“India’s genset market is very interesting, shaped by rapid urbanization, strong industrial growth, the pressing need for sustainable power solutions combined with the toughest genset emission standards globally. At KOEL, we don’t just adapt to these changes—we drive them. As the largest genset manufacturer, we’ve always believed that leadership isn’t just about numbers; it’s about setting the direction for the entire market.” Rahul Sahai, CEO, Kirloskar Oil Engines Limited (KOEL)
It’s been a little over two years since you took charge as the CEO (B2B) at Kirloskar Oil Engines Limited (KOEL). How do you look back at this journey in terms of the key milestones achieved?
As I look back on the past two years at the helm of Kirloskar Oil Engines Limited (KOEL), it feels like a story of evolution and relentless pursuit of excellence. When I assumed this role, I knew I was stepping into the shoes of a legacy that has powered India for decades. Yet, the challenge was clear—to balance this legacy with a bold, forward-looking growth strategy.
In these two years, we have not just maintained our leadership in the genset market but also boldly expanded into emerging verticals. From launching cutting-edge, sustainable products to doubling down on customer-centricity, the milestones have been numerous. What I am most proud of, however, is fostering an organizational culture defined by agility, innovation, and a unified vision of growth.
One pivotal achievement has been setting KOEL on its “2X3Y” growth trajectory, where we laid down an ambition to double our revenues over three years. Despite challenges posed by macroeconomic headwinds, geopolitical shifts, and the post-pandemic supply chain crunch, we have expanded our market presence, introduced industry-first products, and achieved significant operational efficiencies and remain strong on the path to achieve the ambition. This journey underscores one undeniable truth: when you combine legacy with purpose-driven innovation, the results are transformative.
How would you analyze the current market scenario in the context of being the largest genset manufacturer in India? What has been your strategy to maintain this market leading position considering the increasingly competitive scenario?
India’s genset market is very interesting, shaped by rapid urbanization, strong industrial growth, the pressing need for sustainable power solutions combined with the toughest genset emission standards globally. At KOEL, we don’t just adapt to these changes—we drive them. As the largest genset manufacturer, we’ve always believed that leadership isn’t just about numbers; it’s about setting the direction for the entire market.
For us, it starts with innovation. We’re deeply invested in fuel-agnostic technologies, offering solutions that include gas gensets and engines capable of running on alternative fuels like hydrogen, natural gas, and methanol. These aren’t just future-ready technologies—they’re solutions designed to help our customers transition to cleaner energy today. But innovation is only one part of the story, Customer-centricity is what truly defines us. By enhancing after-sales services, boosting product reliability, and integrating smart, IoT-enabled solutions, we ensure that our customers experience more than just power—they experience peace of mind.
And of course, none of this is possible without operational excellence. Over the years, we’ve streamlined our processes, optimized costs, and embraced technology to stay agile and efficient. These efforts allow us to deliver solutions that are not only high-quality but also highly accessible.
KOEL is aiming to double its revenue to ₹6500 crore by FY26 while achieving double-digit margins. How do you plan to achieve this ambitious target?
Our goal of achieving ₹6,500 crore in revenue by FY26 with double-digit margins is ambitious but achievable through a focused, multi-pronged strategy. At KOEL, we are diversifying our portfolio with innovative solutions in alternate fuels, next-gen industrial engines, and eco-friendly gensets while leveraging technologies like IoT, AI, and ML to enhance efficiency and create smarter products.
India remains our core market, but we’re expanding globally into Southeast Asia, Africa, and the Middle East with tailored solutions. Regulatory shifts in Powergen, Construction, and Agriculture open new avenues, and we’re adapting our offerings not only to meet new emission regulations but also drive the shift to cleaner fuels like hydrogen, methanol, ethanol, and natural gas.
Our progress is underpinned by operational excellence, an agile workforce, and a culture of innovation and sustainability. This collective commitment drives our confidence to surpass these ambitious goals and establish KOEL as a leader in power solutions.
Tell us about KOEL’s manufacturing presence and capabilities in India. How are you optimizing the shop floor costs while maintaining high quality standards?
KOEL’s manufacturing ecosystem stands as a testament to our engineering expertise and unwavering commitment to quality. From crafting small engines to building high-performance industrial solutions, our facilities are equipped with state-of-the-art technology, placing us at the forefront of manufacturing innovation. Each product reflects the precision, reliability, and trust that define the Kirloskar name, ensuring we consistently meet the evolving needs of our customers.
A critical focus for us has been optimizing shop floor costs without ever compromising on quality. Through automation and robotics, we’ve significantly reduced manual intervention, enhancing both productivity and precision. These advanced systems allow us to streamline operations while maintaining the consistency our customers depend on. Lean manufacturing practices further support this goal by enabling continuous improvements that eliminate inefficiencies, ensuring a smooth, cost-effective workflow.
