Kirloskar Oil Engines to invest Rs 100 cr over two years

Company looks to enter new geographies over the next 2 years

Kirloskar Oil Engines is all set to invest Rs 100 crore in capacity building and technology as it eyes to become an end-to-end products provider and enter new geographies over the next two years, said senior officials.

"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,"said R R Deshpande, executive director, Kirloskar Oil Engines (KOE).

Deshpande further added that he company is already working on the end-to-end products and have also developed a prototype. However, he declined to give any further details on what these products will be and for which segments. "In agri business end-to-end product would mean tractors and power tiller," he added.

The company clocked a revenue of Rs  2,357 for FY13, of this international revenues were about 8-10 per cent of the total sales of the company. Over the next two years the company plans to at least double it.

"Other than adding products and getting into high end Gensets we also have targeted to increase our international presence in four new geographies,"added Deshpande.

So far the company has presence in Middle East and South Africa. KOE has started ground work to enter into geographies like South East Asia and even developed markets of Europe and North America.

The company has presence in segments of diesel engines, agricultural pump sets and generating sets. Of this power gensets contribute 50 per cent to the firms revenue.

The genset business of the company has a market share of 30-35 per cent for Pan India and around 40-45 per cent in Maharashtra.

The company also added that its manufacturing units in India will be able to cater to its expansion plans as well. "We have units in Kagal (Kolhapur), Pune, Rajkot and Nashik. While the Nashi unit focuses on large engines and to clients such as Indian Navy, NPC among others and the Rajkot unit is focused on pump sets. You will see major activity in our Kagal unit. Both Kagal and Pune cater to the genset and industrial power gensets. With Kagal becoming a major unit,Pune's share will eventually come down from the current 25 per cent to 10-15 per cent,"added Deshpande.

Meanwhile in order to continue its leading position in the genset business the company today announced a 10 year free service promise under its customer benefit programme.

As a part of this programme, on purchase of all new Kirloskar Green Diesel gensets above 15 kVA capacity-- the company will take care of labour services for routine maintenance and incidental breakdowns services for 10 years.