Description
This document talks about Competitor Analysis of Kirloskar group, SWOT analysis of kirloskar group, Company Description, General Information about the company, it's Finance performance and Various Strategies employed.
The Kirloskar group of companies was one of the earliest industrial groups which made a mark in the engineering industry in India back in 1888 and incorporated in 1920.The group produces pumps, engines, compressors, lathes and electrical equipments like electric motors, transformers and generators (it is the world's largest gensetmanufacturer). While Laxmanrao Kirloskar established the group, his son S.L. Kirloskar played a major role in its rapid growth. S. L. Kirloskar was a man who transformed his vision into a promising and thinking reality, of application of appropriate technology, customer satisfaction and dauntless integrity. SLK was a global thinker who had the courage and the confidence in his own country even in the pre-independence era. He created an empire that enjoyed one of the highest growth rates in Indian history, a staggering 32,401% growth of assets from 1950–1991 and has been featured in many books written on notable Indian industrialists. Even the TIME MAGAZINE has an article about him as well as his group In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative postage stamp marking the Kirloskar Group's 100th anniversary. In 1974, in cooperation with Deutz-Fahr of Germany, Kirloskar manufacturing tractors. They have since ceased tractor production. began
The Kirloskar Group also set up India's second oldest township Kirloskarwadi in Maharashtra, which is now a 100-year-old township in 2010.
KIRLOSKAR COMPANIES:? ? ? ?
Kirloskar Brothers Ltd Kirloskar Oil Engines Limited Kirloskar Ferrous Industries Limited Toyota Kirloskar Motor Private Limited ( TKML ) produces Toyota Vehicles in India Mysore Kirloskar ( MK ) produced lathes including CNC types
?
KIRLOSAKAR BROTHERS LTD (1888):? ?
Kirloskar Brothers Limited (KBL) is the flagship company of the $ 2.5 billion Kirloskar group. Established in 1888 and incorporated in 1920. KBL is known as India's leading and innovative solutions provider in hydraulic machines and systems. The core businesses of KBL are large infrastructure projects (Water Supply, Power Plants, and Irrigation), Project and Engineered Pumps, Industrial Pumps, Agriculture and Domestic Pumps, Valves, Motors and Hydro turbines. KBL Sales in 2010-2011 exceeded US $ 435 Million.
KIRLOSKAR OIL ENGINES LTD (1946):?
?
Kirloskar Oil Engines Limited (KOEL), a part of Kirloskar Group was incorporated in the year 1946. The company offers engineering products and solutions across the globe and has offices in Dubai, South Africa, and Kenya, and representatives in Indonesia and Nigeria. Their product range include diesel engines, agricultural pumpsets and generating sets.
KIRLOSKAR FERROUS INDUSTRIES LIMITED (1991):_ ? Produces pig iron and grey iron castings for the automotive industry
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED ( TKML ) PRODUCES TOYOTA VEHICLES IN INDIA (1997):? ? Toyota Kirloskar Motor Private Limited is joint venture between Toyota Motor Corporation and the Kirloskar Group, for the manufacture and sales of Toyota cars in India. It currently is the 5th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra.
MYSORE KIRLOSKAR ( MK ) PRODUCED LATHES INCLUDING CNC TYPES(1941):? Produces lathes including CNC types.
PEST ANALYSIS OF KIRLOSKAR GROUP
OLITICAL FACTORS:It has been through pre and after independence time. In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative postage stamp marking the Kirloskar Group's 100th anniversary. The 'Export Excellence' award for 28 years consecutively from the Ministry of Commerce and Government of India. economical factors. The company has figured as the country's top ten wealth creators and continues to be of interest to interest to stock holders across the country. Growth from 1950 to 1991 was 32,401% One of the biggest exporters in the country It is the world's largest engine generator manufacturer Huge financial resources available
? ? ? ? ? ? ? ?
? ? ? ?
SOCIAL FACTORS:Kirloskar Brothers is also one of the first pump companies to have an all women operated and managed manufacturing plant. Introduced iron plough to help the farmers. During the pre independence period created employment for everyone regardless of their cast. Collaboration with foreign firms to create more job oppurtunities.
? ? ? ?
TECHNOLOGICAL FACTORS:It has 17 patents for innovative technology, including 2 US patents. Numerous research papers presented at International Conferences including American Society of Mechanical Engineers (ASME) Skilled engineers recruited every year to make innovative progress. Robust R and D infrastructure in India as well as in other countries
swot analysis :-
strength:? ? ? ? ? HUGE MARKET SHARE IN INDIA AS WELL AS IN OTHER COUNTRIES. GLOBAL REACH, IT’S A BRAND NOT ONLY IN INDIA BUT ALSO IN OTHER COUNTRIES. ROBUST FINANCIAL RESOURCES AVAILABLE. BLESSED WITH STATE OF THE ART INFRASTRUCTURE FOR MANUFACTURING AND R &D. RICH LEGACY OF MANY YEARS.
