The 50:50 joint venture partnership between Cummins and Car & General (C&G), to be known as Cummins C&G Limited, will be fully operational in April 2017. Cummins C&G Limited’s region of responsibility will cover Kenya, Tanzania, Uganda, Ethiopia, South Sudan, Rwanda, Burundi, Djibouti, Eritrea, Somalia and Seychelles.
East Africa, one of the faster-growing regions in the world, with an expected GDP growth rate of 6% over the next five years, represents a strategic growth opportunity for Cummins in Africa. The new partnership will consolidate the sales, service, and support of Cummins products in East Africa.
Car & General was first appointed as an approved Cummins distributor of Power Generation products in 2006. The company leveraged its existing network to establish a strong presence in Kenya, Tanzania, and Uganda, gaining over 15% market share in the genset sector. Consequently, Car & General was soon awarded distribution rights for Cummins’ full range of products and services.
Cummins brings brand strength, technical expertise, and proven policies and processes to the new partnership, in addition to Car & General’s strong local market knowledge, experience and capabilities. Together the new Cummins C&G business aims to deliver superior customer sales, service, and support in East Africa.
“We view this as a critical milestone in the close business relationship we have developed with Cummins over the years. We believe our core business and community values are aligned, and see this partnership as a unique opportunity to solidify market leadership in our existing territories, and capture market share where we are still building our presence,” Vijay Gidoomal, Managing Director of Car & General, highlights.
Commenting on the partnership, Gino Butera, Managing Director and Vice President of Cummins Africa Middle East, adds: “We are excited to partner with Car & General. Over the past decade, it has grown the Cummins distribution business in East Africa. We see untapped growth opportunities to expand Cummins’ customer support in the region,” he concludes.