Pre-buying of engines expected in FY21
Sanjeev Nimkar, Chief Operating Officer (COO), Kirloskar Oil Engines Ltd. (KOEL).[/vc_column_text][ultimate_spacer height=”10″] What are the new developments in engines to cater to the new Bharat IV regulations which will get effected in 2020? Kirloskar Oil Engines Ltd. (KOEL)
Sanjeev Nimkar,
Chief Operating Officer (COO),
Kirloskar Oil Engines Ltd. (KOEL).[/vc_column_text][ultimate_spacer height=”10″] What are the new developments in engines to cater to the new Bharat IV regulations which will get effected in 2020?
Kirloskar Oil Engines Ltd. (KOEL) believes in developing its products relevant to the Equipments’ requirements as finally engine is ‘heart’ of the Equipment and plays an extremely critical role in the Equipment performance. So, instead of developing plain vanilla product , we customise our products for various applications and Equipments in the market. End users’ needs and requirements were the central core theme for us to develop our BS IV products and with this consideration we have developed our unique product architecture which will surely emerge as winning products in the market.
On a Technology level, the major changes that take place while transitioning to the stringent BS IV CEV emission norms is introduction of Electronic engines from existing mechanical engine. This will then get coupled with addition of appropriate ‘After Treatment System’ which will change with respect to various power nodes of engine and the end customer requirements. Apart from these changes, the power nodes also will see a major change in multiple applications depending on the Equipment and Market requirements.[/vc_column_text] How do you see the competition from larger companies such as Cummins who are ready with their products and have strong support from their US and European parents?
Kirloskar engines are always cherished for their ease of operation, robustness, durability and reliability. While all of these features will continue to be there in BS IV products as well, our engines will also offer the best in class fuel economy. KOEL has dominating presence in the Off Highway market for a long time and our products operate in the rugged, dusty and tough operating conditions where most of the Construction Equipments operate. This has created a huge pull from the end users to Kirloskar engines. Our renewed BS IV products will also continue to create a ‘pull’ from end users of machines.
We respect our competitors – and all of them in the marketplace whether Global or Domestic. KOEL invested in developing the products to BS IV emissions well in advance which has helped us to reach to a stage where we can say that our products are ready for BS IV emissions. We are proud of the fact that our engines are being tested by all the leading Global as well as Indian OEMs for the upcoming BSIV emission norms.[/vc_column_text] What is the kind of promotional activities your company has undertaken to receive clients and increase market share In the Engines segment?
KOEL has a strong presence in the Off Highway market and we work with all leading players and OEMs in the Indian Construction Equipment Industry. In this endeavour, we have been working with all our key clients for quite some time to ensure that our teams assist OEMs in their engineering process, design reviews, selection of right options for various sub-systems, packaging, building prototypes and their installation, testing and validation. So, we are working individually with all key OE partners considering the business model that we have built. Our Sales team is well engaged with all the clients on a consistent basis.[/vc_column_text] Have you employed enhances distributor and sales network for the purpose?
We mainly utilize our dealer channel network to provide after-market spares and service in this business vertical. KOEL has invested significantly in last couple of years to ‘digitize’ the entire after market channel which provides service as wells as spares to the end users in India. We have 430+ dealers all across India and have the widest channel network in India for this Industry. This entire channel of KOEL is in a process to get geared up for the upcoming new BSIV products.
What is the kind of sales expected in volume and value terms in FY20 and FY21?
FY 20 was a challenging year to the Indian Construction Equipment Industry and we being the leading engine suppliers to the Industry the sales went through challenging times. With the big investments being announced in the Infrastructure by Government, there will be a favourable impact on the demand scenario. Next financial year, also might result in pre-buying of current engines as we transition to the next level emission norms. We are optimistic about FY 21.[/vc_column_text][/vc_column][/vc_row]
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