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KIRLOSKAR 2GROUP THE KIRLOSKAR GROUP WAS FOUNDED IN THE YEAR 1888 BY THE LATE MR. L. K. KIRLOSKAR AND HAS A RICH ENGINEERING HERITAGE OF 123 YEARS. IT IS COUNTED AMONGST INDIA‟S LARGEST MULTI-PRODUCT, MULTI-LOCATION DIVERSIFIED ENGINEERING CONGLOMERATES WITH ANNUAL SALES OF $1.6 BILLION.
KIRLOSKAR GROUP FAMILY TREE 3 LAKSMAN RAO KASHINATH KIRLOSKAR PRABHAKAR RAVI S.L. KIRLOSKAR KIRLOSKA KIRLOSKAR CHANDRAKAN SAROJINI SRIKANT VIJAY RAJARAM P.L. KIRLOSKAR T KIRLOSKAR AMIN KIRLOSKAR KIRLOSKAR KIRLOSKAR SUKUMAR AJITATUL SANJAY RAHUL VIKRAM KIRLOSKAR KIRLOSKAR ALOK
4A brief history of India‟s largest multi-product and diversified engineeringconglomerate Mr. L. K. Mr. S. K. Mr. C. S. Kirloskar Kirloskar Kirloskar
Laying the foundation of Kirloskarwadi 5 • Mr. L. K. Kirloskar believed that an understanding of ones environment and reality was essential to manufacture path-breaking industrial implements. • In 1888, he set up his first venture - a small bicycle repair shop at Belgaum.Mr. L. K. • Strongly believing that agricultural implements must fitKirloskar the milieu they are used in, he manufactured iron ploughs, the first Kirloskar product. • His dream was to build his own industry and community for his employees; he realised this dream with Kirloskarwadi, a place where he started the Kirloskar Brothers Limited factory in 1910. • He strongly believed in the theory of creation of wealth.
India‟s First indigenous diesel engine 6 • He is credited with developing the manufacture of diesel • Son Of Mr. L. K. Kirloskar Earned a Bachelors of Science degree engine indigenously as an import substitute after India attained in Mechanical Engineering from MIT in Cambridge, independence. • Massachusetts and leadership the group enjoyed one of the Under his dynamic was among the batch of first Indians to graduate from MIT. in Indian history. highest growth rates • Mr. S. L. Kirloskar was amongst thinker and an Engineering • Today this Group is a global Indias largest enterprisingMr. S. K.Kirloskar person who had the courage and the confidence in the Conglomerate. • potential of Mr. own Bihari Vajpayee, the then Prime Minister, In Feb 2003, his Atal country even in the pre-independence era. released a commemorative postage stamp marking Mr. S. L. Kirloskars 100th anniversary. • He often said, "Economic preparedness is as vital as military preparedness.“ • He always looked at India as a part of the rest of the world and worked towards making India globally competitive. After the end of World War II, the group grew rapidly under his
Chandrakant Kirloskar: Self-reliant, Strong Research and Engineering 7 Was a visionary who carried forward the legacy of his grandfather and father. He strongly believed that sustained growth could only be possible through self reliance & being self sufficient. He laid great emphasis on research and developmentMr. C. S.Kirloskar activities, which according to him are the backbone of all engineering activities and believed in setting up systems and processes that even the companies from overseas would like to emulate. He furthered the rapid progress and evolution of this organisation.
Fourth Generation 8 Sanjay Kirloskar runs Kirloskar Brothers Ltd (KBL), Atul Kirloskar runs KOEL and Kirloskar Ferrous Industries Ltd, and their younger brother Rahul Kirloskar manages Kirloskar Pneumatic Co Ltd. Cousin Vikram manages the auto component joint ventures such as TKM and TKAP in Bangalore. All are fourth-generation Kirloskars. Sanjay Atul Kirloskar Rahul Kirloskar Vikram Kirloskar Kirloskar
Indias largest multi-product and 9diversified engineering groupThe Kirloskar group comprises the followingcompanies, which operate in the specialised areasof power, water, air and gas solutions, grey ironcasting and metal processing. These groupcompanies have left no stone unturned to achievea leading position with respect to image andcustomer satisfaction in their respective verticals.
The first Kirloskar Group Company 13 Kirloskar Brothers Limited (KBL) - the first Kirloskar venture at Kirloskarvadi was to become the base for all of the Kirloskar Groups 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. Incorporated in 1920, it leads in the design and manufacture of pumps, hydro-turbines, valves, and anti-corrosion products.
Kirloskar Oil Engines Ltd. (KOEL) 14 Shantanurao Kirloskar, the eldest son of the founder travelled to Pune to initiate a new aspect of the groups activities - diesel engines. 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 15 Ravi Kirloskar, his youngest son, in 1946 set up the Kirloskar Electric Company limited (KECL)KECLs logo inthe 40s In collaboration with Broom and Wade of England, Kirloskar Pneumatic Company Limited began the manufacture of air compressors and pneumatic tools.
