The Hindu Business Line : Kirloskar Electric hopes to clock Rs 1,000-cr turnover in 3-4 years

KIRLOSKAR Electric Company is on a comeback trail. The company is upbeat about achieving a turnover of Rs 450 crore this year, which, according to its Chairman and Managing Director, Mr Vijay R. Kirloskar, would be very close to what it was when the company was at its peak.

On the sidelines of the National Conference on Pumps, Mr Kirloskar told Business Line that the company witnessed a 400 per cent growth till the 90s, but thereafter, its volumes had started to dip. "We started a restructuring initiative to improve, sustain and grow in business,'' he said.

"We have a very comfortable order book and our sales volumes are encouraging. At the current growth pace, we are confident of clocking a turnover of over Rs 1,000 crore within the next three to four years,'' he said.

The company is hoping to reach a sales target of Rs 600 crore next year. "While we do outsource quite a bit, we intend to retain the fundamental and critical processes within the company,'' Mr Kirloskar said and pointed out that casting, fabrication and winding were some of the jobs that the company was getting it done from outside.

To a query, he said Kirloskar Electric also looked at Coimbatore for sourcing its machining and casting requirements. He did not specify the supplier but estimated the supply volumes at close to Rs 100 crore.

With the order book position at over Rs 150 crore and encouraging sales position, the company would have to look at expansion, "but we are not contemplating a monetary expansion'', Mr Kirloskar said, adding that KEC was looking at entering into long-term agreements with suppliers, who would eventually become sub-contracting/outsourcing partners. While not ruling out a diversification, he said it would be only in related products. The related area of business would include wind energy and contracting for western companies.

Stating that there was scope for improvement in electric motors, Mr Kirloskar said the company had joined hands with IIT, Delhi for developing solar pumps. "It was a successful attempt, but we are yet to commercialise the product.''