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IBM Term Project Final

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    A

    PROJECT REPORT ON

    KIRLOSKAR BROTHERS LIMITED

    Submitted To: - Submitted By:-

    Prof. Raghuvir Singh PrasanjeetDeb

    Chaitnya Deshpande

    Aman Saathi

    TAPMI SCHOOL OF BUSINESS

    Manipal University Jaipur

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    CHAPTER 1

    ABOUT THE ORGANIZATON

    1.1Companys Registered Office

    Kirloskar Brothers Limited is an Indian firm based in Pune, established in 1888

    and incorporated in 1920, KBL is a flagship company of $ 2.5 billion Kirloskar

    Group. The market leader in fluid management, KBL provides complete fluid

    management solutions for large infrastructure projects in the areas of water

    supply, power plants, irrigation, oil & gas and marine & defence. It

    manufactures industrial, agriculture and domestic pumps, valves and hydro

    turbines. The companys registered office address is

    Kirloskar Brothers Limited

    Udyog Bhawan, Tilak Road

    Pune-411002 Maharashtra India.

    Email:[email protected]

    Website:www.kirloskarpumps.com,www.kbl.co.in

    Group Website:www.kirloskar.com

    The companys corporate office is located at

    Kirloskar Brothers Limited

    YAMUNA Survey No.98 (3-7), Baner

    Pune411045, Maharashtra, India

    1.2Products Offered and Brand

    Kirloskar Brothers Limited (KBL) is a world class pump manufacturing

    company with expertise in engineering and manufacture of systems for fluid

    management. Established in 1888 and incorporated in 1920, KBL is a flagship

    company of the $2.1 billion Kirloskar Group. The market leader in fluid

    management, KBL provides complete fluid management solutions for large

    mailto:[email protected]:[email protected]:[email protected]://www.kirloskarpumps.com/http://www.kirloskarpumps.com/http://www.kirloskarpumps.com/http://www.kbl.co.in/http://www.kbl.co.in/http://www.kbl.co.in/http://www.kirloskar.com/http://www.kirloskar.com/http://www.kirloskar.com/http://www.kirloskar.com/http://www.kbl.co.in/http://www.kirloskarpumps.com/mailto:[email protected]
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    infrastructure projects in the areas of water supply, power plants, irrigation, oil

    & gas and marine & defence. It manufactures industrial, agriculture and

    domestic pumps, valves and hydro turbines.

    In 2003, KBL acquired SPP pumps, UK and established SPP INC, Atlanta,

    USA, is a wholly owned subsidiary of SPP, UKand expanded its international

    presence. In 2007 Kirloskar Brothers International B.V., The Netherlands and

    Kirloskar Brothers (Thailand) Ltd., a wholly owned subsidiary in Thailand were

    incorporated. In 2008, KBL incorporated Kirloskar Brothers Europe B.V., a

    joint venture between Kirloskar Brothers International BV and Industrial Pump

    Group, The Netherlands. In 2010, KBL further consolidated its global position

    by acquiring 90% stakes in Braybar Pumps, SA. SPP MENA was established in

    Egypt in 2012. KBL has a joint venture corporation with Ebara, Japan since

    1988. Kirloskar Corrocoat Private Ltd. Is a joint venture cooperation withCorrocoat, UK since 2006. KBL acquired the Kolhapur Steel Limited in 2007

    and Hematic Motors in 2010.

    The company offers different kinds of products, which lies in the field of fluid

    management. The products offered by KBL are:

    Centrifugal Pumps

    Valves

    Motors

    Alternators

    Hydel Turbines

    Turnkey Projects

    Mobile Pump Controllers

    There are no sub-brands of the company. Everything manufactured is sold under

    the brand name of Kirloskar. There is no distinction between different kind of

    products.

    1.3Products for Overseas Market

    Pumps manufactured by Kirloskar in India are offered to overseas market with

    power modification for certain countries with same pumps being offered in

    domestic market. There are over 5000 types of pumps Kirloskar manufacturers.

    It has divided its pump into 4 types

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    a) Agricultural Pumps:

    b) Industrial Pumps

    c) Domestic Pumps

    d) Submersible Pumps

    Within these divisions, the pumps are further classified into different types, viz.