WEAKNESS:? ? ?
STILL NEW IN FEW SECTORS AND VULNERABLE TO COMETITION FROM BIG PLAYERS IN THAT FIELD INCONSISTENCY IN APPEARANCE. WEAKNESS CORE EXPERTISE ON PREVENTION MAINTENANCE
OPPURTUNITIES:? THE COMPANY HAS A GOOD SHARE IN THE MARKET, SCOPE FOR FURTHER GROWTH. ? IT CAN TAKEOVER SMALL FIRMS, BECAUSE OF ITS GOOD FINANCIAL RESOURCES AVAILABLE. ? CAN CAPITALIZE AN UPSWING IN MARKET DEMAND BECAUSE OF ALL INDIA PRESENCE.
?
GLOBAL REACH COULD BE USED TO START UP A NEW PROJECT
THREATS:? ? ? COMPETITOR’S PRODUCT PRICE IS LOW IN COMPARISON TO KIRLOSKAR PRODUCTS. MORE INCREASE IN COMPETITION.
NON EXCLUSIVELY WITH DEALERS.
COMPETITORS ANALYSIS:Competitors like dynamic tech,wpil have presented tough competition but
kirloskar brothers ltd has come up strongly and has been setting new benchmark every day. The following table shows its comparison with competitors.
Balance Sheet Kirloskar Bros Mar '12 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities KSB Pumps Dec '11
------------------- in Rs. Cr. ------------------Dynamatic Tech Mar '11 WPIL Mar '11
15.87 15.87 0.00 0.00 737.76 0.00 753.63 209.33 113.54 322.87 1,076.50 Kirloskar Bros Mar '12
34.81 34.81 0.00 0.00 355.31 0.00 390.12 63.15 0.02 63.17 453.29 KSB Pumps Dec '11
5.41 5.41 0.00 0.00 145.97 20.20 171.58 245.24 23.08 268.32 439.90 Dynamatic Tech Mar '11
7.97 7.97 0.00 0.00 40.48 0.58 49.03 39.80 12.91 52.71 101.74 WPIL Mar '11
Application Of Funds Gross Block Less: Accum. Depreciation
490.19 207.25
326.49 173.74
387.70 126.50
44.98 19.96
Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)
282.94 36.01 214.94 209.96 298.05 20.53 528.54 872.49 0.00 1,401.03 0.00 797.49 60.92 858.41 542.62 0.00 1,076.51 461.51 94.99
152.75 9.63 6.36 198.02 187.44 8.51 393.97 84.01 73.23 551.21 0.00 222.11 44.54 266.65 284.56 0.00 453.30 22.74 112.08
261.20 50.89 52.44 57.20 86.83 2.25 146.28 53.69 4.76 204.73 0.00 123.22 6.12 129.34 75.39 0.00 439.92 90.19 279.59
25.02 1.16 0.40 14.33 120.16 0.61 135.10 17.54 0.46 153.10 0.00 74.57 3.37 77.94 75.16 0.00 101.74 2.20 60.81
ONE OF THE MAIN COMPANIES OF KBL IS KIRLOSKAR PUMPS
KIRLOSKAR PUMPS
Market cap 9,124 Million Pre tax profit 340 Million Net worth 7,536 Million Revenues 17,687 Million Summary financials (FY: 2011-12)
Core business:Centrifugal pumps, Valves, Hydel turbines, pumping Core business
Incorporated -1920 Established- 1888 Leader in fluid handling and largest manufacturer and exporter of Centrifugal Pumps. „Yamuna? – Global Headquarters, Kirloskar Brothers Limited, pune, india. HIGHLIGHTS OF KIRLOSKAR PUMPS:• Largest manufacturer and exporter of centrifugal pumps from India • Leading manufacturer of Valves and Hydel Turbines • Energy efficient innovative pumping solutions for core sectors such as Power, Water, Irrigation and Industries • Manufactures the largest pumps by size and horsepower in India • Commands the highest market capitalization amongst the pump manufacturers in India • Pioneered centrifugal pumps in India and introduced the following in India: – Split-case pumps – Process pumps – Large Vertical Mixed flow pumps – Canned motor pumps – Metallic Volute pumps – Concrete Volute pumps – Primary / secondary moderator pumps for liquid sodium for fast breeder reactor technology for Nuclear Power Plants ? ? ? KBL has been bestowed with the 'Export Excellence' award for 28 years consecutively from the Ministry of Commerce and Government of India. Being the largest manufacturer and exporter of centrifugal pumps from India, we export to over 80 countries across 6 continents. They have 17 patents for innovative technology, including 2 US patents. Numerous research papers presented at International Conferences including American Society of Mechanical Engineers (ASME).
JOINT VENTURES AND SUBSIDIARIES
Kirloskar Toyoda(1995):- Textile machinery and auto transmission Components.
