Kirloskar Oil Engines Ltd Management Discussions.


Despite softer growth, the Indian economy remains one of the fastest growing and possibly the least affected by global turmoil. The country is taking giant strides to further improve its standing in the world. The improving macroeconomic fundamentals have further been supported by the implementation of reform measures and policy changes such as amendments to the policy/code related to insolvency and bankruptcy, bank recapitalization and foreign direct investment, which have helped foster an environment to boost investments and ease banking sector concerns. Together, these augur well for a healthy growth path for the economy. The Indian rupee suffered because of the crude price shock and conditions were exacerbated as recovery in some advanced economies caused faster investment outflows.

In the last five years, that is from 2014-15 to 2018-19, the average growth rate of GDP has been at 7.7%. This has made India the fastest moving emerging economy in the world.

Kirloskar Oil Engines Limited (KOEL), being one of the pioneers of the Made in India concept since Independence, continues to work towards bringing innovative product offerings to the customer at competitive prices.

This report will provide insights and an update on the Company performance through the Financial Year 2018-19 with a brief outlook for the Financial Year 2019-20.



The Company offers the widest range of Petrol and Diesel Power Generating sets (2-1010kVA) as power back-up for Industrial, Residential & Commercial establishments and also special applications such as Telecom. Marketed under KOEL Green and KOEL Chhota Chilli brands, the power generation business product lines have been dominating the market for over 3 decades.

Need for an assured power back-up has been the main business driver. Urbanization, automation and infrastructure development are driving the growth in this sector. KOEL is rapidly transitioning from being a source of Reliable products to Complete Power back-up solution provider offering turn-key solutions for diverse customer applications.

In the Financial Year 2018-19, the market witnessed single digit growth with many customer segments deferring purchases on the back of finance availability. Steep rise in Commodity prices impacted price flexibility.

Business Overview

The Companys revenue in Financial Year 2018-19 from Power Generation Business stood at र 1222 Crores, as compared to र 1155 Crores in Financial Year 2017-18.

Your Company held on to its dominant market share and leadership position in Low and Medium kVA segments and gained share in the High kVA segment.

Launch of iGreen range

The Company has launched the new iGreen gensets in Low and Medium kVA ranges, offering an array of customer-centric features. Features such as Automatic Mains Failure (AMF), remote annunciation, new aesthetics and several class-leading features in canopies have received excellent response from customers across segments. The range now called as KOEL iGreen is the first to offer the IOT-enabled Genset as a standard feature. The new iGreen range promises to further strengthen KOELs position in respective segments.

Major gains in 750 - 1010kVA Gensets

The new 750 - 1010kVA range continues to wow customers and win market share. Having won orders in many customer segments such as data centres, metro rail, commercial and residential realty, industrial applications, into its fold, the new range has already established itself as a formidable force in the market.

Railways Powercar business

Having entered this segment in late FY18, the Companys Power Generation business made strong strides in this application with a robust order book and large supply & installation base. This segment promises to be a growth driver in times to come.

In addition to conventional on-board gensets, KOEL has successfully demonstrated its capabilities in rapid development of the emerging Underslung Genset version. KOEL is now poised to make strong contributions in the growth story of Indian Railways.

Telecom business

Having re-entered this segment, the Companys Power Generation business has made rapid progress with acquisitions of all major customers.

Future outlook

With the introduction of iGreen range, HHP solutions foray and powercar business gains, the power gen business is poised to grow.


The Electric Pump segment industry grew at an estimated rate of 8-10%.

Because of rapid electrification in engine dominant states like Bihar, change in the subsidy allocation process in large contributing states like Karnataka and dip in the OEM segment and in the agro industrial segment like threshers, the Diesel Pump segment industry continued to shrink as in previous years at an estimated rate of 12%.

The Power Tiller Industry showed a minor decline of 2%.

Business Overview:


The Companys revenue in Financial Year 2018-19 from the Agri Crop Irrigation Business stood at र 366 Crores, as compared to र 340 Crores in Financial Year 2017-18. The sales of diesel engines and pumpsets decreased by 11% over last year due to external factors like change in the governments subsidy policy. A slowdown in the rural construction and infrastructure sectors affected sales of OEM model engines. However, in spite of this, the companys market share is expected to remain at a robust 27%.

