automotive
Business
Sandeep
Chaudhry
Tata Cummins
Operations
Raj Menon
Chief Operating Officer ndash India ABO
PradeepBhargava
CumminsGenerator
Technologies
Nitin MantriCummins Turbo
Technologies
Bijoy BoseIPO
Craig BarnesCRTI amp Eng
Manoj SolankiCEIL amp CES
SenthilKumaran
CBS
Amit Kumar
Distribution
Business
KN Harish
QualityChampion
Operating
Leadership Team
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 883
India Organization Snapshot
Business Units
bull Engine Business Automotive
Industrial
bull Power Generation Business
bull Component Businesses
bull Filtration
bull Exhaust
bull Turbo
bull Lubricants
bull Distribution Business
bull 1 PDC 5 Zonal Offices 21 Area Offices
75 Dealers 212 Dealer sites
Cummins owned operations
1 Cummins India Ltd
Cummins Sales and Service (India) Ltd
(now merged with Cummins India
Limited)
2 Cummins Research amp Technology India
Ltd
3 Cummins Exhaust India Ltd
4 Cummins Generator Technologies India
Ltd
5 Cummins Turbo Technologies Ltd
Joint Ventures
1 Tata Cummins Ltd
2 KPIT Cummins Infosystems Ltd3 Fleetguard Filters Pvt Ltd
4 Valvoline Cummins Ltd
Shared ServicesCBSRampD CentreIPOInternal Audit
Cummins in India
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 983
Cummins in India Achievements 2009
Achieved $13B Revenue
$168 M Profit
New top level diverse leadership team
Enhanced performance oriented meritocracy
Exceeded strategic plan financial targets
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1083
Cummins in India Financial Progressafter inter-company elimination
$M
12
194
1572
2008
-131312119Profit ()
168
1279
2009
171
1328
2007
251198256Profit
151005767639Revenue
CAGR
2006 2005 2004 Paramet er
NoteProfit includes 100 consolidated entities PBIT plus Cummins portion of unconsolidated JVsrsquo earnings
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1183
Cummins India Ltd ndash Flagship
Company of Cummins in India Established in 1962 51 subsidiary of Cummins Inc
Manufactures a variety of engines operating on diesel natural gas and
dual fuel
Provides innovative solutions across Industrial Power Generation and
Automotive applications
Manufactures over 18000 engines pa
Amongst Indiarsquos largest exporters of Engg Products
5 plants at Kothrud Nagar Rd Pune Loni Daman and Pirangut
II - Nagar Road Pune III - DamanI ndash Kothrud Pune IV - Loni V ndash Pirangut (DTA EOU)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1283
983085
983093983088983088
983089983084983088983088983088
983089983084983093983088983088
983090983084983088983088983088
983090983084983093983088983088
983091983084983088983088983088
983091983084983093983088983088
983096983096983091 983095983095983095 983096983095983096983089983084983088983088983097
983089983084983090983095983089983089983084983092983094983091
983089983084983096983092983089
983090983084983091983091983089
983091983084983091983088983092
983090983084983096983092983093
983123983137983148983141983155
CIL ndash Sales Trend
CA G R 1 4
INR Cr
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1383
983089983088983097 983096983094 983097983092 983089983088983097983089983091983095
983089983095983094983090983092983090 983090983096983089
983092983091983092 983092983092983092
983089983090983077 983089983089983077 983089983089983077 983089983089983077 983089983089983077983089983090983077
983089983091983077
983089983090983077
983089983091983077
983089983094983077
983088983077
983090983077
983092983077
983094983077
983096983077
983089983088983077
983089983090983077983089983092983077
983089983094983077
983089983096983077
983094983088
983089983094983088
983090983094983088
983091983094983088
983092983094983088
983093983094983088
983094983094983088
983095983094983088
983096983094983088
983097983094983088
983120983105983124 983120983105983124983077
CIL ndash PAT TrendINR Cr
CAGR 17
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1483
983108983145983158983145983140983141983150983140
983090983094 983091983088 983095983097 983095983097 983095983097 983095983097 983095983097 983097983089 983089983095983096 983090983091983096
983094983093983077 983095983093983077
983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983088983088983077983090983091983088983077
983092983093983088983077
983094983088983088983077
983085
983093983088
983089983088983088
983089983093983088
983090983088983088
983090983093983088
983091983088983088
983090 983088 983088 983088
983085 983088 983089
983090 983088 983088 983089
983085 983088 983090
983090 983088 983088 983090
983085 983088 983091
983090 983088 983088 983091
983085 983088 983092
983090 983088 983088 983092
983085 983088 983093
983090 983088 983088 983093
983085 983088 983094
983090 983088 983088 983094
983085 983088 983095
983090 983088 983088 983095
