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Chapter IL IL IL
History of Kirloskar Brothers Ltd.
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CHAPTER III
H I S T O R Y O F K I R L O S K A R B R O T H E R S L I M I T E D
- - - - - - - - - - - - -
(1) Although this chapter primarily refers to the history of Kirloskar Brothers
Limited, it also makes some passing references to the development of the
House of Kirloskars.
(2) It is very difficult to separate the history of Kirloskar Brothers from the
biography of Laxmanrao and Shantanurao, Their leadership has helped
the advancement of Kirloskar Brothers Limited. Therefore, this chapter
deals with major events in the life of Laxmanrao and Shantanurao.
(3) The personal observations and conclusions of the researcher are also
stated whenever found necessary.
(4) Alongwith the need for the establishment of Kirloskar Brothers Limited,
the researcher has also stressed the philosophy with which the Kirloskar
Brothers Limited has been working since its inception.
3.1 THE BEGINNING OF KIRLOSKAR BROTHERS
In the year 1888, Laxmanrao Kashinath Kirloskar started a shop in
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partnership with his elder brother Ramuanna Kashlnath Klrloskar for selling
imported bicycles on commission. The establishment of this shop was the
beginning of the History of Klrloskar Brothers.
Both, Laxmanrao and Ramuanna, were working as school teachers: at
the same time they ran the bicycle shop. Their salaries as school teachers
were too inadequate to meet the financial needs of their joint family. Therefore,
they started the bicycle shop which brought in an additional income.
Thus, the name of Klrloskar Brothers was first made popular as the
bicycle merchants.
3.2 CONTEMPORARY BUSINESS ENVIRONMENT
In order to understand some outstanding features of Kirloskar Brothers,
it is worthwhile to study the social, political and economic conditions of those
times that served as a background for the establishment of PQrloskar Brothers
Limited.
3.2 (A) SOCIAL ENVIRONMENT
(1) About 100 years ago, when Kirloskar Brothers was established, there
existed an orthodox social structure. It was a closed society with a number
of castes, creeds and religions. People belonging to certain castes were
supposed to perform certain activities only. e.g. a Brahman by caste was
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supposed to learn religious scriptures and become a priest or teacher. It was
supposed to be the caste of intellectual people, pursuing intellectual
professions. On the other hand, a Vaishya by caste was supposed to engage
in business affairs and in trade and commerce. A Brahman entering into
business or trade was looked down upon. People were afraid of violating these
social norms and traditions. Laxmanrao, was a Brahman and his father
Kashinathpant was a Vedant-Pandit. Therefore, the society also expected
Laxmanrao to follow in the foot steps of his father. However, he broke away
from the traditions and entered the field of engineering and technology. This
was something extraordinary in the personality of Laxmanrao.
(2) India was under the British rule. Many leaders and patriots like
Bal Gangadhar Tilak, Vasudeo Balwant Phadke, Dadabhai Nowarojee,
Bipinchandra Pal, Kudhiram Basu, Madanlal Dhingra, V.D.Savarkar, were
working hard to bring about a political and social awakening among the
people of the country. They appealed to the people to arise, awake and work
for the overthrow of the British empire. They urged the people to be Free
Indians and Buy Indian goods.
In such an environment young Laxmanrao was deeply influenced by the
freedom movement and wanted to contribute to it in his own way. Throughout
his career as an entrepreneur, it can be easily observed that he gave stress
only on the production of import substitute items. He was very particular
about the quality of products that he manufactured. This was because he had
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to face the competition of British products in the market. He wanted to prove
that his products were superior to those of foreign countries. In that sense
it will not be wrong to say that Laxmanrao Klrloskar was also a freedom
fighter. Laxmanrao knew well that the British had not only politically subjugated
India but also economically, industrially and commercially.
Thus,in short it can be observed that the contemporary Indian society :
(i) was stagnant and orthodox,
(ii) was under the British rule and
(ill) wanted to arise, awake and take some action to throw away the British
regime, but was not finding the way out.
3.2 (B) POLITICAL ENVIRONMENT
(1) THE BEGINNING OF BRITISH REGIME
The East India Company was established in 1600 in order to engage in
trade and commerce with India. During the 17th Century the English
established their commercial centres at different places such as Bombay,
Surat, etc.. After capturing the key centres on Indian coast, it became easier
for them to expand their business in India. For the purpose of expanding
their trade and commerce they thought it necessary to have their control on
the Indian territories. The only way to do this was to enter into the Indian
political scene.
