Cummins Inc.’s (CMI) fourth-quarter profit climbed a better-than-expected 34% as strong sales in India and other BRIC countries offset weaker demand in the engine-maker’s North American market.  The maker of truck engines and power generation systems continues to expect growth, with plans to add about 2,500 U.S. jobs this year after adding only 185 in 2010.

The company’s profit was led by 48% increase in international sales that accounted for 64% of total sales. Sales in India shot up 37% during the year.

It’s the accepted wisdom that no country can touch China in desirability of a manufacturing location. There are few fields in which the “middle kingdom” does not excel. But did you know that the second largest maker of blank DVDs/CDs and related media is a company located just outside India’s capital city? It’s called Moser-Baer, in Noida.

Moser Baer DVDs

In automobiles, auto parts, pharmaceuticals, chemicals, medical components, and many other fields India today has a very strong showing. So I was not totally surprised that India ranked #2 on the Global Manufacturing Competitiveness Index with a score of 8.15, compared to China’s 10.  The USA is at 5.84, Brazil at 5.41 and Russia at 2.58 by comparison. The Index, compiled for compet.org, also projects what happen by 2015. where China will still lead. But India’s score will improve to 9.01 according to the study.

To western executives, this means that if you are concerned about the future of global expansion in Asia, you may consider an integrated design/manufacture operation in India, more readily than you might have a few years ago.

Since September 2009, India’s industrial growth has been above 10 percent. In April 2010, industrial production was almost 18 percent higher than a year ago and ahead of a Thomson Reuters forecast of 13 percent.

Machinery and equipment was the fastest growing industrial sector, at an incredible 55.6 percent growth from last year’s somewhat depressed level. But overall growth was broad-based according to India’s Central Statistical Office: manufacturing output grew 19.4 percent in April, mining grew 11.4 percent and electricity 6.0 percent. Capital goods output surged 72.8 percent, while production of consumer durables grew 37.0 percent.

The India Expert believes that the numbers for the balance of this year will be closer to 10-12 percent for industrial growth and perhaps 8-9 percent for the overall economy.

Last week, World Steel Dynamics, a market services firm based in New Jersey, ranked Korea’s Posco at the top of its list of world-class steelmakers. Ranked right behind Posco at #2 is India’s SAIL, formerly known as the Steel Authority of India Limited. According to the service, the ranking is based on 23 parameters including size, expansion plans, adaptation of new technology and products.

SAIL's Burnpur Plant

Four other Indian steel companies also feature for the first time among the top 32 world steel companies. These include, Rashtriya Ispat Nigam — rank 30, Essar Steel (20), Tata Corus (10) and JSW Steel (7).

SAIL is also looking to tap overseas market for building raw material security. It is scouting to buy coking coal mines in Australia, Africa, Brazil and Canada. SAIL is currently in the midst of $17 billion expansion of hot metal capacity from 13 million tons to 23.6 million tons by 2012. This would put the company among the top three steel makers globally.

SAIL  is also expected to tap the equity market by September this year with a public offering involving sale of 10% of its equity. The majority stockholder, India’s govebernment has already approved a plans for the company offer 20% of its equity involving the government offloading 10% stake in the company and the steel PSU issuing fresh equity shares in the same proportion (10%). This will happen in two phases, starting in September.

India’s factory output rose 10.3 percent in October from a year earlier as government stimulus measures and domestic demand pushed Asia’s third-largest economy into its 10th straight month of industrial expansion. The government also revised its number for September industrial output growth to 9.6 percent from 9.1 percent.

The Expert expects India factory output to continue its brisk pace at between 8 and 11 percent through 2010.  Much of this driven by internal factors, although manufacturing exports from India continue to rise, in selected categories.  A7DD3RVAUQC6

http://www.blogcatalog.com/directory/business/international-business