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Kirloskar Oil Engines Ltd.Welcomes you to Analysts’ Meet
Pune, INDIA
Aug. 14, 2003
August 14, 2003 [email protected] 2
Presentation Outline
ØKirloskar Group Profile
ØKirloskar Oil Engines Ltd. (KOEL)
ØOperational Philosophy
August 14, 2003 [email protected] 3
Kirloskar Group
18881888Beginning ofKirloskar Group
20032003
We focus on a multitude of Engineering Businesses
August 14, 2003 [email protected] 4
Core Businesses & Values
TrustTrustReliabilityReliability
TCOTCOResilienceResilience
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Core BusinessesCore Businesses CompaniesCompanies Prime Movers and Transmission
Kirloskar Oil Engines Ltd. Kirloskar Pneumatic Co. Ltd.
Automobile Components Kirloskar Oil Engines Ltd. AC Generators Kirloskar Oil Engines Ltd. Fluid Handling and Compression
Kirloskar Brothers Ltd.
Kirloskar Copeland Ltd. ## Kirloskar Pneumatic Co. Ltd.
Kirloskar Ebara Ltd. ## Metal Processing Kirloskar Ferrous Industries Ltd.
Kirloskar Oil Engines Ltd.
# = Joint Ventures
Core Businesses & Companies
August 14, 2003 [email protected] 6
Position in IndiaPosition in India ProductsProducts VolumeVolume FY0FY033
FY98FY98 FY03FY03
TechnologyTechnology
PumpsPumps For any application
120,000 1 1 Kirloskar.
Gas CompressorsGas Compressors Air – up to 10,000 cfm Refrigeration – up to-400tr
1,100 1,600
3 1
2 1
Kirloskar.
Sealed CompressorsSealed Compressors Air-conditioning and Refrigeration
350,000
6
1
Kirloskar and Copeland Corporation, USA
Pig IronPig Iron 240,000 MT 2 2 Kirloskar & Tata Korf Iron CastingsIron Castings 18,000 MT 1 1 Kirloskar & George
Fischer, Switzerland Diesel EnginesDiesel Engines §§ 5è300 hp diesel engines, air and liquid cooled §§ 494è803 hp liquid cooled
[2002 launch] §§ 2400è11000 hp diesel engines, liquid cooled
160, 000
§§ 1 §§ -- §§ 2
§§ 1 §§ -- §§ 2
Kirloskar Outsourced SEMT Pielstick
• Auto Components • Engine Bearings • Engine Valves
35 M 4 M
1
1
Kirloskar
Group Product Folio
Kirloskar Oil Engines Ltd.
Kirloskar Oil Engines Ltd. (KOEL)
August 14, 2003 [email protected] 8
19461946
Beginning ofKOEL
20032003Continued Range Expansion
Quick View
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Year Of Establishment 1946 Plant 06 Sales Income FY03 INR 8,862 Mn Manufacturing Volumes •• Engines •• Auto Components
•• 160,000 •• 36 Mn
Employees 1,850 ISO 9001Accredition Since March 1992 ISO 14001 (EMS) Since Nov 1999 Head Office & Main Plant •• Land •• Plant
Pune •• 250,000 m2 •• 67,000 m2
KOEL at a Glance
3 years ago, we employed over 2,600.
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Our strength - The People
• Progressive policies for welfare, training development,multi-skilling, recognition and rewards, appraisals in place
• Continuous dialogue and communication at all levels for complete alignment with organizational objectives
• Exposure to best practices in the industry in India and abroad
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FY03 Sales
Engine Sales
SEBG34%
MEBG58%
LEBG8%
Auto Component SalesVALVES15%
BEARINGS85%
INR 6,315 M
INR 806 M
About 18% of Engine Sales is of Spares
About 40% of Bearings Sales is to OEMs
SEBG = Small Engines (up to 20 hp)MEBG = Medium Engines (20 – 800 hp)LEBG = Large Engines (2400 – 11000 hp
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Organisation Structure
Auto ComponentsPune, Ahmednagar, Nasik
Large Engines & SparesNasik
Small Engine & Spares
Phursungi17 Offices & 14 Depots
Medium Engines & SparesPune & Phursungi
9 Offices & 4 Depots
Businesses
Secretarial & LegalPune
Management ServicesPune
(HR, Personnel, IT_Corporate)
Corporate FinancePune
Other OperationsPune
Services
KOELPune, Ahmednagar, Nasik & Phursungi
All controlled from Central Data Center at Pune that runs on Oracle eBusiness Suite.