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In 1707-98. Lord Wellislee was appointed the Governor General of India.
His main objective was to bring the whole of Indian territory under British
rule. In those days, different rulers in India were fighting among themselves
for territorial control. They were not united and organised. It was therefore,
possible for the English to take full advantage of these internal rivalries and
quarrels.
(2) EXPANSION OF BRITISH POWER
The English had their typical way of extending their power in India. After
defeating any of the Indian princes they used to impose following terms and
conditions of dealing with the British Government :
(a) That the Indian ruler should take the help of English armed forces for
his defence.
(b) For expenses, the ruler should part with a piece of territory to the English
Government.
(c) That he must keep the English resident at his court.
(d) That he should not take any decisions without the prior permission of
the English Government.
(e) That he should discontinue his relationship with any of the other rulers.
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The sole objective and purpose of this system was the complete
subjugation Indian princes and rulers.
(3) FREEDOM STRUGGLE
In 1799, the English defeated Tipu Sultan and in 1818, they annexed the
domination of Peshwas to the British empire. The end of Tipu Sultan and the
Peshwaiee paved the way for further conquest in India with little resistance.
During 1818 to 1857, the English had captured practically the whole of India.
In 1857, a large number of princes rulers raised a revolt against the English
which was crushed by the English Government. After the freedom struggle of
1857, no such united effort was made by Indians for a long time. However,
after 1857 and before 1947. there were some sporadic efforts by the freedom
fighters like Vasudeo Balwant Phadke, Chaphekar Brothers, etc. Among these
patriots, Bal Gangadhar Tilak was very active in awakening the people of India
to fight against the English rule. In those days he used to write fiery articles
in Daily Kesari on the contemporary political scene and on the Indian Society
which had fallen in a torpor. Mass disobedience agitation and, defiance of
English Government and Swadeshi movement were the ways of freedom struggle
in those days.
3.2 (C) ECONOMIC ENVIRONMENT
(1) DROUGHTS - A SERIES OF NATURAL CALAMITIES
Only the period between 1850 and 1967 was a good period for
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the national economy. India is an agricultural country, where farmers have
to depend on rains for good harvest. Rains in India are uncertain. In
1876-77, 1895-96, 1900-1901, 1907-1908 and 1918-1919, Indian economy
suffered heavily due to drought.
(2) FUNDAMENTAL CHANGES IN THE NATIONAL ECONOMIC SYSTEM
Indian economy was a village economy. The villagers were self suflicient
and many artisans who were skilled in carving on silver and ivory, producing
silk cloth, handicraft, etc. earned their bread and butter by following their
trades. Some of the skilled workers worked under the patronage of Kings and
Maharajas who ruled different states. When the English Government adopted
the policy of dissolving their dominations, many craftsmen and artisans lost
their Jobs and became unemployed. The village under English regime was
being used as a source of raw- material and ready market for selling the
products manufactured by British Industries. No encouragement was given
to the small scale and cottage industries by the British Government.
The Britishers were industrially advanced. They used to produce goods
of finer quality compared to the goods produced by Indians. The Indian
consumers were attracted to such sophisticated products very easily. In order
to expand their trade in India, the Britishers started constructing the required
infrastructural facilities such as railways, ports, roads, etc.. The craftsmen
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who had become unemployed due to the dissolution of princely states got jobs
in British railways and on ports.
Under the British rule, the Britishers did not only extend their empire
but also captured the Indian markets. They exploited Indians and carried
away tremendous wealth to Great Briton.
(3) NATIONAL MOVEMENT FOR ECONOMIC AWARENESS
Different leaders like Loakmanya Tilak, Swantantrya Vir Savarkar,
Mahatma Gandhi, were making the Indian people aware of their exploitation.
The Swadeshi movement had begun. They appealed the Indian people to be
Indians and buy Indian products. The articles written by Loakmanya Tilak in
Kesari are revealing enough of the contemporary efforts by the leaders for
economic awareness. A few examples of such articles are :
In these articles Tilak pointed out that the competition from foreign
goods to the indigenous goods, lack of vocational training, inadequate finance,
lack of credit-worthiness and absence of aids to trade (banking, transport,
etc.) were some of the major reasons for India's poor showing on Industrial
front. He exhorted the Indian people to enter in the field of industiy.
