Kirloskar Brothers Limited is accelerating a strategic shift away from low-margin engineering, procurement and construction (EPC) projects toward value-added manufactured products, engineered solutions and services, as part of a broader effort to improve margins, cash flows and operational efficiency. The strategy is being supported by manufacturing debottlenecking, digital initiatives and a growing order book.
The company has significantly reduced its exposure to EPC activities over the past few years. EPC contribution to revenue has declined from 10 percent in FY20 to 3 percent in FY25, reflecting a deliberate move away from working-capital-intensive and lumpy project execution. Going forward, the company is maintaining a selective approach to EPC, while continuing to participate in water, power and irrigation sectors primarily through manufactured products and solutions rather than turnkey projects.
Alongside this shift, Kirloskar Brothers is increasing the share of value-added and engineered-to-order products across geographies. The evolving product mix places greater emphasis on higher-margin offerings, services and subscription-based solutions, with the objective of improving profitability, reducing cyclicality and delivering more consistent revenue streams.
Manufacturing efficiency forms a central pillar of the strategy. The company is undertaking debottlenecking initiatives at key domestic subsidiaries and manufacturing locations to enhance capacity utilisation and throughput. Cost optimisation measures are also being implemented across subsidiaries to support margin expansion and operational discipline.
Digital transformation and Industry 4.0 investments are playing a growing role in both manufacturing and services. The company has invested over the past decade in automation, IoT-enabled manufacturing, data analytics, additive manufacturing, and artificial intelligence-based diagnostics. These initiatives are aimed at improving production efficiency, enabling predictive maintenance and expanding recurring service revenues through remote monitoring and subscription platforms.
The strategic initiatives are underpinned by a strong order book position. As of the third quarter of FY26, the consolidated pending order book stood at INR 3,727 crore, equivalent to INR 37.27 billion, compared with INR 3,094 crore, or INR 30.94 billion, in the year-earlier period. The standalone pending order book was INR 2,203 crore, or INR 22.03 billion, supported by demand from irrigation and water resource management, power, building and construction, oil and gas, and industrial sectors.
Kirloskar Brothers continues to leverage its global manufacturing footprint to support localisation, cost efficiency and compliance with regional sourcing norms. The company operates 10 manufacturing facilities in India and seven overseas plants across the UK, the Netherlands, Thailand, South Africa and the US. This footprint enables reduced turnaround times, logistical efficiencies and access to duty advantages in markets such as South-East Asia.
Product innovation remains an important focus area. The company highlighted continued development of specialised and differentiated offerings, including lowest life-cycle cost pumps, concrete volute pumps, nuclear primary cooling pumps, IoT-enabled monitoring systems, fire-fighting solutions and advanced industrial pump series. Eight new products have received the India Design Mark over the past five years, underscoring the emphasis on design and engineering capabilities.
Kirloskar Brothers Limited, part of the Kirloskar Group, manufactures pumps, valves, motors and fluid management systems for applications across water, power, oil and gas, industry, irrigation, marine and defence, with manufacturing operations in India and overseas markets.
