Professional Documents
Culture Documents
com
A
report
On
Indian Business House
Prepared
Director
IIeBM
Pune
WAKAD,PUNE
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They are made up of 8 major group companies, each led by the best engineering and
managerial talent in India. In addition to engineering, they have interests in civic
utility systems and in Information Technology and communication.
At Kirloskar, listening to the customer and his needs is a tradition as old as the group
itself. For it is they who drive us further, make us reach higher, and engineer better
solutions. In the customer's often unspoken wish for better implements lies the seed
for a new invention, a path-breaking industrial concept.
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Two months later, Laxmanrao Kirloskar set foot on 32 acres of barren land strewn with
cacti and infested with cobras. Driven by his faith in human ability, Laxmanrao bonded
together 25 workers and their families and succeeded in transforming the barren
expanse into his dream village.
2.2. VISION
Business for us is the best service, customer care and a lifelong relationship.
We believe in synergy and its limitless power of unifying. It is not limited to our group.
It extends to the realms of customer/collaborator relations, investor interactions and into
market trends analyses and technological advances. It is the only way we ensure that
when an endeavor is made by several different elements, the result is of a far higher
quality than what could have been achieved by each element acting alone. Our policies
and practices help in treating the customer as the most important part of our family. We
do work for profit but our profits are guided by the motives which suit best the
customer needs.
For the Kirloskar Group, engineering excellence is not an end, but a journey. An array
of business solutions stand testimony to the fact, that good business values, pillared by
expertise can work wonders. Solutions, which are crafted from a solid base of
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developing and manufacturing, generate reliable products and superior service. Through
which, continual measurement of customer satisfaction is offered. It's a commitment
rather than a ritual.
From our early agricultural implements to our hi-tech engineering products, we've been
always weaving our corporate goals into our clients' expectations by providing
expertise and delivering technology that they can benefit from and rely on us at globally
competitive prices.
Today, we are in the process of concentrating our collective energies on core industry
sectors to give us a sustainable competitive edge in terms of both quality and price.
The Kirloskar Group's customer base currently ranges from heavy industries like power
generation, steel and chemicals to the mechanic in his workshop and the farmer in the
fields. Across this wide spectrum of clients, many of whom are overseas, the one thing
that remains consistent is that they all matter to us and call us for more of our service,
products and better solutions.
2.3 MISSION
2. To enhance the standards of ethical conduct, which are based on core Kirloskar
group values.
4. To further achieve good corporate governance by complying with all laws, rules, and
stakeholders.
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5. To comply with all applicable laws, rules, regulations and Regulatory orders.
7. To ensure that proper legal compliance management system is in place for reviewing
8. To act in utmost good faith and in accordance with highest Standards of personal and
10. Not to exploit for their own personal gain, opportunities that are discovered through
position.
11. Not to divert to his/her own advantage any business Opportunity that the Company
is pursuing.
12. To deal fairly with the stakeholders and employees of the Company.
any stakeholder to which the Company has a duty of confidentiality to maintain, except
includes all information not in the public domain that might be of use to competitors or
16. To ensure the use of Company’s property for legitimate Business purposes.
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17. To ensure to have a proper system of safeguarding the interest of all stakeholders.
various declarations under the various acts, rules and regulations, including the
companies Act, 1956, and the details of related parties from time to time.
20. To contribute in the most effective manner to achieve the vision and mission of the
Company.
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They are made up of 8 major group companies, who are players in major sectors like
(1) MANUFACTURING
(2) OIL AND GAS
(3) POWER
(4) CONSTRUCTION AND MINING
(5) AGRICULTURE
(6) INDUSTRY AND TRANSPORT
Each led by the best engineering and managerial talent in India. In addition to
engineering, they also have interests in civic utility systems and in Information
Technology and communication. These 8 companies form the core of Kirloskar
group. Each company is a renowned name in its own area of operation and is
respected world wide for its services and products. For them manufacturing is just
not limited to their factory premises and their products. It is also about world class
service.
