Date: July 16, 2021
Publication: The Economic Times
Kirloskar Group companies led by brothers Atul and Rahul on Friday announced the adoption of a new strategy with focus on getting into consumer-centric segments and modernizing the business processes of the 130-year old legacy group.
The companies controlled by Atul and Rahul Kirloskar include Kirloskar Oil Engines, Kirloskar Chillers, Kirloskar Pneumatic, Kirloskar Ferrous Industries and Kirloskar Industries. As part of the plan, the group companies also adopted a new logo.
The plan entails “significant” investment in the group’s two consumer-facing businesses which are Arka Fincap, a non-bank financial company (NBFC) and Avante Spaces, a real-estate company, said Atul Kirloskar, chairman of Kirloskar Oil Engines Ltd (KOEL). The investments will be funded through internal accruals.
“We are cash-rich and debt-free and to fund the investments we are going to monetise our asset base,” he said.
The NBFC is fully-owned by Kirloskar Oil Engines and set up with a seed capital of Rs 1,000 crore. It will focus on lending to the real-estate sector, MSMEs and wholesale lending.
Avante Spaces, owned by Kirloskar Industries, is developing its first land parcel at Pune with a mix of commercial and retail real estate.
As part of the plan, the companies will also expand their leadership teams and get professional executives on board.
“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 digitization, a future-ready team that is exposed to the best people practices and recognizes and rewards performance,” Atul Kirloskar said.
There is an ongoing feud amongst the fourth generation of the industrialist family over a deed of family settlement pertaining to assets of the group. Atul and Rahul along with the rest of the family are on one side and their brother Sanjay Kirloskar is on the other.