Kirloskar group of companies, spearheaded by Rahul and Atul Kirloskar, have rejigged their respective business vision which involves infusion of new technologies, apart from new offerings including real estate and NBFC.

The plan will cover eight business areas, laying the foundation for the B2C domain whilst continuing to power robust growth in the B2B companies. This will include large investments over two-three years across all business lines. This is being done across Kirloskar Oil Engines, Kirloskar Chillers, Kirloskar Pneumatic, Kirloskar Ferrous Industries and Kirloskar Industries. Among the new consumer-facing businesses, there will be significant investment in the realty business Avante Spaces and the financial services unit, Arka Fincap. Avante Spaces is developing the first-of-its-kind land parcels based on customer-centric and future-forward principles. The business is looking at a mixed-development offering that includes retail and commercial space in smart buildings, a press statement by the company added.

Arka Fincap was established last year as a subsidiary of Kirloskar Oil Engines and with a seed capital of ₹1,000 crore. It is focusing on structured term financing solutions for corporations and loans to MSME borrowers and the real estate sector. In three years, Arka Fincap will expand into retail lending and consumer finance.

Transformation plan

Atul Kirloskar, Executive Chairman of Kirloskar Oil Engines, and Rahul Kirloskar, Executive Chairman of Kirloskar Pneumatic, along with Mahesh Chhabria, MD, Kirloskar Industries, revealed the transformation plan in a virtual press conference on Friday.

Mahesh Chhabria said the Kirloskar companies decided to monetise the asset base, cash, and the land bank.

The NBFC venture is a wholly-owned subsidiary of Kirloskar Oil Engines Limited which is a zero debt company. It had a cash surplus balance of more than ₹1,000 crore in 2017, said Chhabria.

“We started Arka NBFC business in 2018 while we have a strong credit rating in the manufacturing business. We have double credibility in the financial business. We started with wholesale and real estate lending in Arka. Simultaneously we also invested in robust loan origination and loan management systems. We have already invested ₹750 crore in Arka’s business and are committed to infuse ₹250 crore by March 2023,” said Chhabria.

He said that Avante Spaces Limited is a wholly-owned subsidiary of Kirloskar Industry Limited. “We will unlock the large land bank in the city of Pune. The first 12 acres has a development potential of approximately 2 million sq ft of commercial space. This will be a mixed-use development in retail and commercial space in smart buildings. We have already recruited a team of experts is seeking approvals and permissions,” Chhabria added.

Kirloskar’s transformation exercise involves a revitalisation of the businesses from robust, engineering-led firms to solution providers that lead today’s transformed industrial landscape.

According to the company, a refreshed brand identity and colours have been adopted as a part of this exercise. While the logo has elements of human-centricity and future readiness, the colours allude to the legacy that the 130-year-old name carries, and the years put in to fulfil the dreams of those it has touched.

Refreshed logo

The refreshed logo symbolises transformation and the journey towards a ‘Limitless’ future. The ‘i’ combines a human icon and a forward-looking arrow that shows the progression and growth of the people impacted. It also indicates that the companies are future-ready and will always strive to satisfy the needs of the customers.

 

 

 

 

 

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