### **Overview** Kirloskar Industries Ltd. (KIL), incorporated in 1978 and listed on the BSE and NSE, has transformed from a traditional industrial manufacturer into a **core investment and diversified development company** within the Kirloskar Group. Rebranded from Kirloskar Oil Engines Limited in 2010, KIL functions as an unregistered **Core Investment Company (CIC)**, focusing on strategic equity investments in group entities and driving long-term value creation. The company is pivoting toward **sustainable manufacturing, renewable energy, and premium real estate development**, while maintaining strong industrial roots in ferrous metallurgy, casting, steel, and seamless tubes. --- ### **Key Business Segments & Strategic Focus Areas** #### **1. Core Investment & Industrial Manufacturing via Kirloskar Ferrous Industries Ltd. (KFIL)** KIL holds a significant stake (46.01% as of Aug 2025) in **Kirloskar Ferrous Industries Limited (KFIL)**, its flagship industrial subsidiary and one of India’s largest integrated ferrous producers. ##### **Integrated Value Chain – "Mines to Machined Castings & Tubes"** KFIL is Asia’s **only fully integrated manufacturer** spanning from mining (iron ore, coal) to machined castings and seamless tubes. This vertical integration ensures cost control, supply chain stability, and quality assurance. - **Manufacturing Footprint**: Eight facilities across Maharashtra and Karnataka (Solapur, Koppal, Hiriyur, Ahmednagar, Jejuri, Baramati, Rajpura). - **Key Products**: - **Pig Iron** (up to 700,000 MT/year): 40–42% market share in foundry-grade pig iron in India. - **Grey & Ductile Iron Castings** (>300 kg/unit): Supplies OEMs in tractors, CVs, construction equipment. Market leader with ~97% tractor casting share. - **Steel** (Jejuri Plant): Produces ultra-clean steels, including **bearing steel (40% market share)**, alloy, martensitic stainless, and free-machining grades. - **Seamless Tubes** (Baramati & Ahmednagar): Capacity of 475,000 MT/year. Serves oil & gas (OCTG), automotive, power, and mining sectors. ISMT acquisition made KIL one of India’s largest tube producers. - **Machined Castings**: Fully machined components with 25% of KFIL’s total revenue (₹1,654 crore in Jul 2025). Over 25 CNC machines installed in FY2025. ##### **Recent Growth and Expansion Initiatives (Aug 2025)** - **Capacity Expansions**: - Steel: 300,000 → **650,000 MT/year** in 2–3 years. - Casting: Targeting **260,000 MT/year**. - Tube: From 200,000 → **300,000–350,000 MT/year**. - Alloy Steel: From <100,000 to **250,000–300,000 MT/year**. - **Pig Iron**: Temporary surge to 750,000 MT/year to support transition, then stabilizing at 500,000 MT/year. - **OCTG Segment**: Now contributes ~20% of seamless tube sales, seen as a high-margin growth vector with potential for international tenders. - **EBITDA Target**: 14% in tube division, maintained despite price declines (8% in pig iron, 13% in Baramati tube realization), driven by **cost optimization initiatives**. ##### **Strategic Acquisitions & Mergers** - **ISMT Limited** (acquired Mar 2023): India’s largest seamless tube maker; merged into KFIL. Now net profitable and enabling forward integration. - **Oliver Engineering (Punjab)**: Acquired Sep 2023; revived and scaled to >600 MT/month by FY2025. Adds northern footprint, transmission/tractor casting capabilities, and faster delivery for OEMs. - These integrations have expanded KFIL’s product diversification, improved economies of scale, and reduced administrative and raw material supply risks. ##### **Technology & R&D** - **Advanced Facilities**: - 3D printing for sand cores (only foundry in India with such capability). - Ultrasonic testing (22-probe), hydrotesting (10,000 psi), AUT line for flaw detection. - Bright