Kirloskar Chillers (1995):- Large air-conditioning systems on turn key basis
Toyota Kirloskar :- Light motor vehicles. Motors Limited (1997)
Denso Kirloskar (1998) :- Engine radiators.
Toyota Gosei (1998)
:- Non-metallic auto components such as steering wheels, dashboards, etc.
Kirloskar Tsusho (1998)
:- Steel supply to car companies and ancilliaries
Toyota Kirloskar Auto Parts ( 2002)
:- Metallic auto components such as transmissions steering gears, front and rear axles.
DOMESTIC SUBSIDIARIES
Kirloskar Construction and:Engineers Limited (2006)
• Cross country and submarine pipelines • Tunneling and underground caverns • Bridges and roads • Civil construction • Large alloy steel castings foundry • Single piece casting of 14 Ton • 600 Tons / month capacity • Manufacturing of stators, rotors and electric motors
The Kolhapur Steel Limited
2007)
Hematic Motors Pvt Limited2009)
Kirloskar Systech Limited (2010):- System engineering for projects - Power - Water - Irrigation - Industry - Focused engineering data for in-house use and outside contractors - Patents and IP creation
INTERNATIONAL SUBSIDIARIES
SPP Pumps Limited –UK (2003) Braybar Pumps Limited South Africa (2010) Kirloskar Brothers (Thailand) Limited – Thailand (2009) Kirloskar Brothers Europe BV – The Netherlands (2008)
MANUFACTURING UNITS IN INDIA:-
? ? ? ? ? ?
INDUSTRIAL PUMPS, KIRLOSAKARWADI , WESTERN INDIA AGRICULTURE AND DOMESTIC PUMPS, DEWAS , WESTERN INDIA SUBMERSIBLE PUMPS, SHIRVAL, WESTERN INDIA VALVES, KONDHAPURI , WESTERN INDIA CASTIN,GS KOLHAPUR , WESTERN INDIA DOMESTIC PUMPS, COIMBTORE , SOUTHERN INDIA
MANUFACTURING UNITS OUTSIDE INDIA:-
? ? ? ?
INDUSTRIAL PUMPS, ATLANTA ,USA INDUSTRIAL & ENGINEER PUMPS, COLEFORD ,UK INDUSTRIAL PUMPS, JOHANSBURG, SOUTH AFRICA INDUSTRIAL PUMPS, BANGKOK, THAILAND
APPROVED VENDORS FOR GLOBAL CONSULTANTS AND EPC CONTRACTORS? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
ESSAR GVK GAAR ABB JSW PSCO RELIANCE SIEMENS TOSHIBA TECHNIP TATA POWER HYATT TOSHIBA HYUNDAI TEI DAAR NTPC BECHTEL
ASSOCIATION WITH GOVERNMENTS ? ? ? ? ? ? ? ? ?
ANGOLA CAMBODIA ZIMBABWE SENEGAL EGYPT GHANA JAMAICA SURINAME SUDAN
HUMAN RESOURCES
EMPOWERED, RESPONSIVE, MOTIVATED AND COMPETENT HUMAN CAPITAL ARE A KEY ASSET OF KBL. TEAM KBL IS COMMITTED TO CREATE A VALUE BASED ORGANISATION WITH ETHICAL PRACTICES, AND LEAD THE COMPANY TO EXCEL IN PURSUIT OF ITS MISSION AND VISION.
EMPLOYEE STRENGTH (STANDALONE STRENGTH) PARTICULARS TOTAL EMPLOYEES WHICH INCLUDE ENGINEERS APPLICATION AND PRODUCT ENGINEERS HEADCOUNT 3510 936
125
R & D CENTERS :-
? ?
R & D INFRASTRUCTURE AT KIRLOSKAR WADI
HYDROLIC RESEARCH CENTER AT KIRLOSKAR WADI •One of Asia?s largest Hydraulic Research Centre (HRC) for testing pumps at duty conditions up to 5000 kW motor and discharge up to 50,000 m3/hr • Closed circuit NPSH testing capabilities • Computerized data acquisition system • Physical Sump and Pump model study • Conceptualised and built under the guidance and supervision of British Hydraulic Research Association
• Testing at 50 Hz & 60 Hz frequency covering all global supply voltages (3.3 to13.2 kV)
PEST ANALYSIS:-
POLITICAL FACTORS:? ? STRONG HOLD IN INDIA WITH DOMESTIC SUBSIDIARIES ASSOCIATES WITH FOREIGN COUNTIRES LIKE ANGOLA, ZIMBAMBWE, SUDAN ETC.
?
'EXPORT EXCELLENCE' AWARD FOR 28 YEARS CONSECUTIVELY FROM THE MINISTRY OF COMMERCE AND GOVERNMENT OF INDIA.
