DIRECTOR’S MESSAGE

As we reflect on a year marked by rapid global transformations, shifting trade landscapes and evolving customer expectations, I am pleased to report that KBL has not only navigated these dynamic conditions with resilience but has also advanced confidently in its journey of transformation, innovation and global relevance.

The past year has seen substantial shifts in the international business scenario, especially in the fluid management industry. Global economic uncertainty, coupled with regional conflicts, tightening monetary policies and climate-induced challenges, had a cascading impact across sectors. The fluid management sector, being intricately tied to infrastructure development, utilities, oil & gas, agriculture and manufacturing, was no exception. However, demand rebounded in many parts of the world, driven by infrastructure stimulus programmes, sustainability initiatives and a reinvigorated focus on water and energy security.

Tariff structures and trade barriers across several key markets continued to fluctuate, influenced by geopolitical tensions and changing regional trade pacts. This, in turn, affected supply chain dynamics, material costs and project execution cycles. Despite these challenges, KBL’s globally integrated supply and procurement strategy ensured a consistent and reliable delivery framework, safeguarding project timelines and customer commitments.

One of the most significant trends this year has been the accelerated evolution in customer expectations. Across markets, customers now demand not only reliable and cost-efficient fluid management solutions but also integrated systems that are smart, energy-efficient, digitally-connected and aligned with their Environmental, Social and Governance (ESG) goals.

The shift from conventional pump and fluid management systems to intelligent, predictive and sustainable solutions is evident across sectors – from municipal water infrastructure to critical industrial applications, from power generation to irrigation. KBL has responded with agility, aligning our product development, R&D investments and customer service mechanisms to this new reality.

Our international subsidiary, Kirloskar Brothers International B.V., delivered an exceptional performance in the fiscal year 2024-25. The subsidiary continues to play a pivotal role in expanding KBL’s global footprint, with a strong and growing presence in the United Kingdom, the USA, the Netherlands, South Africa, Egypt, Thailand and several other strategic geographies.

During the year, KBL BV achieved robust top-line growth and a notable improvement in profitability. This was driven by targeted strategies in high-potential markets and a deep understanding of local customer requirements. Key infrastructure and utility projects across Africa and the Middle East, supported by strong aftermarket services and customised engineering solutions, solidified our position as a preferred partner for mission-critical applications.

Despite global macroeconomic headwinds and ongoing geopolitical uncertainties, our international operations under the KBL BV Group delivered record-breaking results. The Group posted its highest-ever revenue of ₹ 15,260 mn, with profit before tax growing by 44% to ₹ 1,496 mn. This outstanding performance was powered by strong contributions from our operations in the United Kingdom, the United States, South Africa and the Netherlands. Notably, SPP Pumps delivered its best-ever performance in both sales and profitability, while our U.S. business achieved significant expansion in market presence.

Strategic investments in automation, infrastructure and talent development have played a vital role in driving these outcomes. A sharp focus on operational efficiency, continuous process improvements and customer-centric innovation ensured consistent value delivery across markets. Our commitment to localisation – through local assembly units, skilled service teams and well-established partner ecosystems – has enabled us to offer enhanced value-added services while maintaining competitive pricing.

KBI BV has made significant investments to enhance its infrastructure and talent pool. Notable initiatives include the implementation of the Phoenix production labour hour tracking system, which has fully automated previously manual processes, improving both accuracy and efficiency on the shopfloor. Additionally, Colligo, a web-based system for real-time service shop floor production data collection, has been introduced, providing enhanced data accuracy and accessibility and driving the ESD business forward.

Furthermore, the Group's resilience in supply chain management and its emphasis on technology integration have provided a strong and sustainable edge in competitive markets. With a forward-looking approach and solid foundations in place, KBI BV is well-positioned to build on this momentum and contribute meaningfully to KBL’s global vision in the years to come.

Innovation continues to be the cornerstone of our strategy. This year marked a significant milestone with the launch of KirloSmart™ 2.0 and KirloSmart™ 2.1, our next-generation IoT-based pump monitoring solutions. These platforms are a testament to KBL's commitment to offering intelligent, data-driven and customer-centric solutions.

In a world where change is the only constant, KBL has demonstrated adaptability at every level. Whether it is evolving global trade policies, customer digitisation expectations, or the rising importance of climate-conscious operations, we have stayed ahead by continually reimagining our value proposition.

We have invested in modernising our manufacturing facilities, upgrading digital infrastructure and streamlining internal processes through automation and AI-based systems. These efforts have improved operational efficiency, reduced carbon footprints and elevated product quality and customer experience.

Looking ahead, our vision is clear, to be the most trusted global fluid management solutions provider through excellence, innovation and sustainability. In the year ahead, we will focus on four key pillars: driving sustainable growth through geographic and sectoral expansion with minimal environmental impact; accelerating digital transformation; delivering customer-centric, intelligent and modular solutions; and fostering a future-ready, agile workforce.

This progress is made possible by the trust of our customers, partners, employees and shareholders - thank you for your continued support. As we move forward, KBL will continue to adapt, innovate and lead - creating value and driving sustainable progress worldwide.