Sale of mask operation advances Cummins’ goal of creating sustainable Black-owned businesses

Mask producing operation inside Cummins Engine Plant

Global power leader Cummins Inc. is using its U.S.- based mask-making operation, created to guard against the spread of COVID-19 in company facilities, to partner with a minority-owned business that wants to expand.

The equipment used to make masks at the Columbus Engine Plant in Columbus, Indiana (U.S.), has been sold to a Black businessman in nearby Indianapolis, who plans on creating a disability-friendly employer producing masks beyond the immediate response to the pandemic.

“This sale created a new Black American manufacturer,” said Helena Hutton, Senior Director of Cummins’ Center of Excellence for Supplier Inclusion in Strategic Purchasing. “It illustrates Cummins’ commitment to partner with diverse-owned companies and contribute to generational wealth-building with business leaders of color. I am proud to be part of a company that makes deals like this one happen.”

Christopher Barney, the owner of Team Cruiser, a logistics and supply company that has worked with Cummins in the past, hopes to offer masks for sale to the public later this year. 

“We were very interested, for two specific reasons,” Barney said. “The first reason is the ability to learn and grow from a manufacturing perspective with a global manufacturing company like Cummins. The second reason is that it provides us the opportunity to impact and serve the communities that we live in by providing jobs and supplying a quality American-made personal protective equipment mask.”

THINKING OUT OF THE BOX

In 2020, Cummins established mask-making operations in the United States, Mexico, and India to provide some 10 million masks to its employees worldwide. With the pandemic seeming to wind down in the United States as more people get vaccinated, and with a healthy surplus of masks at the ready if needed in the U.S., the time was right for the company to think about selling the operations in Columbus, said Cummins Partnership Strategy Manager Tarek Elharis. 

Mask production at Cummins

The company never intended to produce masks beyond the pandemic, said Elharis, who has been active in the mask-making operation. Since the sale, the Cummins employees who had been making masks have been redeployed to areas of the company experiencing heavy demand as the U.S. economy recovers.

When selling the mask operation became a possibility, the company’s Supply Chain organization and Strategy function began looking for ways to accomplish something more than simply getting the equipment out of the engine plant.

They found that opportunity in Barney and Team Cruiser.

LOOKING TO EXPAND

The Team Cruiser Conversion Company was established in 1983, providing heavy-duty automotive and industrial equipment customization and up-fitting solutions to meet commercial and municipal specifications. Over the past 30 years, Barney’s business has worked with companies like Navistar, Arvin Meritor, Cummins and others.

Barney said he is always looking for new challenges and the chance to develop a new line of business for Team Cruiser was an opportunity he couldn’t pass up.

“We have been blessed to have a unique relationship with Cummins in the fact that we sold millions of dollars of engine products to our customer base and are familiar with their culture and desire to be first in class in their industry,” Barney said. “We feel that this played a very important role in understanding the importance of the quality of the product that we produce. We are now able to be both a customer, dealer, partner and a vendor.”

Barney’s team is now working to establish a web-presence for its new line of products. It’s also working with several veterans’ groups and organizations serving people with blindness and other disabilities to create a workspace that can safely employ people with disabilities in its manufacturing operations.

Priscila Mendes, Vice President of Purchasing, Supply Chain Management said, “This is a chance for Cummins to help build stronger communities where it does business and live the company’s value of diversity and inclusion for all business owners.”

Learn more in the podcast, the “Making of an American Manufacturer” as Barney and Elharis discuss this alongside Dr. Ken Harris, the President/ECO of the National Business League.

LISTEN NOW

Cummins Office Building

Cummins Inc.

Cummins, a global power technology leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from internal combustion, electric and hybrid integrated power solutions and components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, microgrid controls, batteries, electrolyzers and fuel cell products.

Cummins India Limited Results for the quarter ended June 30, 2022

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Pune, India: Cummins India Limited (NSE: CUMMINSIND) The Board of Directors of Cummins India Limited (CIL), at their meeting held today, reviewed and approved the financial results for the quarter ended June 30, 2022. 


Performance Highlights (based on standalone financial results) for the quarter ended June 30, 2022:
 

•    Total Sales for the quarter at ₹ 1,657 Cr. increased by 42% compared to the same quarter last year and by 13% compared to the previous quarter.
•    Domestic sales at ₹ 1,172 Cr. increased by 36% compared to the same quarter last year and by 12% compared to the previous quarter.
•    Exports Sales at ₹ 485 Cr. increased by 58% compared to the same quarter last year and by 14% compared to the previous quarter.
•    Profit before exceptional items and tax at ₹278 Cr. is higher by 63% compared to the same quarter last year and higher by 14% compared to the previous quarter.
•    Profit before tax at ₹264 Cr. is lower by 13% compared to the same quarter last year and higher by 8% compared to the previous quarter.
 