ECONOMICAL FACTORS:? ? ? GROWTH OF 32,401% FROM 1950 TO 1991 BIGGEST EXPORTER OF PUMPS FROM INDIA TOP 10 WEALTH GENERATOR IN INDIA
SOCIAL FACTORS:? ? CREATES JOB OPPURTUNITIES WITH FOREIGN COMPNIES JOBS ARE OFFERED TO SKILLED ENGINEERS EVRY YEAR
TECHNOLOGICAL FACTORS:? ? ? IT HAS ASIAS BIGGEST HYDRAULIC CENTER STATE OF THE ART INFRASTRUCTURE FOR R &D TEAM OF SKILLED ENGINEERS
SWOT ANALYSIS OF KIRLOSKAR PUMP:-
STRENGTHS:? ? ? ? ? STRONG HOLD IN INDIAN MARKET AS WELL AS IN INTERNATIONAL MARKET HAS BECOME A BRAND EQUIPED WITH STATE OF ART R&D INFRASTRUCTURE TEAM OF SKILLED ENGINEERS HUGE FINANCIAL RESOURCES AVAILABLE
WEAKNESS:? FACES TOUGH COMPETITION FROM FOREIGN FIRMS NEED TO MAKE STRONG HOLD IN INTERNATIONAL MARKET
OPPURTUNITIES:? ? ? CAN MAKE UP A TIE WITH BIG COMPANIES ACROSS THE GLOBE CAN EXLPORE MORE OPPURTUNITIES TO MAKE DEAL WITH OTHER NATIONS CAN COME UP WITH INNOVATIVE IDEAS TO BECOME MORE STRONG TECHNICALLY
THREATS:? ? ? NEW PLAYERS ARE COMING IN THE MARKET TOUGH COMPETITION FROM FOREIGN FIRMS POOR GROWTH IN OTHER SECTOR COULD TARNISH ITS IMAGE
COMPETITORS:-
industry Competitors: Pumps SYMBOL
KSB Pumps Ltd. WPIL Ltd. Mather & Platt Pumps Ltd. Shakti Pumps (India) Ltd. Roto Pumps Ltd. Adarsh Plant Protect Ltd.
PRICE
193.55 401.75 246.90 41.30 110.25 3.71
%CHANGE
0.67% 2.07% 0.04% 0.36% 0.40% 0%
VOLUME
1296 9469 1010 2470 3611 0
Shareholding pattern - Kirloskar Brothers Ltd.
Holder's Name
Promoters GeneralPublic NBanksMutualFunds FinancialInstitutions OtherCompanies ForeignInstitutions ForeignNRI Others
No of Shares
50093848 13909332 6138768 4103518 3266635 1654896 145422 27282
% Share Holding
63.14% 17.53% 7.74% 5.17% 4.12% 2.09% 0.18% 0.03%
Profit & Loss - Kirloskar Brothers Ltd.
Mar'12
12 Months
Mar'11
12 Months
Mar'10
12 Months
Mar'09
12 Months
Mar'08
12 Months
INCOME:
Sales Turnover Excise Duty
1,839.82 57.95
1,994.11 52.70
2,056.22 39.65
1,888.87 59.39
1,584.27 62.34
NET SALES
Other Income
1,781.88
0.00
1,941.41
0.00
2,016.57
0.00
1,829.48
0.00
1,521.93
0.00
TOTAL INCOME
1,793.09
1,953.19
2,034.12
1,859.73
1,555.51 EXPENDITURE:
Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made
67.33 1,234.30 153.80 70.03 180.58 0.00 0.00
56.67 1,313.64 140.01 79.50 186.38 -0.8 0.00
56.93 1,466.54 99.03 84.01 104.35 -0.2 0.00
55.06 1,363.08 100.58 61.60 117.77 -0.4 0.00
44.93 1,095.12 90.67 51.64 78.52 -0.3 0.00
TOTAL EXPENDITURE
Operating Profit
1,706.03
75.84
1,775.38
166.03
1,810.65
205.92
1,697.60
131.88
1,360.54
161.39
EBITDA
Depreciation Other Write-offs
87.06
30.26 0.00
177.82
30.01 0.00
223.47
26.48 0.00
162.14
20.74 0.00
194.97
18.21 0.00
EBIT
Interest
56.80
47.83
147.80
41.61
196.99
46.64
141.40
43.28
176.76
27.07
EBT
Taxes
8.97
2.47
106.19
41.72
150.35
55.44
98.12
31.19
149.69
39.90
Profit and Loss for the Year
Non Recurring Items Other Non Cash Adjustments Other Adjustments REPORTED PAT
6.51
24.99 -0.3 0.00 31.19
64.47
-3.11 0.00 0.00 61.36
94.91
22.53 0.08 0.00 117.52
66.93
0.10 0.00 0.00 67.03
109.79
0.35 0.00 0.00 110.14
KEY ITEMS
Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs) 0.00 15.87 100.00 793.40 0.00 27.77 175.00 793.38 0.00 43.63 274.99 793.33 0.00 21.15 100.00 1,057.64 0.00 42.31 200.00 1,057.64
EPS - Annualised (Rs)
3.93
7.73
14.81
6.34
10.41
doc_549068614.docx
This document talks about Competitor Analysis of Kirloskar group, SWOT analysis of kirloskar group, Company Description, General Information about the company, it's Finance performance and Various Strategies employed.
