US-based Cummins Inc, a global diesel engine major, expects to source close to $500 million (about Rs 22.95 billion) worth of engines and auto components from India by 2010, according to Ravi Krishnappa, director (global sourcing), Cummins Inc.
Speaking to mediapersons on the sidelines of the inauguration of the Global Auto Components Sourcing Fair, he said that the company was currently buying components worth $150 million (about Rs 6.88 billion) from India.
The $10-billion company currently sources engines and components from over 30 Indian companies. It would be looking to source complex fuel systems, advanced electronics, censors, among others from India.
He said China and India were key sourcing countries in its strategy of sourcing components from low-cost countries, which accounts for 25 per cent of its global sourcing. It sources components from over 10 low-cost countries.
On comparison between India and China, he said both countries had competitive strengths and quality suppliers in different areas. Krishnappa, who was here to inaugurate the fair, also inaugurated a dedicated assembly line set up at an investment of $10 million by Autotech Industries for the supply of engine parts to Scania, a leading Swedish commercial vehicle manufacturer. Autotech has also been supplying engines to Cummins for over five years.
Cummins Inc has 11 businesses in India, which is one of its largest and fastest growing markets.
Earlier, addressing the fair inaugural meeting, he asked the companies to focus on quality and timely delivery of products and customer support.
"You have to understand what it takes to please the customers," he added.
Sharing his company's export journey, S Seetharaman, chairman and managing director, Super Auto Forge Ltd, highlighted 10 important factors needed to be followed while dealing with global customers.
The fair is organised as a concurrent event of ACMEE 2006, the seventh international trade exhibition being held in Chennai, to provide opportunities for the auto component manufacturers and the sourcing leaders.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
