Kirloskar Oil to expand Nashik, Pune facilities

Kirloskar Oil Engines Ltd (KOEL) has registered 25 per cent sales growth in 2005-06. The company expects to maintain the tempo in the current financial year too.

Meanwhile, it is planning to expand its Nashik, Pune and Ahmednagar facilities.

The company manufactures a wide range of diesel engines. It has facilities at Nashik, Pune, Ahmednagar and Solapur.

Speaking to Business Standard, Rahul Kirloskar, director - exports, KOEL, said, "Our business is growing and exports have also increased. We plan to increase production at our units to meet the market demand. Towards this end, we will have to expand our capacities."

He said the plans were on the drawing board and would be finalised in six months.

"Earlier, we had invested in our facilities in 1990, but neutralisation was so less at that time. Our business has not grown as we had expected. Besides, late 90s had witnessed a recession. Today, our plants are virtually running at more than 100 per cent capacity and that is why we need to invest," said Rahul Kirloskar.

"We have two plants at Nashik - a large engine manufacturing plant and a volve plant. We plan to expand both the facilities.

The engine facility manufactures engines with 2 mw capacity and more. Last financial year, we had manufactured 16 engines at the Nashik facility.

All were with 2 mw capacity and are so powered that they can cater to any industrial area in Nashik. Sales turnover of the plant was Rs 125 crore last year," Rahul Kirloskar said.

In 2005-06, KOEL's sales stood at Rs 1,400 crore compared with Rs 1,100 crore the previous year.

The company's exports grew 46 per cent in 2005-06 to Rs 132 crore, compared with the previous year's Rs 90 crore. It has set Rs 240 crore as export target for this year.