Date:17/01/2006 URL: http://www.thehindubusinessline.com/2006/01/17/stories/2006011702480300.htm

Back Cummins arm keen on electrical equipment maintenance biz

Sudha Menon

The new business will be largely run through the outsourcing model with the company retaining the role of project manager.

Pune , Jan. 16

THE Pune-based Cummins Diesel Sales & Services, a wholly-owned subsidiary of Cummins India that provides services and solutions in power, is all set to foray into the mechanical and electrical equipment maintenance business.

The company, which is in the business of on-site power solutions through generator rentals/sales and out sourced power plans solutions, will grow business by tapping the evolving opportunity for out sourced maintenance of entire mechanical and electrical systems, Mr Sundar Parthasarathy, Chief Executive Officer told Business Line.

"We are already in touch with various clients/customers for maintaining their generators and it is logical to extend this and get into maintaining other systems for them," he said.

The company piloted the foray into the electrical and mechanical maintenance business in Bangalore city where it tied-up with a couple of players in the IT-ITES space and grew rapidly and is currently doing the maintenance for 18 buildings housing such businesses, Mr Parthasarathy said.

"Our solutions business is currently worth Rs 40 crore and the electrical and mechanical maintenance business is already contributing to 10 per cent of this."

Over the next year the company will work towards increasing its footprint in this business and tap players in the IT&ITES space in the national capital region, Hyderabad, Pune, Mumbai and Kolkata to significantly drive the business, Mr Parthasarathy said.

The company will also tap its existing customers including those in manufacturing and retail, many of who are in expansion mode.

"Most of the companies who are setting up new projects are looking at outsourcing a large part of their utilities services and it is the perfect opportunity for us," Mr Parthasarathy said. It is also entering into agreements with large property management companies to provide its new services, he added.

"Over the next 3 years our revenues from this business, which is currently at Rs 4 crore , will more than double," he said.