Engine manufacturer Cummins India today said it will spend up to Rs 500 crore in the current financial year on various purposes, including setting up a generator plant and expanding its existing capacity.
"Our capex for this fiscal is about Rs 400-500 crore. This amount will be invested in two places -- in our Phaltan production site and Pune laboratory," Cummins India Chairman and Managing Director Anant Talaulicar told PTI.
Earlier this year, the company launched three new plants at Phaltan in Maharashtra's Satara district. These plants consist of a unit producing engines for commercial vehicles, power generation and industrial markets, an engine rebuilding centre and a facility for remaking engines and components.
Giving details of the company's plans for 2011-12 fiscal, Talaulicar said: "We will set up a generator plant in Phaltan. It will have a capacity to produce 40,000 units per year and the plant will be operational within next one year."
The company will invest Rs 80-100 crore for setting up the plant, he added.
Besides, the company will double the production capacity of 6.0 litre and 7.0 litre engines from 60,000 units by April 2012.
"Our plan is to have 90,000 units capacity by September this year. It will be further expanded to 1,20,000 units by April next year," Talaulicar said.
This expansion exercise is likely to incur an expenditure of about Rs 100 crore, he added.
When asked how the company aims to fund this planned investment, Talaulicar said: "The entire amount will come from internal accruals ... Will be funded from our profits. We are a zero-debt company."
Cummins India is a part of the Cummins Group that operates in India through nine different entities.
Talaulicar said the group recorded a revenue of $2 billion in last financial year with a growth of 45%.
"This fiscal, the growth will be slowed down because of a very high base effect during 2010-11. The group is looking at 20% growth in this fiscal."