Cummins India Shares Surge as Parent Company Projects 10% Revenue Growth for 2024

Cummins

Key Facts: 

The Manufacturing market in India is projected to amount to US$ 240.4bn in 2025. 

Cummins Inc. is an American multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products. 

Prime Highlights: 

The company plans a $200 million investment in its manufacturing facilities in India, the U.S., and the U.K. to expand capacity for power generation products. 

Cummins Inc. reported better-than-expected fourth-quarter results, supported by increased power demand from data centers of major tech companies. 

Key Background: 

Shares of Cummins India saw a significant rise in early trading on February 5, 2025, following the announcement from its parent company, Cummins Inc., which projected a 10% increase in revenue for India in 2024. The growth is anticipated to be driven by a strong domestic demand for power generation products. Cummins Inc. Chairman and CEO, Jennifer Rumsey, highlighted that the company expects total revenue, including joint ventures, to grow substantially, primarily fueled by increasing demand for power generation in India. 

The positive forecast for Cummins India comes after the parent company reported strong fourth-quarter results, exceeding analysts’ expectations. A key factor in the company’s growth has been the rising power demand from data centers operated by major technology firms. However, Cummins Inc. also noted that the overall sales might experience a decline in North America, specifically in the heavy-duty truck segment, which remains sluggish. 

To support the projected growth in power generation demand, Cummins Inc. announced plans to ramp up its manufacturing capacity in India, along with other key global locations. The company intends to invest $200 million across its plants in India, the U.S., and the U.K. to meet growing demands for power generation products. This expansion is part of a broader strategy to enhance capacity across its facilities in Seymour, Minnesota, and other regions to address the growing need for power generation solutions. 

As part of the company’s long-term strategy, Cummins India has projected varying demand trends for its heavy and medium truck businesses for 2025, estimating a potential fluctuation from a 5% decline to a 5% increase. Additionally, the increasing adoption of artificial intelligence by major tech players has bolstered the demand for power generation, contributing to the company’s global market growth projections of 5-15%. 

India’s robust energy sector has also contributed to Cummins’ optimistic outlook, with per capita electricity consumption reaching 1,395 kWh in 2023-24, a 45.8% rise from 2013-14. Consequently, Cummins India’s share price rose by over 2%, even as it has seen a 10% decline year-to-date. The company’s market capitalization now exceeds Rs 81,000 crore.