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Valvoline Cummins mulls acquisitions in India

Lubricants major Valvoline Cummins plans to acquire domestic companies as a part of its strategies to expand its presence in the country.

"Currently, we are doing a detailed study which will be completed by the end of this calendar year," chief financial officer (head business development) of Cummins Engine Co (India), Jim M Rugg, told reporters.

"We are looking at various options like building a new plant, buying existing capacity or outsourcing," Rugg said, adding that "there is overcapacity in the market which can be acquired".

Valvoline Cummins is a 50:50 joint venture between Valvoline and Cummins Diesel and Sales Service India, a fully owned subsidiary of engine maker Cummins India.

Company sources, said VCL was looking at both synthetic and mineral oil plants with a threshold capacity of 20,000 tonnes in India. "In case, we set up a new plant, it would cost about Rs 80-100 million," the sources said.

At present, VCL has manufacturing plants at Bombay and Tarapur.

Meanwhile, VCL launched a new engine oil 'TC Genuine' for use in Tata Cummins engines-powered commercial vehicles.

VCL chief executive officer Naveen Gupta said that the company, which was set up in 1998, would achieve a turnover of Rs 900 million in this fiscal and a 2 per cent market share which it has targeted to increase to Rs 1.20 billion in 2001-02.

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