All Dealer and Supplier transactions are ‘paperless’ from mid 2000.
Engine Segment
August 14, 2003 [email protected] 14
Location Activity
Pune Head Office Medium Engines (20àà800 hp)
Nasik Large Engines (2400àà11000hp) Engine Valves
Phursungi Small Engines (upto 20 hp)
Ahmednagar Engine Bearings
Indore Contract Manufacture - Small Engines (upto 20 hp)
Rajkot Contract Manufacture - Small Engines (upto 20 hp)
Distributed Manufacturing
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Awards & Certifications
Ø Quality Policy in place, since 1984.
Ø ISO 9001 certification since 1992.
Ø Golden Peacock, 1997 and 2003 - Highest National Award for Design Innovation
Ø QS 9000 Certification for Engine Bearings, since 1998.
Ø Business to business e-commerce through web-enabled Supply Chain, since 2000
Ø ISO 14001 Certification for Environment Management System since 1999.
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Widest Power Envelop
The Biggest : 11000 hpThe Biggest : 11000 hp
To
The Smallest : 5 hpThe Smallest : 5 hp
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The first KOEL engine, a 5 hp model, was manufactured for use in pumpsets in 1946.Over the years, the product range has expanded and diversified, but 3 hp to 20 hp engines for agriculture pumpsets and farm equipment continue as a significant product group.Over 3 M engines sold to date in 5-20 hpWe supplied about 10,000 engines to Punjab Tractors in FY03, and till date over 450,000 engines are in active use on Tractors
The Agri Presence
Our sales to PTL and SEL in last two years are Rs. 962 M and 559 M respectively.
August 14, 2003 [email protected] 18
In the Industrial Market, we concentrate on Earth Moving , Construction and Material Handling Machinery.Leading Indian OEMs like JCB, Escorts, Ingersoll Rand, Larsen and Toubro, Atlas Copco and BharatEarth Movers power their equipment with our diesels.On certain Equipments, such as excavator loaders, transit mixers and compactors, we hold 100% market share.Over 40,000 engines sold till datein Industrial Segment
The Industry Presence
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In the Power Generation Segment, Kirloskar Diesels are highly recommended by the Institutional Customers like Railways, Telecom, Defence etc. for Prime Power, Stand-by, Base Load, etc.
Over 250,000 engines sold till date in 2.5 kVA till 600 kVA Power Bracket
Power Generation
The Power Presence
August 14, 2003 [email protected] 20
Recent Product Development
Ø Developed 9-distinct engine models for Tractor Usage during last 24-months
Ø Developed Automotive Ratings of R1040 series conforming to Euro II for trucks
Ø CNG Engines under development
Ø Entire mid range now conforms to Central Pollution Control Board Emission norms, which are similar to US Tier II/CoM Stage II norms for Off-highway Usage
August 14, 2003 [email protected] 21
TractorTractor
PumpsPumps
IndustrialIndustrial
OffshoreOffshore
DefenceDefence
RailwaysRailways
AgricultureAgriculture(Farm Goods)(Farm Goods)
Industry Industry ServicesServices
TelecomTelecom
CellularCellular
Market Presence Across Sectors
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Products include :Diesel Engines in the Power Band 2.5~11000 hp
Bearings, Valves
B u s i n e ss U n i t
P o w e r O u t p u t ( h p )
Co o l in g M a r k e t S e g m e n ts
S m a l l E n g i n e s
U p to 2 0 Air / W a te r F a r m e r ’s P u m p s e t s , A g r i M a c h i n e r y , D G S e t s
M e d i u m E n g i n e s
2 0 èè 12 0 15 0 èè 8 0 0
Air / W a te r W a te r
A g r i T r a c t o r s , D G S e t s , In d u s t r i a l ( C o n s t r u c t i o n , M a t e r i a l H a n d l in g , E a rt h m o v i n g , F l u i d H a n d l in g , M i n i n g , A g r o _ In d u s t r i a l , O f f s h o r e , D e f e n c e A u t o m o t ive )
L a r g e E n g i n e s
2 4 0 0 èè 110 0 0
W a te r P o w e r P l a n t s & M a r i n e
Product & Market Mix
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D i e s e l En g i n e s M a r k e t S h a re
KOELs P o s i t io n
19 9 7 2 0 0 3 S m a l l ( u p t o 2 0 h p )
3 1% 1 1
M e d i u m ( 2 0 àà 12 0 h p ) ( 15 0 àà 8 3 0 h p )
6 0 % 4 0 %
1 2
1 2
L a r g e E n g i n e s ( 16 0 0 àà 110 0 0 h p )
3 0 % 2 2
Indian Market Position
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Competitors - Engines
Wartsila and imports like MAN and Caterpillar
Large Engines
(2400 to 11,000 hp)
Cummins, Ashok Leyland, Simpson, and Greaves
Medium Engines
(20 to 830 hp)
No National Level player. Several Regional players from Agra, Kolhapur and Rajkot
Small Engines
( up to 20 hp)
August 14, 2003 [email protected] 25
Market Reach
Plant Plant LocationLocation
Market Segment Outlets/Dealers
Highlights
Agri Pumpsets 1,100 Rural reach for sales & service Industrial OEMs 40 Over 70 OEM Installations DG Set OEMs 11 Focus on Industry Large Engines
Direct Sale
Focus on Industry
Product Support 167 Effective & Efficient Service 20 Sales Offices and 16 Warehouses
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Nationwide Spread
• 18 Area Offices, • 22 Warehouses,
and,• 1,000 Dealerships
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Product Support in India
Retail Sale by OEMs and dealers
Product Support by KOEL
Ø 167 Service Dealers of KOEL.