983085 983088 983096
983090 983088 983088 983096
983085 983088 983097
983090 983088 983088 983097
983085 983089 983088
983088983077
983089983088983088983077
983090983088983088983077
983091983088983088983077
983092983088983088983077
983093983088983088983077
983094983088983088983077
983095983088983088983077
983108983145983158983145983140983141983150983140 983108983145983158983145983140983141983150983140 983077
CIL ndash Dividend Trend
INR Cr
CAGR 23
Dividend before Dividend distribution tax
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1583
CIL ndash Annualised Shareholder Return
1 Yr ndash 2009-10
5 Yr ndash 2004-05 to 2009-10
10 Yr ndash 1999-2000 to 2009-10
983088983077
983089983088983077
983090983088983077
983091983088983077
983092983088983077
983093983088983077
983094983088983077
983095983088983077
983096983088983077
983097983088983077
983089983088983088983077
983089983088 983129983154 983093 983129983154 983089 983129983154
983090983088983077983090983094983077
983089983088983088983077
983089983089983077 983089983089983077 983094983077
983107983113983116 983106983123983109
Shareholder return is excluding dividendCIL share
price Sensex
2000 75 5205 2006 178 9920
Jan-09 168 9424 Jun 10 553 16667
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1683
Strong balance sheet
ndash Debt to capital
ndash Cash amp Equivalents
Grew our business
ndash Sales growth (CAGR)
Returned value to shareholders
ndash Return on equity
ndash Share appreciation ndash Dividends
Delivering on Commitments
54
Rs 789 Cr
14
103
31
Rs 238 Cr
Pertains to FY0910
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1783
CIL - Return on Net Assets
ROANA
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1883
Index Where have we been
The Way Ahead - ndash Strategic Direction Product Plan
ndash Growth Projects Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 1983
Surrounding The Customer With One Face
Innovative Cost Effective Relevant amp Dependable Solutions
Tightly Integrated Legal Entities
Aligned with Cummins Vision and Core Values
The Way Forward
Channel (Dealers amp OEMs)
Customer
DBUPGBUEBUComponents
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2083
Greatness ndash Zero Defect Companies
The Leadership Team has delivered and is a trustworthy steward of Cummins assets India is a great market albeit with significant complexities Well integrated with Corporate and Global BUs allowing for balanced decisions We have now earned the right to aspire to become lsquoZero Defectrsquo companies
ZEROZERO
Cummins ValuesIntegrity Delivering Superior Results
Quality GoalContinuous improvement towards defect free
processes that satisfy customer needs and achievebusiness results
Brand PromiseDependability
ProcessSix Sigma
ExcellenceGood to Great
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2183
India ABO Strategy
Domestic Market Share Leadership
Low Cost Producer
Exports
Great Place To Work
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2283
Corporate Responsibility
Three focus areas Higher Education
ndash Funded new Mechanical Engineering course at the Cummins College of Engineering for
Women
ndash Enrolment of 2nd batch of students underway
ndash Cummins Scholarship ndash30 meritorious economically socially disadvantaged students forundergraduate degrees and diplomas Doubled since last year
ndash Agreed to partially fund Cummins College of Engineering for Women Nagpur
Energy amp Environment
ndash Cummins Lab at IIT-Bombay for alternative fuel research
ndash Agreement with Indian Institute of Science (IISc) to commercialize Producer Gas powergeneration systems
ndash Initiated Six-Sigma project on Waste Management
ndash Launched Pilot Rural Electrification Project in a village in Orissa
Local Community Infrastructure Development
ndash Poona School and Home for Blind Girls
ndash JaaGo Re - Voter restriction drive across ABO entities
ndash Closely working with Public Concern for Governance Trust on Right to Information
ndash Watershed Management Project at BVJSS
ndash NGOrsquos catering to needs of abandoned and orphaned children ndash Aapla Ghar Wagholi
school (BVJSS) Senahalaya
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2383
One Cummins Strategy Megasite
Support Cummins growth plans in India
Space exhausted at the Kothrud Campus in Pune
Reactive case by case expansions leading to
ndash Small size with limited expansion scope
ndash Scattered facilities (based on immediate availability) ndash Higher costs
Need to facilitate expansion amp co-location ndashlower costs
Supports the lsquoOne Cumminsrsquo brand strategy
Megasite Rationale
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2483
Expansion plans at Megasite
Domestic
TCL-2
ReCon
HHP Rebuild
PDC
PGBU
