Kirloskar Pneumatics Co. Limited

1. Anuja Mathur 2. Santosh Gaikwad 3. Himanshi Jain 4. Himanshu Vishwakarma

1003 1005 1007 1009

SYNOPSIS• We have evaluated the organization in terms of internal, external customers, business process

and product portfolio.

• We have evaluated the Vision and Mission statement of KPCL, keeping in the mind the

stakeholders. We found that Vision was easy to remember and understandable but Mission was

not understandable.

• We have mapped the interest and expectation of Stakeholders by comparing the financial report

of KPCL for 3 conservative years.

• We found that KPCL have good wide range of product portfolio to serve its customers, They even

deals into CSR activities like Vasundhara.

• Even we found that company don't carry any dispute regarding government payables, its Nil.

• We have analysed and mapped KPCL has product oriented, this organization has implemented

many cost reduction measures.

• We try to highlight KPCL grey areas and analysed the customers dissatisfaction and given

profound reasons responsible.

• We have compare the companies Strength, weakness, opportunity and Threat using SWOT,

TOWS matrix.

• We have analysed and segmented the companies market based on Niche segment.

PRODUCT PORTFOLIO

Air Compressor Division Air Conditioner Refrigeration and Processed Gas Transmission Division

Reciprocating air compressors screw air compressors centrifugal air compressors

1. RHBP compressors

2. Vertical reciprocating

3. Railway brake systems

1. Oil injected

2. Diesel engine driven

3. Diesel screw

Compressor for RS Refrigeration Systems Process gas system Vapour absorption chillers

Category : 03 Products : 12 Variety : 6

Pinions & bull gears Marine gear box Helical gear box Wind turbine gear box Turbo transmission

for locomotive

GROWTH IN LAST 4 YEARS

Year Increase in sales

2010-2011 8%

2011-2012 35%

2012-2013 -17%

2013-2014 -7%

Year Increase in profit

2010-2011 -8%

2011-2012 40%

2012-2013 -23%

2013-2014 -17%

“In an ever changing world one thing

that will remain constant is our

Commitment towards all our

stakeholders”

PROMOTION AND ADVERTISING

• Advertising campaign began on CNN in 2007-08 for Africa, Middle East and Europe

markets.

• In 2011 advertisement showing the engineering DNA of the company started on english

news channels.

• The Indian ad shows the group as a one-stop shop for any engineering solution for water

and power generation.

• Vijay Varma, president, Kirloskar Proprietary stated “Proprietary is spending between Rs.

10-12 crore annually on this brand promotion”.

13%

25%

15%

47%

Air Compressor Market

KPCL ELGI Engersoll otherINGERSOLL

COMPETITOR ANALYSIS

Parameters

Competitors

KPCLELGI Ingersoll

1. Market Share 25% 17.7% 13%

2. Market Growth (2012-13) 15% -10% -22%

3. Revenue (2013) crore 1144.5 581.35 448.3

4. Price Levels 1.5L to 4L 19K to 11L 2L to 6L

5. After sales service Good Average Good

6. Technology Skills High High Low

7. Dealers 114 + 165

(world wide)

- 200

8. Place Global(40

countries)

Global Global

9. Weakness Capacity

constraints

Sales and

distribution

Slow change

10. Promotions Trade fairs and

exhibition

ACMEE and

INTEC.

By implying

societal values

through CSR,

Green

innovation

Green initiative

and commercial

ads.

KPCL INGERSOLL ELGI

AIR COMPRESSORS

Reciprocating Air Compressors

Screw Air Compressors

Centrifugal Air Compressors

AIR COMPRESSORS

CAGI Data Sheets

Small Reciprocating Air Compressors

Rotary Contact-Cooled Air Compressors

Rotary Oil-Free Air Compressor

PET Compressed Air Solutions

Centrifugal Air Compressors

Compressed Air Treatment

Compressed Air Controls & Automation

Compressed Air Services

Compressed Air White Papers

Product Recall Information

PISTON COMPRESSORS

Oil Free Compressors

Oil Lubricated Compressors

Electric Lubricated Screw Compressors

EN Series Compressors

EG Series Compressors

Horizon Series Compressors

90 – 250 KW Single-Stage Horizon

EE75 – EE160 Two-Stage Horizon

Electric Oil-Free Screw Compressors

Two-Stage Water Cooled 90 – 315 Kw

Portable Compressors

Diesel Powered

Electric Powered

Railway Compressors

Electric Locomotive

Diesel Locomotive

Electric Multiple Unit

Air Conditioning, Refrigeration & Process Gas Division

(ACR & PG)

Equipment (Compressors for refrigeration

system), Refrigeration Systems (Industrial

refrigeration packages, Customized turnkey

projects,

Screw compressor package

Containarised Ice & water chilling plants &

Marine HVACR)

Process Gas Systems (CNG compression

packages & Gas compression packages)

Vapour Absorption Chillers ( HP Steam Driven

VAC’s and Direct Fired VAC’s)