They are also proud partners in joint ventures with companies like Ebara Corporation,
Toyota Motor Corporation, the renowned auto manufacturer.
They take equal pride in shaping capable managers and dedicated human beings at
Kirloskar Institute of Advanced Management Studies. It is their education center for
imparting knowledge to the managers of tomorrow.
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CUSTOMER ORIENTATION
The customer is our strategic partner in growth and an endless source of inspiration. We
will encompass change and intensify our operations to face the challenge of the
World Trade Order in the Global market. Unite each person, process, department and
company within the group in cross functional teams to create engineering solutions for
our customers.
Through our Distribution network, focus at delivering goods and services efficiently at
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QUALITY
Quality can always get better. We can achieve zero rejections by constantly upgrading
COST CONTROL
We must emphasize Process Orientation where only the processes leading to the final
There is no limit to a person’s work density if you standardized work and change to
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CASH MANAGEMENT
With efficient working capital management, net working capital can be zero, or
ENVIRONMENT MANAGEMENT
factories.
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Ø 1920--- Incorporation.
SAROVAR.
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KOEL
PUNE, AHMEDNAGAR, NASIK, PHURSUNGI
BUISNESS SERVICES
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of Rs. 8,500 cr. By 2012. To attain the profit of Rs. 950 cr precisely figures are as under.
Le 700 73 10.4%
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They will become globally major player in off – highway engines and power
delivery through innovation and unmatched service. Thus, they will strive to
attain amongst top ten positions worldwide in selected engine businesses. While
pursuing the above, they will continue to enhance the value of engine bearing and
valves business.
· Achieve cii exim business excellence score of 600+ points by assessment year
2012
To achieve 50% of sales from newly developed compact and reliable engines,
pump sets and generating sets which will be introduced from 2007.Superior
products.
· Achieve cii exim business excellence score of 600+ points by assessment year
2010
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engines and generating sets. We will offer alternate liquid and gas fuel choices.
By 2012, 40% of their yearly sales will be through export sbu by offering winning
combination of quality, cost and delivery in their products and services through
will move up the value chain by offering comprehensive solutions over product
life.
· Achieve cii exim business excellence score of 600+ points by assessment year
2010
To manufacture, sell and service engines and generating sets above 1.5 mw by
strengthening and leveraging our position in India and expand power
generation business in the regional countries. By 2012, 35% of our yearly sales
will be from gas engines and 10% of our yearly sales will be through export sbu.
ships.
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offering winning combination of quality, cost and delivery through process centric
organization. By 2012, 40% of our yearly sales will be through export sbu.
engines (20-700 hp) for off-highway use. We will achieve 15% of yearly sales
from engines in range 700 to 2000 hp and products using alternate liquid and gas
fuels. These will be introduced from 2009. We will generate 10% of our yearly
focus will be Europe and china for oem businesses and Asia, Africa and middle
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2.2.3 OUTLOOK
Given the growth momentum and prevailing buoyancy in both the industry and
services sector, they expect the pace to continue during the next fiscal, albeit with
some moderation. The monitoring tightening over the next two years is expected
to affect corporate bottom lines, with moderation in overall demand. They expect
the overall Gross Domestic Product to grow in the range of 7.9 to 8.4% in 2007-
08.
Assuming the normal monsoon, the Gross Domestic Product growth in agriculture
can be expected to continue in alignment with the long term average growth 3%
per annum. If the buoyancy in the services remain unchanged, about 9.5% growth
seems feasible while industrial growth will be expected to deliver about 8.4%.
Even though the recent dip in global crude oil prices and the downward revision in
the domestic prices of petrol and diesel have limited the pressure on the Wholesale
Price Index Inflation, for the moment, continued effort from organization of the
thus not providing a sustained comfort for headline Wholesale Price Index
Inflation. They are expecting the average inflation for the year 2007-08 in the 5-
markets, together with an unbeat sentiment, may attract significant capital inflows,
thereby adding liquidity to the market. However, this influx could offset the RBI’s
by the RBI.We also expect he rupee to trade at 40-42 against the Dollar by the end
of this fiscal .