To cater the diesel engine market requirement new models - 5 HP Water Cooled & 3.5 HP Air Cooled are being developed.

With superior reach and focus on improvement in customer delight parameters and better channel engagement, KOEL capitalized on growing electrical pumps segment. Several new products are planned for the coming year in this segment.

The Company launched the new "No-compromise" marketing policy during the year. A new benchmark in service was established to further your Companys customer connect. Under this policy all electric pumpsets under 4HP, if found defective, were replaced within 24 hours post replacement approval from Agri Service Centre (ASC) while the higher variants were serviced at an even faster speed.


The Companys revenue in Financial Year 2018-19 from Farm Mechanisation Business stood at र 139 Crores, as compared to र 112 Crores in Financial Year 2017-18.

In a landmark achievement, Mega T received the Golden Peacock Innovative Product/Service Award consecutively for the second year.


The Companys revenue in Financial Year 2018-19 from Industrial Engine Business stood at र 596 Crores, as compared to र 508 Crores in Financial Year 2017-18.

The Construction sector witnessed sustained growth and your Company recorded its highest ever sales in this business driven by increased demand for engines in segments like Concrete, Earthmoving, Road Construction, Fluid Handling & Tractors. The Industrial Engine Business grew by around 17% in Financial Year 2018-19 compared to the last financial year. The demand for Tractor engines increased due to favourable agrarian policy decisions such as farm loan waivers in certain states.

This growth has been achieved by developing new applications in new OEMs as well as existing OEM partners backed by favourable market factors including the thrust from the Government on Infrastructure and Road Construction projects.

New Product Developments

To address the upcoming Construction Equipment Vehicle - Bharat Stage Four (CEV-BSIV) emission changes in the Indian market in 2020, your Company has initiated a program to launch superior electronic engines with key customers. The new emissions are applicable in the Indian Construction Equipment market with effect from October 2020.

Future Outlook

Your Company believes the focus of the Indian government on road and infrastructure development projects along with the "Make in India" initiative will lead to a sustained growth in demand for construction equipment. Your Company has strong partnerships with all major equipment manufacturers and will continue to leverage technology leadership to fuel its growth in this sector. Industrial Business is expected to continue its growth story powered by a focused approach and continuous array of new application development. Indias long term growth story remains intact, driven by strong private consumption and public push for Infrastructure spend coupled with a thrust on road building by the Government.


The Customer Support Business revenue in Financial Year 2018-19 stood at र 409 Crores as against र 372 Crores in Financial Year 2017-18, registering a growth of 9.95%. This is despite improved supply of power across India and relatively lower DG set usage.

With 431 service centres across India and an extremely proactive service team, KOELs exemplary after sales service support and robust digitized processes are Industry benchmarks. The Company has established itself as a dominant service brand in the market. The Company has four regional level training centres across India aimed at constantly improving the competence of our field service team. During the year approximately 78000 customers were touched by various service marketing activities.

In order to enhance customer experience several digital initiatives were launched during the year, which are a benchmark in the industry:-

• Customer Self Service App

In July 2018, KOEL Connect was launched by the Company for empowering the customer to enroll their asset for self service requirements. Customers can register service requests, view the status of service request, view the service history of their assets and get new updates from KOEL apart from other important information shared through this mobile App.

• Customer Portal for KOEL AMC Customers

The Company has provided an online portal for self-service of KOEL AMC Customers. This Portal provides direct access to customers for raising Service Requests who are also able to view the real time status of all service requests on registered assets under KOEL AMC. Theres a dedicated helpdesk for KOEL AMC customers.

• Online portal

KOEL online Bandhan for Retail customer AMC services achieved 14000+ enrolment milestone on 31 March 2019.

Customers can visit the portal and avail these service packages. Various new initiatives were taken for better customer experience. Some of them are listed below:

• 24 hours Maximum Time to restore (MaxTTR) monitoring for improved response time and customer satisfaction

• email IDs for KOEL CARE Service Centers for unified customer experience


International business is one of the key focus areas and growth drivers for your company in line with the vision to Touch the World by 2025. The Company exports diesel engines, generating sets and spare parts to 51 countries through a network of regional offices and distributors. The products cover a wide range of Power Generation, Industrial and Agriculture applications.