Laxmanrao Kashinath Kirloskar was inspired by the national movement
for economic awareness. Therefore, he was determined to enter into the field
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of Industry and manufacture such articles that would compete well with the
ICiifiiiHli piodiicls.
3.3 LAXMANRAO KIRLOSKAR
- THE FOUNDER OF KIRLOSKAR BROTHERS
Laxmanrao was bom on 20th June, 1869 in a small village called Gulhosur
in Belgaum District of the present Karnatak state (then Bombay state).
The contemporary social, political and
economic environment as mentioned earlier
gives us a rough idea as to what was the
situation in which Laxmanrao was bom. Due
to family problems, he could not pursue his
academic career beyond 4th standard in an
Anglo Vernacular School. However, he got
himself trained under the able guidance of
his elder brother Ramuanna who worked in
Belgaum as a school teacher. Since his childhood, Laxmanrao had shown
a keen interest in the drawing and preparing home-made articles. A liking
for these two subjects was all right as a hobby in those days but when
Laxmanrao declared that he was going to make a career out of them, his
father Kashinathpant and his elder brother Ramuanna were upset. In those
days the family of Kirloskars was economically very poor. They expected
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Laxmanrao to study and get employed in some government office so as to earn
regular salary to support the family. However, the members of his family did
not hinder his way to fashion his own career. They supported the efforts of
Laxmanrao. Ramuanna constantly guided him with brotherly affection.
Under the English regime there were no institutes for training the
technical and managerial skills in business as they are available today. Therefore,
Laxmanrao had to learn these skills through trial and error method,
i.e. through actual practice.
Laxmanrao was veiy ambitious and in his young age he was inspired by
the national freedom movement. He wanted to contribute his might to the
freedom struggle in his way. Laxmanrao had an aptitude for manufacturing
some import substitute item rather than hunting for a Job somewhere. With
the aim of establishing an industry, he kept himself abreast with the latest
developments in the field of technology. He avidly read foreign magazines like
"American Machinists". "Scientific American", etc. He collected catalogues of
foreign goods. He used to study them carefully. In those days it was something
unusual.
Laxmanrao knew that for competing with the British products in Indian
markets, the goods that he would manufacture must be of a high quality.
Therefore, throughout his career as an entrepreneur, he always paid utmost
attention to the quality of whatever he produced.
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3.3.1 FAMILY BACKGROUND OF THE FOUNDER
Those with surname "Kirloskar" came originally from a small village named
"Kirloskee", which is in the Taluka Malvan, district Ratnagiri. Earlier they had
the surname "Konkar". Subsequently, they changed their surname from "Konkar"
to "Kirloskar".
Kashinathpant Vasudeo Kirloskar was the father of Laxmanrao.
Kashinathpant came from a middle class family, having a reasonable financial
status neither too rich nor too poor. However, it was a Joint family and
therefore, Kashinathpant had to accept an arduous Job of collecting land
revenue from various landlords who were geographically spread from Gujarat
to Mysore. He covered the length and breath of this region on horseback.
Kashinathpant used to do his Job with sincerity and devotion. He was also
honoured by Captain Fanning during his stay in Surat in 1856 for his meritorious
services.
Beside this Job, Kashinathpant devoted himself to the study of the Vedas.
By the time when he retired from the service, he had been honoured as
Vadant Pandit.
These brief biographical details of Kashinathpant Kirloskar indicate that
the spirit of sincerity. Integrity, devotion, loyalty and such other qualities of
head and heart were passed on to his son Laxmanrao Kirloskar.
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Kashinathpant had two brothers : Krishnajipant and Gopalrao.
Krishnajipant had a son and daughter : Gangadharpant and Chandrabal.
One day while Krishnajipant was on his tour as a medical representative to
Gandagapur, district Solapur, he was reported to have been absconding. The
police feared that he was killed by dacoits. Kashinathpant had to take the
responsibility of the family of Krishnajipant.
Kashinathpant had also to shoulder the responsibility of the family of his
another brother Gopalrao. Gopalrao was an advocate. His business received
a serious set-back due to the wide spread plague and small pox.
Thus, the family responsibilities of Kashinathpant increased greatly and
therefore, he found it difficult to support such a big joint family.
Annapurna was Laxmanrao’s mother. She died when Laxmanrao was
still a child. In 1892, Laxmanrao’s lather Kashinathpant died due to an injury
in a minor accident.