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POLICIES
on an on going basis.
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Engineers :-636
Dealer : - 900
2.3.2 MARKETING
Market Trend
Ø Rising awareness and needs of energy efficient and low life cycle cost
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KBL Approach
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IN
SI
GI
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NATIONAL NETWORK
GLOBAL FOOTPRINTS
12 Overseas offices in
• Ajman
• Atlanta
• Cairo
• Johannesburg
• Miami
• Muscat
• Nairobi
• Paris
• Phnom Penh
• Reading
• Singapore
• Vientiane
50 dealers
31 service contact points
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Rs.13999 million.
Profit before tax is Rs 3750 million as against Rs 1786 million in the previous
previous year, registering a growth of 29%. Borrowings which have gone up from
Rs 252 million to Rs 1470 million and term loans, which went up from Rs 149
million to Rs 449 million and have helped fuel our growth. Depreciation and
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2.3.3.1.9 ASSETS
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SAFETY POLICIES
and regular check ups for employees as well as their spouses and parents. Health
treatment. The company strives not only to bring in attitudinal and behavioral
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The Company strongly believes that the system of Corporate Governance protects
manner towards fulfilling the corporate objectives and to meet the obligations and
and process environment friendly and gradually move towards the three
and services.
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Environment
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The Policy
The Plan
b) Identify the legal and other environmental regulations which apply to the
organisation's activities /products/services.
In keeping with its environmental policy, and taking into account the areas of
significant impact, the organisation sets appropriate environmental objectives and
targets for itself. These targets should be measurable where practicable.
Technological options, financial and operational requirements too, have their say in
the shaping of these objectives. Time-frames are set, and the personnel who will
implement the environment policy are identified.
The ISO-14001 system is integrated with the overall management system for smooth
operation. Roles and responsibilities are defined and communicated across the
company.
b) Reporting to top management for review, with a view to improving the system.
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Procedures are laid down to identify/deal with emergency and potential - emergency
situations and to prevent or mitigate adverse environmental impact.
Responsibility is assigned
Review
Periodic reviews by the management are needed to ensure that the system is
performing effectively. In light of the audit results, the management may consider
changes in its environment policy and objectives or, if need be, initiate action to
tackle any major non-conformance.
The benefits
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Today, Kirloskarvadi boasts of over 28,000 trees. What is more, the survival rate
of these is as high as 99%! The trees include Eucalyptus, Mango, Silver Oak,
Cypress, Tamarind, and Jack Fruit amongst others.
KBL has helped this cause at the grass root level by setting up institutions like
Tree Growers Co-operation etc. It has encouraged plantations by schools, co-
operative societies and Gram Panchayats by supplying them seedlings and
necessary guidance. The company has also helped the Sagareshwar Sanctuary and
Kranti Smruti Van at Balwadi, in its vicinity.
KBL installed a waste treatment plant in 1975 for the treatment of industrial and
domestic effluent water. The treated water is circulated in the premises and used
for watering lawns.
Moreover, waste foundry sand has been successfully recycled and used in the
preparation of the Golf Course at Kirloskarvadi.
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2. Dust Collection plant for C.I. Foundry sand plant. Installed capacity: - 110 H.P.
3. Industrial dust collector units connected to all the three shot blasting chambers.
4. Hot blast, ash trap type cupolas installed in C.I. Foundry to capture particulate
matters.
The company has also fostered a culture of concern for nature amongst its
employees and surroundings communities through regular workshops, seminars
and films.
In the near future, KBL plans to support reputed worldwide nature conservation
bodies in tree plantation drives and other nature conservation activities.