B Uplift amp BPI
SEZ
ReCon
PGBU
HHP EBU Facility
Megasite Plan
CIL Projects
CIL Projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2583
CIL is a Profitable Growth Story
Proven track record
Positioned well to capture growth
Growing profits faster than sales
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2683
Industrial Engine Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2783
Cummins Product Family
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400
A Series
B33
B39
B59QSB59
C83QSC83
QSM11M11
QSX15QSK19
QSK23
QST30
K38
QSK45
K50
QSK60
QSK78
P r o d u c t
Horsepower
Cummins Products- Complete Product Range 31 - 3500HP- Common Electronic Controls
- Common Maintenance Practices- Supported by Cummins Distributors
31 HP A Series
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2883
Manufacturing facilities IEBU
LOCATION OPERATIONS AREA ndash BUILT-UP
I Kothrud Pune Engine Mfg - N14 NT K19 51439 m2
V28 K3850 Quantum series
II Nagar Road Pune ldquoCrdquo series assembly 5492 m2
III Loni lsquoBrsquo Upfit Industrial 1579 m2
II - Nagar Road PuneI ndash Kothrud Pune III - Loni
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 2983
Markets We Serve
Mining Construction Compressor
Gas CompressionRail Marine
Oilfield Defense Pumps
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3083
Construction
Market Definition ndash 50 HP to 300 HP Diesel powered Construction Machinery Earthmoving Equipments amp
Material Handling Equipments such as Crawler Excavators Wheel Loaders BackhoeLoaders Compactors Motor Graders Dozers Fork lift trucks Cranes etc
Key Segments ndash Roads Bridges Rail Ports Airports Irrigation amp Power Defence (DGBR) Granite amp
Marble Mines Stone Quarries
Key OEMs in the market ndash Telcon LampT-Komatsu JCB Hyundai Volvo CAT TIL TWL Vectra (VAE) Dynapac
LiuGong Schwing Stetter Wirtgen LampT Case Terex Vectra Greaves Escorts ACEetc
Major Customers ndash DGBR Major contractors like LampT ECC Punj Lloyd Jaiprakash HCC Gammon etc
ndash Marble amp granite customers like R K Marbles J K Marbles GEM Granites etc
ndash Cement customers like ACC Ambuja Cement Lafarge Ultratech Shree Cement etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3183
Construction Product Portfolio
Crawler Excavators
Compactors
Skid SteerLoaders
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3283
Mining
Market Definition ndash Diesel powered earthmoving equipments used in Mining eg Dumpers
ExcavatorsShovels
ndash Dozers Loaders Graders Surface Miners Blast Hole Rigs and other support eqptlike
ndash Water Sprinklers Tyre Handlers Coal Haulers Pipe Layer Cranes FE Loaders etc
ndash Includes OEM RampR (Replacement and Repowering)
Key Segments ndash Coal Lignite Steel Cement Other Minerals ( Bauxite Zinc Copper ) etc
Key OEMs in the market ndash Domestic BEML CAT Telcon Revathi LampT- Kansbahal LampT Komatsu TWL Volvo
etc
ndash Global Komatsu Euclid-Hitachi Unit Rig Terex Liebherr OampK etc
Major Customers
ndash Coal India subsidiaries SECL NLC TISCO SAIL HCL HZL KIOCL NMDC CementIndustries amp Private contractors like EMTA G S Atwal etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3383
Mining Product Portfolio
Dump Trucks - 35T 5060T100T 120T 190T 240T
Excavators Surface Miner
Dozer
Dump Truck
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3483
Water Well Rigs
Market Definition ndash Diesel powered Screw Compressors (450 -1400 cfm 150 - 500 psi) for Water Well
Rigs
Key Segments Water Well Drills Bore wells for ndash Agricultural Irrigation
ndash Rural and urban drinking water supply
ndash Institutional Commercial ndash Infrastructure Industries Coal Mines etc
Key OEMs ndash Elgi Equipments Atlas Copco Kirloskar Pneumatic Revathi Equipments Doosan
Major Customers ndash Private Water Well Drilling Rig owners
ndash Rig manufacturers
ndash Central Ground Water Board DGSampD
ndash State Agencies like Public Health Engg Dept Water supply and Sewerage BoardGround
ndash Water Survey Development Agencies and Minor Irrigation department
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3583
Portable Compressors
Market Definition ndash Diesel engine powered Portable Screw Compressors (180 ndash 600 cfm 100 - 300 psi)
Key Segments
ndash Construction (Roads Ports Infrastructure Granite Marble Quarries) - PortableCompressors
ndash Coal Iron Ore Limestone ndash Crawler mounted portable packs
Key OEMs ndash Atlas Copco India Ltd
ndash Doosan
ndash Elgi Equipments Ltd
ndash Kirloskar Pneumatic Company Ltd
Major Customers ndash DGBR Major Construction Contractors - LampT-ECCPunj LloydGammon India
Jaiprakash
ndash Major Mining Steel Customers - Coal India Ltd TISCO EMTA HZL SAIL ndash Cement ndash ACC Gujarat Ambuja Grasim