ARO Pumps

Diaphragm Pumps

Piston Pumps & Packages

Filter Regulator Lubricators

Lubrication Equipment

Pneumatic Valves & Cylinders

Air Accessories

offers Total Compressed Air management solutions

for its customers

Air Conditioning, Refrigeration & Process Gas Division (ACR & PG)

Equipment (Compressors for refrigeration system), Refrigeration Systems

(Industrial refrigeration packages, Customized turnkey projects,

Screw compressor package

Containarised Ice & water chilling plants & Marine HVACR)

Process Gas Systems (CNG compression packages & Gas compression

packages)

Vapour Absorption Chillers ( HP Steam Driven VAC’s and Direct Fired VAC’s)

ARO Pumps

Diaphragm Pumps

Piston Pumps & Packages

Filter Regulator Lubricators

Lubrication Equipment

Pneumatic Valves & Cylinders

Transmission Division (TRM)

Pinions & bull gears

Marine Gear box

Helical / Bevel Helical Gear units

Wind Turbine Gear Boxes

Turbo Transmission for Locomotive

Forward / Reverse Turbo Transmission For Locomotive

Air & Electric Tools

Cordless Tools

Construction Tools

Cutting & Hammering Tools

Drilling

Fastening

Impactools

Ratchets

Riveting

Surface Preparation / Finishing Tools

Lifting / Material Handling

Handling Devices

Handling Devices / End Effectors

Torque Tubes

Lifting Devices

Balancers

Hoists

Winches

Support Structures

Arm Systems

Beam Clamps

Jib Cranes

Rail Systems

Tractors

Trolleys

ELGI

RELATIVE MARKET SHARE

(cash generation)

MA

RK

ET

GR

OW

TH

RA

TE

(cas

h u

sag

e)

LOW 1 HIGH

0%

10%

HIG

H

KPCL (Air Compressor Division)

BCG Matrix

Ingersoll

CONCEPT NO. 1 (ANSOFF’S MATRIX)

Market Development Diversification

• Air compressors

• Vapour absorption chillier

Market Penetration

• Screw air compressors

Product Development

• Reciprocal air compressors

• Transmission products

• Process gas system

PRODUCT

MA

RK

ET

OLD NEW

OLD

N

EW

MICHAEL PORTER FIVE FORCES

KPCL

Ingersoll

Atlas cop

co

• MODERATE - HIGH bargaining power of

supplier.

• Lesser alternatives, due to highly

specialised product offerings.

• Higher switching cost.

• LOW threat of substitutes.

• Specific raw materials are used.

• For eg. renewable sources of energy.

• MODERATE bargaining power of buyers.

• Buyers seek for along term relationships.

• Customised industrial gearboxes

• LOW threat of new entrants.

• Few no. of players in the market.

Bargaining power of buyers

Threat of

substitutes

Threat of

new

entrants

Bargaining power of suppliers

CONCEPT NO. 3 THE SPACE MATRIXFINANCIAL STRENGTH

ENVIRONMENTAL STRENGTH

CO

MP

ET

ET

IVE

AD

VA

NTA

GE IN

DU

ST

RY

ST

RE

NG

TH

Worst -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 Best

-2.3

1.67

Competitive Strategy

Aggressive StrategyConservative Strategy

Defensive Strategy

CALCULATIONSCompetitive Advantage

1.6

Manufacturing Skills -3

-

2.33After sales service -2

Brand recognition -2

Industry Strength

Employee satisfaction 3

4

Barriers to entry 5

Financial Strength

-2.3

Revenue 1

1

Profit 1

Environmental Strength

Inflation -2

-

3.33Technology -3

Demand elasticity -5

ANALYSIS

• The industry is considered attractive and the

business is neutral on competitive

advantage

• The business is weak financially but

environmental stability is reasonable.

• To strengthen the balance and to provide

the funds for expansion, it can merge with a

cash rich company who is looking for

opportunities to expand.

Managing Director Rs ( 2012-13 )

Salary – (2013 – 2014 ) 4,955,000 4,200,000

Other perquisites 729,577 652,239

TOTAL Rs TOTAL Rs

Gross Remuneration 55,143,613 68,102,595

2013-14 2012-13

Long Term Loans and Advances 57,537,089 80,332,917

Short Term Loans and Advances 110,438,639 87,689,728

RECOMANDATIONS :--

1) Salary is a concern that comes under managerial remuneration , starting from House rent

allowance to Other perquisites thereby affecting Gross Remuneration . Volumes are speaking for

itself within just a year .

2) They are spending heavily on Advertisements and Publicity Expenses

So can there be a possibility to spend less on the 4 p’s of marketing mix i.e Promotion . Thus by

concentrating more on other aspects of marketing mix .

• Transmission division revenue – 679 million (stagnation of

growth…and stock of infdian railways)

• Revenue per dealer – 525.9/200 - 2.6 crore / dealer

• Customised industrial gearboxes

• Total expenses – 465 crore -> 525 crore

Thank You…!!!