Laxmanrao was the youngest in the family. He had two elder sisters:
Batakka and Durgabai: and two elder brothers : Vasudeorao and Ramuanna.
Ramuanna was working as a school teacher in Belgaum. Dr .Vasudeorao was
not only a doctor by profession but he had started a workshop named
"M/s. Shivaji Works" in Solapur. He was also popular as a writer. He used
to write good articles in magazines and newspapers on important topics.
(27)
Laxmanrao could not complete his academic education beyond the Fourth
Standard in an English Medium School. He studied Marathi at three dilTerent
places : Dharwar, Gadag and Kaladaki. Considering his family responsibilities,
he had to get employed somewhere to support his family. Therefore, he went
to Bombay and got employed in the Victoria Jubilee Technical Institute (V.J.T.I.)
as a school teacher of mechanical drawing. Laxmanrao had four sons :
Shantanu, Rajarampant, Ravindra and Prabhakar. Later, Shantanurao Kirloskar
distinguished himself as a successful entrepreneur of our country.
To summarize, it can be observed from the study of the family
background of Laxmanrao Kirloskar that :
(1) Although he was the youngest in the family, he voluntarily agreed to
shoulder the responsibility of financially supporting his Joint family.
(2) Laxmanrao joined V.J.T.I. as a school teacher only as a matter of necessity
to earn regular income. His basic inclination was towards starting his
own workshop.
(3) Laxmanrao's father Kashlnathpant was In no way related to the Held of
technology and engineering in which Laxmanrao became a pioneering
figure subsequently. Thus Laxmanrao is the First Generation Entrepreneur
in Kirloskars.
(4) All the three Kirloskar brothers : Laxmanrao, Dr.Vasudeorao and Ramuanna
had an aptitude for technical subjects.
(28)
(5) It is worthwhile to note that Laxmanrao's father Kashlnathpant, though
he came from a lower middle class family, wanted his children to leam
the subjects of their individual liking. Though the financial condition of
the family was not veiy satisfactory, Kashinathpant helped Vasudeorao
to become a doctor. Gopalrao to complete his studies in Law and Laxmanrao
to leam the subject of Engineering drawing.
3.3.2 LAXMANRAO AS A SCHOOL TEACHER
It Is because of his personal aptitude towards the subject of drawing,
that Laxmanrao went to Bombay to undergo a training course of Technical
Draftsmanship at the J.J.School of Arts. After completing this course, he
Joined the Victoria Jubilee Technical Institute (V.J.T.I.) as a school teacher.
He taught the students the subject of mechanical drawing. He was paid a
salary of Rs.35/- per month. He increased his knowledge of technical
subjects by frequently visiting and working in the workshop which was near
the school. He worked on various machines : lathes, drilling machines,
shaping machine, slotting machine, etc..
In those days teaching was looked upon as a noble profession.
Therefore, people did not like him to work in the workshop as well. However,
Laxmanrao ignored the public opinion. He was determined to swim against
the current. He decided to start an industrial unit in future. He was working
as a school teacher only because he wanted to support his family financially.
(29)
During the time he was in workshop, Noorkhan Ebrahim who was other
machinist working there, became his best friend. Through his personal contracts,
he helped Laxmanrao by giving him the contracts of mechanical drawings for
Grand Eastern Mills. He also helped Laxmanrao in starting a printing press
in 1892. Ebrahim. thus, helped Laxmanrao in serval ways to earn additional
Income.
3.3.3 LAXMANRAO AS AN AGENT
One day, on his way to school, Laxmanrao saw a parsi driving an
unusual sort of bicycle with
two different sized wheels.
Laxmanrao obtained the
information as to who
manufactured those bi
cycles, where they were
sold, etc.. When he came
to know that an American
company produced those
bicycles, he collected a
catalogue from the
American company and
studied it thoroughly. He
iTfit ^ - j.
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purchased the bicycle also. He learnt to ride it. In those days customers
procured the various parts of the bicycle and assembled it on their own. The
bicycle company supplied spare parts only. Laxmanrao thought of doing a
business out of it. In the mean time lot of developments took place in the
shape of the bicycle. I^axnianrao started the business of purchasing spare
parts of the bicycle from M/s. Wachha Brothers and supplying the properly
assembled bicycles to customers. Within a short period of time he became
well known in the market as the seller of bicycles. The demand for bicycles
started increasing. Then he got the address of the American company and
started dealing with it without the interference of any middleman. For the
purpose of bicycle trade he started a firm in partnership with his elder brother,
Ramuanna. He named the firm as KIRLOSILAR BROTHERS. The name of
Klrloskar Brothers, thus became popular as the bicycle agents.
