New Delhi, Apr 3 (UNI) Cummins India Ltd today said it has forecast a capital expenditure Rs 200 crores for global expansion and has a bleak outlook for FY08-09 on account of rising steel prices.
''Inflation in steel will affecting our outlook and we expect a slower rate of growth in profit compared to revenue growth in 2008-09, due to a continuous hike in steel, pig iron and certain alloy prices,'' company CMD Anant Talaulicar said.
Steel prices have shot up by 33 per cent over the last eight weeks. Though Commerce Secretary, G K Pillai last week had said he will ask iron ore producers to lower prices, not much has improved since then.
However, the exports of the company have remained unaffected, ''since, we sell mostly to our parent company Cummins Inc, as a result the focus has shifted to Indian sourcing and there is no slowdown in the exports due to rupee appreciation or rising prices,'' Mr Talaulicar added.
Cummins India which is growing at a rate of 30 per cent annually has registered 20 per cent growth in its power generation business.
The company which launched three new products for the domestic market today will launch portable gensets by Q1 next year.
UNI PDT SR HS1852