ndash Major Marble and Granite customers - R K Marbles GEM granites Pokarna Granites
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3683
Water Well Rigs amp Portable Compressors
Water Well Drill Rigs Portable Compressors
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3783
Rail
Market Definition
ndash Diesel Engines Value Packages for self propelled rail vehicleslocomotives track maintenance machines and power cars
Key Segments
ndash Main Line Shunting Locomotives Diesel Multiple UnitsDepartmental Vehicles (tower cars rail cranes accident relieftool vans etc) Power Cars (EOG) Track Machines
Key OEMs ndash ICF Chennai RCF Kapurthala Plasser Faridabad BHEL Bhopal
amp Jhansi SAN Bangalore DLW Phooltashellip
Major Customers
ndash Indian Railways Steel Cement Thermal Power Fertilizer plantsPort Trusts etc
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3883
Rail
OverheadEquipmentInspection Car
Track MaintenanceMc
Power Car
ShuntingLoco
HHPDEMU
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 3983
Marine
Market Definition
ndash Main Propulsion Diesel Engines for powering Bollard Pull Tugs BargesFerries Pilot Launches Fishing Trawlers
ndash Auxiliary DG sets for Warships Frigates Fast Attack Vessels PatrolVessels Carrier Vessels etc
Key Segments
ndash Indian Navy Coast Guard Commercial Marine and Fishing Trawlers
Key Shipyards
ndash GRSE Goa Shipyard Sesa Goa ABG Shipyard Bharati ShipyardTebma Mazagon Docks Chowgule amp Co Dempo Shipping VipulShipyard West Coast Shipyard Cochin Shipyard
Major Customers ndash Indian Navy Coast Guard IWAI ONGC Barge Owners Fishing Trawler
owners Shipping companies
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4083
Marine
Naval Ships Fishing Trawlers
INS Tarangini
Iron Ore Barge FAC - Fast Attack Craft
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4183
Pump
Market Definition amp Key Segments Engine Driven Pumps for
ndash Emergency Duty - Fire fighting pumps
ndash Continuous Duty - Irrigation Mine de-watering Booster ApplicationBlast Furnace amp Cooling tower - Concrete Pumps
Key OEMs
ndash Kirloskar Brothers Mather amp Platt Pumps Voltas WPIL Beacon WierFlowmore Punj Llyod
Major Customers
ndash Refineries (IOCL BPCL HPCL CPCL Reliance Essar)
ndash Multipurpose Chemical Terminals (IOCL BPCL HPCL Reliance IOTL)
ndash Ports ( Kolkata Port Trust Mumbai Port Trust Vizag Port Trust CPT etc)
ndash Steel Majors (TISCO Jindal Bhushan SAIL) Power Plants(NTPCNPCIL TATA Power PGCIL)
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4283
Pump
IrrigationPump
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4383
Oilfield
Market Definition
ndash Diesel Engines for Oil field Equipment like AC-SCR Drill Rigs
Work over Rigs Cementing Units Mud Pumps COD PumpsGas Engines for pump application (for transportation of crude oil)
Key Segments
ndash AC-SCR deep drilling rigs Work Over Rigs etc
Key OEMs
ndash Jiva International John Energy Ramsharan amp Co BHEL BPCL
Major Customers
ndash ONGC Oil India Limited
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4483
Oilfield
Electric Driven Drill Rig (AC-SCR OnshoreRig)
Mechanical Mobile rigs
Hydro FracUnit
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4583
Emission Norms in India
INDIA STAGE I NOx HC CO PM
Category18 - 37 kW August - 2002 180 35 140 -
37 - 75 kW August - 2002 180 35 140 -75 - 130 kW August - 2002 180 35 140 -130 - 560 kW August - 2002 180 35 140 -
INDIA STAGE II NOx HC CO PM
Category18 - 37 kW April - 2007 92 13 65 085
37 - 75 kW April - 2007 92 13 65 085
75 - 130 kW April - 2007 92 13 50 070130 - 560 kW April - 2007 92 13 50 054
INDIA STAGE III CO PM
Category
18 - 37 kW April - 2011 55 0637 - 75 kW April - 2011 50 0475 - 130 kW April - 2011 50 03
130 - 560 kW April - 2011 35 02
Note
India Stage - II proposal based on EU Stage - IIndia Stage - III proposal based on EU Stage - III A
Proposed date of
implementation gm kWh
Proposed date of implementation gm kWh
4740
40
Current amp Proposed emission noroms for CEV enignes
(as per ISO-8178 C1-8 Mode cycle)
Proposed date of implementation gm kWh
NOx + HC
75
India stage II is now known as Bharat Stage-II (BS-II) India stage II based on EU stage I was implemented in October 2007 India stage III emission norms based on EU stage IIIA likely to be
implemented from April 2011
S i d f h k j
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4683
Segment wise trends of each market major
Growth drivers amp Strategic initiatives As Indiarsquos economy grows over the next 5 to 10 years the nation will have to
invest more and more for the development of its infrastructure as well as other
supporting industries since high growth trajectory needs ramped up
infrastructure
Construction equipment industry will be the largest beneficiary of the private amp