    Industrial segment is classified Fire pumps, Autoprime pumps, Oil and Energy

    pumps. It has also differentiated its pumps by varying pip size, power

    consumption and volume of water thrown per second to cater to the needs of

    different customers. Kirloskar has divided all of its pumps into two different

    categories:

    a) MTS (Made To Sale): Those products which have demand in the market

    and are fast moving. They are off the shelves within a month of reaching

    the dealers.

    b) MTO (Made To Order): Those pumps which are not in demand in the

    market. A few customers require them, so they are manufactured as when

    orders are placed by the customer. They are special pumps and generally

    high-grade pumps.

    Major Centrifugal pumps manufacturedSplit-case pumpsProcess pumps

    Large Vertical Mixed flow pumps

    Canned motor pumps

    Metallic Volute pumps Concrete Volute pumps Primary / secondary moderator pumps for liquid sodium for fastbreeder reactor technology for Nuclear Power Plants

    Kirloskar brothers limited has expanded itself globally by acquisitions of

    different pump manufacturers across the globe. It has acquired UK based SPP

    pumps in the year in the year 2003, Braybar pumps Limited in the year 2010and Micwaber784 (pty) Limited in the year 2009, all of which were once the

    most successful pump manufacturer in their respective countries. These

    companies have their own set of pumps to be offered in different market to cater

    to the needs of different customers.

    1.4Turnover

    The revenue from operation of Kirloskar brothers limited is 17,516,340,754.

    While from other sources the revenue generated is 54,616,152. The total

    turnover of the company is about 1752 crore compared to 1872 crore inprevious year; a fall of 7% both in projects and product sector sales. Company

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    was selective with orders and execution made it improve sales mix. This

    strategy resulted in increasing sale of manufactured product from 60% in 2012-

    13 to 66% in the year 2013-14.

    Exports Activities

    The Company has achieved total exports of about ` 960 million.

    The Company continues to receive orders from the American, Europe and

    African countries for Water Supply Projects, Irrigation and Process

    industries. Our efforts have led to establishing OE approvals and supplies to

    many of the Globally, well known Engineering Procurement and

    Construction (EPC) companies like Bechtel, UDHE, Danieli, Air Products

    etc. Our focus has also increased on the neighbouring countries like Nepal,

    Bhutan, Bangladesh, Myanmar, Vietnam and Sri Lanka for export of thesmaller range of pumps.

    We continue our Focus Africa programme, embarking upon Food

    Sufficiency Programme across Africa with innovative solutions for concept

    to commissioning under our Triple A philosophy of Appropriate,

    Adaptable & Affordable pumping solutions. Malawi and Zimbabwe are the

    specific countries on our radar and work is in progress here.

    In the ASEAN region our footprint has been increasing over the years and our

    reach in the countries has strengthened. During the past year, our special focushas been on Laos and Vietnam.

    We are also pursuing Latin American markets. While the Company has been

    successful in bagging repeat stock orders from specific countries from the

    region, efforts are being made to spread its reach to other countries. We

    consider Latin America of great importance for the quantum leap in our

    export turnover.

    Foreign exchange earnings and outgo

    Earnings ` 1,183,501,806/-

    Outgoing ` 932,906,519/-

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    1.5Organization Structure

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    2. About the Companys Business (H)

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    No of countries operatingKirloskar Brothers has a presence in over 80 countries. Sellingelectrical equipment such water pumps.

    What entry route it has taken in each country.The company has taken the route to enter the countries through

    providing water pumping solutions and electrical equipment to theforeign market, which suits their needs and electrical norms

    The company analyzed the foreign grounds before entering to lookfor areas where it can setup the operation for good sales andexpansion. It further went into analysis of market for understandingcustomer need and the price band based on economic performance

    of the country.

    It scanned for competition in the countries and established players,which were a potential threat to Kirloskar Brothers Ltd. Theyfurther analyzed the investment pattern and the capital required tostart up operations.

    The entry route further depended on labor and channels fordistribution for movement of goods and pricing strategy.

    The entry routes used across continents are:a. Merger

    b. Acquisition for manufacturingc. Joint ventured. Buy outs of smaller competitione. Imports

    Sales mostly to industries, wholesalers, agricultures andhouseholds

    Size of business in each country.The size of business:1. India: Market capital : 2,092 cr

    Percentage of market share in India: 41%2. Kenya3. Mena4. Egypt

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    Competitors of products in each country.

