OUR STRATEGY ROADMAP
KBL’s strategy and business model lies at the heart of our capacity to create and sustain value over time. Our holistic approach to creating value is underpinned by our strategy, objectives and targets. Each of our business units have specific strategies that align with the organisation’s overall business goals.
Strengthening our offerings, enhancing our geographic presence, increasing market share, focussing extensively on our smart and innovative solutions, and setting new standards in product innovation, efficiency, reliability and sustainability are some of our key priorities.
To operate in a challenging environment and to make the organisation even more competitive in the global business landscape, we have devised our strategies and key priorities, aimed at unlocking our full potential and delivering increased value to all our stakeholders.
SO1: Widening Market Reach
Focus Areas
- Leveraging global presence
- Focus on high-growth segments
- Enhancing product basket to cater new applications
- Building the brand further
- Increasing market reach through our Channel Partners
Progress in FY 2023-24
- High growth in order booking from focussed countries
- Sustained leadership position in growing market segments
- Launch of new products for Industrial, Domestic and Agricultural segments
- 50% of business revenues contributed by Channel Partners
Key Risks
- R3: Financial performance risk affecting margins
- R4: Delay in commercialisation of new technologies
- R6: Geopolitical risk
SO2: Improving Operational Efficiency
Focus Areas
- Increasing overall revenue through introduction of new products, value-added offerings, and by providing aftermarket sales and service
- Optimising margins with competitive and value-based pricing and product upselling
- Improving costs and processes by optimising workflows, eliminating inefficiencies and generating higher share of Green Energy
- Continuous financial analysis, cost control and working capital management
Progress in FY 2023-24
- 227 variants of new products including energy-efficient models developed
- Increased revenues from aftermarket segment
- 20% - 22% electricity consumption served by renewable energy (solar and wind) with plan to enhance it further up to 70% by FY 2025-26
- 36% growth in EBITDA
Key Risks
- R1: Talent management - Recruitment and retention
- R2: Cyber and information risk
- R3: Financial performance risk affecting margins
- R4: Delay in commercialisation of new technologies
SO3: Digital Transformation
Focus Areas
- Increased digitisation of business processes
- Enhancing operational efficiency and employee productivity with intelligent automation of software
- Becoming “Business Continuity Ready” to manage IT-related disasters
- Adopting new technologies, such as 3D printing, AR, VR and IoT
Progress in FY 2023-24
- Migrated our legacy system to new platforms and enabled software consolidation
- Deployed AI/ML-based tools for real-time monitoring of end-point cyber threat
- Launched Fire IoT – IoT-based solutions for fire pumpsets
- Enhanced Enterprise Resource Planning (ERP) in manufacturing
Key Risks
- R1: Talent management - Recruitment and retention
- R2: Cyber and information risk
- R3: Financial performance risk affecting margins
- R5: Rise in procurement cost and heavy dependence on limited suppliers
SO4: Environment Protection
Focus Areas
- Developing energy-efficient and lowest lifecycle products
- Conserving biodiversity at plants
- Setting up environmental and energy management systems
- Enhancing consumption from renewable energy
- Finalising Net Zero roadmap for KBL
Progress in FY 2023-24
- Awarded GreenPro Ecolabel certification for Cast Iron and Alloy Cast Steel foundry castings, DBxe End Suction Pump Series and Horizontal Split Case LLCTM Series of pumps
- Awarded CII GreenCo certification for 4 manufacturing plants
- 424 BEE-certified star-rated products including 4-star and 5-star ratings
- ISO 14001:2015 Environmental Management System certification and compliance for 9 plants
- ISO 50001:2018 Energy Management System certification and compliance for 5 of our plants
- Completed Scope 1, 2 & 3 inventorisation for all our locations
- Developed special habitats and landscaping at Kirloskarvadi and Dewas plants
Key Risks
- R1: Talent management - Recruitment and retention
- R3: Financial performance risk affecting margins
- R4: Delay in commercialisation of new technologies
- R5: Rise in procurement cost and heavy dependence on limited suppliers
SO5: Talent Management and Competency Development
Focus Areas
- Employee engagement
- Leadership development
- Diversity and inclusion
- Skill upgradation
Progress in FY 2023-24
- 7.3% female workforce (increased gender diversity)
- Set up leadership competency model and collected 360-degree feedback for Leaders
- 71% employee engagement score in employee engagement survey (Your Voice Counts); developed action plan for further improvement
- Launched employee well-being policy and formed various clubs; Revisited various people policies as part of action planning
- Undertook continuous skill upgradation programs for all employees
Key Risks
- R1: Talent management - Recruitment and retention
- R2: Cyber and information risk
- R3: Financial performance risk affecting margins
- R4: Delay in commercialisation of new technologies
SO6: Improving Plant Productivity
Focus Areas
- Deploying TPQM as a foundation for lean transformation
- Identifying and eliminating inherent losses in manufacturing processes
- Integrating autonomous maintenance to improve equipment reliability
Progress in FY 2023-24
- Achieved overall improvement in all KPIs for manufacturing plants
- Achieved improvement in OEE of plants through reduction in production losses and breakdown hours
- Sustainable deployment of productivity improvement initiatives
- Recorded highest output in cast iron, cast steel foundries and highest ever production of small and medium-sized pumps at KOV plant
Key Risks
- R1: Talent management - Recruitment and retention
- R2: Cyber and information risk
- R3: Financial performance risk affecting margins
- R4: Delay in commercialisation of new technologies
- R5: Rise in procurement cost and heavy dependence on limited suppliers
SO7: Supply Chain Management
Focus Areas
- Continuous supply chain assessment for future growth
- Category-wise monitoring of quality, cost and delivery of procurement categories
- Automation and digitisation of related processes
- Undertaking vendor engagement programs
- Implementing ESG initiatives in supply chain
Progress in FY 2023-24
- Vendor derisking / rationalisation completed for identified categories
- Registered improvement in Supplier Quality Score
- Deployed improved material planning and balancing processes at all plants
- Conducted vendor meet at KOV plant with participation from 240 suppliers
- Conducted ESG assessment of value chain partners, covering 65% of business spend
Key Risks
- R2: Cyber and information risk
- R3: Financial performance risk affecting margins
- R5: Rise in procurement cost and heavy dependence on limited suppliers
- R6: Geopolitical risk
