Kirloskar brother ltd. Kirloskarvadi

Kirloskar Brother Ltd Company Analysis. Company Profile ather the company Visit and the personal analysis we have done. Report

1. OVERVIEW I t was in 1888 when Mr. Laxman R ao Kirloskar started his business in Belgaum . "Kirloskar Brothers” came into existence in 1920. They later shifted to a barren land in Kundal village in 1910 which was later named KIRLOSKARVADI . T otal revenue Rs 16,257,051,488 (2014-2015)

2. KBL is currently one of the world's leading manufacturers of pumps and valves for water and other fluids, hydraulic turbines and fire fighting pumps. KBL has major operations in India with export to more than 90 countries.

3. VISIT EXPERIENCE : AREA I : Multi Stage Pump Division Manufacturing of Multi Stage, Multi outlet Pumps . Used basically for fire fighting. No. of Members in the division : 32 Outputs : 250 pumps per month Turn Over : 5 crores .

4. VISIT EXPERIENCE : AREA II : Process Pump Division Pumps Manufactured here are used in chemical industry, Sugar Factory, Paper Factory. No. of Members in the division : 30 Outputs : 500 pumps per month Turn Over : 5crores.

5. VISIT EXPERIENCE : AREA III : Plant Engineering Division Storage of Finished Components. Maintenance of facilities and systems Operation of system Energy management Technology Validation.

6. VISIT EXPERIENCE : AREA IV: Heavy Foundry : Casting and Moulding of Heavy Items ( 25 tonnes). No. of Members in the division : 44 + 10 (Temporary) Outputs : 200 pumps per month Production : Starting from 5kg- 8 tonnes

7. VISIT EXPERIENCE : AREA V: Turbine area : Used for generating Nuclear and Hydro Electricity. Underground 8ft. Dam is made for the testing of the functioning of turbines.

8. Leadership Vision (2020):- “Will Be One Of The Most Admired Engineering Companies In The World” Plans For Vision - Action Plan : That Is Annual Plan - LRP : It Is a Three Year Plan. - Accurate Prospective Plan . (Where They Will Be After 15 Year) Core Competencies - India's largest Hydraulic Research center with 25 mega byte test and also they have expertise in manufacturing Hydraulic Pumps . - Expertise in manufacturing of flossier, willow.

9. Leadership Rules Are Strictly First Followed By Top Management People , It Is An Inspiration For Lower Level Leaders focus on:- Talent management Suppliers management Operational management Customer focus and results Product should be eco friendly

10. People Total area covered by KBL -KIRLOSKARVADI is 165 Acres in which 44 Acres is industry and rest is the closed campus colony for the people of KBL There are certain schemes like- - In each shop floor, there is AN employee of the week board, performance level indicator chart. - Follow Kaizen scheme (improvement based on performance score) reward system, bonuses, perks - Timely training is also been given.

11. Visit Experience People: Work shifts:24*7; Saturday’s off; Shift Rotation. E mployee’s job evaluation: Recording of performance chart indicator weekly. Kaizen scheme:Reward systems,Bonus,Perx. Training and Development for the employees on a regular basis as per the new innovations and technology. Providing good wages. Environment and employee’s safety work environment.For example:No entry in Factory without helmets and shoes.

12. Partnership and Resources : 700 suppliers.They are more focused on suppliers in terms of partnerships. T he kirloskar pompen bv, netherland, the company's step down subsidiary in the netherlands, has completed the acquisition of rodelta pumps international, Netherlands (rodelta) in 2015. Own manufacturing concerns,not required resources from other sources. KBL has joint venture cooperation with Ebara, japan since 1988 for the manufacture of API 610 standard pumps.

13. KBL and SPP – partners in progress In 1973 SPP signed an agreement with KBL for supply of castings and components for SPP designed pumps. Over the years KBL has supplied SPP with components for hundreds of thousands of such pumps , in addition to supplying a large number of the same pumps around the world. In 1980s, KBL and SPP worked on the joint development of a new range of split casing pumps for world markets. The pumps were jointly designed and manufacturing facilities were augmented at the Kirloskarvadi plant. These pumps are currently exported all over the world, with the biggest export markets being the United States, South Asia and Europe . With the experience gained from its relationship with SPP, KBL also distributes its own products to over 65 countries around the world, including nine pump companies in Europe.