    The competitors are of water pumps:1. Crompton greaves

    2.

    KSB3. Dynamic4. Shakti5. Mather & Platt Pumps Ltd.6. Roto Pumps Ltd.7. WPIL Ltd.

    How the Company has handled differences.

    The company has handled different through various approachessuch as:1. Capitalize on the competition

    Turning competitors into clients. Not all of the competitors maybe targeting the same clients you do. By learning about thecompetition. In return, sharing about your products and servicesgives competitors an opportunity to refer your small business totheir clients.

    2. Study larger companies.A competitive business strategy that works across the board isexamining what other companies with more resources havedone in the past

    What management approach the company uses.The different management approaches are:1. Human behavior approach2. Decision theory approach3. Management Science Approach4. Systems approach

    5.

    Operation approach

    3. International Strategy(R)

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    Discuss how regional trade blocks have helped this company to remaincompetitive ?

    NO DATA AVAILABLE.6. Has this Company any time executed world bank or any multilateralsponsored projects. Please elaborate?

    Kirloskar brothers ltd. have never executed any project with world bank or any

    multilateral sponsored projects.

    7. What all currency areas the Company operates. Has it faced anypayment problems in the past. How the Company handles foreign

    currency risk ?

    Africa Currency

    Kirloskar Brothers Limited (Egypt Branch Office)

    SVC

    SPP Pumps (MENA) LLC, Egypt SVC

    Kirloskar Kenya Limited, Kenya KES

    Braybar Pumps (Pty) Limited, South Africa ZAR

    SPP PUMPS, South Africa ZAR

    ASIA

    Kirloskar Brothers Limited, Cambodia KHR

    Kirloskar Brothers Limited China RO Office CNY

    Kirloskar Brothers Limited, Indonesia IDR

    Kirloskar Brothers Limited, Laos LAK

    SPP PUMPS Limited, Singapore SD

    Kirloskar Brothers (Thailand) Limited THB

    Kirloskar Brothers (Thailand) Limited, Vietnam - RO Hanoi

    EUROPE

    SPP Pumps France, France EUR

    Kirloskar Pompen BV, Nederlands EUR

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    SPP PUMPS Limited (UK Headquarters) GBP

    MIDDLE EAST

    SPP Pumps Limited, UAE SAR

    SPP PUMPS, INC., USA USD

    Kirloskar Brothers LLC, USA USD

    There are no instances where the company went wrong in payment risksexperienced by Kirloskar Brothers Ltd.

    Following study shows how foreign exchange risk is managed here in India.KBL also follows these steps

    Once a firm recognizes its exposure, it then has to deploy resources in managingit. A heuristic for firms to manage this risk effectively is presented below whichcan be modified to suit firm-specific needs i.e. some or all the following toolscould be used.

    develop a forecast on the market trends and what the main direction/trend isgoing to be on the foreign exchange rates. The period for forecasts is typically

    6 months. It is important to base the forecasts on valid assumptions. Along withidentifying trends, a probability should be estimated for the forecast coming true

    as well as how much the change would be.

    actual profit or loss for a move in rates according to the forecast) and theprobability of this risk should be ascertained. The risk that a transaction wouldfail due to market-specific problems4 should be taken into account. Finally, theSystems Risk that can arise due to inadequacies such as reporting gaps andimplementation gaps in the firms exposure management system should beestimated.

    its limits for handling foreign exchange exposure. The firm also has to decidewhether to manage its exposures on a cost centre or profit centre basis.

    A cost centre approach is a defensive one and the main aim is ensure that cashflows of a firm are not adversely affected beyond a point. A profit centreapproach on the other hand is a more aggressive approach where the firmdecides to generate a net profit on its exposure over time.

    firms then decides an appropriate hedging strategy. There are various financialinstruments available for the firm to choose from: futures, forwards, options and

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    swaps and issue of foreign debt. Hedging strategies and instruments areexplored n a section.

    which are but estimates of reasonably unpredictable trends. It is imperative to

    have stop loss arrangements in order to rescue the firm if the forecasts turn outwrong. For this, there should be certain monitoring systems in place to detectcritical levels in the foreign exchange rates for appropriate measure to be taken.

    review based on periodic reporting. The reports mainly include profit/ lossstatus on open contracts after marking to market, the actual exchange/ interestrate achieved on each exposure, and profitability vis--vis the benchmark andthe expected changes in overall exposure due to forecasted exchange/ interestrate movements. The review analyses whether the benchmarks set are valid

    Based on inputs from Kshitij Consultancy Services

    For example, the foreign exchange market of a developing country may behighly regulated and thus exposed to sudden swings due to frequent policychanges.