government spending on infrastructure development
India stage III emission norms based on EU stage IIIA likely to be implemented
from April 2011 on Off Highway Wheeled Construction Equipments such aswheel loaders skid steer loaders motor graders compactors pavers and
cranes
Apart from offering the global range of emission compliant electronic engines by
leveraging on its global emission leadership Cummins is also developing
mechanical recipe for emission compliant engines in 59 litres amp 39 litres
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4783
Trends Growth drivers amp Initiatives
Demand supply gap in power sector and growth in Steel ampCement sector will fuel the demand for Mining of Coal Iron OreLignite
This will not only increase the demand for mining equipments butalso improve business prospects for Shunting and FreightLocomotives
There is a growing demand of electronic engines in the miningsegment
Cummins is well positioned to offer its complete range ofquantum series (electronic) engines in the mining amp othersegments support OEMrsquos in various new application launchesdrive the TCO concept together enhance the value proposition interms of cost efficiency and faster deliveries
We are working on delivery lead time improvement throughCustomer Focused Six Sigma (CFSS) projects
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4883
Trends Growth drivers amp Initiatives
There is a consistent and structured demand for diesel engines(DG Sets) from Indian Navy and coastguard in High Horse powerrange Re-fits of old vessels by Indian Navy also offers
opportunities for Cummins engines The high pressure water well drill rig market (though cyclical)
showed significant increase in demand last year mainly due todeficient and irregular monsoon around the country
Govt directive to use clean fuel in all major cities of India in aphase manner is leading to increased demand for Gascompression packages
Cumminsrsquo strengthened its position in this segment by offering
competitive products having higher fuel efficiency with lowest lifecycle cost and bagged major orders from leading GasCompression package manufacturers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 4983
Strategic Initiatives
Leveraging indigenous 33 litre engine to penetrate into lightconstruction market
Capturing new initiatives in High Horse Power applications in Railamp Marine segment and timely execution of current projects inhand
Partnering with key strategic OEMrsquos to capture new opportunitiesin defense segment for off highway application
Partner amp grow business with doemstic and global constructionequipment manufacturers like Telcon (Tata-Hitachi JV) HyundaiJCB LiuGong Wirtgen Metso Schwing Stetter and other OEMrsquosexpanding or establishing manufacturing base in India
Support domestic OEMrsquos export initiatives by leveragingCummins International distributor network channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5083
Challenges
Growth figures in last few quarters suggest that the road to recovery isclear ahead but not everything can be termed so easy Industry is yet torecover completely and it is still in a vulnerable state
For growth to continue sustained reforms by the government arecrucial Active investment in future is the only way to make sure that anyeconomic jolt in the future does not put the industry into a crisis again
Growth has its own set of challenges The biggest risk which couldcounter Indiarsquos growth momentum is inflation
If inflation becomes more widespread it may force RBI to raise therates much more aggressively than expected
The increased cost of financing could dampen the industrial activity
Commodity costs are likely to increase in coming quarters and may put
pressure on margins
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5183
Power Generation Business
Overview
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5283
Cummins Strategy
EmissionStandards
CMIGrowth
Globalization
Price ampAvailabilityof Energy
InfrastructureGrowth
Four Macro Trends Continue to Drive SustainableGrowth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5383
Opportunities
Infrastructure Gap
Gas Availability
Emissions
Growth Areas
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5483
India Overview
Infrastructure gap due to high growth poor planning and executiondrives power generation equipment market
ndash GDP growth of 7-9
ndash 12-16 gap between peak power demand and capacity
Prime market
ndash Average operating hours of ~500 year
Key success factors of Commercial Diesel and Gas markets ndash Operating Expense Fuel economy spare parts pricing oil change and
service intervals overhaul period
ndash Service and parts availability
