Kirloskars announce split

PUNE, APRIL 25: The Kirloskar group today formally parted ways with Bangalore-based Vijay Kirloskar, saying it was necessary to ``deal wit...

PUNE, APRIL 25: The Kirloskar group today formally parted ways with Bangalore-based Vijay Kirloskar, saying it was necessary to “deal with the changing demands of global business.”

In a formal statement, issued by Atul Kirloskar here today, the split was called a “recast designed to make the group more focussed and stronger.” It was stated that the “restructuring would be headed by Atul Kirloskar with eight companies going to Vijay Kirloskar.”

The balance of the companies would continue to be owned by members of the Kirloskar family. “Kirloskar family members presently in the business continue to be members of the Kirloskar Group except Vijay Kirloskar who has decided to separate.”

Story continues below this ad

In a signed statement, Atul Kirloskar described the split as “the group’s aim to unlock the strength and value in the Kirloskar brand and distribution to enhance returns for our stake holders.”

“The restructuring plan in the manufacturing area involves reorganising the group around well-defined business areas. Areas like agriculture, water supply, power, air-conditioning, etc were natural clusters. These had been identified and were in the implementing processes that would bring greater customer focus and competitiveness,” he said.

With the parting of ways, Vijay Kirloskar will be heading Kirloskar Electric Co. Ltd, Kirloskar Developers & Builders Ltd, Kirloskar Software Services Co. Ltd, Kirloskar Power Equipments Ltd, Kirloskar Computer Services Ltd, Kirloskar Ansaldo Industrial Systems Ltd, Kirloskar Batteries Ltd and Kirloskar Malaysia Sdn Bhd. These companies have been under the management control of Vijay R Kirloskar.

Meanwhile, the Rs 2,000 crore Kirloskar Group would continue to work in a “synergetic manner .”

Story continues below this ad

This group consists of Kirloskar Oil Engines Ltd, Kirloskar Brothers Ltd, Kirloskar Pneumatic Co Ltd, KG Khosla Compressors Ltd, The Mysore Kirloskar Ltd, Kirloskar Systems Ltd, Kirloskar Ferrous Industries Ltd, Kirloskar Electrodyne Ltd, Poona Industrial Hotel Ltd and GG Dandekar Machine Works Ltd.

Among the joint ventures are Demag Kirloskar Compressors Ltd, Denso Kirloskar Industries Pvt Ltd, Kirloskar McQuay Ltd, Kirloskar Briggs and Stratton Power Equipment Ltd, Kirloskar Copeland Ltd, Kirloskar Ebara Pumps Ltd, Kirloskar Mahle Filters Ltd, Kirloskar Toyoda Textile Machinery Ltd, Toyota Kirloskar Motor Ltd.

As regards the financial health of the company, the statement notes “the performance of the Kirloskar Group companies has improved significantlyduring the last year.”

“The turnaround at erstwhile Shivaji Works and Kirloskar Pneumatic is noteworthy as indicated by the third quarter results. The financial restructuring of Kirloskar Ferrous Industries Ltd has been nearly completed. With the expected stability of the tractor industry, the company seems to be well on its way to recovery,” it was stated.

Story continues below this ad

With an aim to increase the Kirloskar Group’s foothold in the automotive business, Kirloskar Systems is embarking on the business to manufacture automotive components for Kirloskar’s joint venture with Toyota Motor Corporation, Japan.

In a short span of 15 months, Kirloskar Systems has achieved full productionlevels and the coveted levels of Toyota quality and systems, the statement added.

EXCLUSIVE: EC brings in feature to check misuse of identity to seek voter list deletions

Political Pulse2 hr ago

The Election Commission has launched a new 'e-sign' feature on its portal and app to prevent fraud. This comes after allegations of misuse of online voter deletion forms in Karnataka. The feature requires voters to verify their identity using their Aadhaar-linked phone numbers, reducing the possibility of fraud.

View all shorts

Live Blog