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KOEL is the first diesel engine manufacturing company in India to get the
prestigious EMS 14001 certificate. They also have the honors of being ISO/ EMS
14001 certified company from Nov.1999. They regularly comply with all statuary
legislations in terms of standards set by state & central pollution control boards &
proactively meeting future regulations today. They have taken efforts to meet the
norms and have been quite successful in it. A few that they can mention are:
1.A) They have remade a PMC nala flowing from our premises so that proper flow
is maintained & all water drains leading to nala, except rainwater is stopped.
B) All effluent streams are connected to ETP plant, where treated water meets
stringent norms of recycled water so that water is used for gardening activity.
Today, they are zero discharge company.
C) Closed loop system introduced to all water consumption areas so that recycled
water is reused again & again. This has reduced our water consumption from
92000 Kiloliters to 10000 Kiloliters per month.
3) They have constructed a scrap yard where a facility for segregation of all waste
materials, measurement of wastes & proper disposal of each category of waste for
recycling to authorized recyclers is ensured.
Their efforts have made them successful in creating awareness regarding the
environment in all their employees & are also continuously training them for
awareness regarding environmental matters. The result is that a Kirloskar
employee is highly aware about environment care and is a regular participant in
environment protection exercises.
They will continue to take care of the environment and ensure that our efforts help
others in living healthily.
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2.5.1 POLLUTION
2.5.1.1 AS INDIVIDUALS:
Ø No revving at the red signal; the counter on the street light tells you when
Ø To make separate cycling / walking tracks. The way vehicles hurtle down
the roads spewing exhaust, scares even the most enthusiastic pedestrians /
walking distance; commute if you ‘want to’- not because you ‘have to’.
2.5.2.3 OPPORTUNITY OF IT
Ø It will ease road congestion, pollution and save money. Discover the
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1. Installation of two 160 KVA and one 100KVA synchronized invertors to use
6. Installation of FRP fan blades in place of Aluminium fan blade for industrial air
circulators.
The measurable energy saved from these projects is about 1.2 Million kWh &
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2.5.4 ECOLOGY
activities. There are few patches of scrub / forestland which have been conserved
Aquatic communities of all the location shows that major life forms are autotrophs
i.e. phytoplankton. Zooplanktons are very few in numbers. The aquatic ecosystem
Ø Free Health and Yoga awareness campaigns and free health check-ups
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Ø Environment awareness camps and free PUC camps conducted for students
in nearby colleges
Ø Study visits organized for school children and women group from the
nearby communities
Ø Industrial Pumps
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Ø Valves
Ø Hydro Turbines
million)
Kirloskarvadi (1910),
Kondhapuri (2001),
Secunderabad
Dealers: Overseas 45
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Ø Engine Valves
Sales Income, year ending March 31, 2007: USD 446 Million
Business areas
Diesel Generating Sets, and Grey Iron Castings. Engines are the preferred
restaurants. We also offer generating sets over 1 MW that run on Heavy Fuel
Oils. Similarly, Engine Bearings and Engine Valves are the chosen ones for
Product range
Generating Sets, Engine Bearings and Engine Valves and Grey Iron Castings.
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Ø Pig Iron
Product range
Pig Iron: Foundry Grade, S.G. Iron Grade & Basic Grade
Manufacturing units
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No. of Employees:
1,349
Values:
To achieve the mission and vision, KFIL would pursue following values:
Ø Customer Orientation.
Ø Reciprocating Compressors
Ø Screw Compressors
Ø Turbo Compressors
Ø Ice plants
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Refrigeration, Gas and Air Compression, Fluid handling, Prime movers and
transmission.
