KFIL has a 36 MW captive power plant, 9.7 lakh MT installed capacity of linear sinter plant and 2 lakh MT installed capacity of coke oven plant

Belonging to the 133-years-old Kirloskar Group that has interests across diverse sectors of agriculture, manufacturing, food and beverages, oil and gas, infrastructure and real estate, Kirloskar Ferrous Industries (KFIL) is a market leader in India in the manufacture of critical and intricate grey iron castings and quality pig iron.

It is the only company in Asia with an integrated business model of mines-to-machined castings. With three manufacturing facilities in Koppal, Hiriyur (in Karnataka) and Solapur (in Maharashtra), KFIL is a leader in manufacturing products that serve a discerning customer base.  

Some of the world's major automobile manufacturers use the company’s cylinder block, head castings, and housing for a wide range of engines, including construction machines, farm equipment and utility vehicles. The pig iron is used to create a wide range of cast iron products that are vital in a variety of sectors. KFIL's technical capability in manufacturing positions it as category leaders in key products. 

KFIL has a 36 MW captive power plant, 9.7 lakh MT installed capacity of linear sinter plant and 2 lakh MT installed capacity of coke oven plant. 

During the period under review (FY18-FY22), KFIL’s income and profit-after-tax (PAT) surged at a healthy 20.3 per cent CAGR and 80.8 per cent CAGR, respectively, helping it secure the top spot in its category of fastest growing companies list. It posted a consolidated operating revenue at Rs 3,748.3 crore for FY22.  

"The fiscal year saw a rapid hike in raw material costs. We optimised our input costs by adopting leaner measures and passing on our learnings to our partners. Further on, the raw material price hikes were passed on to the customers in a phased manner. This helped us retain our margins and profitability levels," said company's chairman Atul Kirloskar.  

"We delivered robust financial performance in FY22, near-term pressures notwithstanding, the company maintained a 15 per cent CAGR on the topline and bottom line. Our revenues for the standalone business grew 77 per cent with 42 per cent growth in EBITDA. The net profit stood at Rs 406 crore for FY22," he added in his address to the shareholders.  

During FY22, KFIL acquired around 51 per cent stake in Indian Seamless Metal Tube (ISMT) thereby taking the management control of the same. "This acquisition is a strategic addition to KFIL’s current product portfolio," the chairman said. The ISMT products, seamless pipes and value-added steel products diversified the company's existing product mix. "We are very positive about the prospects this business will bring for us," he added.  

FY22 also presented multiple headwinds to KFIL, like others. Apart from the rapid hike in raw material costs, another challenge of mounting coal and power costs was tackled through KFIL's recently commissioned coke oven plant. This plant took care of most of company's coke and energy requirements. 

Kirloskar said the growth of an organisation could only be achieved through the growth of its people. "To that end, we aspire to keep motivating our people and developing in-house competencies through diligent training programmes," he added.  

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