Kirloskar Oil Engines has approved the transfer of its Business to Customer (B2C) business segment to its wholly-owned subsidiary, La-Gajjar Machineries Private Limited, through a slump sale. This strategic move, effective October 11, 2025, aims to enhance operational efficiency and sharpen focus on core business areas. The consideration involves the issuance of 1,065,150 equity shares of La-Gajjar Machineries to Kirloskar Oil Engines.
Strategic Business Transfer
Kirloskar Oil Engines Limited has announced the transfer of its Business to Customer (B2C) business segment to its wholly-owned subsidiary, La-Gajjar Machineries Private Limited (“LGM”). The Board of Directors approved this transfer during a meeting held on October 10, 2025.
Rationale Behind the Transfer
This strategic move aims to drive significant operational efficiencies by eliminating redundancies and streamlining market channels. It will also enhance the product portfolio, optimize resource allocation and create a simplified corporate structure, positioning the companies for sustainable growth.
Terms of the Agreement
The B2C business segment transfer will be effective from October 11, 2025. Kirloskar Oil Engines will receive consideration in the form of 1,065,150 equity shares of LGM, each with a face value of INR 10, through a private placement.
Financial Details of the Transferred Business
The B2C business segment contributed significantly to Kirloskar Oil Engines’ financials:
- Revenue from Operations: INR 592.61 Cr (11.59%)
- Total Income: INR 592.93 Cr (11.52%)
- Net Worth: INR (11.95) Cr (0.40%)
- Turnover: INR 591.25 Cr (11.66%)
About La-Gajjar Machineries Private Limited
La-Gajjar Machineries Private Limited is Kirloskar Oil Engines’ wholly-owned subsidiary. It had a turnover of INR 493.44 Cr and Revenue from operations of INR 506.90 Cr for FY 2024-25. LGM is engaged in the business of manufacturing, distribution, and sale of pump sets and motors.
Source: BSE
