Kirloskar Oil Engines Limited announced the incorporation of a new wholly owned subsidiary, Kirloskar Advanced Systems Private Limited, effective February 11, 2026. This strategic move targets formal entry and expansion into specialized, high-growth engineering sectors, including defence and railways. The subsidiary will focus on designing, manufacturing, and supplying advanced industrial equipment and mission-critical systems. The Holding Company committed INR 9,00,00,000 for a 100% stake.
Strategic Move into Advanced Engineering
Kirloskar Oil Engines Limited has formally approved the incorporation of a new, wholly owned subsidiary, named ‘Kirloskar Advanced Systems Private Limited’ (subject to final statutory approvals). This decision was ratified by the Board of Directors during their meeting on February 11, 2026.
This initiative marks a critical step in the Company’s long-term strategy to diversify its portfolio and strengthen its position in advanced technological applications. The subsidiary will focus on specialized, high-growth engineering sectors, particularly defence and railways.
Scope of Subsidiary’s Business
The newly established entity is set to undertake comprehensive activities related to design, development, manufacture, assembly, testing, supply, import, export, and dealing in high-specification industrial equipment and mission-critical systems. This scope includes, but is not limited to, advanced power solutions, integrated platforms, unmanned technologies, and sophisticated sub-systems.
The company aims for this venture to enhance operational efficiency and unlock focused growth potential by becoming a key solutions provider for infrastructure and technology-intensive projects vital to economic importance.
Investment and Ownership Details
The subsidiary will be situated in Pune, Maharashtra, India, and falls under the Engineering – Industrial Equipment industry segment.
The Holding Company, Kirloskar Oil Engines Limited, confirmed its commitment to fully fund the venture via cash consideration:
- Investment Amount: Aggregating to INR 9,00,00,000/- (Indian Rupees Nine Crore only).
- Share Subscription: Subscription to 90,00,000 equity shares of face value of INR 10/- each, at par.
- Holding Percentage: The Holding Company will subscribe to 100% (one hundred percent) of the initial paid-up share capital.
The incorporation process will be subject to standard approvals from the Ministry of Corporate Affairs and other relevant statutory authorities as required for operations in defence and other sectors.
Source: BSE