over the world, today we are one of the World’s largest Compressor
KPCL has successfully build & commissioned more than 1500 Refrigeration
technical expertise in the Refrigeration technology over the pass two decades &
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In early 80’s KPCL was licensee of Howden Compressors Ltd., UK (HCL) for
Their focus has been to ensure that they meet their commitments to customers
with emphasis on delivery and quality. Their Corporate Quality Policy has
Ø API Process
Kirloskar Ebara Pumps Limited (KEPL) was established on 13th January 1988
like Process Pumps, Steam Turbines, Fans, Blowers etc. required for critical
Business areas
The process pumps manufactured are required by hydrocarbon industries for a variety
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transmission parts to 2.3 lakh units next year and wipe out losses of around Rs 70 crore
The increase in production to 2.3 lakh units from the existing 1.7 lakh units will also
depend on the finalisation of the small car project of Toyota Kirloskar Motor. The small
TRANSMISSION PARTS
The transmission parts are manufactured at both TKAP as well as at Kirloskar Toyoda
Textile Machinery. Toyota has invested around Rs 400 crore in both the plants for
manufacturing the transmission parts. The total revenue of TKAP is around Rs 500
TKAP is a global resource for the International Motor Vehicle project, making and
across the world. It is also considered the first Indian auto transmission component
OTHER PRODUCTS
Apart from manufacturing manual transmission parts, TKAP also makes propeller
shafts and front and rear axles. Toyota Motor Corporation has a 64 per cent stake in the
joint venture while Toyota Industries Corporation has a 26 per cent stake. The rest is
The company would provide sales and service for a wide range of material handling
equipment produced at their Takaham plant in Japan. The joint venture expects 25 per
cent increase in revenues to around Rs 220 crores in 2006-07. The company expects to
sell between 800 units and 1,000 units of the newly launched forklifts by 2010.
Components
2.7.1.11) SPP PUMPS LTD. 2003: KBL 97.5%, Sales Rs. 2180 M
Sales Rs. 92 M
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Kirloskar Brothers Ltd. (KBL has acquired 100 % of the equity share capital of the
Chennai based Aban Constructions Private ltd. Aban Constructions Private Ltd. a part
of the well known Aban Group of companies, Chennai was set-up in 1969. It is mainly
into the business of oil and gas cross country pipe fines and civil construction projects
such as tunnels, bridges and roads, 'water and sewerage, and other industrial plants. The
present turnover of the company is about Rs 90 crores. The company caters to various
reputed customers such as IOCL, GAIL, SPCL, Port Trusts and State Electricity Boards
and so on. With this acquisition the company is poised to become Engineering,
Procurement and Construction Company with the opportunity to participate in the Oil
and Gas sector, therefore achieving its objective of synergy of operations along with
diversification.
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In the year under review, there was a growth of 8% at Rs. 1,390 million in exports of
company. The company believes that the momentum in exports established by the
cumulated annual growth rate (CAGR) of 32% over last 3 years will continue. Growth
in sales by developing OEM customers was 88% in this year as compared to previous
The sales through distributors in the traditional markets grew by 8% in this year as
compared to previous year. The auto component business recorded a growth of 40%
and increased its presence in the after market segment in Middle East Asia and Europe.
The Export Oriented Unit (EoU) with capacity to manufacture 12,000 generating sets
The company has created has created a strategic business unit for exports to have
4,432
4,500 3,884
4,000
3,500
3,000
2,500
2,000
1,052 1,275
1,500 1,046
1,000
500
2002 2003 2004 2005 2006
Group Exports
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emission norms.
Ø Finalized on specific sets of engines and Gensets working on Alternate fuels like
Ø High horse power engine has completed the test bench evaluation and would be
Ø Development and stabilize the R&D facilities for development of new materials
and processes.
Ø In view of new norms in November 2007, update the emission status of present
products.
INNOVATIONS
LATEST PATENT
arrangement provides:
8.5 MW
· First and only Indian Pump Company to launch FM approved, UL listed Fire
· Increasing business potential from building sector e.g. airports, ports, malls,
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After negotiation with Copeland Corporation, U.S.A., it was decided to bring in the
Kirloskar Copeland Limited, the joint venture company took over the compressors
division ( at Karad and Atit ) of Kirloskar Brothers Limited from 1st April 1993.The
formation of this joint venture company is a step towards the commitment to offer latest
and advanced technology product to the customer’s .It will be possible to offer cost
requirement. Thus Kirloskar Copeland Limited will continue to retain its place as
market leader.