ndash Lead-time and availability
ndash Pricing
C
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5583
India vs China
India China1 Purchasing Power Parity $ 356 Tr $ 879 Tr
2 GDP $ 1095 Tr $ 4814 Tr
3 GDP -real growth rate 740 1000
4 GDP composition by Top 3
sectors (2009 est)
Agri-175
Industry -20 Services - 626
Agri-109
Industry -486Services -405
5 Population (July 09 est) 1166079217 1338612968
6 Labor Force 467 Mn 8127 Mn
7 Unemployment rate 1070 4
8 Population below poverty
line (2007) 25 39 Inflation rate ( consumer
prices) 1070 6
10 Industrial Production
Growth rate 480 810
11 Electricity Production 7238 Bn kWh 3451 Tr kWh
12 Reserves of FE amp Gold $2875 Bn $ 2206 Tr
13 Debt external $ 2239 Bn $ 3471 BnSource httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeosinhtml
httpsw w w ciagovlibrarypublicationsthe-w orld-fac tbookgeoschhtml
India is approaching population of China butproduces only 15th the Power
P d hi i l amp h
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5683
Power trends historical amp current shortagesPeak power shortages of 12 ndash 16 since 2002
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
000 A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
A n n u a l
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
A p r i l
M a y
J u n e
J u l y
A u g u s t
S e p t e m b e r
O c t o b e r
N o v e m b e r
D e c e m b e r
J a n u a r y
F e b r u a r y
M a r c h
19
97-
98
19
98-
99
19
99-
00
20
00-
01
20
01-
02
20
02-
03
20
03-
04
20
04-
05
20
05-
06
20
06-
07
20
07-
08
20
08-
09200720072007200720072007200720072007200720072007200820082008200820082008200820082008200820082008200920092009200920092009200920092009200920092009201020102010
s h o r t f a l l
Avl SurplusDeficit Peak SurplusDeficit
C it Additi hi t i l d t
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5783
Capacity Additions ndash historical and current
-28
-46
-53
-30 -30
-34
-55
-61
-48
-37
-69
-27
-5
-34
-
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
E
n d o f 6 t h
P l a n s ( 3 1 0
3 1
9 8 5 )
E n d o f 7 t h P l a n
( 3 1 0
3 1
9 9 0 )
E n d o f 8 t h P l a n
( 3 1 0
3 9
7 )
E n d o f 9 t h P l a n
( 3 1 0
3 2
0 0 2 )
M a r c h
2 0 0 3
M a r c h
2 0 0 4
M a r c h
2 0 0 5
M a r c h
2 0 0 6
M a r c h
2 0 0 7
E n d
o f 1 0 t h P l a n
( 3
1 0
3 2
0 0 7 )
M a r c h
2 0 0 8
M a r c h
2 0 0 9
A p r 2 0 0
9 - M a r 2 0 1 0
E x p b y
E n d o f 1 1 t h
P l a n ( 3 1 0
3 2
0 1 2 )
Year
C a p a c i t y i n M W
-80
-70
-60
-50
-40
-30
-20
-10
0
S
h o r t f a l l
Target Achievement Shortfall
Project execution gaps of gt 10
Govt will miss planfor March 2012(78000 MW)
Shortfall expected tobe 7-8000 MW
Likely to be higheras only 57000 MWof power projectsare certain to be
completed
C it h tf ll f 80 140 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5883
Capacity shortfall of 80-140 GW by 2017
L di t k d fi it f 40 GW b 2017
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 5983
Leading to peak deficit of 40 GW by 2017
5 -10X scale up required in capacity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6083
p q p y
addition
Power Price
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6183
Diesel price escalates therefore increasing demand for gas incontinuous applications
436
225
50945 49
95
0
2
4
6
8
10
Grid Gas Diesel
R s k w h
2001 2009
Power generated fromDiesel has becomeincreasingly costlier thanutility or gas
Consequently running hoursof diesel generators havereduced
Power Price
Market Size by segment 2009
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6283
Market Size by segment - 2009
1170Total
11000 kVARRTPFC
101500ATS
232316Producer Gas4520170Stoic generators
38135100Lean Burn generators
11147131138300Diesel generators
15-2500 kVA
Market size
$M USD
MWUnitsMarket
Gas Opportunity
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6383
Gas Opportunity
Overall Industry Market revival seen Manufacturing Realty Services Telecomcontinue to grow
Spark Spread ndash High diesel cost driving gensets to standby Increased gasavailability and relative pricing will increase diesel substitution create new
opportunities However with gas pricing 8 ndash 10 $mmbtu CHP applications willincrease
Natural Gas ndash Increased availability amp 800-1000mw market over next 5 years
New gas finds by Reliance GSPCL (10 Trillion) LNG terminals amp enhancedcapacity Commercial availability in end 2009 amp onwards
Coal bed methane RIL (Reliance) Central India Rajasthan state (West) ndash 365
TcF Commercial availability from 2010 onwards offers additional alternate avenuefor business
Renewable Energy amp Rural electrification - Producer Gas business opportunityshowing signs of improvement Focus around Power Cos amp small IPPs
Assumptions
$ = Rs 485
