Cummins: A Global Power Leader

100 years of Cummins looking forward to the next 100

The rise of Cummins - 100 years old in 2019 - from a tiny machine shop in Columbus, Indiana (USA), to a global power leader offering a broad portfolio of products, is a story right in drama, a story of trials and triumphs. 

Clessie Cummins, founder of Cummins Inc.
Clessie Cummins, founder of Cummins Inc. 

Cummins Engine Co. was founded on Feb 3rd, 1919, with William G. Irwin, a banker, supplying the starting capital. Irwin had hired Clessie Cummins in 1908 to drive and maintain his car and later set him up in business as an auto mechanic. 

Cummins, a self-taught mechanical genius, was convinced that the engine technology invented by Rudolph Diesel in the 1890s - while still unproven commercially - held great promise for its fuel economy and durability. 

Cummins started working full-time on diesel engines in 1919 when he heard that giant American retailer Sears, Roebuck & Co. would buy single-cylinder engines produced under license to Hvid. Clessie persuaded Irwin to negotiate a contract with Sears for 4,500 1.5 and 3 horsepower (hp) Hvid engines, but the beginning was inauspicious. Sears said the engines were defective and the contract was canceled in 1922 and Clessie went back to the drawing board.

The Critical Breakthrough

Clessie continued to experience pain, his experimental engines ripping the sides out of his fishing boats or tearing themselves to remnants. Then he made breakthroughs that solved critical problems of injection timing. He also created a fuel injector some experts described as 'simpler than a fountain pen.'

In 1924, emerging out of the swirl of innovation and problem solving, came the company's first distinctive engine line, the Model F (for four-cycle), the early editions of which were installed in fishing trawlers. These were believed to be the very first diesel-powered fishing vessels in North America. 

The Model F proved so economical that its popularity spread to other applications - generator sets, drills, shovels, and air compressors. The engine had one or two pistons, bolted as separate units to a common base, and developed 12.5 hp at 600 rpm from a 5.5-inch bore and a 7.5-inch stroke. 

On Christmas Day in 1929, Clessie took W.G. Irwin for a ride in America's first diesel-powered automobile - a Cummine marine engine-driven Packard. 

With his diesel engine and unique fuel injection system finally coming together and being used to repower trucks originally fitted with petrol engines, a dramatic leap forward in the evolution of diesel technology was realized. 
 

Clessie in 1931 with the Dusenburg, powered by the Model U engine, which set the world speed record of 100.755mph in Florida. 

Capturing Global Attention

With a new infusion of Irwin capital, Clessie Cummins set out to prove that his diesel engines could conquer the road and he began to capture the world's attention through a series of creative, headline-making events in diesel-powered trucks, buses, and cars. 

In one celebrated run, Clessie piloted a Cummins-powered truck coast-to-coast (New York to Los Angeles) on $11.22 worth of furnace oil. The truck traveled 3,214 miles and averaged 43.02 miles per hour. 

He also set a new world diesel-powered record of 100.755 mph in a race car at Daytona Beach, Florida. In yet another stunt in a diesel passenger car, Clessie drove his Cummins-powered Auburn from New York to San Francisco in 1935 on $7.63 worth of fuel. The Cummins Model A aluminum 6-cylinder engine in the Auburn was the world's first light diesel designed exclusively for a car. 

J. Irwin Miller, the great-nephew of W.G. Irwin, became general manager in 1934 and went on to lead the company to international prominence over the next four decades. In 1937, Cummins earned its first profit.

Clessie (1932) waving the goodbye to New York City as he set off for his coast-to-coast tour.

The company's first diesel engine designed specifically for highway trucking - the 6-cylinder Model H rated at 125 hp - was proving very successful. 

The 672 cu.in. displacement engine had two valves per cylinder and gained a reputation as a remarkable workhorse with its power, fuel-efficiency, and reliability. As truckers recommended the engine to their colleagues, the business began to flourish. 

In 1941, Cummins began offering the transport industry's first 100,000-mile warranty and a year later the US Army ordered 5,000 H Model engines for trucks. During World War II, most of the company's output went to the war effort. Cummins engines endured the harshest conditions, from the tropics to the sub-arctic. The convoys that supplied the Allied Forces in Europe, Africa, and elsewhere were powered in part by Cummins engines. 

Many of the famous Livery cargo ships and Miki-class tugs that supported the war effort also depended on Cummins marine generators for power. 

With America embarking on a massive interstate highway construction program in the 1950s, Cummins engines powered much of the equipment that built the roads and the thousands of trucks that rolled down them. 

As Cummins continued to grow its business in the U.S., the company began looking beyond its traditional borders. Cummins opened its first foreign manufacturing facility in Shotts, Scotland, in 1956 and by the end of the 1960s, Cummins has expanded its Sales and Service network to 2,500 dealers in 98 countries. Today, Cummins serves customers in approximately 190 countries through a network of ~450 distributors and more than 19,000 dealer locations. 
 

J. Irwin Miller, CEO from 1934-77, led Cummins to international prominence. A social activist and philanthropist, Miller advised presidents both domestically and internationally (including John F. Kennedy and Nelson Mandela). Martin Luther King Jr. described him as one of the most progressive business leaders in the country.

The Focus on Emerging Countries

Led by the visionary leadership of J. Irwin Miller, Cummins forged strong ties to emerging countries such as China, India, and Brazil, where Cummins had a major presence before most other American multinational companies. Today, Cummins has grown into one of the largest engine manufacturers in both China and India. Cummins, however, is no longer just an engine business, but a global power leader manufacturing diesel and natural gas engines, hybrid engines, generators, and is up and coming in electrified power. The company pledges to have an electrified powertrain for urban buses on the market by the end of 2019. 

Cummins had sales of 23.8 billion in 2018 - a company record. With more than 60,000 employees worldwide, Cummins serves customers in a multitude of markets. In fact, the company powers more types of equipment in more markets than any other engine company with engine sizes ranging from 2.8 liters to 95 liters. 

With engine development often taken for granted, it's easy to overlook the incredible engineering challenges Clessie Cummins faced to create a mechanically reliable engine and to set the standards for a company that is now the only survivor in a once-crowded field of independent engine makers. Not only that, Cummins is a technology leader, working relentlessly to provide cutting-edge solutions to the increasingly difficult challenge of Powering a World That's Always On.

Clessie Cummins' spirit of innovation and commitment to quality certainly lives on a century later. 

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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