It is the largest compressor manufacturing company in the world and pioneers of the
Kirloskar Brothers Limited a leading engineering company has been in the forefront of
Refrigeration and Air conditioning industry in India since last many years. Kirloskar
Brothers Limited (KBL) was started in 1888 and incorporated in 1920. KBL began its
activities with the manufacture of iron ploughs and chaff cutters and soon its products
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Kirloskar Brothers Limited identified changing needs and shifted its manufacturing
focus. Today, it is the largest manufacture of a variety of pumps, valves, CNC machine
production, about 16 acres of land was procured near Karad on Dhebewadi Road, one
km off the Pune-Bangalore National Highway. After the completion of the factory
skilled manpower resources helped the division achieve and maintain a high standard of
After the formation of joint venture with Copeland Corporation, U.S.A., the state of the
art, ultra modern plant was established at Atit. The new manufacturing plant is focused
on state of the art products like CR6, CK3 and Semi hermetic.
The product is well established in the market for quality and reliability. The product is
also certified by Bureau of Indian standards .In recognition of the performance of this
Division it has received National Productivity Awards. KCL has been exporting
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2. The company has acquired 100 % equity share capital of Gondwana Engineers
private limited for a total consideration of Rs 76.36 million. The company has executed
the necessary share purchase agreement to that effect at Pune. Gondwana Engineers
private limited (G.E.P.L) is the company started by M.r S.D Shangarbawar a technocrat
3. Kirloskar group of companies has now entered with joint venture with Toyota
motors. Toyota plans to increase its market share in the MUV and car markets
alongside increasing productivity. Toyota plans to increase 10 % per year in the future.
Toyota will also plan to continue working with component manufacturers to help and
guide them on quality, cost and delivery. Toyota plans to invest us$ 28.3 million to
(a) KBL- one of the only three manufacturers of primary moderator circulation canned
Scheme include –
- 4, 10000 lit/sec
construction basis.
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( 2.9) MILESTONES
The Kirloskar Group enters the field of Post Harvest Machinery manufacture
1912
with the establishment of G.G. Dandekar Machine Works Ltd.
G.G. Dandekar Machine Works Ltd. enters into technical collaboration with
1967 F.H. Schule GmbH, Germany for manufacture of modern rice milling
machinery.
Licence agreement between SEMT Pielstick of France and KOEL for the PA
1977
series of compact marine engines.
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KOEL signs collaboration agreement with Deutz AG, for manufacturing air-
1989
cooled engines under technical licence.
Components Division.
1993 KOEL's Auto Components Division became the first Indian company
1997 Kirloskar Filters Ltd. merged with KOEL in August. A new company
pumpsets.
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1. Future Plans
As a part of kirloskar’s growth strategy, KBL is targeting markets in Europe, the USA,
Africa, and South East Asia. It has as a strong brand presence in the EU through various
tie-ups with leading suppliers. The company is planning to increase its focus on special
production.
SPP Pumps Limited UK is a subsidiary of KBL India. The company has been
manufacturing pumps for over 100 years in the UK, and it was acquired
by KBL for approximately EUR 10 million. It is among a the significant players in
the fire fighting pump packages, lowest life cycle cost series pumps of vertical
mixed flow type & horizontal split case type for water circulation, and the
contractors pumps.The company’s product range also includes water supply,
circulation and distribution, dewatering, drainage, and irrigation pump systems.
It employs approximately 120 personnel and generated revenues of
approximately EUR 44 million in 2005-06. SPP Pumps Ltd. has also
established a facility in Atlanta, USA for manufacturing fire-fighting pump
packages. It has an office in France, through which it supplies its products
across Europe.