The Kirloskar group of companies was one of the earliest industrial groups which made a mark in the engineering industry in India back in 1888 and incorporated in 1920.The group produces pumps, engines, compressors, lathes and electrical equipments like electric motors, transformers and generators (it is the world's largest gensetmanufacturer). While Laxmanrao Kirloskar established the group, his son S.L. Kirloskar played a major role in its rapid growth. S. L. Kirloskar was a man who transformed his vision into a promising and thinking reality, of application of appropriate technology, customer satisfaction and dauntless integrity. SLK was a global thinker who had the courage and the confidence in his own country even in the pre-independence era. He created an empire that enjoyed one of the highest growth rates in Indian history, a staggering 32,401% growth of assets from 1950–1991 and has been featured in many books written on notable Indian industrialists. Even the TIME MAGAZINE has an article about him as well as his group In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative postage stamp marking the Kirloskar Group's 100th anniversary. In 1974, in cooperation with Deutz-Fahr of Germany, Kirloskar manufacturing tractors. They have since ceased tractor production. began
The Kirloskar Group also set up India's second oldest township Kirloskarwadi in Maharashtra, which is now a 100-year-old township in 2010.
KIRLOSKAR COMPANIES:? ? ? ?
Kirloskar Brothers Ltd Kirloskar Oil Engines Limited Kirloskar Ferrous Industries Limited Toyota Kirloskar Motor Private Limited ( TKML ) produces Toyota Vehicles in India Mysore Kirloskar ( MK ) produced lathes including CNC types
?
KIRLOSAKAR BROTHERS LTD (1888):? ?
Kirloskar Brothers Limited (KBL) is the flagship company of the $ 2.5 billion Kirloskar group. Established in 1888 and incorporated in 1920. KBL is known as India's leading and innovative solutions provider in hydraulic machines and systems. The core businesses of KBL are large infrastructure projects (Water Supply, Power Plants, and Irrigation), Project and Engineered Pumps, Industrial Pumps, Agriculture and Domestic Pumps, Valves, Motors and Hydro turbines. KBL Sales in 2010-2011 exceeded US $ 435 Million.
KIRLOSKAR OIL ENGINES LTD (1946):?
?
Kirloskar Oil Engines Limited (KOEL), a part of Kirloskar Group was incorporated in the year 1946. The company offers engineering products and solutions across the globe and has offices in Dubai, South Africa, and Kenya, and representatives in Indonesia and Nigeria. Their product range include diesel engines, agricultural pumpsets and generating sets.
KIRLOSKAR FERROUS INDUSTRIES LIMITED (1991):_ ? Produces pig iron and grey iron castings for the automotive industry
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED ( TKML ) PRODUCES TOYOTA VEHICLES IN INDIA (1997):? ? Toyota Kirloskar Motor Private Limited is joint venture between Toyota Motor Corporation and the Kirloskar Group, for the manufacture and sales of Toyota cars in India. It currently is the 5th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra.
MYSORE KIRLOSKAR ( MK ) PRODUCED LATHES INCLUDING CNC TYPES(1941):? Produces lathes including CNC types.
PEST ANALYSIS OF KIRLOSKAR GROUP
OLITICAL FACTORS:It has been through pre and after independence time. In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative postage stamp marking the Kirloskar Group's 100th anniversary. The 'Export Excellence' award for 28 years consecutively from the Ministry of Commerce and Government of India. economical factors. The company has figured as the country's top ten wealth creators and continues to be of interest to interest to stock holders across the country. Growth from 1950 to 1991 was 32,401% One of the biggest exporters in the country It is the world's largest engine generator manufacturer Huge financial resources available? ? ? ? ? ? ? ?
? ? ? ?
SOCIAL FACTORS:Kirloskar Brothers is also one of the first pump companies to have an all women operated and managed manufacturing plant. Introduced iron plough to help the farmers. During the pre independence period created employment for everyone regardless of their cast. Collaboration with foreign firms to create more job oppurtunities.
? ? ? ?
TECHNOLOGICAL FACTORS:It has 17 patents for innovative technology, including 2 US patents. Numerous research papers presented at International Conferences including American Society of Mechanical Engineers (ASME) Skilled engineers recruited every year to make innovative progress. Robust R and D infrastructure in India as well as in other countries
swot analysis :-
strength:? ? ? ? ? HUGE MARKET SHARE IN INDIA AS WELL AS IN OTHER COUNTRIES. GLOBAL REACH, IT’S A BRAND NOT ONLY IN INDIA BUT ALSO IN OTHER COUNTRIES. ROBUST FINANCIAL RESOURCES AVAILABLE. BLESSED WITH STATE OF THE ART INFRASTRUCTURE FOR MANUFACTURING AND R &D. RICH LEGACY OF MANY YEARS.
