Pune-based manufacturer of engines and gen-sets Kirloskar Oil Engines Ltd (KOEL) is investing Rs 100 crore this year in technology and plant upgradation, and is working toward becoming a complete solutions provider in the agriculture space.
“We want to develop end products for agriculture and bigger (high Horse Power) engines and gen-sets, and we will invest for this,” Executive Director R. R. Deshpande said. KOEL already supplies engines for a host of agricultural equipment, and plans to move to the next step of making the complete product, he explains.
Next year, KOEL will begin manufacturing 750-1,000 kVA gen-sets from its plants in Pune and Kagal. Its plant at Nashik has also recently begun making large engines (1.5-5.5 MW) for the NTPC. It has also bagged a Rs 400 crore order from the Nuclear Power Corporation for the supply of large diesel generator sets. This deal is to be executed over the next four years.
Going forward, the 67-year-old Company is upping the focus on exports and plans to enter new markets. Currently, KOEL’s exports, mainly to countries in Africa and the Middle East stand at 8-10 per cent of total sales (Rs 2,320 crore last year). “We want to increase this, and the new focus will be countries in South East Asia, Europe and North America in the coming years,” Deshpande said.
To counter the current 25-30 per cent decline in demand for DG sets, which account for nearly half its revenue, KOEL today launched a first-of-its-kind customer benefit programme.
alka.k@thehindu.co.in