Kirloskar Corrocoat Pvt. Ltd. is a joint venture between KBL and Corrocoat Ltd. UK. It
specializes in manufacturing corrosion-resistant products and also undertakes turnkey
projects for various coating applications. The company provides high-quality products
and services to diverse industries, including power generation, oil and gas,
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petrochemicals, marine, water and wastewater, general industry, etc. This association
will facilitate the targeting of the anti-corrosion market in a focused manner, thereby
enabling a gain of substantial presence in the EU market.
KBL has a strong presence in the centrifugal pump market in the EU.The company’s
products are projects such as government contracts, which will utilize the company’s
products. KBL has plans to further reduce the life-cycle cost of its pumps to become
more competitive in international markets.
The top management of Toyota Kirloskar Motor Private Limited met the Chief
Minister N.Dharam Singh and Industries Minister P.G.R.Sindhia here on Tuesday
fuelling speculation about the car makers plan to expand operations by setting up a
second manufacturing unit in the State with an additional investment of Rs.1,500
crores.
However, the delegation of the joint venture between Japan's largest carmaker, Toyota
Motor Corporation (99 per cent equity) and the Kirloskar Group (one per cent stake),
was tight-lipped about the meeting attended by company's Managing Director, Atsushi
Toyoshima, among others Able to produce good quality vehicles according to
production plan even with alterations included. No TMC support required for mass
production. According to plan able to implement division of labor in production
preparation able to produce good quality vehicles.
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New opportunity – Nuclear power:
(a) KBL- one of the only three manufacturers of primary moderator circulation
Scheme include –
- 4, 10000 lit/sec
construction basis.
Business succession planning involves planning for the smooth continuation and
drive it once the leader or key person leaves – either by choice or by circumstances.
Without succession planning, a business that has become successful can just as easily
fall. The business grows because there is a leader (probably the owner) with experience,
drive and ability. Without proper succession planning, the future success of the business
That is not all. The passing of the baton from one generation to the next is often
clouded by the stakeholders’ differing views and agendas. Without proper planning, the
clashes of views and agendas can pull the business in several directions and this may
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4.2.1 Succession planning of Kirloskar group of companies
It was in the mid-1920s that Laxmanrao Kirloskar started manufacturing world class
diesel engines for the first time in India. Sticking largely to engineering related
products, it has grown over the next three generations. A majority of its revenue comes
from its core businesses of castings and forgings, pumps, engines, electric motors,
power equipment, and compressors. During 1956-80, the group was led by SL
Kirloskar. The group has been conservative in growth and has closely held ownership
within the family. In fact, the group turnover has come down from Rs.9.50 billion in
1999 to Rs.7.45 billion in 2004, with the net worth also depleting simultaneously
While the family is unified, and the six members of the fourth generation in the age
group of 41-49 are actively involved in business, they have not embarked on any
aggressive growth options. The group is led by the last member of the third generation,
who is now 54 years old. He has worked towards synergizing relationships among
Although all the male members of the fourth generation are actively involved in
managing group companies, they have developed mechanisms for mutual consultation
regularly. Their exposure and experience with TQM methods from collaboration with
Toyota, Japan provided all of them with a common platform to compare and exchange
notes. Their long association with the companies and their non-family manages have
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helped the group work as a single entity. While this has helped build smooth internal
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Ø S.V. Paradkar
Chairman Kirloskar Ebara Pumps Limited
Ø Gautam Kulkarni
Joint Managing Director
Kirloskar Oil and Engines Limited
Ø M.R S, K. Sonapati
Joint manager
Ø Kirloskar Middle East FZE
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4.2 CONCLUSION
The Kirloskar group of companies was one of the earliest industrial groups which
made a mark in the engineering industry in India. The group produces pumps,
engines, compressors, lathes and electrical equipments like motors, transformers
and generators (it is the world’s largest gensets manufacturer). While Laxmanrao
Kirloskar established the group, his son S. L. Kirloskar played a major role in its
rapid growth.