    Corporate Hedging for Foreign Exchange Risk and effective in controlling theexposures, what the market trends are andfinally whether the overall strategy is

    working or needs change.

    8. Product Decision in International Markets.

    Product line offered in each market.

    - Following are the products offered by KBL

    PumpsEngines

    Compressors

    Chillers

    Valves

    Pig Iron

    Construction

    Transmissions

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    Automobiles Through A Joint Venture With Toyota

    Infrastructure Pumping Projects

    Bridges & Flyovers

    Submarine Pipelines

    Construction

    Tax Concessions

    State cabinet minister V.S. Acharya said The cabinet has decided

    to give Rs 9 crore tax relief to the Toyota joint venture on importof tools and machinery valued at Rs 450 crore. With this,

    cumulative tax concessions extended to the company during thelast two years will be Rs 89 crore, He also said Toyota hascommitted to invest Rs.4,043 crore in its second plant tomanufacture Etios car in hatchback and sedan versions, with aninstalled capacity of 70,000 units per annum,

    Pricing Methods:

    Cost-plus pricing- Set the price at your production cost, including

    both cost of goods and fixed costs at your current volume, plus a

    certain profit margin Target return pricing- Set your price to achieve a target return-

    on-investment (ROI)

    Value-based pricing - Price your product based on the value itcreates for the customer

    Psychological pricing - Ultimately, you must take intoconsideration the consumer's perception of your price

    Positioning- If you want to be the "low-cost leader", you must be

    priced lower than your competition

    Popular price points - There are certain "price points" (specificprices) at which people become much more willing to buy a certaintype of product

    Fair pricing- Sometimes it simply doesn't matter what the valueof the product is, even if you don't have any direct competition

    10. Advertising and Promotions

    (i) Change in advertising strategy from one country to another

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    No marketing strategy is intended to be unchangeable or evergreen. Infact, marketers recognize that each element of the strategy reflects currentcircumstances that are almost certain to evolve over time. Among thecircumstances most likely to trigger strategic change are new characteristics of

    the target market, technological advances, competition and a change in theorganization's mission.

    Various countries have various factors which influence the purchasingdecision of the customer. Accordingly, companies have to modify theiradvertising startegies in order to focus on the target customer.

    For connection with the local market, kirloskars always tried to use the locallanguage for the advertising purpose. Music backgrounds used were specific to

    the nation where it was aired.

    Source : Youtube.com

    (ii) Comparison of media cost among nations (at least 3 countries)

    11. HR Strategy (H)

    (i) Compensation policy

    Kept confidential

    (ii) Recruitment source & strategy.

    The company follows a strategy of recruiting number as the need arises for

    dedicated projects and client requirement, at higher positions it is usually filled

    through succession planning or external sourcing, whichever suits the best

    possible answer for the situation.

    The sources for recruitment are:

    1. Fresher/Graduate/Engineer

    1.

    Campus placements2. External agencies

    3. Advertisements

    4. Invitations

    Strategy: To attain fresh blood with innovative ideas and self-motivated to

    move through tasks quickly and obtain desired results with utmost quality and

    precisely

    2.

    Candidates with Experience1. Internal Sourcing

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    2. Referrals

    3. Promotions

    Strategy: To fulfill the positions using internal employees or source employees

    from referral to ensure employee commitment by generating sense ofinvolvement in employee joining and promotion indicating excel in work done.

    Also, the external sourcing is performed to fulfill the position in case no eligible

    candidacy is found.

    (iii) Training & Development of employee.

    The training of employees are done to impart new skillsets and help them

    pipeline the skills to use of the benefit if the organizational.

    Development is imparted to managers to enable them to improve the current

    skills to match the changing market dynamics.

    The different techniques are:

    1.