Global growth rate in 2018-19 is estimated at a little above 3%.

Markets witnessed new challenges in the Middle East and Africa. The political situation remained volatile in large parts of the Middle East. Some of the markets in Latin America were hit by adverse forex situation. These factors will need to be duly considered for forecasting sales in 2019-20.

Improvement is expected in energy commodities prices in 2019-20. Metal and Minerals are also expected to show marginal improvement. However, Agriculture may continue to decline, which would shrink our traditional markets.

Business overview

Revenue from International Business in Financial Year 2018-19 was र 206 crores as against र 182 crores in Financial Year 2017-18. We suffered a setback in the traditional markets. Our efforts towards improving geographical spread and expanding business to new market segments as well as adding new OEMs to our portfolio enabled a growth of 13.18% over the previous fiscal year. New markets and new segments contributed about 20% of the overall export revenues. Growth came largely in the Power Generation segment.

The Company achieved double digit growth in South East Asia as well as key markets in Africa and the Middle East. Business in the Americas region remained steady. The Gulf countries and Southern Africa contributed significantly to export revenues. Competition from multinational companies has intensified in power generation export segment while the company faces severe price competition from Chinese and domestic players in the agriculture export segment.

Some of the highlights in the International Business for the Financial Year 2018-19 include:

• Intensified efforts to develop business in the Middle East and Africa which accounted for close to 80% of exports business. UAE, South Africa and Nigeria have been identified as Focus Markets to achieve double digit market share.

• FMUL fire-fighting engines business was about 11% of the overall export business. We introduced 3000 rpm FMUL engines which have been developed for international markets.

• We obtained EPA certification for diesel engines suitable for up to 60 kWe Stand by Generating sets. These engines will be the growth drivers in Financial Year 2019-20.

• Breakthrough orders received in Telecom sector, especially in South East Asia, and the company intends to build on this in the next financial year.

Future outlook

The focus in Financial Year 2019-20 will continue to be on the market penetration in focus market segments. The Company has developed a customized market strategy and detailed action plan to leverage its strengths and maximize business in the focus market segments.

The Companys product strategy in Financial Year 2019-20 is to focus on high value products, especially HHP range and firefighting application engines. The company is also exploring opportunities for gas engines. This will boost the Companys growth prospects in the long term.

KOEL Americas Corporation, USA (a wholly owned subsidiary company) has obtained EPA certification for specific engine models, which will enable our entry in the USA power generation segment. Commercial supplies will commence in 2019-20. It has also developed stocking facility for generating sets to cater to the markets in South and Central America.


The Companys revenue in Financial Year 2018-19 from Large Engines Business stood at र 179 crores, as compared to र 143 crores in Financial Year 2017-18.

The Large Engine Business operates in niche segments like Defence and Marine and supplies energy systems for radars, communication systems, vehicle repowering, propulsion engines and gensets for Marine sector. Here demand is based on the launch of large Government Projects.

The Company is focusing on fishing boat engines market and has developed DV, SL and 6R series engines. The Company has now entered the Nuclear Power Plants market for emergency DG sets with KOEL DV series engines.

Business Overview:

Developing customized products that meet stringent qualification requirements of customers remained the focused area for growth. The Company has developed six more models of compact generating sets as per customers requirements and also obtained necessary approval from Defence authorities for these sets. All the performance trials were successfully demonstrated to Defence authorities.

During the year, the Company developed few more Marine engines for fishing boat application and propulsion application. Engines commissioned on fishing boats have clocked more than 3000 hours and performance is well appreciated by customers. Also Engine commissioned on Coastguard vessels clocked more than 10,000 hours this year, which is an important milestone, proving capability.

A 200 kVA DG set developed for Nuclear Power Corporation of India Limited has successfully completed Seismic qualification by the shake table method. This is KOELs 1st DG Set to achieve this qualification.

Future outlook

The Large Engines business is focusing on expanding product offerings and increasing market reach and will drive its growth in Defence and Marine power and propulsion segments and fishing engine segment. With development of durable and efficient engines and meeting stringent product performance requirements, your Company is gearing up in getting sizable market in fishing boat engines. The Nashik plant will continue to be the main Product development, manufacturing and assembly hub for the business, especially with all Defence and Marine engines and DG sets assembly.