Diesel Cost Rs Liter 350
Gas Cost $ mmbtu 100
Gas Cost Rs M 180
Diesel Fuel economy Units Liter 39
Gas Fuel economy Units M 37
Rs Kwh Cents kwh
Grid Cost 45 93
Diesel Generation Cost on Diesel 90 185
Generation Cost on Gas 49 100
India Gas Market Potential in Power Sector
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6483
India Gas Market Potential in Power Sector
Year 2006 2007 2008 2009 2010 2011
Total Gas availability MCMyr 37874 36861 52407 84815 92469 99360
Allocation for power generation 40 41 41 41 42 42
Gas available for power gen MCMyr 15149 15113 21487 34774 38837 41731
Utilities amp IPPs 81 80 85 90 90 90
Captive Power 19 20 15 10 10 10
Captive Power Gas Consumption MCMyr 2878 3023 3223 3477 3884 4340
Equivalent Gas Power Capacity 90 PLF 92 Avl 39
Electrical Efficiency MW 1526 1603 1709 1844 2059 2301
Existing Gas Power Plant Capacity MW 1394 1526 1603 1709 1844 2059
Incremental Capacity Addition (Gas Market Size) MW 133 76 106 135 215 242
Source 11th Plan Gas Report
GAIL ONGC Gas Pricing Trend
3545
90
70
55
10
Indraprastha
Gas
Mahanagar
Gas
Gujarat Gas
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007
R
s s c m
Reduction in 2007 amp 2008 ndash No increase in Gas Qty at Petronet amp Shell LNG Terminals as planned
Gas Pipe Line Infrastructure ndash Existing amp Future
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6583
LNG
Existing
Transmission Pipelines
Existing
Upcoming
GAILrsquos Planned PipelineRILrsquos East West PipelineRILrsquos Planned PipelineGSPCrsquos Planned Pipeline
City Gas CNGExisting
Planned
LNG Terminal
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I amp II10 mmtpa
HAZIRA25 mmtpa
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGLORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI5 mmtpa
ENNORE
25 mmtpa
BARMER
MANGALORE25 mmtpa
Gas Supply amp Pricing
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6683
Gas Supply amp Pricing
Gas companies have 100 allocations contracted to users where gas price is$ 550 to $ 725 mmBTU under long term back to back agreements
New supply only by spot purchase of LNG but costly ($14 to 28 mmBTU)
However Gas pricing now stabilizing around $8 to $10 mmBTU (Rs 16 to 18
m3) Reliance KG basin gas production commenced is planned to reach 80
mmscmd in 2010 currently 40 mmscmd has been achieved or a 17 increasein gas supplies
Regulators still not fully on board to decide pricing and distribution
Coal Bed Methane still under exploratory stage Being used largely for self
consumption Currently at 02 mmscmd and expected increase to 5 mmscmdby 2013 based on internal survey (official figures state 78 mmscmd)Commercial availability likely this year
mmscmd ndash Metric Million Standard Cubic Meters per Day
mmBTU ndash Metric Million British Thermal Units
Cummins Lean Burn NatGas product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6783
Cummins Lean Burn NatGas product line
1500 rpm
50HzNOTE All HHP Lean Burn NaturalGas Gensets are rated atContinuous Output Power (COP)
250KWe 500KWe 750KWe 1000KWe 1250KWe 1500KWe 1750KWe 2000KWe
315 GFBA
315 kWe
1160 GQKA
1160 kWe
1540 GQNA
1540 kWe
1400 GQKC
1400 kWe
1750 GQNB
1750 kWe
2000 GQNC
2000 kWeCurrently available for Grid
paralleling Needs application load study for island mode
575 GQKA
575 kWe
Cummins Producer Gas Product line
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6883
Cummins Producer Gas Product line
50Hz Product Line50Hz Product Line
NOTE All Producer Gas Gensets
are rated at Continuous Output
Power (COP)
75 kWe 150 kWe 240KWe
G855G
75 kWe
GTA855G
120 kWe
GTA1710G
240 kWe
G B 59 G
25 kWe
25 kWe
QSK38 LB
500 kWe (UnderDev)
500KWe
Redundant Power Gen Products in Red
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 6983
Commercial LHP and HHP ndash Prime 75 - 3000 kVA
6kW 2400 kW
X Series 75 to 25 kVA
S Series 30 to 625 kVA
B Series 825 to 140 kVA
N Series 320 kVa
K19 500 kVA
V28 600 amp 625 kVA
K38 750 amp 1000 kVA
K50 1250 amp 1500 kVA
QSK60 1875 amp 2000kVA
QSK78
3000 kVA
C series 160 to 200 kVA
N Series 380 kVa
C series 250 kVA
800 kW
Growth Area ndash Low Horse Power
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7083
Generators Small
Quiet
Efficient
Low weight
Easy handling
Easy installation
Sub 12 KW distribution channel
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7183
PGB
U
CSS
GOEM
GOEM
Dealers70 nos
Retailers350nos
SuperDistributors
5 nos
ENDCUSTOMER
National Telecom amp
institutional
Retail
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7283
Distribution Business Overview
Agenda
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7383
Introduction to India DBU
Business Demographics
DBU Key Sector Growth Potential Key Initiatives
India DBU Vision and Mission
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7483