Ashwath Ram, Managing Director, Cummins India Limited, said: 
 

The new fiscal year started positively with strong demand from most end markets. GST monthly collections, higher highway construction annual targets, and increased consumption of petroleum products reaffirms the strength of underlying trade activities. Geopolitical risk, high inflation, and supply chain disruptions continue to pose challenges. Cummins India can effectively meet demand despite these issues due to its integrated supply chain management with a global network. While we effectively deal with challenges and closely monitor any potential impact of rising interest rates on the demand, we remain optimistic about the short to medium-term demand outlook. 

Future Outlook:
 

The company believes that the strong demand from various end markets may likely sustain. At the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry. The company, being part of the globally integrated supply chain, is well positioned to manage parts supplies to mitigate the impact on revenue and profitability. We are closely monitoring the result of the geopolitical events unfolding in different parts of the world and their impact on global demand and supply chain. Considering the uncertainty, the company will not provide any guidance for FY 23.
 


About Cummins India Limited 


Cummins India Limited, part of the Cummins Group in India, is headquartered in Pune since 1962 and is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets. Cummins India Limited has a country-wide network of 20 dealerships with over 450 service points that provides products, services, and after-market solutions for uptime of Cummins equipment and engines to customers in India, Nepal, and Bhutan. 
 

About Cummins Group in India:
 

Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute, and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions, and electrical power generation systems. Its technology and pioneering initiatives are bringing innovative solutions and dependable services at the best possible value to users across the country. Its high-performance outlook is based on customer focus, integrity, and capability of its people. Part of the $19.8 billion Cummins Inc. USA. Cummins in India is a Group of seven legal entities across 200 locations in the country with a combined turnover of ₹17,900 crores in 2021 and employing over 10,000 individuals. Learn more at cummins.com.

Cummins salutes its star dealers in U.K. and Ireland for their exceptional performance

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Cummins, a global power leader, has bestowed prestigious awards to three of its dealers in the UK and Ireland.

The trio – Vasi Southern Ltd, Universal Components UK Ltd and CSL Power Systems Ltd – were recognised for their outstanding focus on customer satisfaction and for delivering exceptional performance and results.

Relating to the 2021 calendar year, the awards cover a period when the UK and Irish economies were still coming to terms with the disruption caused by the Covid pandemic.

Customers of Cummins, spread across a variety of business sectors, looked to their local dealer to provide the continuity of service that was essential if they were to trade through the toughest of times.

All three Cummins award winners demonstrably went above and beyond what their customers were expecting.

Vasi Southern Ltd is an approved parts and service dealer based in the port city of Southampton. It specialises in marine engines and Onan generator sets. The company won the same award in 2020 and its back-to-back success was down to a commitment to increasing revenue and achieving all of its key performance targets.

Simon Green – Vasi Southern Ltd
Simon Green – Vasi Southern Ltd

Universal Components UK Ltd is an approved parts dealer based in Barnsley, South Yorkshire. In 2021, it achieved the highest sales growth by any dealer within the Cummins UK and Ireland network. Its strategic stockholding meant the business could ride out supply challenges while continuing to target new markets and geographical locations.

Rick Lewis & Stuart Ponsonby – Universal Components
Rick Lewis & Stuart Ponsonby – Universal Components

CSL Power Systems Ltd, based in Kent with additional resource availability nationwide is an approved Power Generation sales and service dealer. The company is a specialist in the installation and maintenance of industrial generator sets, including units for banks and commercial buildings.

Kurt Gozzett & Todd Trent – CSL Power Systems
Kurt Gozzett & Todd Trent – CSL Power Systems

As well as achieving all its key performance targets, CSL Power Systems Ltd demonstrated a clear desire to grow its operations, proactively promoting the Cummins product.

Graham Cook, Cummins’ Dealer Manager for UK and Ireland, praised the award-winning dealers for their commitment, commenting: “Our authorised dealers throughout the UK and Ireland form an integral part of our sales network. Vasi Southern, Universal Components and CSL Power Systems demonstrated their commitment and capabilities through 2021, further strengthening the channel, maximising profitable aftermarket growth, and delivering excellent customer support.

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