Laxmanrao then decided to expand the business of bicycle agency. He
started a bicycle sales and repairs workshop in Belgaum. His elder brother
Ramuanna looked after it. Laxmanrao in Bombay purchased bicycles from
the foreign countries and supplied them to Ramuanna in Belgaum.
Laxmanrao knew that if the people learnt to ride a bicycle then only they
would buy it. Therefore, he opened a class for teaching the art of bicycle
riding in Belgaum. Ramuanna alongwith the two poor and needy students :
K.K.Kulkarni and Rangoba Bhagwat helped Laxmanrao in his work.
(31)
Laxmanrao trained about 300 rich and respected people in those days.
Contacts developed by Laxmanrao with these people helped him in starting a
factory at Kirloskarwadi.
It is worthwhile to note that Laxmanrao looked after the business of
Kirloskar Borthers simultaneously while working as a school teacher in Bombay.
Laxmanrao worked as a school teacher for about 10 to 12 years. He resigned
from the service in V.J.T.I. when he was refused the promotion which was
overdue.
3.3.4 EARLY EXPLORATIONS
Since the beginning of his career Laxmanrao constantly thought of some
such product that he could manufacture on a very small scale and with a
small financial investment. Laxmanrao, had the ambition of becoming a
manufacturer but he wanted to realize this dream step by step.
While thinking on these lines, Laxmanrao decided to produce coat
buttons and pill-boxes. Laxmanrao undertook the production of pill boxes
and coat buttons not only because it involved less use of machines but also
because it was an import substitute item; Laxmanrao was motivated to produce
such items as a result of being influenced by the freedom struggle.
Dr.Nanasheb Deshmukh, who was a well known doctor by profession,
provided the required finance that Laxmanrao needed for this venture.
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Laxmanrao imported a lathe machine from Barnoss Company of U.S.A..
As he ran short of funds, his wife Radhabai, offered to sell her gold ornaments
and helped in her husband's venture. Laxmanrao employed two workers in
his workshop and started producing these products. The pill-boxes that he
manufactured were purchased by his doctor friends. Within a short period of
two, three years, Laxmanrao was able to repay the loan that he had from
Dr.Deshmukh. However, his business suffered many set backs during 1897
due to the wide-spread plague.
What is to be done to support his family was the question. He could not
think of going back to Bombay as he had already resigned from V.J.T.I. The
income that he was getting from the bicycle shop and sale of the pill-boxes
was inadequate. Therefore, he started selling wind pumps which were in great
demand in Belgaum. He entered into a contract with the Sampson Company.
Through this business he earned a considerable amount of commission.
In iQOO, the business of Kirloskar Brothers achieved stability. However,
Laxmanrao was not satisfied with doing the business of bicycle repairs and
sales, producing coat buttons and selling wind pumps. He wanted to manufacture
some product rather than to sell an imported article. Therefore, he started
producing bicycle parts. He produced three, four bicycles also. However,
considering the investments, he had to give up this idea. He did not feel sorry
about giving up this idea, because he was a truly business minded person so
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far as the investments and the returns therefrom were concerned. In those
days, there was no well-organized banking system to give loans on favourable
terms as we have at present. This was a major impediment in the progress
of business in those days.
Laxmanrao thus, was a GENIUS. His constant endeavour to go out of
the way and to do something new, helped him to stand out every step in his
journey right from a teachership to the manufacturer.
3.3.5 LAXMANRAO - THE GREAT ENTREPRENEUR OF MAHARASHTRA
The pioneering effort of Laxmanrao to establish and develop the business
of rarloskar Brothers has a remarkable impact on the industrial development
of Maharashtra. Today, we And that the branches of Kirloskar Brothers are
doing business in several important cities : Pune. Kirloskarwadi, Karad and
Solapur. It is worthwhile to note that Laxmanrao had started the branches
of Kirloskar Brothers at these different places when these cities were industrially
backward. During that period there were neither the infrastructural facilities
for industrial development nor the British people were encouraging the Indian
industries.