How are you leveraging digital transformation to improve efficiencies and to serve your customers better?
Digital transformation is no longer a choice—it’s a necessity, and at KOEL, we’ve fully embraced it to redefine the way we operate and serve our customers.
Our commitment to smart products has revolutionized the genset experience. By incorporating IoT-enabled monitoring systems, our gensets provide customers with real-time performance insights and proactive maintenance alerts, minimizing downtime and enhancing reliability. On the customer engagement front, we’ve made significant strides through CRM systems and user-friendly digital interfaces. These platforms have ensured smoother, faster, and more personalized interactions, making it easier for customers to access information, request services, or resolve issues. This seamless connectivity fosters trust and strengthens our relationships across the board.
Behind the scenes, data-driven insights are transforming our operations. Leveraging advanced analytics, we’re optimizing workflows, improving resource allocation, and uncovering new opportunities to enhance efficiency. By combining cutting-edge technology with a deep understanding of our customers, we’re ensuring that KOEL remains synonymous with reliability, innovation, and excellence in every interaction.
What is your domestic to exports ratio? Do you see this changing in the near future? Why?
Currently, exports make up approximately 12% of our revenue, but we see tremendous growth potential in this segment. Our product portfolio and technology can today cater to applications across the globe. Key regions such as Africa, Southeast Asia, the Middle East & the Americas present vast opportunities for our durable, adaptable, and high-quality solutions. These markets are experiencing rapid industrialization and increasing demand for reliable power solutions, and KOEL is uniquely positioned to meet these needs.
To leverage this opportunity, we are prioritizing the enhancement of our distribution networks to guarantee smooth and timely delivery and support across these regions. We are customizing our products to cater to the unique demands of each market, ensuring compliance with local regulations and environmental standards. Additionally, we are forming strategic partnerships with global players to expand our market reach and accelerate our growth in international markets. We have appointed GOEMs in both Middle East & North America to help drive our Powergen products in those markets. By implementing this strategic approach, we aim to create a more balanced domestic-to-export revenue ratio in the near future, positioning KOEL as a global leader in sustainable power solutions.
How is KOEL keeping its commitment to sustainability while focusing on business growth?
At KOEL, we firmly believe that business growth and sustainability must go hand in hand. From the introduction of hydrogen-compatible gensets to our ongoing efforts to achieve carbon neutrality across our facilities, including our carbon-neutral manufacturing plant, we are redefining the way sustainable industrial practices are implemented. At our plant, we’ve incorporated renewable energy sources such as solar power, implemented advanced waste management systems, and optimized processes to minimize energy consumption. These efforts have drastically reduced greenhouse gas emissions, reinforcing our commitment to environmental stewardship. Our commitment to sustainability goes beyond simply reducing our environmental impact—it drives our innovation and shapes the solutions we provide.
We are making significant investments in alternative fuels like biofuels and hydrogen, recognizing that the future of energy is cleaner, more efficient, and aligned with global sustainability goals. This commitment extends across all our operations, where we are adopting green technologies and practices that not only reduce our carbon footprint but also enhance the efficiency of our processes. In doing so, we are not just enhancing our own sustainability credentials; we are actively enabling our customers to meet their own environmental targets through innovative, eco-friendly solutions. This integrated approach to sustainability doesn’t simply make us more responsible—it positions KOEL as a pioneer in an ever-evolving market, ready to lead the way in providing reliable, clean power solutions for the future.
Hydrogen is fast emerging as an alternative fuel source that could change the dynamics of the power generation segment. What is KOEL doing on this front?
At KOEL, we’re actively exploring the potential of Hydrogen to transform the power landscape. Our commitment to hydrogen technology is evident in our ongoing efforts to develop hydrogen-combustion engines, a step that will help us harness hydrogen’s power more efficiently and sustainably. Alongside this, we are testing electrolyzer & fuel cell technologies along with storage solutions to explore how they can complement our existing solutions and further enhance the versatility of our product portfolio.
To ensure these innovations meet real-world needs, we are conducting pilot projects with our Hydrogen Fuel Enhanced Combustion (HFEC) technology, validating hydrogen’s viability and performance in practical applications. HFEC allows seamless integration of hydrogen with fuels like natural gas and diesel, addressing current challenges in hydrogen availability while paving the way for broader adoption. These initiatives are not just about staying current—they are about driving the transition to hydrogen as a mainstream energy source.
As the demand for sustainable power solutions grows, we are committed to leading the transition to cleaner energy, ensuring KOEL remains an industry leader in providing reliable, innovative, and environmentally responsible solutions.