Research is a key enabler that helps KOEL remain relevant and competitive in the global markets and drive growth through innovative solutions and enhanced product offerings. Over the years, your Company has set up a state of the art R&D facility, operated by a very competent team, which works closely with different businesses to deliver high value products to customers. R&D expenditure is focused on expanding product range, emission upgrade and solutions for sustainable future growth. In pursuit of excellence in product performance and enhancing value to customers through new and improved products, the research team is working towards achieving benchmarked parameters both in the domestic and global markets to offer the most advanced and comprehensive range of products. During the year, the team supported the launch of several innovative products that enabled your Company to fortify its market leadership position. First firing of K4300 engine platform of HHP segment and R550 engine platform of LHP segment was achieved in last year.

A range of gensets was developed for different power car applications of Indian Railways. Biogas gensets from 4 kVA to 125 kVA were developed. A range of HHP Products has been offered in Fire Pump application. New OEMS and new applications were acquired for Construction Equipment Vehicles (CEV) engine. EPA certification was achieved for 3 models of emergency standby genset application. FM/UL certified range of fire pump engines upto 3000 rpm were launched in production. HHP fire pump engines were also launched in production. Product features were enhanced for domestic power generation application. Value engineering exercise was successfully continued this year for existing product lines.

The R&D team provided additional power nodes and upgrades for the following:

• Bharat Stage III (BS III) emission compliant engines for construction equipment

• CPCB stage II emission norms applicable for power generation

• Bharat (TREM) Stage Ill A emission norm compliant engines for tractor application, Power tiller and Power weeder

Innovating for a sustainable future

Some of the specific focus areas of R&D efforts in coming years were:

• Cost effective emission solution for Tier 4 Final / BS IV CEV norms

• Development of new engine platforms namely K4300 and R550

• Implementation of critical chain project management methodology for new product development

• Development of special marine, railways and defense applications

• Product portfolio and emission strategy for CPCB IV+ norms

Future Outlook

The R&D is actively tracking/learning/developing products involving disruptive and/or futuristic technology trends such as alternate fuels, Electrification of engines, energy storage and alternate methods of electricity depending upon technology maturity. Your R&D is working on hybrid gensets, battery invertor, fuel cell and gas gensets. One global engine platform and One HHP platform are under development. New applications like marine, defence and railways will also be developed. Engine technology will be developed for alternate fuels like natural gas, biogas, methanol etc. The R&D business strategy will continue to focus on increasing efficiency, enhancing customer satisfaction and strengthening business presence in key strategic growth markets.


Focused Quality improvement programs were put in place through

• Customer Centric Improvement Plans

• Six Sigma techniques for Product and Process Improvements

• Focus on new product quality improvements

• Improvement Plans based on Internal Parts Per Million (PPM)

A consistent focus on quality led to significant reduction in Internal PPM and customer complaints across various product categories.

Many OEMs e.g. Case New Holland Construction Equipment (India) Private Limited, Sany Heavy Industry India Private Limited, Volvo Group India Private Limited, Hyundai Construction Equipment Caterpillar India Private Limited and Dynapac Road Construction Equipment (India) Private Limited have formally recognized KOEL for demonstrating excellence in various aspects. Platinum Award from Caterpillar is indeed a significant milestone in this regard.

Supplier Quality Improvement has also been given a major thrust. Identified suppliers were groomed through focused development programs.


The Supply Chain emerged as an important cog in the business improvement of your company. Performance in the field of new product development, managing inventory, and improving the MTTD (mean time to deliver), have been paramount.

The Company has been working with the TOC (Theory of Constraints) way at the core and also taken its suppliers, especially of the MSME sector, on board for the same. Several Supplier Relationship Management initiatives of the Company, especially its Lean Cluster initiative is a high impact improvement drive for the suppliers. It is based on foundation of lean principles and deployment of lean tool by external experts at suppler end. The focus is on shop floor improvement and drive data driven decision approach across the participating units. The initiatives have created a structured and sustained improvement platform for suppliers. .

