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Presentation to AnalystS

TRANSCRIPT

Page 1: Presentation to AnalystS

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

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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

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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

Page 2: Presentation to AnalystS

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

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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

Page 3: Presentation to AnalystS

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

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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

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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

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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

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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

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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

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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

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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

Page 4: Presentation to AnalystS

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

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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

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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

Page 5: Presentation to AnalystS

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

Page 6: Presentation to AnalystS

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

Page 7: Presentation to AnalystS

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

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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

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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

Page 8: Presentation to AnalystS

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

Page 9: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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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

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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

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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

Page 10: Presentation to AnalystS

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

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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

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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

Page 11: Presentation to AnalystS

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

Page 12: Presentation to AnalystS

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

Page 13: Presentation to AnalystS

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

Page 14: Presentation to AnalystS

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

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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

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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

Page 15: Presentation to AnalystS

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

Page 16: Presentation to AnalystS

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

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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

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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

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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

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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

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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

Page 17: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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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

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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

Page 18: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 19: Presentation to AnalystS

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

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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

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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

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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

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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

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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

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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

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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

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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

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Thank you

Page 20: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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India ABO Strategy

Domestic Market Share Leadership

Low Cost Producer

Exports

Great Place To Work

7172019 Presentation to AnalystS

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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

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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

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CIL is a Profitable Growth Story

Proven track record

Positioned well to capture growth

Growing profits faster than sales

7172019 Presentation to AnalystS

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Industrial Engine Business

Overview

7172019 Presentation to AnalystS

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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

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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

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Markets We Serve

Mining Construction Compressor

Gas CompressionRail Marine

Oilfield Defense Pumps

7172019 Presentation to AnalystS

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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

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Construction Product Portfolio

Crawler Excavators

Compactors

Skid SteerLoaders

7172019 Presentation to AnalystS

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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

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Mining Product Portfolio

Dump Trucks - 35T 5060T100T 120T 190T 240T

Excavators Surface Miner

Dozer

Dump Truck

7172019 Presentation to AnalystS

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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

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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

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Water Well Rigs amp Portable Compressors

Water Well Drill Rigs Portable Compressors

7172019 Presentation to AnalystS

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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

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Rail

OverheadEquipmentInspection Car

Track MaintenanceMc

Power Car

ShuntingLoco

HHPDEMU

7172019 Presentation to AnalystS

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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

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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

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Pump

IrrigationPump

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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

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Oilfield

Electric Driven Drill Rig (AC-SCR OnshoreRig)

Mechanical Mobile rigs

Hydro FracUnit

7172019 Presentation to AnalystS

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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

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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

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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

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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

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Power Generation Business

Overview

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Cummins Strategy

EmissionStandards

CMIGrowth

Globalization

Price ampAvailabilityof Energy

InfrastructureGrowth

Four Macro Trends Continue to Drive SustainableGrowth

7172019 Presentation to AnalystS

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Opportunities

Infrastructure Gap

Gas Availability

Emissions

Growth Areas

7172019 Presentation to AnalystS

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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

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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

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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

Page 21: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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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

Page 22: Presentation to AnalystS

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

Page 23: Presentation to AnalystS

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

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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

Page 24: Presentation to AnalystS

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

Page 25: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 26: Presentation to AnalystS

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

Page 27: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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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

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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

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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

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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

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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

Page 28: Presentation to AnalystS

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

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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

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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

Page 29: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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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

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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

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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

Page 30: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 31: Presentation to AnalystS

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

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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

Page 32: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 33: Presentation to AnalystS

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

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Thank you

Page 34: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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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

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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

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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

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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

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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

Page 35: Presentation to AnalystS

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

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Thank you

Page 36: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 37: Presentation to AnalystS

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

Page 38: Presentation to AnalystS

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

Page 39: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 40: Presentation to AnalystS

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

Page 41: Presentation to AnalystS

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

Page 42: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 43: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

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Thank you

Page 44: Presentation to AnalystS

7172019 Presentation to AnalystS

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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

Page 45: Presentation to AnalystS

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

Page 46: Presentation to AnalystS

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

Page 47: Presentation to AnalystS

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

Page 48: Presentation to AnalystS

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

Page 49: Presentation to AnalystS

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

Page 50: Presentation to AnalystS

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

Page 51: Presentation to AnalystS

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

Page 52: Presentation to AnalystS

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

Page 53: Presentation to AnalystS

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

Page 54: Presentation to AnalystS

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

Page 55: Presentation to AnalystS

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

Page 56: Presentation to AnalystS

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

Page 57: Presentation to AnalystS

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

Page 58: Presentation to AnalystS

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

Page 59: Presentation to AnalystS

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

Page 60: Presentation to AnalystS

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

Page 61: Presentation to AnalystS

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

Page 62: Presentation to AnalystS

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

Page 63: Presentation to AnalystS

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

Page 64: Presentation to AnalystS

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

Page 65: Presentation to AnalystS

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

Page 66: Presentation to AnalystS

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

Page 67: Presentation to AnalystS

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

Page 68: Presentation to AnalystS

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

Page 69: Presentation to AnalystS

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

Page 70: Presentation to AnalystS

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

Page 71: Presentation to AnalystS

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

Page 72: Presentation to AnalystS

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

Page 73: Presentation to AnalystS

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

Page 74: Presentation to AnalystS

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

Page 75: Presentation to AnalystS

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

Page 76: Presentation to AnalystS

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

Page 77: Presentation to AnalystS

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

Page 78: Presentation to AnalystS

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

Page 79: Presentation to AnalystS

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

Page 80: Presentation to AnalystS

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

Page 81: Presentation to AnalystS

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

Page 82: Presentation to AnalystS

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

Page 83: Presentation to AnalystS

7172019 Presentation to AnalystS

httpslidepdfcomreaderfullpresentation-to-analysts 8383

Thank you