Kirloskar Group charts path for expansion across businesses

The 137-year-old Kirloskar Group, one of India’s oldest engineering conglomerates, is embarking on a massive expansion across its four listed businesses— from engines and pig iron to compressors, real estate and finance — as it targets multi-billion-dollar revenue growth over the next five years.

- DEV CHATTERJEE

Kirloskar Oil Engines Ltd. (KOEL), led by Managing Director Gauri Kirloskar, has announced plans to triple its revenues to $2 billion by FY30, building on a transformation strategy that has already doubled growth in the last three years.

“Three years ago, we launched our 2X3Y strategy to double revenue in three years,” said Gauri. “We've achieved 15-18 percent annual growth since then, up from just 3 per cent before 2022. The next leg is to reach $2 billion in five years, driven by both power generation and industrial engines.”

KOEL, which also runs Arka, its non-banking finance arm, is preparing to raise capital and eventually list the subsidiary.

“We are looking at raising funds in the next six months and may list the NBFC around FY29-FY30,” Gauri said. “The business has gone through a management change and strategic repositioning. It’s a medium-term play, not immediate.”

The expansion comes as the company rides a surge in demand from data centres, manufacturing and infrastructure sectors that need reliable power.