    On the job training2. Vestibule training

    3. Class room training

    4. Internship

    (iv) Employee Engagement

    Employee engagement is a property of the relationship between an organization

    and its employees. An "engaged employee" is one who is fully absorbed by and

    enthusiastic about their work and so takes positive action to further the

    organization's reputation and interests.

    Therefore Kirloskar takes the appropriate actions to check the engagement of

    employees and constantly check the work done by them and ensure proper job

    matching. The people is unsatisfied or un engaged is reassigned to the most

    appropriate role in order to keep him working and firm to attain the maximum

    efficiency.

    (v) Employee retention

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    Employee retention refers to the ability of an organization to retain the

    employees.

    In a business setting, the goal of employers is usually to decrease employee

    turnover, thereby decreasing training costs, recruitment costs and loss of talent

    and organizational knowledge. By implementing lessons learned from key

    organizational behavior concepts employers can improve retention rates and

    decrease the associated costs of high turnover. However, this isn't always the

    case. Employers can seek "positive turnover" whereby they aim to maintain

    only those employees who they consider to be high performers.

    Different techniques used are:

    1.

    Focus on people development

    2. Participation in management

    3. Working conditions

    4. Rewards and recognition given to the executives

    5. Satisfaction with compensation level

    Finance Strategy

    (i)

    Source of funds

    Equity Share:

    Particulars

    Figures as at the

    end of current

    reporting period

    ending onMarch 31, 2014

    Figures as at theend of previous

    reporting periodending on

    March 31, 2013

    Share Capital

    Authorised

    250,000,000 ) equity shares of250,000,000 ( `2/- each ( 2/-) each 500,000,000 500,000,000Issued, subscribed & fully paid up

    ,358,451 (79,358,451) equity shares of79 ` (/- each2 ` /-) each2 158,716,902 158,716,902

    TOTAL 158,716,902 158,716,902

    a) Reconciliation of share capital

    ParticularsFigures as at the end of

    current reporting period

    ending on March 31, 2014

    Figures as at the end ofprevious reporting period

    ending on March 31, 2013

    Number ` Number `

    Shares outstanding at the beginning of the year 79,358,451 158,716,902 158,679,40279,339,701

    Shares Issued during the year under ESOS - - 18,750 37,500

    Shares outstanding at the end of the year 79,358,451 158,716,902 79,358,451 158,716,902

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    RESERVES & SURPLUS

    LONG TERM BORROWING

    Particulars

    Figures as at the endof current reporting

    period ending onMarch 31, 2014

    Figures as at the end ofprevious reportingperiod ending onMarch 31, 2013

    Note : A-2

    Reserves & Surplus

    Capital Reserves)a( 172,443 172,443

    4,000,000Capital Redemption Reserve)b( 4,000,000

    )(c Securities Premium Reserve

    Opening balance 406,726,159 403,910,847

    Add : Securities premium credited on share issue - 2,815,312

    Closing balance 406,726,159 406,726,159

    )d( Share Options Outstanding Account

    Opening balance ,394,85635 40,138,248

    Less : Written back in current year 31,284,441 4,743,392

    Closing balance 4,110,415 35,394,856

    (e) General Reserve

    Opening balance 5,731,453,426 5,688,005,700

    Add : Transfer from Surplus 47,687,495 43,447,726

    Closing balance 5,779,140,921 5,731,453,426

    f Surplus)(

    Opening balance 1,449,112,037 1,241,391,915Add : Net Profit for the current year 476,874,945 434,477,258

    Balance available for appropriation 1,925,986,982 1,675,869,173

    Less : Appropriations

    Proposed dividend 198,396,128 158,716,902

    Dividend distribution tax 32,132,101 24,592,508

    Transfer to general reserve 47,687,495 43,447,726

    278,215,724 226,757,136

    Closing balance 1,647,771,258 1,449,112,037

    TOTAL 7,841,921,196 7,626,858,921

    `

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    SHORT TERM LOAN

    (ii) Profitability at each location

    Amidst focus to ensure profitable growth with improvement in cash availability,KBL has taken a conscious decision of being selective in accepting project and

    product orders which will ensure positive cash flow and result in targeted

    profitability. It has decided to focus more on the promotion of its manufacturedproducts to get higher profitability. The payment terms have been changed to

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    ensure better cash flow. The initiatives will help in reducing inventory andborrowings thereby enhancing better management of working capital, reductionin interest cost & higher profit margins. Introduction of new products withdifferentiated value proposition for the customers are being promoted. This has

    started reaping benefits in terms of increased profit driven sales with good cashflow. KBL plans to strengthen its customer relationship management process toprovide world class after sales support with service & spares.

