Kirloskar Oil Engines Limited has announced a strategic investment of approximately ₹1,400 crore aimed at enhancing its manufacturing capacity. The company plans to increase its production capacity by an additional 20,000 engines per annum at its Kagal, Kolhapur plant. This move aligns with the company’s ambition to achieve USD 2 billion in revenue by the fiscal year 2030.
The current manufacturing capacity of Kirloskar Oil Engines stands at approximately 1,35,000 engines per annum, with a utilisation rate of around 75%. The proposed expansion is expected to be completed within two years, financed through a combination of internal accruals and borrowings. The company believes that this capacity enhancement will enable it to meet the growing demand for its products.
Kirloskar Oil Engines is leveraging its engineering capabilities and Indian manufacturing expertise to position itself as a leading provider of advanced energy solutions. The company is committed to innovation and long-term value creation, as reflected in its strategic investment plans.
The company, a leader in the manufacturing of internal combustion engines, generator sets, and agricultural equipment, has a significant presence in international markets. It continues to focus on expanding its footprint and enhancing its product offerings to cater to a broader customer base.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).