### **Overview** Kirloskar Oil Engines Limited (KOEL), a flagship company of the 137-year-old Kirloskar Group, is a leading Indian manufacturer of diesel and alternative fuel engines, generator sets (gensets), water management solutions, farm mechanization equipment, and power solutions. With a robust presence across domestic and international markets, KOEL combines legacy engineering excellence with aggressive digital and strategic transformation to evolve into a comprehensive energy solutions provider. Headquartered in Pune, India, KOEL operates five core manufacturing facilities and leverages in-house R&D to deliver sustainable, innovative products aligned with national development goals and global trends such as "Make in India" and "China+1." --- ### **Strategic Reorganization & B2B/B2C Segregation (Oct 2025)** In October 2025, KOEL executed a **slump sale**, transferring its **Water Management Solutions (B2C) business** to its wholly-owned subsidiary, **La-Gajjar Machineries Private Limited (LGM)**. This formalizes the company’s strategic separation into distinct **B2B and B2C segments**, enabling: - **Improved operational efficiency** - **Focused resource allocation and innovation** - **Stronger market leadership in the B2C segment** - **Streamlined go-to-market channels and reduced redundancies** As part of the transaction, KOEL received **1,065,150 equity shares of LGM** (face value INR 10) through private placement, reinforcing strategic alignment and financial integration. LGM has consolidated its operations into a new, integrated plant in **Sanand, Gujarat**, enhancing production capacity and efficiency for B2C-focused products. --- ### **Technology & Innovation Roadmap** KOEL is investing aggressively in four **future-ready technology tracks**: 1. **Internal Combustion Engines (ICE)** – Fuel-agnostic, CPCB IV+ compliant 2. **Energy Storage Solutions** – Battery systems, hybrid technologies 3. **Electrification & Fuel Cells** – Zero-emission power solutions 4. **Electrolysers** – Enabling green hydrogen pathways #### Key Product Innovations: - **Optiprime Gensets**: - Patented dual to quad-engine configurations under single canopy - World’s **smallest footprint** for 1,000 kVA genset (comparable to a 250 kVA) - Reduces fuel consumption and emissions by **up to 40%** during low loads - Targets data centers, hospitality, and commercial infrastructure - **CPCB IV+ Compliance**: - First in India to offer CPCB IV+ compliant gensets **above 800 kVA** - Achieved full ramp-up across engine platforms, including advanced HA294 (air-cooled), PV16-15L (inline), and K4300 (high-horsepower) - **IoT & Digital Integration**: - Over **60,000 IoT-connected gensets deployed** – **global leader** - **Kirloskar Remote Monitoring (KRM)** and **iKonnect** platforms enable predictive maintenance and remote diagnostics - Data insights show 90% of gensets operate below optimal load, guiding the development of Optiprime --- ### **Manufacturing & Operational Excellence** KOEL operates four major manufacturing facilities with advanced automation: | Facility | Specialization | Key Highlights | |--------|----------------|----------------| | **Kagal, Kolhapur (Maharashtra)** | Engines & Gensets (B2B) | - 70% of B2B production<br>- Gold Category in CII’s Net Zero Torch Bearer<br>- 99.4% first-time pass rate | | **Nashik (Maharashtra)** | Large Engines (Defense, Marine, Nuclear) | - 99.4% pass rate<br>- Energy-efficient unit (CII recognized)<br>- Hub for 6 MW navy engine development | | **Rajkot (Gujarat)** | Agricultural & Small Industrial Engines | - 100% engine testing<br>- Focus on energy efficiency and rural markets | | **Bhare, Pune (Maharashtra)** | Small Gensets & Farm Mechanization | - Supplies engines to B2C segment<br>- Supports productivity tools like power weeders | - **Digital Twin Systems** implemented across lines; aiming for **SMART Manufacturing (Industry 4.0) by 2028** - **Kagal plant transitioning into a full SMART factory by 2025** with three-phase digital transformation --- ### **B2B Business: Powering Critical Infrastructure** KOEL’s B2B segment serves power-hungry sectors with customized solutions across: - **Infrastructure & Real Estate** (IT/ITES, data