World's largest maker of diesel engine sees strong growth in Phl

MANILA, Philippines - US-based Cummins Inc., the world’s largest diesel engine manufacturer, said that its distribution business in the Philippines is set for a healthy 16 percent growth this year from last year’s level as local economic activity continues to expand. 

Cummins products and services for virtually all industrial and marine applications are present in all key major market segments in the Philippines.

According to Nestor Martin C. Marfori, general manager of Cummins Sales and Service Philippines Inc. (CSSPI), the company has been growing at an annual growth rate of 10 to 12 percent for the past five years. For this year, the company expects a turnover of $30 million or up 16 percent   from last year’s level. CSSPI is celebrating this year its 10th anniversary as a wholly owned subsidiary and exclusive distributor of Cummins products and services in the Philippines.

To mark the company's 10th anniversary celebration, Cummins president for Distribution Business Unit (DBU) Pamela Carter visited the Philippines for the first time to personally congratulate Marfori and his team for   the notable performance of CSSPI.

 “There is clearly an understanding that the emerging market is going to dominate and the Philippines is part of that whole process. Southeast Asia is really going to boom,” Carter said.

 “China will dominate for a long time and Southeast Asian countries including the Philippines are the ones that have available labor and a lot of untapped opportunities like mining (you still have power generation needs). The general demand for the types of products that Cummins produces are going to benefit from the growth here in the Philippines,” Carter explained.

She said Marfori has done an incredible job in nurturing the Philippine market for Cummins products   and his employees are very happy that they are being developed and are very enthusiastic about new opportunities.

Carter said the distribution business around the world is young but the “Philippines is the fastest growing and the newest business unit of Cummins that is in step with where we are.”

For his part, Marfori said the local subsidiary’s growth will be coming from core businesses like generator sets, engines and after market service, filtration and parts. “Locally, we cover almost all industry segments like marine, mining and construction, automotive, agriculture, transport and power generation,” he said.

“For instance, when it comes to marine, Cummins is present in General Santos and Batangas, practically in all types of commercial fishing and interisland vessels. When it comes to power generation, we cover the fast growing construction and real estate markets, business process outsourcing and the services sector like hotels,” Marfori added.

Cummins Inc.’s revenues reached $13 billion last year and this year, it expects revenues of $18 billion, or an 84 percent growth from 2007 to 2010. “Our stock is the most highly valued stock among the Fortune 500 companies and so the return we are giving to our shareholders is great,” Carter told The STAR.

She said Cummins Inc. is in over 190 countries and territories in 20 different market segments.