14. Big Concerns Employee Turnover: Suppliers taken away by Competitors. Management of employees and suppliers Daily and weekly planning's Allocated 3000 shares to employees and suppliers

15. RISK MANAGEMENT : There is a structured process for risk assessment and risk mitigation. A committee consisting of senior leaders is constituted to identify the risks for business. All the officers i.e. general manager and above are involved in the assessment of risk and its likely impact on the business. This committee periodically reviews risks and actions are planned and implemented to minimize them . The company has formed a Risk Management Committee to identify risks at the company level. Risks are propritized and risk owners are assigned the actions to be taken to mitigate the risks and reduce the impact and likelihood of these risks .

16. UTILIZATION OF WASTE : HAZARDOUS WASTE 1. Recycling of coolant ( 7 KL water ) 2. OIL IS RECYCLED NON HAZARDOUS WASTE Reuse of sand in Foundry 6000 Ton/Annum Use of condensed water from A.C. as Distilled water per Annum 3500 L ( Internal requirement gets fulfilled ) 3. Reuse of wooden packing boxes ( 5070.53 Cu.Feet ) 4. Recycling of 43 ton waste papers

17. RENEWABLE ENERGY AND UTILIZATION OF WASTE :

18. Nuclear Pumps:- India Is Progressing In Developing A Nuclear Industry, And Is Expected To Have 20gw Of Nuclear Capacity By 2020 .So Requirement Of Back Up Pumps For Coolant Circulation Have Been In High Demand In Form Of Operation Pumps. KBL The Largest Pump Manufacturing Industry Found A Great Opportunity In This Sector. KBL Is Ambitious To Expand Rapidly In Nuclear Pumps Not Only In India But Overseas. KBL Is Supplying Pumps To 500 Mw For Fast Breeder Reactors. China Planning To Raise 32 Reactors For Electrical Power Within 15 Years. This Provide A Huge Expansion Opportunity For The Company . STRATEGY

19. Solar panels :- With about 300 clear, sunny days in A year, India's theoretically calculated solar energy incidence on its land area alone, is about 5,000 trillion kilowatt-hours (kwh) per year. India is ranked number one in terms of solar electricity production per watt installed, with an insolation of 1,700 to 1,900 kilowatt hours per kilowatt peak (kwh/ kwp ). 25.1 MW was added in 2010 and 468.3 MW in 2011.As of 31 august 2015, the installed grid connected solar power capacity is 4,229.36 mw,and India expects to install an additional 10,000 MW by 2017, and A total of 100,000 MW by 2022.  Competitor:- Tata power solar systems, Emmvee Group, Moser Baer solar group.

20. Killing strategy Reducing the prices by killing all the competitors. Inputs for strategy Employee serving Society serving Customer serving

21. As a future growth strategy KBL is targeting market such as Europe, the USA, Africa and south east Asia. KBL has plans to further reduce the life-cycle cost of its pumps to become more competitive in international markets. The company is planning to aggressively market centrifugal pumps in the EU region. Company planning to focus on specialized projects such as government contracts so as to utilize company product. Technology on future environment and natural resource conservation. Future Growth Strategy:-

22. customer comes with (water management problem ) technical team inspects the site, prepare a layout manufacturing team starts producing technical parts outsourcing of some spare parts from suppliers, on contract basis casting /molding of parts assembling, final shape is given ( testing) quality check under ISO 9001 product is been fixed at site. ANNUAL MAINTENANCE CONTRACT Process

23. Products : Pumps: multi-level pumps,hydrolic pumps,submersible pumps,monobloc pump,sump pump,split case pump,special engineered pumps. Hydro turbines:francis turbines,kaplan turbines,pelton wheel turbines. Packaged system:solar pumping system,eterna,hypn,hvacr system,condition monitoring system.