New product development is done through a systematic CCPM (Critical Chain Project Management) methodology in your Company and has helped to identify and cut down on bottlenecks in the development process. As a result, in the last year the path breaking development of two important products i.e. K4300 and R550, was completed. This will further help in augmenting our product offerings to the market and open more world markets for the Companys products. In addition to new product development your Company is actively working on upgradation of engines to suit applicable statutory norms e.g., Bharat Stage IV norms for Off-Highway construction machinery.

The Company also conducted the 10th edition of the SQIC (Supplier Quality Improvement Contest) proficiently to demonstrate that the partnership of Suppliers is increasing and becoming more competitive over the years. This program has emerged as a pioneering effort in supplier engagement as it serves as a platform to showcase innovative and successful methods. The Company further embarked on a ZERO Defect Journey with a few selected suppliers.

The aim of your Company is to build a future ready Supply chain which can be done by getting aligned to the modern concepts of IoT (Internet of Things) & Industry 4.0. The Company has lined up initiatives like discussion forums and implementation support, which will pave the way for our Suppliers to participate in the transformation journey.


During the year, numerous initiatives were undertaken in your Companys plants and offices in the areas of Environment, Occupational Health and Safety (EHS). Some of the key initiatives are listed below:

Pune Plant

Environment initiatives

• Celebrated World Environment Day. Planted trees in factory premises.

• Use of treated effluent for toilet flushing in addition to gardening.

• Use of fly ash bricks for civil work

Occupational Health initiatives

• Blood donation camp

• No Tobacco and de-addiction drive.

• E bulletin on Health made available on Integrated Management System Portal

• Lectures on various health topics by eminent personalities from related field

• Periodical Medical examination of all employees

• International Yoga Day

Safety Initiatives

• Safety Awareness for employees by organizing competitions during safety week

• Conducted mock drill for emergency preparedness plan

• Trainings for forklift drivers and crane operators

• Lecture on Fire Fighting Kagal Plant Environment initiatives

• Plantation of 1300 trees at plant on World Environment Day.

• Use of ETP treated water for domestic usage

• Celebration of World Environment Day for awareness creation amongst employees & nearby villages

• Celebration of Kirloskar Vasundhara International Film Festival for society environmental awareness creation

• Use of filtered rain water for cooling towers, paint booth & kitchen utensil washing

• Use of Bio-pesticides for pest control Occupational Health initiatives

• Blood donation camp

• Session on Stress Management and HIV AIDS awareness

• Periodic medical examination of all employees

• No Tobacco and de-addiction drive.

• E bulletin on Health made available on Integrated Management System Portal

• Training for employees on Heart Attack Safety Initiatives

• Road Safety Awareness for employees

• Conducted mock drill for emergency preparedness plan

• Implementation of 7 phases of Behavioral Based Safety

• Training and Authorisation of operators for material handling equipment

• Safety walk on daily basis Nashik Plant Environment initiatives

• Celebration of World Environment Day

• Celebration of Kirloskar Vasundhara International Film Festival for social environmental awareness creation

• Tree Plantation at plant Occupational Health initiatives

• Periodic medical checkup

• Lecture on Diabetes, Ergonomics and Heart Disease

• Blood donation Camp

• No Tobacco and de-addiction drive.

• E bulletin on Health made available on Integrated Management System Portal

• Yoga awareness session on International Yoga Day Safety Initiatives

Display of safety instruction at Main gate for visitors to create awareness

• Training and Authorisation of operators for material handling equipment

• EHS and Fire fighting Training for employees Bhare Plant

Occupational Health initiatives

• No Tobacco and de-addiction drive.

• E bulletin on Health made available on Integrated Management System Portal

• Periodic medical checkup

• First Aid Training for employees Safety Initiatives

• Safety Awareness for employees

• Conducted mock drill for emergency preparedness plan

• Training and authorisation of operators for material handling equipment HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company continues to maintain healthy and harmonious industrial relations across all its manufacturing plants and offices. The Human Resources function has been enabling business transformation by striking a balance between business needs and individual aspirations. The company has a dedicated human capital of over 2443 employees spread across locations in the organization.

Some of the significant initiatives that were undertaken during the year include:

• Signing of 9th wage settlement agreement for plant located at Pune, prior to expiry of the earlier settlement, without losing a single man-day.