Ø Round-the-Clock Service in 42 cities, being extended.
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Punjab Tractors, Punjab Tractors, VoltasVoltas, , GodrejGodrej
JCB, L&TJCB, L&T--Case, IR Case, IR
Escorts, Greaves, Escorts, Greaves, IndfosIndfos
33--decadesdecades
22--decadesdecades
11--decadedecade
Time Tested Customer Relationships
Unmatched Customer Care is a Core Value !
Technology
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Emission Compliance
Engines designed in-house are certified to fulfill US Tier I emission norms for off-road usage, Euro II emission norms for on-road usage, with capability to upgrade to Tier II / Euro III.
August 14, 2003 [email protected] 31
SrSr NoNo
ParameterParameter UoMUoM 1R16001R1600 2R8602R860 2R10402R1040 3R8603R860 3R9803R980 3R10403R1040 4R10404R1040 4R1040TA4R1040TA
11 Bore X StrokeBore X Stroke AspirationAspiration
mmmm 124 X 130124 X 130 NANA
100 X 110100 X 110 NANA
105 X 120105 X 120 NANA
100 X 110100 X 110 NANA
102 X 120102 X 120 NANA
105 X 120105 X 120 NANA
105 X 120105 X 120 NANA
105 X 120105 X 120 turbo turbo ––
afterafter--cooledcooled 22 No of cylinderNo of cylinder 11 22 22 33 33 33 44 44 33 Total displacementTotal displacement ltrltr 1.61.6 1.721.72 2.082.08 2.592.59 2.942.94 3.123.12 4.164.16 4.164.16 44
Gross Power as per SAE Gross Power as per SAE J 1995J 1995--JUNE JUNE
HpHp (kw)(kw)
25/225025/2250 (18.4)(18.4)
24/200024/2000 (17.7)(17.7)
32/200032/2000 (23.5)(23.5)
36/200036/2000 (26.5)(26.5)
46/200046/2000 (33.9)(33.9)
50.5/200050.5/2000 (37.2)(37.2)
76/220076/2200 (56)(56)
100/2300100/2300 (73.6)(73.6)
55
Back up torBack up torqueque
Nm/rpmNm/rpm (%)(%)
93/140093/1400
19.519.5
94/120094/1200
1212
126/1200126/1200
1212
142/1200142/1200
1212
181.5/120181.5/12000
1212
199/1200199/1200
1212
272/1400272/1400
1212
412/1300412/1300
3535
66
Gross SFC at Rated Gross SFC at Rated SpeedSpeed
g/hp.hrg/hp.hr
175175 171171 171171 171171 171171 165165 171171 165165
77
Smoke at ISO conditions Smoke at ISO conditions (Correction as per BS (Correction as per BS AU 141)AU 141)
HSHSUU 40 HSU max till 1200 rpm lowest40 HSU max till 1200 rpm lowest
88 Blowby Blowby (% of swept volume max)(% of swept volume max)
0.50.5 0.50.5 0.50.5 0.50.5 0.50.5 0.5 0.5 0.50.5 1.01.0
99 Lub oil consumptionLub oil consumption (% of SFC)(% of SFC)
0.150.15 0.150.15 0.150.15 0.150.15 0.150.15 0.150.15 0.150.15 0.150.15
1010 Emission norms *Emission norms * US TIER I/IIUS TIER I/II norms norms NMHC + Nox 9.5 g/kWNMHC + Nox 9.5 g/kW--hrhr
Co Co 5.5 g/kW 5.5 g/kW--hrhr PM 0.8 g/kWhr PM 0.8 g/kWhr
Engine Families Customised For Tractors
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Exc-Loaders
Compactors
Fork-lift Trucks
Excavators
Assorted
Cellular
The Brand-pull
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Strategy for Export
Engines, Pumpsets, and Gensets
• Products are ready
• We focus on Africa and Middle East
• Setting up Sales and Service operations is the present focus
Demand Drivers - Engines
August 14, 2003 [email protected] 36
Small Engines
• farm economy drives the demand for the pumping units and other farm machinery
• demand for power generating sets is due to the prevalent power situation. Specially in semi-urban and rural areas
August 14, 2003 [email protected] 37
Medium Engines
• tractor industry is yet to come out of the slowdown though its long term prospects are good
• demand for the power generating sets is driven by the growth in services sector, and also investments in the industrial activity in general. Infrastructure building also results in demand for ‘on site’ power.
