Date: July 17, 2021
Publication: The Times Of India
Chennai: Kirloskar siblings Atul and Rahul Kirloskar, whose companies comprise two of the arms of the widely spread out family group, have opted for a rebranding and diversification exercise involving five companies controlled by them — Kirloskar Oil Engines, Kirloskar Chillers, Kirloskar Pneumatic, Kirloskar Ferrous Industries and Kirloskar Industries.
The rebranding involves a new business identity and logo and a clutch of diversifications aimed at monetising assets like land and cash reserves.
Together the diversifications will see investments of upto Rs 2,600 crore. Collectively the five companies are sitting on cash reserves worth around Rs 1,000 crore and net worth of Rs 5,000 crore with no debt on the books. The rest of the group involving cousin Vikram Kirloskar’s companies like Toyota Kirloskar Motor or feuding brother Sanjay Kirloskar’s Kirloskar Brothers for example are not part of this exercise. The group is diversifying into new businesses including financial services and real estate. “We have set up an NBFC subsidiary called Arka Fincap and already pumped in Rs 750 crore into it and another Rs 250 crore will be invested by March 2023,” said Atul Kirloskar, executive chairman, Kirloskar Oil Engine. Fellow group company Kirloskar Industries is using its subsidiary Avante Spaces to foray into real estate which will develop around 2 million sq ft of commercial and retail space in Pune initially. “The real estate company will utilise our land banks in Pune and other cities and the total combined investments including land, cash reserves and debt will be around Rs 1,500-Rs 1,600 crore,” he added.