Kar Mobiles Ltd Company Summary

Kar Mobiles Ltd Summary

The Bangalore-based Kar Mobiles (KML) set up its factory to manufacture valves for internal combustion engines in 1973-74. Commercial production commenced in 1974. In 1978-79, it implemented a project to expanded its capacity from 1.5 mln to 3 mln pa which was again increased to 5 mln pa in 1980-81. Having successfully established itself in the domestic market as a quality manufacturer of valves for internal combustion engines, it entered the export market in 1977. Its first customer was Lister Petter, UK, with whom it started business in 1977. Currently, it enjoys nearly 90 per cent of Lister Petters business. It started expanding its customer network in the UK and added customers like Kelvin Diesel, Villiers, Gardner and Sons, etc, and started exporting valves to France and Germany. The company established a 100% EOU in 1982-83 which commenced commercial production in the last quarter of 1984. The company widened its product range to include valves for heavy-duty stationary engines, locomotives and valves for the Defence sector. It also developed special types of masked valves for the export market. The company proposes to set up a new plant with an installed capacity of 3 mln valves pa in Tamil Nadu. The production is expected to start during 1997-98. During 1996-97, to cater to the needs of the global automotive companies, company has signed a technology licence agreement with TRW Inc. USA. Company has also appointed TRW as a sole selling agents for all countries except India, Pakistan, Bangladesh and Sri Lanka in respect of sales to original equipment manufacturers. In 1996-97, foreign exchange earned by the company is amounting to Rs. 8.13 crores. The companys passenger car sales leapfrogged by a spectacular 48% and the commercial vehicle grew by a robust 40% in the year 1999-2000.Central Statistical Organisation(CSO) has estimated the growth in manufacturing sector to 5.2% as against 7.1% in the previous year 99-2000.Major declines were recorded in the automotive industry especially the commercial vehicle and the farm tractor industry segments.The passenger car industry, which had registered a growth of 48% in the previous year also declined by 8% in the current year 2000-2001.During the year, the workmen at the companys Tumkur plant were on strike between 15.06.2000 to 12.07.2000 which has an adverse impact on the companys performance for the year. Inspite of the adversities, the company had a growth of 2.5% during the year.During the year 2000-01, out of total turnover, about 46% comes from Exports.The Government of Indias Finance Bill for the year 2001-02, provides demand stimulation sops in particular for the passenger car industry.The Bangalore plant has been QS 2000 certified during April 2001 and the Tumkur plant expects to achieve the QS Certification in the current year.