Expansion14 May 2026, 07:01 pm
Kirloskar Oil Engines: ₹1,400 Cr for Capacity Expansion
AI Summary
Kirloskar Oil Engines Ltd (KOEL) announced a strategic capital allocation of approximately ₹1,400 Crores for capacity enhancement at its Kagal, Kolhapur plant. This investment aims to support the company's goal of reaching USD 2 billion in revenue by FY2030. The expansion will increase capacity by approximately 20,000 engines per annum, supplementing the existing capacity of 1,35,000 engines. Financed through a combination of internal accruals and borrowings, the expansion is expected to be completed within 2 years.
Key Highlights
- KOEL invests ₹1,400 Cr to expand manufacturing capacity at Kagal plant.
- Capacity to increase by 20,000 engines p.a. to meet rising product demand.
- Expansion financed through internal accruals and borrowings.
- KOEL aims to reach USD 2 billion revenue by FY2030 with this investment.
- Existing capacity utilization is approximately 75%.