Kirloskar Oil Engines Ltd

At KOEL, we are first a technology company and then a product company. We are very proud of this DNA, and we believe our technology, backed by our great engineering and R&D capabilities and manufacturing skills, generates great products that meet the evolving needs of our customers.

It gives me great pleasure to present to you the Annual Report for Kirloskar Oil Engines Limited (KOEL) for the financial year 2023-24. This year has been a remarkable journey marked by significant achievements, challenges, and growth opportunities. As we reflect on the year gone by, we are proud of the resilience, adaptability, and commitment demonstrated by our teams, stakeholders, and partners.

The business environment that we operate in constantly challenges us. The nature of challenges may vary as times change, but this unpredictability is not something new. Sometimes the change is internal, within the industry or the organisation, like changes in technology, changes in regulation, and so forth and sometimes external to the organisation, like geopolitical changes, introduction of complimentary or alternate products and so on. What makes organisations succeed in the long term is adapting to these changes in a nimble and swift manner. This year, for KOEL, was no exception; we had our own challenges, both internal and external , and I am proud of the way we responded to them as an organisation.

At KOEL, we are first a technology company and then a product company. We are very proud of this DNA, and we believe our technology, backed by our great engineering and R&D capabilities and manufacturing skills, generates great products that meet the evolving needs of our customers. Our R&D is in house, and we take great pride in developing our own products, that fit the markets that we serve. The entire fleet of CPCB IV+ Gensets that we launched in the last year, were developed in house, and we were the first manufacturer in the country to get our entire range certified by the regulatory agencies.

We are excited to be in the middle of this great transformation of our industry, where the products are getting cleaner, technically is becoming more advanced, and efficient. We believe this presents a significant opportunity to pioneer the industry with products that cater to our customers' needs while making a positive environmental impact. In the previous year, we made significant progress, firstly with a completely new range of products in the Genset segment, which not only met the latest CPCBIV+ norms, but also global emission standards. This is a testimony to the R&D prowess of the company to build world class products in India.

We are also significantly expanding our product range, both in terms of power ranges, and fuels. We have made significant forays into the High Horse Power segment with new products like OptiPrime, and we are confident that we will make significant inroads in our market share in these segments. We also have Internal Combustion Engine (ICE) products that run on a range of fuels like Hythane, Natural Gas, Ethanol, Methanol, Hydrogen and the thought is to have the products ready as these fuels become available. We are also researching and developing products on other non-ICE power generation technologies like fuel cells, hybrid products, batteries, and micro grids. We are committed to leading this transition of the industry, and we will continue to focus on our core, whether it is in the form of capital allocation or R&D spends.

Sustainability is at the heart of our business and products

As the world strives to be more sustainable, cleaner and greener initiatives form the core of our industry. Energy drives the progress we witness today, it The world needs energy and it is energy that is behind all the advancements that we see today. Energy has alleviated the quality of human life on this planet and it will continue to do so. It will continue to move the world. As its demand keeps increasing the need for energy will not go down, so the question is how can we have technology that creates energy in a clean, green and sustainable way?

The next big part in the journey of sustainability is clean manufacturing At KOEL, sustainability is central to our operations.

For us, this starts with our products, because our products are meant to create the power that meets the energy needs of our customers. Our current range of CPCBIV+ products meet the stringest of emission norms, and is a significant step forward in our journey towards clean power. Our products that run on cleaner fuels like Hythane, natural gas and other fuel mixtures, hold immense potential and as these fuels become widely available, they will start playing a bigger role in this journey.

The next big part in the journey of sustainability is clean manufacturing. At KOEL, sustainability is central to our operations, we plan to achieve this through integrating renewable energy sources, enhancing energy efficiency, implementing effective waste and water management, employing green building practices, and investing in carbon offset projects. Our Kagal plant showcases our commitment to reducing harmful environmental impact, setting industry benchmarks, and supporting our customers' decarbonisation efforts with eco-friendly solutions. We aim to expand these sustainable practices across all operations, driving a greener and more sustainable future.

In conclusion, I see KOEL , by being a responsible manufacturer, is in a unique position to make a significant impact on our customers, the society in which we operate and the world at large, I would like to take this opportunity to thank our shareholders for their unwavering support and confidence in KOEL. I also extend my gratitude to our customers, partners, and employees for their relentless dedication and contribution to our success

Thank you for your continued support.