Provide superior and excellent Service Value packagescustomised Solutions and Products that enable theuptime of our Customersrsquo Assets hellip
hellip thereby making peoplersquos lives better by unleashingthe Power of Cummins`
Dependable products
Dependable service
Dependable programs
Dependable people
We do what we say we willdo
CDSS Office
Dealer Office
Dealer Branch office
India DBU today
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7583
CChhaa nnddrraa ppuurr
Amritsar
BBhhii wwaa ddii
Bhilai
JJ oorrhhaa tt
TTiinnss uukk iiaa
CDSS Depot
KKootthhaa gguuddee mm
HHuubbll ii
All India Footprint
570 employees
lsquoBest in class Service Networkrsquo
ndash 4 Zonal Offices
ndash 19 Area Offices
ndash 44 Dealerships
ndash 212 Dealer Branch offices
ndash 7 Depots
ndash 1 Parts Mother Warehouse
ndash 1 ReconRepair Centre
gt2000 Trained Engrs amp technicians
Supporting 200000+ engines with amp
70000+ customers
40 years of Experience amp Expertise
Markets We Serve
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7683
Automotive
Mining
Oil amp Gas
Marine
Railway
Agriculture
Defence
Compressor
PowerGen
Key Customer segments
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7783
Market-wise sales revenue
0
22335223
3 5
39
21
10
Mining Agriculture Oil amp Gas
Defence Marine Railways
Const + Pumps Water-well rigs + Compre Realty resi
Mfg Agro Mfg (Pharma Chem amp Discreet) Mfg Textile
Telecom IT ITES Auto
Our Esteemed Customers
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7883
To name just a fewhellip
DBU Key Economic Sector Growth amp Opportunities
Total mining increased at the CAGR of 7 68 during the 2000 to 2009 period Coal mining
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 7983
Roadmap for growth of Indian Railways (by 2020) ndash it is planned to add 29 lakh wagons over 5000diesel locomotives over 4000 electric locomotives and 50000 coaches in the next decade
Indian Railways revenue earnings have increased by 856 per cent to US$ 1530 billion during April2009-January 2010 compared to US$ 1409 billion during the same period last year
Total earnings from goods traffic went up by 847 per cent to US$ 1036 billion during April 2009-January 2010 from US$ 955 billion during the same period last year
Source httpwwwibeforgartdispviewaspxart_id=25151ampcat_id=131ampin=39
Ministry of mines Railways Oil amp Gas (Govt of India) httpwwwibeforgindustryoilandgasaspx
Railways
Total installed capacity of power at the end of Feb 2010 stands at 158 GW
Normal power deficit and peak power deficit stands at 101 and 126 in February 2010 Next two fiscal years 2010-12 it is expected that Indian power industry will add 40 GW of
additional capacity
Oil amp Gas
Mining
PowerGeneration
Total mining increased at the CAGR of 768 during the 2000 to 2009 period Coal mining
increased at 691 Iron ore at the rate of 1214 and limestone at the rate of 624 during thesame period
Growth in coal production in India is expected to be at 8 CAGR for next five years
Peak oil concept widely accepted albeit with some reservation - NG exploration picking up to find anon renewable substitute fuel (ONGC added 83 million tonnes of oil and gas reserves in 2009-10)
NG production picking up with extraction from KG basin
NG pipeline reaching to southern and eastern states of India opening up a whole new market for theNG products
DBU Growth
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8083
DBU Growth over previous Year
00
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008 2009
G r o
w t h o v e r p r e v i o u s y r ( )
20Growth
18Growth
Based on the earlier sectoral trends robust auto marketstrong service
sector performance esp telecom and investments in theinfrastructure
segments above growth trends are expected to continue
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8183
ndash Improve Customer Support Excellence
bull Service Delivery ProcessStructure Revamp
ndash Enhancing Customer Valuebull Key Account Mgmt Cummins lsquoValuersquo AMCs and Six Sigma
ndash Focus on growth
bull Expand Service Solutions
bull Push Consumer Business Entry
bull HHP Rebuild Centre
bull DOEM Business
Key Initiatives -
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8283
ndash Capability building
bull Improve Training Infrastructure and Manpower
bull Enhance lsquoNewrsquo Technology skill levelsbull Develop Dealers
ndash Focus on Efficiency Improvements
bull Revamp Internal processes
bull Right size and Right position
bull Improved Working Capital Management
bull Reduce Operational costs
ndash People Engagement
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you
7172019 Presentation to AnalystS
httpslidepdfcomreaderfullpresentation-to-analysts 8383
Thank you