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Kirloskar Oil explores
Chinese markets
Geeta
Nair
Pune, Sept 17: Chinese tractor manufacturers are keen
on buying engines from Kirloskar Oil Engines Limited (KOEL).
Atul Kirloskar, chairman of KOEL said a team is at the moment
in China studying the industry and checking out the serious
players in the business to ascertain the potential of exporting
to China.
| KOEL calls off
JV with Briggs and Stratton |
KIRLOSKAR Oil Engines Limited (KOEL)
has called of its joint venture with Briggs and Stratton
Power Equipment Limited. Atul Kirlsokar, CMD of KOEL said
the company was getting out of the joint venture at the
right time.
Kirlsokar Briggs and Stratton was a 50:50 joint venture.
Briggs and Stratton was keen on setting up a manufacturing
set-up in India. Kirloskars had suggested trading via
imports before actually starting production to gauge the
market response. So the company had got into marketing
of pumpsets and gensets.
Some of the products was improvised to adapt the Indian
market. The kerosene engine failed in the market, following
which the joint venture was called off. |
China supplies a large number of tractors
to the US market, which has off-late been hit by stricter
emission norms. KOEL has developed the environment-friendly
R1040 series engines, which have cleared the US Tier I emission
compliance for off-road use. This is the reason for the Chinese
showing interest in this category of engines.
However the company will be moving cautiously in this market,
Mr Kirloskar said, because of the possibilities of the engine
design being copied and affecting future business.
Entry into the Chinese market will depend on the ability of
the company to protect itself. KOEL is also developing engines
to go to US Tier II to open up newer markets.
The increased emphasis on exports is an important element
in the company’s strategy. Export to China and other regional
market is the goal for the company.
“Our vision so far had not extended beyond Indian boundaries
but we have now started looking at the regional markets of
South-East Asia, Africa and Middle East for diesel engines
and auto components,” Mr Kirloskar said.
In many of these markets hi-tech electronics engines are not
required and we will be tapping this market, Mr Kirloskar
said.
KOEL’s exports of the engines and auto components was Rs 44.3
crore during 2000-2001 which represented a 44 per cent and
46 per cent growth respectively. “Rather than relying on opportunistic
tenders, the focus of KOEL will be on developing export markets
by putting up efficient distribution and service networks,
developing specific products for export markets like pumpsets,
gensets and bearings”, Mr Kirloskar said. To strengthen the
export team, Mr Rahul Kirloskar has been inducted as director
(exports) on the KOEL board.
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