WEAKNESS:? ? ?
STILL NEW IN FEW SECTORS AND VULNERABLE TO COMETITION FROM BIG PLAYERS IN THAT FIELD INCONSISTENCY IN APPEARANCE. WEAKNESS CORE EXPERTISE ON PREVENTION MAINTENANCE
OPPURTUNITIES:? THE COMPANY HAS A GOOD SHARE IN THE MARKET, SCOPE FOR FURTHER GROWTH. ? IT CAN TAKEOVER SMALL FIRMS, BECAUSE OF ITS GOOD FINANCIAL RESOURCES AVAILABLE. ? CAN CAPITALIZE AN UPSWING IN MARKET DEMAND BECAUSE OF ALL INDIA PRESENCE.
?
GLOBAL REACH COULD BE USED TO START UP A NEW PROJECT
THREATS:? ? ? COMPETITOR’S PRODUCT PRICE IS LOW IN COMPARISON TO KIRLOSKAR PRODUCTS. MORE INCREASE IN COMPETITION.
NON EXCLUSIVELY WITH DEALERS.
COMPETITORS ANALYSIS:Competitors like dynamic tech,wpil have presented tough competition but
kirloskar brothers ltd has come up strongly and has been setting new benchmark every day. The following table shows its comparison with competitors.
Balance Sheet Kirloskar Bros Mar '12 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities KSB Pumps Dec '11
------------------- in Rs. Cr. ------------------Dynamatic Tech Mar '11 WPIL Mar '11
15.87 15.87 0.00 0.00 737.76 0.00 753.63 209.33 113.54 322.87 1,076.50 Kirloskar Bros Mar '12
34.81 34.81 0.00 0.00 355.31 0.00 390.12 63.15 0.02 63.17 453.29 KSB Pumps Dec '11
5.41 5.41 0.00 0.00 145.97 20.20 171.58 245.24 23.08 268.32 439.90 Dynamatic Tech Mar '11
7.97 7.97 0.00 0.00 40.48 0.58 49.03 39.80 12.91 52.71 101.74 WPIL Mar '11
Application Of Funds Gross Block Less: Accum. Depreciation
490.19 207.25
326.49 173.74
387.70 126.50
44.98 19.96
Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)
282.94 36.01 214.94 209.96 298.05 20.53 528.54 872.49 0.00 1,401.03 0.00 797.49 60.92 858.41 542.62 0.00 1,076.51 461.51 94.99
152.75 9.63 6.36 198.02 187.44 8.51 393.97 84.01 73.23 551.21 0.00 222.11 44.54 266.65 284.56 0.00 453.30 22.74 112.08
261.20 50.89 52.44 57.20 86.83 2.25 146.28 53.69 4.76 204.73 0.00 123.22 6.12 129.34 75.39 0.00 439.92 90.19 279.59
25.02 1.16 0.40 14.33 120.16 0.61 135.10 17.54 0.46 153.10 0.00 74.57 3.37 77.94 75.16 0.00 101.74 2.20 60.81
ONE OF THE MAIN COMPANIES OF KBL IS KIRLOSKAR PUMPS
KIRLOSKAR PUMPS
Market cap 9,124 Million Pre tax profit 340 Million Net worth 7,536 Million Revenues 17,687 Million Summary financials (FY: 2011-12)
Core business:Centrifugal pumps, Valves, Hydel turbines, pumping Core business
Incorporated -1920 Established- 1888 Leader in fluid handling and largest manufacturer and exporter of Centrifugal Pumps. „Yamuna? – Global Headquarters, Kirloskar Brothers Limited, pune, india. HIGHLIGHTS OF KIRLOSKAR PUMPS:• Largest manufacturer and exporter of centrifugal pumps from India • Leading manufacturer of Valves and Hydel Turbines • Energy efficient innovative pumping solutions for core sectors such as Power, Water, Irrigation and Industries • Manufactures the largest pumps by size and horsepower in India • Commands the highest market capitalization amongst the pump manufacturers in India • Pioneered centrifugal pumps in India and introduced the following in India: – Split-case pumps – Process pumps – Large Vertical Mixed flow pumps – Canned motor pumps – Metallic Volute pumps – Concrete Volute pumps – Primary / secondary moderator pumps for liquid sodium for fast breeder reactor technology for Nuclear Power Plants ? ? ? KBL has been bestowed with the 'Export Excellence' award for 28 years consecutively from the Ministry of Commerce and Government of India. Being the largest manufacturer and exporter of centrifugal pumps from India, we export to over 80 countries across 6 continents. They have 17 patents for innovative technology, including 2 US patents. Numerous research papers presented at International Conferences including American Society of Mechanical Engineers (ASME).
JOINT VENTURES AND SUBSIDIARIES
Kirloskar Toyoda(1995):- Textile machinery and auto transmission Components.
