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Estimate of additional Rs 200 crore in annual revenue from 5G reasonable: Cummins India

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Ashwath Ram, Managing Director at Cummins India spoke to CNBC-TV18 on the outlook for the business. A Kotak report estimates an additional 5G opportunity of Rs 200 crore for Cummins India on an annualised basis and growing over the next 5 years.

Ashwath Ram, Managing Director at Cummins India spoke to CNBC-TV18 on the outlook for the business. A Kotak report estimates  additional 5G opportunity of Rs 200 crore for Cummins India on an annualised basis and growing over the next 5 years.
Ram said, “They (Kotak estimates) seem to be reasonable numbers, the 5G opportunity is pretty global so it is not just related to India. India will rollover into 5G over the next two years, whereas some of the other market especially those in South-East Asia markets like Philippines and China and few others already started major implementation of 5G.”
“We have already began supplying gensets to many of those markets and we have the best tailored product for these markets, so we see this as a very exciting opportunity for us moving forward,” he said.
Ram said Cummins would benefit from data centers in the short term and in the long term from the 5G rollouts, some of which were already visible in exports to other markets.
On margins Ram said, “In India the margins go anywhere from 10- 14 percent, whereas for export products they can go anywhere from 15-20 percent.”
Watch this video for more.