Richard Cotterell, Managing Director, Perkins Engines Company Ltd. graduated in Business Studies from Coventry University and also holds a degree in Business Administration from Warwick University. Richard Cotterell has been associated with the Caterpillar Inc. for close to 15 years and possesses in-depth experience in the power sector. Cotterell commenced his association with Perkins in 1997 as a Commodity Buyer. Later he went on to become the General Manager of Caterpillar Logistics from 2002 – 2005. He then served as a Vice President, Commercial EAME at Caterpillar Logistics from 2005-09. Besides being the MD of Perkins India, Cotterell has also been the General Manager for Large Engines at Perkins since 2009. Prior to joining Caterpillar, he worked for Racal Radar Defence Systems Ltd., Mercury Communications & Coopers & Lybrand.
Perkins Engines Company Limited was formed in 1932 and over the past 80 years the company has created a strong name for itself as one of the leading suppliers of off-highway diesel and gas engines in the 4-2000 kW market across the globe. The firm was founded by Frank Perkins in Peterborough, England and the over the years the company has produced nearly 20mn world-class diesel engines. Perkins has the manufacturing capacity to produce over 800,000 engines every year and has developed the largest range of power solutions to meet the demands of a rapidly growing market from construction to agriculture and general industry to electric power generation. Perkins has invested in expanding its reach and operations around the globe and has engine manufacturing/assembly facilities in the UK, USA, Brazil, China, and a joint venture in Japan as well as an upcoming plant in India. Besides these manufacturing units, the company has 118 distributors delivering the Perkins product support promise in over 180 countries around the world.
Replying to Yash Ved of IIFL, Richard Cotterell says “With 8% to 10% growth in the electric power sector, India will be a key market among the Asian countries for our 4000 Series engine”.
What are your plans for the Indian market?
This year, our vision to build engines closer to our customers has been realized as the construction work on our new 4000 Series engine manufacturing facility has started in Aurangabad. This facility will be the powerhouse of the Perkins brand in India.
The demand for our engines in Asia is growing. Our Aurangabad facility will cater to the domestic and Asian markets. We are developing a new supply base as well. We have been working with a number of OEMs here for many years and now we have the chance to develop that relationship.
Our initial focus will be to make our plant fully operational. Construction will start within the next couple of months. We will focus on product support, relationship building and brand building in the coming years.
What is your production capacity? When do you expect to complete the Greenfield manufacturing facility at Aurangabad?
Initially the facility will have the capacity to produce around 3,000 engines per year with the capability to increase to 5,000 units. The first engine from the facility will be manufactured in the middle of next year. The land has been acquired and within 18 to 24 months of opening, we expect to operate at the full capacity of 3,000 engines a year.
Brief us about your manufacturing facility at Aurangabad?
The manufacturing facility is a US$150mn unit located in the Shendra Industrial Area in Aurangabad and work is due to start in early 2012 with a completion date targeted for mid 2013. Initially the facility will have the capacity to produce around 3,000 engines per year with the capability to increase to 5,000 units.
The new India plant will serve the growing demand from the Asian markets. This investment is an excellent opportunity. We have a really engaged team focusing on delivering the start up. The first engine from the facility will be manufactured in the middle of next year. The facility will generate employment not only in the Aurangabad region but also across the supply base. The work on the facility is expected to start within the next couple of months.
What are your investment plans in India?
We are investing US$150mn in our manufacturing facility at Aurangabad where will produce our 4000 Series engines. Our strategy for growth in India is a combination of what we are doing today. Working closely with the customers and providing high quality products is critically important to us. The new India plant will help us in manufacturing closer to our customers and serving the growing demand from the Asian markets while our Stafford, UK, facility will concentrate on supplying customers in Europe, Middle East, Africa and South America. Apart from this, we are investing in activities to build our brand in support of our growth plans.
Brief us about your international plans?
We are already an international business with manufacturing facilities located in Wuxi, China; Peterborough and Stafford in the UK; Griffin in Georgia, USA and Curitiba in Brazil. In addition to our manufacturing facilities, we have a global network of more than 115 distributors with over 3,500 branches in over 180 countries around the world, providing product support to the end user, wherever it is required.
We continue to work with more than 1,000 original equipment manufacturers (OEMs) around the world not only for electric power applications, but also in the field of construction, agricultural, material handling and general industry sectors.
What are your expansion plans?
We continue to invest in our existing facilities around the world which manufacture our wide range of reliable and tailored engines, from the 400 Series to the 4000 Series, and grow the volumes of engines manufactured at each of these locations.
Perkins manufactures a wide range of engines for the industrial sector up to 225 kW, and up to 2,500 kVA for our electric power customers. Our renowned global distribution network also provides aftermarket support for our varied customer base, to ensure our engines are supported in the field wherever they located.
Brief us about your recent financial performance?
Last year, we produced a record number of engines from our global manufacturing facilities, with strong sales growth around the world. We cater to more than 1,000 equipment manufacturers in the construction, agricultural, industrial and electric power sectors.
How do you see global demand for engines going forward?
We expect the world demand for diesel and gas engines to grow substantially in the coming years. The Asia Pacific region is one of the world’s largest markets for diesel and gas engines. China and India will be the primary drivers for growth in the region. We are also expecting that Africa, Middle East and Europe will increase their demand with renewed strength.
In India, there is a lot of potential for infrastructure development. This will create many opportunities, as demand for industrial equipment will grow in the country. The industrial sector is also expected to grow considerably. This will increase the market for our engines in the country.
We expect growth in all these segments globally. With 8% to 10% growth in the electric power sector, India will be a key market among the Asian countries for our 4000 Series engine.