Kirloskar Pneumatic company 16 Pvt Ltd.Kirloskar Pneumatic Co Ltd (www.kirloskarkpcl.com):Incorporated in 1957, it is the leader in designing andmanufacturing air compressors, air-conditioning andrefrigeration and hydraulic power transmission.Competitors:-COMPANYIngersoll randElgi equipmentsRevathi cp
Kirloskar Ferrous Industries 17Limited. (KFIL) Incorporated in 1992, it leads in the manufacture of grey Vision:- To be a product leader in pig iron & casting business iron castings, SG iron castings, pig iron, alloy steels and Mission:- investment castings. To become lowest cost, quality pig iron manufacturer amongst the secondary pig iron plants by: Reduced coke consumption Improved productivity Increased power generation To become preferred partner in casting business by: Supply of Quality castings Faster new product development On time delivery
KFIL Timeline 181994 Year of inception1994 Commercial production of Pig Iron from Mini Blast Furnace I1995 Commercial production of Grey Iron castings1995 Commercial production from Mini Blast Furnace II1995 ISO 9002 certification2001 QS 9000 certification2002 ISO 14000 certification2005 ISO / TS 16949:20022007 Acquired Solapur foundry from Kirloskar Oil Engines Ltd.2007 Hot Blast Stove - I2008 HPML Plant Solapur2010 Hot Blast Stove - II2010 Power Plant - III2011 Sinter Plant
Kirloskar Integrated Technologies 19Ltd.(KITL) Provides VISION:- end-to-end decentralized sustainable energy solutions which are environment friendly, economically We will contribute to creating an eco-friendly world by developing and implementing self-reliant, affordable and sustainable technologies for distributed energy. viable, technically feasible and socially acceptable, using renewable energy technologies such as biofuels (biogas MISSION:- and biodiesel), straight vegetable oil (SVO), solar, wind, Become a major player providing sustainable energy solutions to our customers, with micro-hydro, etc. increasing focus on green technologies “Help Kirloskar Group Companies maximize the business potential for their products by developing system integration capabilities that support the KITL vision” Work towards empowering the population at the grassroots to thrive on the locally developed economy by utilizing available renewable energy sources, and maximize business returns to KITL stakeholders
Kirloskar Proprietary Limited. 20(KPL) Kirloskar Proprietary Limited was established in the year 1965. Kirloskar Proprietary Ltd. is the registered owner of intellectual property consisting of various trademarks and copyrights in India and many foreign countries. it also looks after enhancing the image of Kirloskar brand.
Kirloskar Middle East FZE. (KMEF) 21 Kirloskar Group has been active in the Middle East and Africa since the 1960s. A need was continuously felt to establish an identity in the region, which would be close to the end customers as well as the channel partners in the region. Kirloskar Middle East FZE (KMEF) was founded in November 1996 with the objective of further improving response to customers‟ requirements. KMEF is now expanding operations to include packaging of Compressor Engineered Sets and Pumpsets in UAE. Also new products are being introduced such as Refrigeration Systems, Gas Compressor Packages, Centrifugal and Screw Chillers etc.VISION:-We shall contribute significantly to achieve Kirloskar group vision and inculcateKirloskar group values.MISSION:-To establish „KIRLOSKAR as the preferred brand in MENA region for its productsand services.
Toyota Kirloskar Pvt Ltd. 22 The company Auto Parts Pvt. Ltd., (TKAP) is venture between Toyota Kirloskar Toyota Private Limited is Private Limited (TKMPL) Motor Kirloskar Motor joint an auto parts according to Corporation and the Kirloskar joint a major manufacturing company in India. TKAP is a play venture role in Toyota Motor its mission statement aims to Group, for the the development sales of Toyota cars in India. It currently is among Toyota Motorthe automotive industry and Industries the manufacture and of Corporation, Japan, Toyota the creation of largest car maker in India after Maruti through its dealer Corporation, Japan and Kirloskar not onlySuzuki, Hyundai, 4th employment opportunities, Systems Limited, Bangalore. network, but two plants, viz., 100% industries with a business TKAP is havingalso through ancillaryEOU, transmission plant Mahindra. philosophy of "Putting Customer First". and a domestic axles plant. In the EOU Plant, TKAP manufactures transmissions and is a key supplier for the Toyota both globally and locally
Economic downturn hit group 23hardAll was not well in the Kirloskar group. The Kirloskar group companieshad been passing through difficult times.The downturn in the economy coupled with the slump in the capitaland engineering industry, had affected bottom lines of groupcompanies. The respected Kirloskar name took a beating when thefinance company in the group Kirloskar Finance & Investmentdefaulted on deposits and was unable to pay off depositors.This was further damaged when Vijay Kirloskar sold his stake in thefinance company to the Ahmedabad-based businessman Hari SinghChampawat.Inability to pump in investments into the joint venture with Toyota alsoaffected the group.
STEPS FOR IMPROVEMENT 24 There are complex cross-holdings between the Kirloskar group companies. There was split in the family business that there would be no change in the holding patterns of the companies. The separation is of management and control. The separation is based on shareholding and not on geography
GLOBAL MARKETING 25 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 26 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 27 KBL is a leading manufacturer and exporter of centrifugal pumps, valves and allied equipment‟s in India KBL Sales in 2011-2012 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 Carmaker Toyota Kirloskar Motor reported 26.09% jump in its sales at 6,361 units during August, 2012. Toyota Kirloskar Motor in a statement said that the company had sold 5,045 units in the corresponding month last year.
28 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 Volume 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.