Cummins India sells genset rental business

by 04 Dec 2008

Cummins India, makers of diesel and natural gas engines for the power generation, industrial and automotive markets, has entered into an agreement to sell its rental business to the Indian subsidiary of Aggreko Plc for Rs 29 crore plus applicable duties subject to shareholder approval. Aggreko is in the business of rental of power, temperature control and oil-free compressed air systems, and serves customers in over 100 countries. According to Anant Talaulicar, chairman and managing director, Cummins India, “The sale of our Rental Business aligns with our long term business strategy. This will enable greater focus on our core business. Aggreko will be a potential customer for generators, engines, and alternators manufactured by Cummins in India. We look forward to partnering with them as they grow their business in India.”

Rupert Soames, chief executive of Aggreko, said: “We will be investing significant amounts in new rental fleet and facilities over the coming years and believe Aggreko has the potential to be a market leader in temporary power in India”.

Cummins India made its foray into the genset rental business in the year 2000 to provide rental services to its customers. The reported annual revenue for 2007 was Rs. 22 crore.

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