• Implemented Behavioral Training Calendar and conducted 8 training programs spread across 10 batches throughout the year.

• Conducted Customer Focused Training Programs like Sales Management for Agri Crop Irrigation and Agri Farm Mechanization & Creating Customer Delight for Large Engines Business Group.

• Leadership Development Programs like 7 Habits of Highly Effective People, Design Thinking for High Business Performance, Leadership Excellence, Management of Creativity & Innovation, Aastha Process Labs etc. for High Potential Employees.

• Technical Career Path, along with Technical Grades, defined for Research & Development team.

• Initiated Critical Position Assessment for all BUs, as part of first phase of succession planning initiative.

• Initiated 360 degree assessment for some Business Units through Thomas International Group, leading to focused Individual Development Plan.

• Our Rewards and Recognition program Sam man has been received well and a culture of acknowledgement and recognition is being fostered.

• Setup "Tarang", a Fun @ Work club, which conducted various events like Independence Day, Raas Garba Navratri, Diwali & Holi. In addition to this, also arranged sporting events like Inter Company Volleyball Tournament and KOEL Cricket League.

• Completed review of some HR Policies by setting up an internal CFT & benchmarking against industry standards.

• Continued the endeavor to create a transformational industrial relations culture, under which selfdriven & passionate employees align themselves to organizational goals, while their fair expectations are proactively met. Employees are encouraged to partake in various ongoing programs like Kaizen, ENCON, Quality Circles, Safety, 5S, WASH, Sports, Cultural Programs, Kirloskar Vasundhara Film Festival, Corporate Social Responsibility(CSR) initiatives etc.

• Continued efforts on arranging lectures on health, fitness, common ailments/diseases and life style improvement, with a view to enhance employee awareness.

The above steps have been taken on the human resources front to ensure that the Company can continuously cater to the changing business opportunities and challenges.


The Finance function has increasingly played the role of business partner and has led several strategic initiatives that ensure improved efficiency and profitability in the organization. The overall business environment has remained highly competitive and it was imperative that profit improvement and value engineering initiatives were taken up in order that the Companys products remained competitive and accessible to the customers.

In the last couple of years, your Company has taken several initiatives, cutting across the length and breadth of the organization to ensure that it is future ready and geared to accelerate its growth strategy with prospects of a better economic and industrial climate. Except for minor challenges like de-monetization, the improved economic climate in the current fiscal together with a better monsoon provided an opportunity for your Company to put to test what it has been working towards. With zero debt, a strong cash position and excellent working capital management the Companys Balance Sheet remains strong and poised for accelerated growth.

The finance function has also taken several initiatives to improve data integrity and support business decision making. IT enablement of several erstwhile manual processes has ensured improvement in speed and reliability of information at reduced cost.

Adherence to statutory and regulatory compliance has always been given the highest importance. Your Company uses a work flow based legal compliance software tool that monitors and ensures compliance of all applicable regulations across all factories and offices.

During the year under review, the Company has arranged 1st factory visit to Prestigious Kagal Plant for shareholders of the Company.


The Internal Audit Department develops a risk based audit plan on a yearly basis which is approved by the Audit Committee. The audit plan covers all businesses and functions across all locations. The audit processes are automated starting from initiation of audits to tracking of open audit issues and their closure. The IAD conducts audits as per the approved plan and reports significant observations and progress of implementation of action plan to the Audit Committee.

The Company has an internal control system covering all businesses and functions of the organization including all locations and is commensurate with the nature of the business, size and complexity of operations. The IAD follows a continuous process of updating the internal controls repository to ensure that adequacy and effectiveness of all major internal controls are reviewed. The internal controls are regularly tested by the internal and statutory auditors through their audit plan.

The IAD follows has an IT enabled control self-assessment system which is used to support the internal audit reviews and helps the employees to monitor the internal controls they are responsible for. This system aids in building a robust control environment across the organization.

As per the Enterprise Risk Management (ERM) framework, the IAD supports the businesses and senior management in identifying and assessing business and enterprise risks. The IAD works with the businesses to prepare and review the mitigation plans for key risks. IAD works with the Strategy Cell and Senior Management to ensure that those enterprise risks are identified which are relevant to the strategy adopted by the Company. The enterprise risk owners present the risks with the status of mitigations plans to the Audit Committee periodically. The ERM framework is aimed at effectively mitigating the business and enterprise risks through strategic actions.


