Kirloskar Group announces business rejig; to expand into real estate, NBFC segments

Date: July 17, 2021

Publication: Business Standard

Link: "www.business-standard.com/article/news-cm/kirloskar-group-announces-business-rejig-to-expand-into-real-estate-nbfc-segments-121071700444_1.html"

Kirloskar Oil Engines, Kirloskar Chillers, Kirloskar Pneumatic, Kirloskar Ferrous Industries and Kirloskar Industries have refreshed their respective business vision.

The 'Limitless' vision will span over eight business areas, laying the foundation for aggressive plans in the B2C domain whilst continuing to power robust growth in the B2B companies. This will include large investments over two to three years across all business lines. This also involves infusion of new technologies, apart from new offerings including real estate and NBFC. A refreshed brand identity and colours have been adopted as a part of this exercise.Among the new consumer-facing businesses, there will be significant investment in the realty business Avante Spaces and Arka Fincap, the non-banking finance company (NBFC).

Avante Spaces is developing the first of its 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.

Detailing the refresh, Atul Kirloskar, executive chairman of Kirloskar Oil Engines, said: "We have undertaken the journey towards becoming a fully integrated conglomerate. Our new vision keeps the changing needs of the customer in mind, reorienting us from manufacturing to solutions around it. We are going from a solid, engineering-driven firm to a future-ready firm, geared for an enhanced customer experience. We are looking at the adoption of new-age technology solutions and digitisation, a future-ready team that is exposed to the best people practices and recognises and rewards performance."

Rahul Kirloskar, executive chairman of Kirloskar Pneumatic, said: "The customer is at the heart of everything we do, and we constantly evolve to exceed their expectations. We are now expanding our horizons and have made leaps from just products to solutions, to customer centricity and now to digital architecture. This change is reflective of our new philosophy to create better lives, better opportunities and a better tomorrow for our customers and for society."

On Friday (16 July), shares of Kirloskar Oil Engines declined 2.22% to end at Rs 262.45, Kirloskar Pneumatic (down 1.89% to Rs 385.95), Kirloskar Ferrous Industries (down 1.36% to Rs 286.50) and Kirloskar Industries (down 1.17% to Rs 1,675.40).