24. Services: Energy audit Turnkey projects Annual maintenance costs Customization After sales service support

25. Customer results They have no about customer results.

26. People results Distribution between poor performer and variable performer FOR Awards . INDIVIDUAL SAFETY IS CONSIDERED CHIZEN AWARD PERFORMANCE MEASURED AT DEPARTMENTAL LEVEL BRIBERY IS NOT ALLOWED SUNRISING TECHNIQUE – Process of communicating with employees 15 min daily

27. Society results Kirloskar has an enriching history with his employees where fifth generation of the previous employees are been working in the company at present. In this terms they define their social results.

28. Key results : FINANCIAL RESULTS MARCH 2015 MARCH 2014 Net Profit Ratio 0.52 % 2.72 % Asset Liquidity Ratio 1.32 % 1.48% Operating Profit Margin 5.24 % 8.68 % Dividend Per Share 0.50 % 2.50 %

29. TYPES AND NUMBER OF UNITS SOLD :

30. Approaches: Code Of Ethics: Compliance : We Must Abide By The Laws, Rules, Regulations And Kbl Policies That Apply To Our Business Practices. Relationship : It Is Our Responsibility To Interact Fairly And Respectfully With Each Other, All The Stake Holders And The Community At Large In Which We Operate. Business Conduct : We Must Conduct Internal And External Business, Fairly And Ethically. Enforcement : We Must Conduct Investigations In Ethical, Transparent And Legal Manner And Promote Consistent Disciplinary Action Whenever Required.

31. Deploy: People policy They Believe In Achieving Organisational Excellence With Our Human Capital Being Strategic Partner In Organisational Development, By Nurturing Their Capabilities To The Fullest Potential And To Accomplish Organisational Goals. We Are Committed To: organisational excellence by continual benchmarking and adopting best practices. institutionalising recognition and reward systems to foster performance driven culture. creating a value based organisation by adopting ethical work practices. attract, nurture and retain talent for organisational effectiveness. creating an ambience for enhancing creativity, learning and teamwork.

32. Assessment Low life cycle cost (LLCC) pumps are designed and developed to save huge operational and maintenance cost and for longer MTBF. S pecial pumps for nuclear application like primary and secondary cycle, canned motor pumps for power application, circulating water pumps, condensate extraction pumps are also designed and developed . T he Company is assessed on the basis of the demand and sales of the given product.

33. Refinement D esign of hydro turbines: Design of pump as turbine (PAT) for micro hydro range from 5kw to 100 kw power. D esign and development of cross flow turbine for microhydro. CFD (computational fluid dynamics) study of pumps and turbines: Design verification using cfd analysis by improving the flow pattern and to predict pump efficiency which are validated against experimental study.

34. Awards received in the reporting period: 1. CII- EXIM Bank recognition in the category of “Strong Commitment to Excel” for 2009. 2. CII TCM Division has given Level 4- rating to Dewas Plant of Kirloskar Brothers Limited for Total Cost Maturity Model 3. Golden Peacock Award for Corporate Social Responsibility for the year 2010 4. Best Pavillion Award in Power India Exhibition 2009 at Bandra Kurla Complex, Mumbai, during 24.11.09 to 26.11.09 in 54 square meters category . 5. LEED Platinum Rating for Green Building to ‘Yamuna ' awarded by Indian Green Building Council . 6. CII Energy Conservation Award for Kirloskarvadi Plant 7. Golden Peacock award for Innovation

35. Csr activity : Provide resources to 60-70 schools ( vikas SCHOOl ). Society perception survey Fresh air ventilation for natural air- conditioners. More than 10000 tree inside the factory and colony area.

36. IMPLEMENTATION OF CSR IN KBL Funds to be expended per financial year At least 2 % of the average net profits. No contribution to any political party or for any political purpose shall be made out of CSR contribution. Any surplus arising out of any of the CSR activities carried out by the Company will not be treated as part of the business profits of the Company.

37. B . Distribution of Funds to be expended every financial year Following activities shall be included; - Health - Education including employment enhancing skills

38. C. CSR Committee The Board of Directors of the Company shall constitute a CSR committee as well as formulate functions of the Committee. The CSR activities of the Company will be monitored by the CSR Committee of the Board of Directors.

39. Gaurav Deshmukh Subin Suresh Abhishek Kumar Sinha Keshav Tyagi Aarya Singh Akahnsha Bapai Ravinder Kaur Kumari Priya Varsha A Kumar