Sales and Distribution - Kirloskar Brothers Ltd

Mansi Bajpai 04Jagdish Meena 14Nitika Singh 22Pallavi Gupta 23Shiraj Sherasia 39Shruti Gupta 40Preetam Bhattacharya 50

KIRLOSKAR BROTHERS LTDIndia's largest manufacturer and exporter of pumpsYear of Establishment : 1888 Year of Incorporation : 1920

Manufacturing plants and Year of Establishment Kirloskarvadi (1910), Kondhapuri (2001), Shirval (1992) in Maharashtra and Dewas (1962) in Madhya Pradesh• Marketing Network :

Domestic : 16 Regional OfficesAhmedabad, Bangalore, Baroda, Bhubaneshwar, Calcutta, Chennai, Indore,Jaipur, Kochi, Lucknow, Mumbai, Nagpur, New Delhi, Pune, Ranchi,Secunderabad

Overseas : 7 OfficesCambodia, Egypt, Germany, Kenya, Lao PDR, South Africa, United Arab

EmiratesDealers : Domestic 903,

Overseas 342

CORPORATE STRUCTUREI. REGISTERED

OFFICE UDYOG BHAWAN TILAK ROAD PUNE

CORPORATE OFFICE

‘YAMUNA’ BANER PUNE

2. REGIONAL SALES OFFICE

Ahmedabad Bangalore Bhopal Bhubaneshwar

Chennai Jaipur Kochi Kolkata

Lucknow Mumbai Nagpur New Delhi

Pune Ranchi

REGIONAL OFFICE IN PUNE PRABHAT APARTMENT TULSHI BHAGWALE COLONY SAHAKAR NAGAR PARVATI PUNE

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SECTOR WISE OFFICE

Irrigation & Rural Electrification Mr. M.R. Pattewar Tel : 020 24402200 Udyog Bhavan, Tilak Road,

Pune – 411 002, (India)  Email : mrpattewar@kbl.co.in After Sales Service Corporate Global Marketing “Chintan”, Mukund Nagar,

Pune – 411 0037, (India) Mr. Ragunathan Kannan Tel : 020

24402143 Email : krn@kbl.co.in 4

DEALER NETWORK Andhra Pradesh Punjab New Delhi Arunachal Pradesh Jharkhand Orissa Assam Karnataka Jammu & Kashmir Bihar Kerala

•Rajasthan •Chattisgarh •Madhya Pradesh •Tamilnadu• Gujarat •Maharashtra •Tripura •Haryana• Manipur •Uttar Pradesh •Himachal Pradesh •Meghalay •West Bengal Goa

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STRATEGIC BUSINESS GROUPS (SBUS)PEPBGProjects & Engineered Pumps Buiness Group,Pune & Kirloskarvadi

ADPBGAgricultural &Domestic PumpsBusiness Group,Dewas and Shirval

IPBGIndustrial PumpsBusiness Group,Kirloskarvadi

VBGValves Business,Group, Kondapuri

ACPBGAnti CorrosionProducts BusinessGroup, Kirloskarvadi

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DISTRIBUTION SECTOR

AGRICULTURE DOMESTIC INDUSTRIAL

Growth Potential: HighMargins: ModerateCash Flow: Good

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AGRICULTURAL SECTOR: PRODUCT RANGE

Monobloc Domestic PumpsDelivery size up to 20 mmCapacity up to 2 m3/hr.Head up to 24 meters

End Suction Pumps Type- CEDelivery size : up to 125 mmCapacity : up to 660 m3/hr.Head up to 100 meters

End Suction Pumps Type- DB/DBHSDelivery size : up to 300 mmCapacity : up to 1900 m3/hr.Head up to 100 meters

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MANUFACTURING PLANTS

Kirloskarvadi PlantEnd Suction PumpsDewas Plant Monobloc & 6”, 8”, 10” SubmersiblesShirval Plant4” Submersible PumpsKondhapuri PlantValves 9

KEY STRENGTHS

Human Resources Total Employees 2600 Engineers 556 Vendors Over 500 Dealers 903

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INSIGHT INTO BUSINESS

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INSIGHT INTO BUSINESS

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SECTORAL SPLIT OF AGRICULTURAL & DOMESTIC PUMPS

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SALES AND DISTRIBUTION NETWORK

Manufacturing Unit

Godown

Dealers

Industrial Customers

Agricultural Customers

Farmers

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SALES AND DISTRIBUTION NETWORK

Availability of Raw Material

Ancillary Units

Tullu PumpsDomestic Use Pumps and

Other Accessories like nuts, bolts etc

Self Manufactured

Impellers, Motors and various other bigger

parts.

Outsourcing

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DEVIATIONS IN THE S & D NETWORK

In certain cases the retailer is also part of the distribution network.

Retailers are generally not a part of the distribution network because farmers want reliability hence they procure the pumps from the dealers.

Only the small pumps are brought from the retailers.

Retailer Farmer

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INVENTORY MAINTAINED BY DEALERS

Small Dealers 10 lakhs to 20 lakhs Medium Dealers 50 lakhs to 60 lakhs Large Dealers 1 crore to 2 crore

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TERMS OF TRADE

1. Payment TermsKBPL has adopted different payment terms for

its various dealers based on their creditability.

Old Dealers 30 days Credit Period

Credible Dealers Payment by 15 - 45 days post dated cheque

New Dealers 20% of the purchase order amount to be paid in advance.

Dispatch of the order after advance payment.18

Cost of the Pump includes Basic Price of the Pump Excise duty @ 8.24% Taxes

Sales Tax VAT

Freight Labour

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INCENTIVES TO THE DEALERS

Discounts to the Dealers are directly proportional to the volume sold.

Minimum Order< 2 Lakhs (No Incentives)> 2 Lakhs (Incentives)4 Lakhs (27.5 % discount)10 Lakhs ( 35% discount)

No Cash Incentives Tour Packages worth Rs. 20,000-40,000

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CONTD…

Cash Incentives given in situations were the company wants to increase its sales manifold, in situations were the demand for the pumps decreases.

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TERMS OF TRADE

2. Delivery PeriodKBPL has adopted different delivery period for

its various products. Non Standard Pumps

60 to 365 days

Standard Pumps 30 days

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PROFIT MARGINS

Company 30%

Dealers 8-10% If Retailers are involved in the chain less profit margins

to the dealers Retailers

3.5-4%

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TERMS OF TRADE

3. Transportation

DealerGodown

Manufacturing Unit

Three Wheelers

Small Trucks

Depending on the Area to cater and the size of the Pump to be transported

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Cost of Transportation beared by the Dealer Some of the famous transporters catering the

dealers (Ludhiana Zone Dealer) Patel Roadways Associates Roadways Goods Carrier of India

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POST SALES SERVICES

WARRANTY CLAUSE : In 99.9 % cases no defect is there still in case of any manufacturing defect the company provides services to the customers

SPARES SALES : Company provides the necessary information and repairs regarding the spares of the pumps to the Industrial Customer in cases of maintenance and repairs.

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REAPAIR AND MAINTENECE IN CASE OF AGRICULTURAL CUSTOMERS :

Company does not deal directly with the individual Agricultural customers(farmers), in case for need of maintenance or repairs farmer has to contact the local retailer for the services

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DAMAGES Types Manufacturing Defects

Company provides replacement of the defective unit. Damages during Transit

Covered under Insurance SchemeInsurance Company Inspectors inspects the damages and reports to the Company regarding the same.

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IT IN SALES AND DISTRIBUTION

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ERP SOFTWARES USED BY KBL :

SAP

THANK YOU

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