Kirloskar Chillers (1995):- Large air-conditioning systems on turn key basis
Toyota Kirloskar :- Light motor vehicles. Motors Limited (1997)
Denso Kirloskar (1998) :- Engine radiators.
Toyota Gosei (1998)
:- Non-metallic auto components such as steering wheels, dashboards, etc.
Kirloskar Tsusho (1998)
:- Steel supply to car companies and ancilliaries
Toyota Kirloskar Auto Parts ( 2002)
:- Metallic auto components such as transmissions steering gears, front and rear axles.
DOMESTIC SUBSIDIARIES
Kirloskar Construction and:Engineers Limited (2006)
• Cross country and submarine pipelines • Tunneling and underground caverns • Bridges and roads • Civil construction • Large alloy steel castings foundry • Single piece casting of 14 Ton • 600 Tons / month capacity • Manufacturing of stators, rotors and electric motors
The Kolhapur Steel Limited
2007)Hematic Motors Pvt Limited
2009)Kirloskar Systech Limited (2010):- System engineering for projects - Power - Water - Irrigation - Industry - Focused engineering data for in-house use and outside contractors - Patents and IP creation
INTERNATIONAL SUBSIDIARIES
SPP Pumps Limited –UK (2003) Braybar Pumps Limited South Africa (2010) Kirloskar Brothers (Thailand) Limited – Thailand (2009) Kirloskar Brothers Europe BV – The Netherlands (2008)
MANUFACTURING UNITS IN INDIA:-
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INDUSTRIAL PUMPS, KIRLOSAKARWADI , WESTERN INDIA AGRICULTURE AND DOMESTIC PUMPS, DEWAS , WESTERN INDIA SUBMERSIBLE PUMPS, SHIRVAL, WESTERN INDIA VALVES, KONDHAPURI , WESTERN INDIA CASTIN,GS KOLHAPUR , WESTERN INDIA DOMESTIC PUMPS, COIMBTORE , SOUTHERN INDIA
MANUFACTURING UNITS OUTSIDE INDIA:-
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INDUSTRIAL PUMPS, ATLANTA ,USA INDUSTRIAL & ENGINEER PUMPS, COLEFORD ,UK INDUSTRIAL PUMPS, JOHANSBURG, SOUTH AFRICA INDUSTRIAL PUMPS, BANGKOK, THAILAND
APPROVED VENDORS FOR GLOBAL CONSULTANTS AND EPC CONTRACTORS? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
ESSAR GVK GAAR ABB JSW PSCO RELIANCE SIEMENS TOSHIBA TECHNIP TATA POWER HYATT TOSHIBA HYUNDAI TEI DAAR NTPC BECHTEL
ASSOCIATION WITH GOVERNMENTS ? ? ? ? ? ? ? ? ?
ANGOLA CAMBODIA ZIMBABWE SENEGAL EGYPT GHANA JAMAICA SURINAME SUDAN
HUMAN RESOURCES
EMPOWERED, RESPONSIVE, MOTIVATED AND COMPETENT HUMAN CAPITAL ARE A KEY ASSET OF KBL. TEAM KBL IS COMMITTED TO CREATE A VALUE BASED ORGANISATION WITH ETHICAL PRACTICES, AND LEAD THE COMPANY TO EXCEL IN PURSUIT OF ITS MISSION AND VISION.
EMPLOYEE STRENGTH (STANDALONE STRENGTH) PARTICULARS TOTAL EMPLOYEES WHICH INCLUDE ENGINEERS APPLICATION AND PRODUCT ENGINEERS HEADCOUNT 3510 936
125
R & D CENTERS :-
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R & D INFRASTRUCTURE AT KIRLOSKAR WADI
HYDROLIC RESEARCH CENTER AT KIRLOSKAR WADI •One of Asia?s largest Hydraulic Research Centre (HRC) for testing pumps at duty conditions up to 5000 kW motor and discharge up to 50,000 m3/hr • Closed circuit NPSH testing capabilities • Computerized data acquisition system • Physical Sump and Pump model study • Conceptualised and built under the guidance and supervision of British Hydraulic Research Association
• Testing at 50 Hz & 60 Hz frequency covering all global supply voltages (3.3 to13.2 kV)
PEST ANALYSIS:-
POLITICAL FACTORS:? ? STRONG HOLD IN INDIA WITH DOMESTIC SUBSIDIARIES ASSOCIATES WITH FOREIGN COUNTIRES LIKE ANGOLA, ZIMBAMBWE, SUDAN ETC.
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'EXPORT EXCELLENCE' AWARD FOR 28 YEARS CONSECUTIVELY FROM THE MINISTRY OF COMMERCE AND GOVERNMENT OF INDIA.
