Kirloskar Brothers Limited (KBL) announced the approval of the Scheme of Amalgamation between its wholly owned subsidiaries, The Kolhapur Steel Limited (TKSL) and Karad Projects And Motors Limited (KPML). The National Company Law Tribunal (NCLT) approved the scheme on November 3, 2025, with an appointed date of October 3, 2024. This move aims to streamline operations and improve efficiencies within the Kirloskar Group.
Amalgamation Scheme Details
The Scheme of Amalgamation involves The Kolhapur Steel Limited (TKSL), the Transferor company, and Karad Projects And Motors Limited (KPML), the Transferee company. TKSL is a ‘step-down wholly owned unlisted subsidiary,’ while KPML is a ‘material wholly owned unlisted subsidiary’ of Kirloskar Brothers Limited.
NCLT Approval and Effective Dates
The Hon’ble National Company Law Tribunal, Mumbai Bench (NCLT), approved the Scheme of Amalgamation on November 3, 2025. The appointed date for the Scheme is October 3, 2024. Kirloskar Brothers Limited had initially informed about this scheme on October 15, 2024.
Expected Benefits of Amalgamation
The amalgamation aims to consolidate the businesses of TKSL and KPML under one umbrella, improving operational efficiencies and administrative synergies. Kirloskar Brothers Limited expects benefits such as simplification of the corporate structure, better resource allocation, and enhanced coordination in day-to-day operations. This move is part of the company’s strategy to unlock potential synergies across products, customers, technology, and manufacturing excellence.
Financial Details of the Subsidiaries
In the financial year ending March 31, 2024, The Kolhapur Steel Limited (TKSL) had a turnover of Rs. 534 Million, while Karad Projects and Motors Limited (KPML) had a turnover of Rs. 5,065 Million.
Rationale for the Scheme
The Transferor Company is a 100% subsidiary of the Transferee Company. The Transferee Company is wholly owned subsidiary of Kirloskar Brothers Limited. Consolidating the Transferor Company into the Transferee Company will provide commercial intent and streamline operations.
Source: BSE
