2 weeks ago
Kirloskar Brothers' Global Manufacturing Footprint Weathers Tariff Storm
Kirloskar Brothers is a company that makes pumps.
Pumps move water and other liquids.
The company builds its pumps in many countries, not just one.
This helps them avoid extra taxes called tariffs.
Tariffs are fees countries charge on things brought in from other countries.
By making products locally, KBL follows each country's rules.
Their final products in the US have more than 60% American-made parts.
This has helped their US business grow by 24% in the last quarter.
They also make parts for data centres, which are big buildings full of computers.
The company says all its overseas businesses are profitable and debt-free.
KBL expanded its manufacturing footprint in the US, Europe, ASEAN and Africa over the past decade, protecting it from tariff risks.
Local manufacturing combined with its India base helps KBL meet domestic content requirements, with final packages containing more than 60% US content.
KBL's US business grew 24% in the last quarter, driven by a resurgence in US manufacturing across automotive, steel and semiconductors.
Data centres now account for about 25% of KBL's business, which started with fire and HVAC pumps.
The international segment accounts for around 38% of business, and all overseas companies are profitable and debt-free.
- Who
- Kirloskar Brothers (KBL), an Indian pump manufacturer, with executives Alok Kirloskar and Rama Kirloskar
- What
- KBL's decade-long global manufacturing expansion protects it from tariff risks and drives growth in the US and other markets
- Where
- United States, Europe, ASEAN, Africa and India, including plants in Atlanta, the UK, Netherlands and South Africa
- When
- Over the past decade, with US business growing 24% in the last quarter
- Why
- To gain competitive advantage, comply with local content requirements and avoid tariff risks
Key facts
- Company
- Kirloskar Brothers (KBL)
- International segment share
- About 38% of business
- US business growth (last quarter)
- 24%
- US content in final package
- More than 60%
- Data centres share of business
- About 25%
- Operating margins
- 9%-11%
- US distributors
- 25, of which 16 are exclusive
- Manufacturing locations
- US, UK, Netherlands, South Africa
Quotes
Alok Kirloskar
Managing Director, Kirloskar Brothers International
“KBL does not import anything and manufactures everything in-house with its own foundries, in‑house design team and well‑developed local supply chain.”
financialexpress.com
“The key is balancing the cost of adding value locally against what the customer is willing to pay for that value.”
financialexpress.com
Sources
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