ECONOMICAL FACTORS:? ? ? GROWTH OF 32,401% FROM 1950 TO 1991 BIGGEST EXPORTER OF PUMPS FROM INDIA TOP 10 WEALTH GENERATOR IN INDIA
SOCIAL FACTORS:? ? CREATES JOB OPPURTUNITIES WITH FOREIGN COMPNIES JOBS ARE OFFERED TO SKILLED ENGINEERS EVRY YEAR
TECHNOLOGICAL FACTORS:? ? ? IT HAS ASIAS BIGGEST HYDRAULIC CENTER STATE OF THE ART INFRASTRUCTURE FOR R &D TEAM OF SKILLED ENGINEERS
SWOT ANALYSIS OF KIRLOSKAR PUMP:-
STRENGTHS:? ? ? ? ? STRONG HOLD IN INDIAN MARKET AS WELL AS IN INTERNATIONAL MARKET HAS BECOME A BRAND EQUIPED WITH STATE OF ART R&D INFRASTRUCTURE TEAM OF SKILLED ENGINEERS HUGE FINANCIAL RESOURCES AVAILABLE
WEAKNESS:? FACES TOUGH COMPETITION FROM FOREIGN FIRMS NEED TO MAKE STRONG HOLD IN INTERNATIONAL MARKET
OPPURTUNITIES:? ? ? CAN MAKE UP A TIE WITH BIG COMPANIES ACROSS THE GLOBE CAN EXLPORE MORE OPPURTUNITIES TO MAKE DEAL WITH OTHER NATIONS CAN COME UP WITH INNOVATIVE IDEAS TO BECOME MORE STRONG TECHNICALLY
THREATS:? ? ? NEW PLAYERS ARE COMING IN THE MARKET TOUGH COMPETITION FROM FOREIGN FIRMS POOR GROWTH IN OTHER SECTOR COULD TARNISH ITS IMAGE
COMPETITORS:-
industry Competitors: Pumps SYMBOL
KSB Pumps Ltd. WPIL Ltd. Mather & Platt Pumps Ltd. Shakti Pumps (India) Ltd. Roto Pumps Ltd. Adarsh Plant Protect Ltd.
PRICE
193.55 401.75 246.90 41.30 110.25 3.71
%CHANGE
0.67% 2.07% 0.04% 0.36% 0.40% 0%
VOLUME
1296 9469 1010 2470 3611 0
Shareholding pattern - Kirloskar Brothers Ltd.
Holder's Name
Promoters GeneralPublic NBanksMutualFunds FinancialInstitutions OtherCompanies ForeignInstitutions ForeignNRI Others
No of Shares
50093848 13909332 6138768 4103518 3266635 1654896 145422 27282
% Share Holding
63.14% 17.53% 7.74% 5.17% 4.12% 2.09% 0.18% 0.03%
Profit & Loss - Kirloskar Brothers Ltd.
Mar'12
12 Months
Mar'11
12 Months
Mar'10
12 Months
Mar'09
12 Months
Mar'08
12 Months
INCOME:
Sales Turnover Excise Duty
1,839.82 57.95
1,994.11 52.70
2,056.22 39.65
1,888.87 59.39
1,584.27 62.34
NET SALES
Other Income
1,781.88
0.00
1,941.41
0.00
2,016.57
0.00
1,829.48
0.00
1,521.93
0.00
TOTAL INCOME
1,793.09
1,953.19
2,034.12
1,859.73
1,555.51 EXPENDITURE:
Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made
67.33 1,234.30 153.80 70.03 180.58 0.00 0.00
56.67 1,313.64 140.01 79.50 186.38 -0.8 0.00
56.93 1,466.54 99.03 84.01 104.35 -0.2 0.00
55.06 1,363.08 100.58 61.60 117.77 -0.4 0.00
44.93 1,095.12 90.67 51.64 78.52 -0.3 0.00
TOTAL EXPENDITURE
Operating Profit
1,706.03
75.84
1,775.38
166.03
1,810.65
205.92
1,697.60
131.88
1,360.54
161.39
EBITDA
Depreciation Other Write-offs
87.06
30.26 0.00
177.82
30.01 0.00
223.47
26.48 0.00
162.14
20.74 0.00
194.97
18.21 0.00
EBIT
Interest
56.80
47.83
147.80
41.61
196.99
46.64
141.40
43.28
176.76
27.07
EBT
Taxes
8.97
2.47
106.19
41.72
150.35
55.44
98.12
31.19
149.69
39.90
Profit and Loss for the Year
Non Recurring Items Other Non Cash Adjustments Other Adjustments REPORTED PAT
6.51
24.99 -0.3 0.00 31.19
64.47
-3.11 0.00 0.00 61.36
94.91
22.53 0.08 0.00 117.52
66.93
0.10 0.00 0.00 67.03
109.79
0.35 0.00 0.00 110.14
KEY ITEMS
Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs) 0.00 15.87 100.00 793.40 0.00 27.77 175.00 793.38 0.00 43.63 274.99 793.33 0.00 21.15 100.00 1,057.64 0.00 42.31 200.00 1,057.64
EPS - Annualised (Rs)
3.93
7.73
14.81
6.34
10.41
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