• Lately, large homes and housing projects have started buying generating sets for standby power.
• demand for industrial, earth moving and construction machinery is driven by the investments in the infrastructure.
August 14, 2003 [email protected] 38
Large Engines
• demand for generating sets is driven by the state of the economy resulting in investments in process industry
• purchases by shipyards for ship building are directly related to the orders for ships from Navy and Coast Guard
August 14, 2003 [email protected] 39
Custom Built for Any Application and Climatic Conditions, may it be….
Sun Moon DesertsMountains Water
Engine Family…….
Auto Component Segment
August 14, 2003 [email protected] 41
Auto Component at KOEL
Engine Bearings – a bearing for every need
Engine Valves
Share in Indian Market
We have compete with Bimetal, Gabriel, Menon, and GMH in India.
Ours is leading share of 35%.
August 14, 2003 [email protected] 43
Capability – from Design to Delivery
• We make - Bearings, Bushings and Flanges
• We start from Powder and Billets manufacturing, to Strip manufacturing, ending with finished bearings
• Design capabilities - enhanced by engine design and development capability
• In-house capability to make bearing manufacturing machines and tooling
August 14, 2003 [email protected] 44
Example of machines we make
World Class Bearings at competitive capital and operating costs
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Wide ranging materials to cater to every need !
• ALUMINIUM TIN SILICON• ALUMINIUM TIN• COPPER LEAD• WHITE METAL
August 14, 2003 [email protected] 46
Strategy for Export
Engine Bearings and Engine Valves
• Products are ready
• Focus on securing OEM businesses
August 14, 2003 [email protected] 47
Drivers - Engine Bearings and Valves
• demand for Engine Bearings and Valves is driven by the growth of automobile manufacture in the country, and,
• specifically manufacture of engines in the country by the automobile companies
Manufacturing Philosophy
August 14, 2003 [email protected] 49
Strategic Direction
Attain Cost Leadership through effective deployment of measures such as :
Ø Rationalisation of Supplier Base and getting them committed
Ø Increased Inventory Turns
Ø Rev up Operational Efficiencies
Ø Enhance Man-Machine Utilisation [Flexible set-ups, multi-skilling, QC, Kaizens]
Ø Instill Respect for Money across Stake-holders
August 14, 2003 [email protected] 50
Our Thrust Areas
Ø Reduce Number of Suppliers
Ø Reduce Material Inventory
Ø Reduce Working Capital
Ø Improve Productivity – men, machines and money
Ø Reduce Shop Rejection
Ø Reduce Tool Cost
Ø Reduce Machine Maintenance Cost
Merger of KPSCO
That is, Kirloskar Power Supply Company Ltd.
August 14, 2003 [email protected] 52
Merger of KPSCO
• KPSCO was in the business of generating power by using your company’s large generating sets, and,
• was selling power to Industrial Units in Karnataka.• It is now Power Division of KOEL.• Provides us opportunity to demonstrate use of
company’s products in Independent Power Producer mode.
• Recent changes in the Electricity Act, expected to lead to entrepreneurs to set up business to generate and sell power in coming years.
Thank you !
Vijay VarmaVijay VarmaKirloskar Oil Engines Ltd., Kirloskar Oil Engines Ltd., PunePune
Aug. 14, 2003Aug. 14, 2003
