BSE-listed Kirloskar Oil Engines is further expanding it global footprint. After setting foot in Middle East and South Africa the company is now entering the European and North America markets for exports to grow its Genset business.
Along with Europe and the US, Kirloskar Oil Engines Limited (KOEL) has also started ground work to enter geographies like South East Asia.
Currently, its export business contributes Rs 200 crore. The company plans to double the export business in the next few years. It has presence in segments of diesel engines, agricultural pump sets and generation sets. Of this, power gensets contributes 50 per cent to the firms revenue.
Sanjeev M Nimkar, vice president & business head, KOEL said, "By 2025, we want to be a global player. As a part of this we want to increase your export revenues and also become a provider of end-to-end products and solutions provider, and will be beyond our generating sets business. Currently, the domestic market is flat and delayed monsoon has impacted the agri sales but there is more demand form industry side for higher KV gensets. With the expansion of our highly fuel efficient portable genset range.”
KOEL has invested Rs 100 crore to revise the Central Pollution Control Board's (Ministry of Environment & Forests) revised norms CPCB-II. It is spending Rs 25 crore for expanding dealerships and online distribution. It is delivered more than 2000 gensets in the market complying with the new emission guidelines. While doing this, KOEL has also ensured timely exhaustion of old versions’ stocks with KOEL and channel partners.
The genset business contributes 40 per cent of KOEL's total turnover. It exports 10 per cent of its total volume to the markets like South East Asia, Middle East, Africa and Australia. The market size of Indian genset market size is of Rs 3,000 crore and it is growing due to increased demands and shortage of power supply. The company manufactures the gensets at their Kagal plant near Kolhapur. The company has recorded revenue of Rs 900 crore in the last financial year.
Nimkar added, "The last two years are very good for the entire genset industry. The growth was flat. But now, the demand is picking up and I am confidant that the sector will show some signs of improvement very soon."
According to KOEL owing to the difficult market conditions KOEL has not been able to increase our prices in the past two years and have been absorbing the inflationary pressures. The price of these ranges from Rs 1.5 lakh to 30 lakh for 5 kva to around 3000 kva gensets.
The company also revealed its new brand identity for the power generation business 'KOEL Green'. "With the expansion of our fuel efficient portable genset range, we wish to provide our customers better choices. This range is also supplemented by product service network with 5,000 technicians, available round the clock," said Nimkar.
Globally, KOEL competes with other genset players like APR Energy Plc., Broadcrown Ltd., Caterpillar Inc., Cummins Inc, Dresser-Rand Group Inc and Mitsubishi Heavy Industries.
The stock had hit a 52-week high of Rs 269.05 earlier this month, while it had touched a 52-week low of Rs. 258.20 in February this year.