annealing furnace for improved tube surfaces. - **R&D Focus**: - Product: Euro 7 compliant engine blocks, e-tractor transmission parts, lightweight components. - Process: Lost foam casting feasibility, 3D printing core-making at scale, yield improvement, indigenization of materials. - Joint design with OEMs shortens prototyping cycles and ensures faster product launches. ##### **Sustainability & Green Energy** - **Renewables (On-site & Third-Party Sales)**: - 82 MW total solar capacity (including a new 70 MW plant). - Piped natural gas adoption at Baramati and Koppal; WHR systems. - Investment in 69 MW solar project (₹370 crores). - **Energy Efficiency**: PCI with oxygen enrichment, automation, Oracle ERP, RFID, and TOC-based planning. --- #### **2. Real Estate & Sustainable Infrastructure via Avante Spaces Limited** KIL owns **100% of Avante Spaces Limited**, the Kirloskar Group’s real estate arm created via acquisition of Wellness Space Developers (Dec 2020). ##### **Portfolio & Strategy** - **Projects**: - **One Avante (Pune, Kothrud)**: First project of ~180,000 sq. ft.; delivered in FY2024. - **Flagship Kothrud Development**: ~**1.6 million sq. ft. Grade A+ office space**, targeting MNCs and GCCs. Scheduled completion by 2028. - Total leasable area under development: **~15.6 lakh sq. ft.**, with future potential of ~**40 million sq. ft.** across the land bank. - **Sustainability Focus**: All projects target IGBC Platinum, LEED Gold, and WELL certifications. - **Asset-Light Growth Model**: JVs, development management, and group land utilization to scale into Pune and other Maharashtra cities. ##### **Smart & Premium Design** - Campus-style environment with wellness zones, food courts, collaboration areas. - AI-powered predictive maintenance, smart energy management, and remote monitoring systems. ##### **Market Recognition** - Won **CII Excellence in Sustainability Award (2025)**. - Strong leasing demand in Pune’s resilient office market (~8 million sq. ft. leased annually). ##### **Growth Plans** - Expand via **mixed-use developments** and **strategic acquisitions**. - Reinvest real estate income and dividends into pipeline development. --- #### **3. Renewable Energy** - **Wind Power**: - 7 turbines (5.6 MW total) in Tirade Village, Ahmednagar. - Sells power via Open Access to MSDECL. - REC income: ₹8.78 million (FY2022). - 96% machine availability ensured via O&M partner. - **Solar Power**: - 82 MW commissioned; part of green steel/casting roadmap. --- ### **Strategic Vision & Goals** - **KFIL Vision 2030**: - Become **India’s largest alloy steel manufacturer**. - Rank **top 5 globally in castings**. - Achieve **$2 billion in revenue**. - **KIL’s Role**: - Drive **value creation** via strategic investments in KFIL, Avante, and green initiatives. - Leverage **brand legacy, land assets, and integrated operations** to scale in real estate and manufacturing. - Position as a **future-ready, ESG-compliant industrial conglomerate**. --- ### **Key Leadership & Governance** - **KIL Leadership**: - Mr. R. V. Gumaste (MD), Mr. R. S. Srivatsan (CFO), Mr. Mayuresh Gharpure (CS). - **KFIL Leadership**: - Mr. Nishikant Ektare (President, Koppal), with expertise in tube, steel, and plant operations. - **Group Diversification**: - Led by Akshay Sahni, who expanded into **hospitality** with two profitable boutique hotels (The Amber). --- ### **Global & Subsidiary Network** KIL/KFIL has a **global footprint** through subsidiaries: - **India**: Oliver Engineering, AESPL (solar EPC), Adicca Energy. - **Luxembourg**: ISMT Enterprises SA. - **Sweden**: ISMT Europe AB, Structo Hydraulics AB. - **USA**: Indian Seamless Inc. - **Indonesia**: PT ISMT Resources. - **Others**: Wind, real estate, and infrastructure projects across India. ---