The company will be transferring all its valve related activities from its plant at Kirloskarwadi to the new plant at Kondhapuri, chairman and managing director of KBL Sanjay Kirloskar told mediapersons after the conclusion of the 79th annual general meeting here.

Kirloskar mentioned that the new facility would help focus the market on valves which had achieved a 100 per cent growth last year. The upgraded manufacturing facility at Kondhapuri is expected to meet the increasing demands for valve requirements from water supply and sewerage boards of different states and will chiefly consist of an old and new product mix. Kirloskar also hinted at the possibility of increasing the size of the facility in case of a demand. Kirloskar is aiming for a 30 per cent market share in this segment.

KBL has entered into a distribution agreement with Erhard Gmbh and Co., Germany, one of the leading manufacturers of gate, butterfly, ball check, needle valves in Europe, for marketing their valves in India. KBL will also continue to focus on its turnkey business which accounts for 60 per cent of the total company turnover which touched Rs. 350 crore this year.

Kirloskar said that they have formed seven strategic business groups which have become fully operational. KBL has tied up with Ebara Corporation, Japan, world leaders in hydro-turbines to offer turnkey execution facilities through its project marketing and execution team. KBL has acquired 80 per cent of the business in the fluid handling turnkey business and has also secured some prestigious orders.

Under the agreement with Ebara Corporation, the company will manufacture hydro turbines. KBL has secured orders for the turnkey execution of hydro projects from Tamil Nadu Electricity Board worth Rs. 17.2 crore. These projects are in the final stage if execution. The company has also received further orders over Rs. 15 crore from private companies in Andhra Pradesh, Karnataka and Himachal Pradesh. The order booking position now stands at Rs. 220 crore.

However, due to the tight money market position with funding, the market potential has come down causing reduction in sales in few locations for agricultural pumps. Margins have also been affected due to less demand and competition. The company has tackled this by strengthening the marketing network.

Exports declined by 14 per cent compared to last year mainly due to the delayed letters of credit from clients as a result of their financial problems and the after effects of South East Asian currency crisis.

Financial constraints are expected to ease during the first half of this year and the deficit will be made up increased business from thrust markets of SouthEast Asia, Middle East, United Kingdom and the United States of America.