Cummins and Car & General forms joint venture to consolidate market dominance
The new company will consolidate the sales, service and support of Cummins products in East Africa, one of the fastest growing regions in the world with an expected GDP growth rate of 6% over the next five years.
The new JV Company will be known as Cummins C&G Limited and will take over the full-line Cummins Distributorship from C&G, Cummins’ current distributor in East Africa covering 11 countries namely Kenya, Tanzania, Uganda, Ethiopia, Djibouti, Seychelles, South Sudan, Rwanda, Somalia, Eritrea and Burundi.
The JV Company will be headquartered at the C&G facility in Nairobi, Kenya and is scheduled to launch in April, 2017.
“We view this joint venture partnership 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. This new partnership is truly a win win proposition – for Cummins, for us and for our customers” said Vijay Gidoomal, Managing Director of Car & General.
Commenting on the partnership, Gino Butera, Managing Director and Vice President of Cummins Africa Middle East, said
“We are excited to partner with C&G. Over the past 10 years, they have grown the Cummins distribution business in East Africa and we see untapped growth opportunities to expand Cummins’ customer support in the region”.
Car & General was first appointed as an approved Cummins distributor of Power Generation products in 2006.
The company leveraged its existing network and established a strong presence in Kenya, Tanzania and Uganda, gaining over 15% market share in the genset market. Consequently, Car & General was soon awarded distribution rights for Cummins’ full range of products and services.
Cummins and C&G have formed this partnership to leverage Cummins’ brand strength and C&G’s business relationships and know-how to further consolidate the JV’s market position in the region.
Together, the new Cummins C&G business aims to deliver superior customer sales, service and support in East Africa.
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