S. L. Kirloskar was a man who transformed his vision into a promising and
thinking reality, of application of appropriate technology, customer satisfaction
and dauntless integrity. SLK was a global thinker who had the courage and the
confidence in his own country even in the pre-independence era. In 1974, in
cooperation with Deutz-Fahr of Germany, Kirloskar began manufacturing tractors.
They have since ceased tractor production.
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They are made up of 8 major group companies, who are players in major sectors
like manufacturing, oil and gas, power, construction and mining, agriculture,
industry and transport each led by the best engineering and managerial talent in
India. In addition to engineering, they also have interests in civic utility systems
and in Information Technology and communication. These 8 companies form the
core of Kirloskar group. Each company is a renowned name in its own area of
operation and is respected world wide for its services and products. For them
manufacturing is just not limited to our factory premises and our products. It is
also about world class service.
Kirloskar is the company which lives up its corporate social responsibility. When
the disaster of Tsunami occurs in country then on behalf of the Kirloskar group of
companies, Sanjay C Kirloskar handed over a cheque of Rs. 6.8 Million,
contributing to the Prime Minister’s Relief fund, as aid to the tsunami victims to
Dr. Manmohan Singh, honorable Prime Minister of India.
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stable year after year. Towards this objective, Kirloskar has positioned itself as
cost competitive producer of high quality products and is constantly on look out to
increase exports. A significant step in that direction was announced today by
Kirloskar –acquisition of certain assets and businesses of SPP Pumps Ltd. in
United Kingdom through a joint venture company which would be henceforth
called SPP Pumps Ltd. SPP Pumps Ltd. was a part of Thyssen Bornemiscza group
in UK so it can be assumed that Kirloskar is the company which has great future
because of its efficient management team and great vision.
Kirloskar Brothers declined 1.77% to Rs 222.50 at 15:07 IST on BSE even as the
company said it is reorganising its business into nine divisions to achieve a
revenue target of $1 billion by 2011.
Meanwhile, the BSE Sensex was down 133.26 points, or 0.83%, to 15,929.92, on
weak cues from global markets. US stocks slid on Monday, 2 June 2008, on
renewed fears the credit crunch has yet to run its course after Standard & Poor's
downgraded debt ratings of three big securities companies and Wachovia, the
fourth-largest US bank, ousted its chief executive.
On BSE, 4,275 shares were traded in the counter. The scrip had an average daily
volume of 27,386 shares in the past one quarter.
The stock hit a high of Rs 225 and a low of Rs 215 so far during the day. The
stock had a 52-week high of Rs 527 on 3 October 2007 and the stock hit a 52-
week low of Rs 206.40 on 24 March 2008.
The mid-cap company had underperformed the market over the past one month till
2 June 2008, declining 18.01% compared to the Sensex’s decline of 8.73%. It had
also underperformed the market in the past one quarter, declining 29.87%
compared to Sensex’s decline of 1.69%.
The company’s current equity is Rs 21.15 crore. Face value per share is Rs 2.
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The current price of Rs 222.50 discounts its Q4 March 2008 annualised EPS of Rs
19.92, by a PE multiple of 11.17.
The business units will deal in products, services and systems and will include
irrigation and rural electrification, water resource management and oil and gas
divisions. The reorganisation is effective from the first week of June 2008, the
company said.
In May 2008, Kirloskar Brother received an order worth Rs 933.76 crore from the
Andhra Pradesh state government's Irrigation & CAD Department for building a
pump house.
On 15 April 2008, the company received a letter of intent for an order worth Rs
166.77 crore from Damodar Valley Corporation - Kolkata in respect of Koderma
thermal power project.
On 1 April 2008, the company received a letter of intent for an order worth Rs
338.92 crore from the Government of Andhra Pradesh, Irrigation & CAD
Department in respect of Rajiv Sagar Lift Irrigation project.
Kirloskar Brothers’ net profit rose 43.4% to Rs 52.66 crore on 26.9% increase in
net sales to Rs 569.01 crore in Q4 March 2008 over Q4 March 2007.
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