THE KIRLOSKAR GROUPOF

COMPANIES

MADE BY:PRIYANKA DUTTABT-1109SEM I

TOPICS COVERED:

BASIC INFO HISTORY GROWTH UNIQUENESS RESULT

BASIC INFO

The Kirloskar ranks amongst the top engineering.

The Kirloskar product line consists of more than 200 series. We have a group turnover of Rs. 2,000 Cr. Approx. The Kirloskar Group makes equipment, machinery and high-precision engineering products for the transport sector, including shipbuilding, railways, roads and cargo. It is a 1.20 billion US Dollars engineering conglomerate driving critical industries

THE KIRLOSKAR STORY

The Kirloskar story starts with Laxmanrao Kirloskar, the founder. A man who believed that an understanding of one's environment and reality was essential to the manufacture of path-breaking industrial implements. From this steadfast belief was born the iron plough, the first Kirloskar product.

A highlight of the early history of the group is Kirloskarvadi, India's first industrial township. A model factory-village created by Laxmanrao .

In January 1910, The Raja of the princely state of Aundh, who admired and respected Laxmanrao Kirloskar, offered all the land he needed in Aundh state

Two months later, Laxmanrao Kirloskar set foot on 32 acres of barren land strewn with cacti and infested with cobras.. Ramuanna, Laxmanrao's brother, planned and administered the township, Shamburao Jambhekar doubled as engineer and all-round healing man, K.K.Kulkarni, an unsuccessful student, became a manager, treasurer and odd jobs man, Mangeshrao Rege was the clerk and chief accountant, Anantrao Phalnikar, a school drop-out flowered into an imaginative engineer. Such was our founder's faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted dacoits, became the trusted guards of Kirloskarvadi!

The first Kirloskar Group Company Kirloskar Brothers Limited (KBL) - the first

Kirloskar venture at Kirloskarvadi was to become the base for all of the Kirloskar Group's subsequent enterprises. It began as the only Indian company with its own standard products - the fodder cutter and the iron plough, which competed with the British products.

Shantanurao Kirloskar, the eldest son of the founder travelled to Pune to initiate a new aspect of the group's activities - diesel engines.

Finally, after arguing that factories have a longer life than human beings Shantanurao Kirloskar won a place for Kirloskar Oil Engines Ltd. (KOEL), twelve months after signing an agreement of collaboration with Associated British Oil Engines Export Ltd. of UK.

The KOEL factory was incorporated in 1946

To electric motors and pneumatics

Ravi Kirloskar, his youngest son, in 1946 set up the Kirloskar Electric Company limited (KECL)

KECL's logo in the 40's In collaboration with Broom and Wade of England,

Kirloskar Pneumatic Company Limited began the manufacture of air compressors and pneumatic tools.

A new direction - services

Due to the approach of expertise gave the idea of formalised engineering consultancy and a new company Kirloskar Consultant Limited (KCL) in 1963

This paradigm shift saw the setting up of yet another service company - Pune Industrial Hotels Limited in 1964, the Kirloskar Group's first foray into hospitality. This company set up Hotel Blue Diamond in Pune and began to manage Hotel Pearl in Kolhapur. The Baker's Basket confectionery chain and the Hotel and Catering Consultancy Services (HOCON) were also set up.

GROWTH AND ABOUT THE COMPANY

VISION OF THE COMPANY MAJOR GROUPS OF COMPANIES RESEARCH

VISION

Where are we headed? 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.

How do we plan to reach there?

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 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.

MAJOR GROUPS OF COMPANIES

Kirloskar Brothers Limited. (KBL) Kirloskar

Ferrous Industries Limited. (KFIL) Kirloskar Middle East FZE. (KMEF) Kirloskar Oil Engines Limited. (KOEL) Kirloskar Industries Limited. (KIL) Kirloskar

Pneumatic Company Limited. (KPCL) Kirloskar Proprietary Limited. (KPL)

RESEARCH

Technological innovation is the core of original product design function. KBL believe in pro-active product development, to precisely meet the needs of customers and operating conditions.

Hydraulic Research Centre Prime mover for 'unattended' Gensets Prime Mover for Agricultural Tractor Prime Mover for Backhoe Loader Uprating

of existing product (diesel engines) to meet Stringent exhaust emission norms, stipulated by Govt., for diesel engines used for Genset

Uprating of existing engines, for increasing the Power/weight ratio

UNIQUENESS

FINANCIAL DROP RISK AND CONCERNS STEPS FOR IMPROVEMENT GLOBAL MARKETING STRATEGY AND POLICY

FINANCIAL DROP 10-11

Total sales are at ` 19,418 million as against ` 20,178 million in PY - drop of 4%.

KBL was selective with orders and execution to improve sales mix.

Current year expenditure increase is mainly due to ERE ` 456 million and Subsidiary Company – Kirloskar Const ructions and Engineers Limited’s advance written off – ` 675 million.

PBT is at ` 1,031 million as against 1,730 million in PY – reduction is primarily due to the Kirloskar Const ructions and Engineers Limited’s advance write-off.

  

RISK AND CONCERNS

The Risk Management Committee takes stock of these risks and calls for necessary mitigation measures. Risks identified are:

* High level of fiscal deficit * Inflation * Increasing interest costs * Payment terms by customers and * Increase in material costs, mainly for

commodities as well as oil prices Due to sales mix overall sales going down

STEPS FOR IMPROVEMENT

The company has taken steps to improve upon product design & technology.

High pressure & high temp pump for nuclear application

Split case pump for cooling water application

New pump model for waste water treatment

Sump models for irrigation schemes Electronic control of pumping system for

better control & monitoring

GLOBAL MARKETING

The company launched a customer loyalty program in the form of ‘Oldest Pumps Contest for pumps

KBL Completed market research surveys for pumps with applications

KBL’S communication team crafted advertisements &promotions for nuclear & thermal energy

Seminars were organized in Kenya, Uganda and Tanzania focused on sugar industries as a part of the ‘Focus Africa’ program

Product exhibition & launches held in Nigeria to tap business potential.

STRATEGY AND POLICY

Focus on profit driven sale with good cash flow Offering integrated fluid management sol To achieve operational excellence all factories

are under QMS 2008 Motor manufacturing capacity will be

enhanced to 6000 units per month To make standard products a energy efficiency

star product Kirloskar System ltd formed to address the

need of system engineering & support services

RESULT

KBL is a leading manufacturer and exporter of centrifugal pumps, valves and allied equipment’s in India

KBL Sales in 2010-2011 exceeded US $ 590 Million with a market capitalization of more than US $ 350 million.

KBL has created the world’s largest pumping scheme which will irrigate more than two million hectares of land and supply water to 4620 towns and villages in the state of Gujarat

KBL also commissioned a water pumping scheme called The Devadula Scheme in Warangal in Andhra Pradesh supplying water to 4 drought prone socio-economically backward districts

KBL is one of the three manufacturers in the world who have manufactured and installed 200 kW Canned motor pumps for nuclear application .

KBL is the first company to introduce Concrete Volute Pumps in India.Subsidiary company in England,

SPP Pumps Limited (Acquired in 2003) is the undisputed leader in the Fire-fighting and Water Supply segments in Europe .They have recently launched lowest life cycle cost pumps in the UK successfully with large players like Thames Water preferring these energy efficient products.

The Kirloskar Group's complete solution services are at your disposal, no matter where you are or what your project size is.

THANK YOU