    With all these initiatives we expect its consolidated revenue mix for its productbusiness to grow substantially from 69% to 80% by FY14 & ultimately itscontribution from its project business will reduce to a bare minimum by FY15& selective bidding will be made for orders with good payment terms (~90%

    payment term in first year itself) which are profitable & cash positivethroughout its execution period.The profit of the company in FY 13-14 in India was 476,874,945 while in thesame year the total profit of company from foreign market was Euro 4,699,797.

    (iii) Cost of funds

    The interest rate paid by financial institutions for the funds that they deploy intheir business. The cost of funds is one of the most important input costs for afinancial institution, since a lower cost will generate better returns when thefunds are deployed in the form of short-term and long-term loans to borrowers.The spread between the cost of funds and the interest rate charged to borrowers

    represents one of the main sources of profit for most financial institutions.

    A cost of funds indexor COFIis a regional average of interest expensesincurred by financial institutions, which in turn is used as a base forcalculating variable rateloans. The interest rate on an adjustable rate mortgage,for example, is often linked to a regional COFI specified in the particular loandocuments. COFIs, in turn, are usually calculated by a self-regulatory agencylike Federal Home Loan Banks. In California, for example, manyhome mortgage loansare indexed to the Federal Home Loan Bank of San

    Francisco. Interest rates on COFI loans and mortgages tend to fluctuate moreslowly than variable-rate loans linked to other indexes. An index used todetermine interest rate changes for some adjustable-rate mortgages. The 11thDistrict Cost of Funds Index was first introduced in December of 1982. It is a

    National Monthly Median Cost of Funds defined as interest (dividends) paid oraccrued on deposits for Western American Financial Institutions. It is calculatedon the last day of the month. The cost of fund for KBL is estimated to be 408,540,690

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    Operations Strategy :

    (i) Plant locations

    Location of

    Plant

    Holding

    Company

    Year of

    Establishment

    Products Manufactured

    Kirloskarvadi KirloskarBrothers Limited

    1910 Pumps, Diesel Engines

    Dewas KirloskarBrothers Limited

    1962 Alternator, three phase acinduction motor, water

    pump, valves.Kolhapur The Kolhapur

    Steel Ltd.(Acquired byKBL in 2007)

    1965 Steel casing for Industries

    Karad Karad Projectsand Motors Ltd.Acquired by KBLin 2010)

    1973 Over 150 products relatedto rotating machines.

    Shriwal KirloskarBrothers Limited 1993 Agriculture and DomesticPumps

    Kondhapuri KirloskarBrothers Limited

    2001 Industrial andSubmersible pumps,Valves

    Kaniyur,Coimbatore

    KirloskarBrothers Limited

    2011 Domestic and agriculturepumps

    Sanand,Ahmedabad

    KirloskarBrothers Limited

    2012 Centrifugal pumps

    Table 1. Manufacturing Facilities of KBL in India

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    Location of

    Plant

    Holding

    Company

    Year of

    Establishment

    Products Manufactured

    Velsen Noord,

    Netherland

    Kirloskar

    Brothers EuropeBV

    2008 Pumping Solution.

    Bangkok,Thailand

    KirloskarBrothers(Thailand)Limited

    2008 Pump Valves andRefrigerationCompressors

    Johannesburg,South Africa

    Braybar Pumps(Pty.) Limited

    1990(Estd.)2010 (Acq.)

    manufacturing of splitcase, multistage, endsuction & select rage of

    slurry pumpsAtlanta,United Statesof America

    SPP PumpsLimited

    2013 end suction, horizontalsplit case, multi-stage andvertical turbine pumps.

    Coleford,UnitedKingdom

    SPP PumpsLimited

    1875(Estd.)2003(Acq.)