centers, commercial buildings) - **Healthcare & Hospitality** (hospitals, hotels) - **Defense, Rail, Nuclear, and Marine** - **Oil & Gas, Mining, Telecommunications** #### Strategic Defense & Government Projects: - **6 MW Medium-Speed Marine Diesel Engine** for the Indian Navy: - **Project Sanction Order** secured in April 2025 under **Make-I** category - Funded with **₹270 crore** (70% GoI funding) - Over **50% indigenous content** - Full end-to-end design and manufacturing by KOEL, marking a **shift from foreign dependency** - **Nuclear Power Corporation of India Ltd (NPCIL)**: Secured a record **₹768 crore order** – the **largest single order in KOEL's history** - KOEL is also developing a **marine engine platform (3 MW to 10 MW)** for Navy & Coast Guard vessels. #### Industrial Engine Portfolio: - 10 HP to **1,100 HP**, **12, 16, and 20-cylinder engines** - Applications: Construction equipment (CEV BS-V), railways (DA sets), firefighting (FM/UL certified), mining - Engine platforms like **K4300** support multiple fuels (diesel, gas, ethanol, methanol, biogas, hydrogen blends) --- ### **B2C Business: Water & Farm Mechanization** B2C focuses on **Water Management Solutions (WMS)** and **Farm Mechanisation Solutions (FMS)**. #### Water Management (WMS): - **Revenue (FY25): ₹542 crore** (7% Y-o-Y growth) - Products: Diesel & electric pumps for **irrigation, water supply, residential, and wastewater handling** - Pump range: 0.5 HP to **28 HP**, including cutter pumps handling solids up to 3.5 cm - **Backward-integrated**: In-house winding wire, pipes, cables #### Farm Mechanisation (FMS): - Products: **Power Tillers (K-Cool series), Weeders, Rotary Tillers, Mini Harvesters** - Targets **small and marginal farmers** - **Power Tiller-based Harvester**: - Low-cost, IPR-registered - Can be used across multiple crops - Requires one-third of conventional harvester investment - Strong retail & service network supports rural penetration --- ### **International Expansion & Global Footprint** Export revenue constitutes **~10.46%** of total turnover, with strong performance in: - **MENA** (UAE, Saudi Arabia) - **Sub-Saharan Africa** (South Africa, Kenya) - **APAC** (Vietnam, Bangladesh, Indonesia) - **Americas** (USA, Mexico, Central/South America) #### Key Global Moves: - **Acquisition of Engines LPG, LLC (dba Wildcat Power Gen)** in Nov 2023: - 51% stake acquired for **$357,000** - Step-down subsidiary under **Kirloskar Americas Corporation (KAC)** - Strengthening North American market entry with EPA-certified engines - Launched **“Maverick DC Generator”** and **“Patriot Series” mobile gensets** - Appointed **Genset OEMs (GOEMs)** in the Middle East and North America for **local assembly and distribution** - **Sanand Plant (LGM)** exports **32% of its B2C production**, targeting global water markets --- ### **Financial Services Arm: Arka Group** KOEL’s financial arm, **Arka Financial Holdings Private Limited (AFHPL)**, oversees: - **Arka Fincap Limited (AFL)**: NBFC offering structured financing to **corporates, MSMEs, real estate, and urban infrastructure** - **Arka Investment Advisory Services Private Limited** #### Key Highlights (May 2025): - **AUM exceeds INR 7,200 crores** - **GNPAs below 0.7%** – highly stable book - Transitioning from **Arka 1.0 (stability)** to **Arka 2.0 (diversified retail lending)** - Plans to expand into **secured retail loans** (against property, used vehicles) across seven Indian states - Seeking **Core Investment Company (CIC) license** from RBI --- ### **Revenue Segmentation (Jul 2025)** Total Revenue: **₹6,294.79 crore** - **B2B**: ₹4,442.44 crore (70.6%) - Power Gen Business: ₹1,968.85 crore - **B2C**: ₹1,071.93 crore (17.0%) - Water Management: ₹974.61 crore - **Financial Services**: ₹780.42 crore (12.4%) --- ### **Sustainability & ESG Initiatives** - **Net Zero Goals**: Kagal plant recognized as **“Gold Category” Net Zero Torch Bearer** by CII - **Water Conservation**: Awarded “Noteworthy” by CII - **Emission Leadership**: CPCB IV+ and CEV BS-V compliance - **Hydrogen & Dual-Fuel Gensets**: Developed to use hydrogen-diesel blends, reducing carbon emissions - **Circular Economy**: **Kirloskar Nulife** remanufactured products with factory warranties