Kirloskar Oil Engines Limited has informed the Exchange about Capacity addition
KIRLOSENG · price
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Kirloskar Oil Engines Limited announced a capacity expansion at its Kagal, Kolhapur plant. The company will add approximately 20,000 engines per year to its existing capacity of 1,35,000 engines per year. The Rs. 1,400 Crores investment will be funded through a combination of internal accruals and borrowings over a 2-year period. Current capacity utilization stands at around 75%. The expansion aligns with the company's target of achieving USD 2 billion revenue by FY2030.
This expansion signals management confidence in sustained demand growth. While the investment is large, the use of both internal funds and borrowings keeps balance sheet flexibility intact. Existing shareholders may view this positively as it supports revenue growth ambitions.