The Companys drive towards excellence continued unabated. Some of the recognitions received for our relentless efforts of quality delivery and operational excellence included:

• Kagal plant

a. "Excellent Energy Efficient Unit - 2018" at 19th National Award organized by Confederation of Indian Industry (CII)

b. Certificate of Merit at 13th State Level EC Award towards energy conservation in Engineering industry category through Maharashtra Energy Development Agency (MEDA)

c. "Noteworthy Water efficient Unit" award at CII Water awards 2018

d. "GOLD" award for Supply Chain and Quality Team at International Convention on Quality Control Circles, 2018 at Singapore and recognitions in categories viz. Kaizen, 5S and safety skit from Quality Circle Forum of India, Pune Chapter

e. "K Group ENCON award" for The Best Managed Energy Efficient Unit in Large Manufacturing units category

• 1st prize towards Energy conservation in Small and Medium Enterprises sector at 12th State Level Energy Conservation Award organized by MEDA for Nasik Plant

• Industrial Business received following in Financial Year 2018-19 from various OEM customers in view of excellent performance on various aspects:

Platinum Certification for Supplier Quality Excellence Process (SQEP) by the worlds largest Construction Equipment Manufacturing Company - Caterpillar Inc. Caterpillars SQEP is a key factor in the Companys "zero-defect" culture and is only awarded to its suppliers who meet a stringent list of global performance standards. The SQEP is based on various parameters like ISO certification, supplier parts per million (PPM), on-time production part approval process (PPAP), statistical process capability results on key characteristics, Six Sigma deployment, supplier capacity, on-time delivery to production and customer service. Caterpillars SQEP certification levels are Platinum, Gold, Silver and Bronze. Platinum is the highest level of certification. KOEL is the only supplier globally to receive the Platinum status in engine category till date.

• Golden Peacock Innovative Product/Service Award consecutively for second year for Power Tiller (Mega T)


The ERM framework addresses the risks and opportunities in line with the Companys strategy / projects.

Some of the major risks, opportunities and threats in the Company radar are detailed below:


• Continuous rise in commodity prices in a competitive environment will put pressure on margins and profitability

• Subdued financial growth in the global economy and geopolitical issues such as protectionist trade policies will result in volatility in international markets and in turn could affect export growth plans.

• Growth in the existing businesses and portfolio of products is directly co-related to favourable macroeconomic environment. This is further accentuated by large dependence of diesel as the predominant fuel type. Dominance of diesel powered product portfolio may come under threat with increasing penetration of renewable and electric energy sources in certain business segments.

• Acquisition and retention of appropriate talent , with right skill sets, to sustain and grow existing and new businesses.


• Indian economy is expected to grow at 7.3 % in calendar year 2019 and 2020. The country is less exposed to a slowdown in global manufacturing trade growth than other major Asian economies and emerging markets and is poised to grow at a relatively stable pace in the next two years.

• Growth in income will transform India from a "bottom of the pyramid economy" to a middle class-led one, with current consumer spending growing from $1.5 trillion to nearly $6 trillion by 2030.

• The banking sector in general may do much better in 2019 versus 2018 broadly due to the fact that situation for certain stressed banks with high NPAs may improve which may normalize both in terms of growth as well as profitability which will add to aggregate earnings. Overall, banking sector is expected to deliver very high earnings growth.

• The global sourcing market in India is continuing to grow at a faster pace. The global IT services industry is currently going through a transition phase from traditional to digital transformations like cloud computing, analytics, artificial intelligence and IoT.

• India is poised to become the third-largest consumer market behind only the US and China, which will present opportunities and challenges.


• The employability of current workers as well as the readiness of the future workforce for the economic and technological changes expected over the next decade, if not addressed, will impact Indias growth

• The ongoing trade war between the US and China may adversely affecting Indias growth plans

• Spike in crude oil prices has an adverse impact on Indian currency, widening the current account deficit and dampening growth, unless there is a reversal in oil price trends. This indicates dependence of the health of the Indian economy on the price of oil.