    Industry & AgriculturalPumps and repairs

    Jebel Ali,United Arab,

    Emirates

    SPP PumpsLimited

    All types of Pumps andvalves

    Johannesburg,South Africa

    SPP PumpsLimited

    All types of Pumps andvalves

    Table 2. Manufacturing Facilities of KBL Outside India

    (ii) Technology

    AUTHORISED REFURBISHMENT CENTRE

    Authorised Refurbishment Centres (ARC) are a pioneering initiative to bringcomprehensive refurbishment and performance test facilities to customers.ARCs are one-stop shops to meet every contingency, reduce breakdown timeand ensure quicker, faster, proactive service delivery. The array of servicesoffered include, assembling and dismantling of pumps, overhauling,corrocoating, shot blasting, hydro testing, pump testing, impeller balancing andso on.

    At these centres, the customers can get their products refurbished for life as wellas performance enhancement. The success of the first ARC at Baroda was

    replicated across the country with more centres launched at key industriallocations like Jamshedpur, Surat and Delhi. With these centres in action,

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    customers are saving precious time in getting pumps repaired from plants ofKBL and saving money in transportation.

    The second Authorised Refurbishment Centre (ARC) was launched at NewDelhi. Like the one in Baroda, this ARC too is well equipped with state-of-the-

    art facility to service, repair and improve efficiency for all small, medium andlarge pumps manufactured by KBL. With this facility in action, customers saveon transportation cost, can reduce their downtime and save energy withupgraded pumps.

    $Kirloskar set up the Worlds Largest Water Pumping System for Tata Powers4,000 MW ultra-mega power project at Mundra in Gujarat. A mammoth 10.5million litres of water is circulated with the help of KBLs 10sets of ConcreteVolute Pumps every minute. The Coastal Gujarat Power Limited (CGPL), Tata

    Powers wholly-owned subsidiary, which has implemented the 4000 MW (800MW x 5 units) UMPP requires an enormous amount of water to condense theheat generated in the production of power.

    World's Largest Pumping Scheme at Sardar Sarovar Narmada Nigam Limited.KBL has been proudly associated in building the Worlds Largest PumpingScheme, the Sardar Sarovar Narmada Nigam Limiteds (SSNNL), SaurashtraBranch Canal (SBC) Pumping Scheme, in the state of Gujarat, India. KBL has

    played a major role in this illustrious project by supplying 26 Concrete VolutePumps ,22 Vertical Turbine Pumps. The total system will lift 630,000 litres of

    water per second, to provide irrigation to 540,000 hectares of land and drinkingwater to approximately 4,620 towns & villages.

    Largest Vertical Turbine Pump for Hinduja National Power CorporationLimited. KBL bagged this prestigious order to manufacture the largest everVertical Turbine Pump in India. T . The Hinduja National Power CorporationLimited (HNPCL) is setting up a Thermal Power Plant of 2x520 MW atVisakhapatnam, Andhra Pradesh, India. This cooling water (CW) system

    package is one of the world's largest offshore sea water pumping systems

    pumping 182,000 m3/hr of sea water. It consists of four sets of functionalVertical Turbine Pumps each with a flow capacity of 45,500 m 3/hr driven by4600 kW/18P motor.Cooling Water System and Largest Motorised ButterflyValve for Jaypee Nigrie Super Thermal Power Project. KBL bagged theCooling Water System Package for the Jaypee Nigrie Super Thermal PowerProject. The project comprises 2 x 660 MW Super-critical in Singrauli districtof Madhya Pradesh. Through this project, KBL added another feather in its cap

    by developing largest ever motorised Butterfly Valve (BFV) in thermal powerplants in India.

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    (iii) Outsourcing

    It outsources iron casting, steel casings, and alloy steel casings from BagreeAlloys Limited.

    (iv)

    Contract ManufacturingAs per the information provided, most of the parts are inhouse manufactured. Itearlier used to get mini domestic pumps manufactured from Mangla Pumps atdewas but it has recently set up a new manufacturing plant in Sanand Gujrat tomanufacture all domestic pumps innhouse.

    (v) Installed capacity & capacity utilization (last three years)

    We have established our latest manufacturing facility at Sanand, Ahmedabad.The targeted production capacity is 500 submersible pumps per day. The

    capacity of small and medium pump division (SMPD) at Kirloskarvadiincreased from 1500 Units/month in 2011-12 to 3,000 Units/month in 2012-13.The actual despatched quantity in SMPD increased from 1500 units/month to1800 units/month in the same period.(vi) Various cost components (Raw material, labour & power etc)

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