Thus, the distincive feature of Laxmanrao is that he worked under all
adverse conditions and still contributed his best to the industrial development
of the State of Maharashtra. Transformation of the 32 acre barren plot of land
at Kundal Road, into an industrially developed city now called Kirloskarwadi
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is an excellent example in this respect.
Another point of Laxmanrao that makes him a genius is that he dealt
with such engineering products as oil engines, pumps, lathes, air and gas
compressors, castings, marine engines, etc. that have led to the achievement
of agriculture and industry, which are the two major parameters of economic
growth of a country.
Laxmanrao not only developed the business of Kirloskar Brothers but
also helped the development of Industrially backward regions by inspiring,
guiding and encouraging many people to become successful entrepreneurs in
and around Maharashtra e.g. Mr.Pusalkar, Mr.Vithoba Sutar, Mr. Kudchikar,
Mr. Shankarrao Kothawale, Mr. Bassappa Honnoor, Mr. Sonalkar, Mr. Venkappa
Sutar, Mr. Rambhau Savant, Mr. I.G.Chanchanikar, Mr.Hudali, Mr.Kajagar,
Mr.K.B.Shirolkar, Mr. Hari Vasudeo Nagarkar, etc..
Laxmanrao had all the qualities of a sucessful entrepreneur. He had the
vision to set an objective and pursue it doggedly. He was a self-made man.
He started the business of Kirloskar Brothers with an view to get self-employment.
The introduction of iron ploughs in the place of traditionally used wooden
ploughs for agriculture, shows his innovative approach in his work.
He had the enterprising spirit to take risk. The way in which he had
decided to manufacture furniture items such as folding chairs and tables,
beds, shelves and some major items of hospital furniture, etc. to overcome the
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period of induslrlnl depression of 1925-30, is a remarkable example of his
innovativeness, industriousness and his ability to overcome diflleulties in
business. Laxmanrao had a patience, managerial skill and foresight. The
example of relieving the two 'dacoits', : Pirya Manng and Tukkya Ramoshi
from the imprisonment and further assigning them the job of the gate-keeper
at Kirloskarwadi shows how well Laxmanrao used to rehabilitate such people
and develop them into useful respectable members of the society.
An entrepreneur does not only Invest his own persons but also his own
funds, however small they may be. Laxmanrao did not only train people
working under him, in their respective Jobs and employed them in the
business but he also endeavoured hard to look for the financial resources. In
those days there was no well developed banking system. Laxmanrao had to
create his own contacts and creditworthiness to generate funds from his friends
and other rich people like the Raja of Aundh. Laxmanrao made great efforts
to develop his own reliability and creditworthiness. He undertook the work of
electroplating the roof of the Yammaie Temple owned by the Raja of Aundh,
(District : Satara); the inner motive was to win the favour of the Raja of
Aundh, who would finance his project in future.
He was fully aware about the social responsibilities of business. He was
of the opinion that the businessman must contribute his might to the
development of the society.
(36)
The following activities of Laxmanrao show that he had a deep concern
for the welfare of his workers.
(1) lie coiislructcd a rccrcation hall callcd 'SainaJ Mandlr' for the bcnelU of
workers.
(2) In those days, very few big industrial concerns such as the Ford Motor
Company, (U.S.A.) used to have the practice of publishing the 'house-
journal' for covering the important events in the industiy. On similar
lines, Laxmanrao also started publishing a news bulletin called "Kirloskar
Khabar" so as to facilitate the workers to express their feelings and
opinions by writing articles on different subjects for their interest and
liking. Kirloskar Khabar also served the purpose of communicating the
achievements of Kirloskar Brothers Limited to all the workers in the
company.
(3) Kirloskarwadi was fornially a barren plot of land. Thcrclorc, Laxmanrao
took active interest in tree plantation. This provided the workers an
environment conducive to work.
(4) We find that while establishing the Industrial town at Kirloskarwadi,
Laxmanrao was very creative and selective about the plant layout.
(5) Laxmanrao helped one of his workers, Mr.Bhaurao Patil. Mr. Bhaurao
Patil wanted wanted to establish Satya Shodhak SamaJ for educating the
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non-brahmans. U iUm' Mr.Oliaurao Patll, devoted lilmscll coiiiplclcly lor
this laudable mission. He was honoured as 'Karmaveer' for his work in
this field.
(6) There is one small but important incident which shows his sense of
obligation. During the period of floods, in Bengal, funds were being
collected by social workers, for the rehabilitation of flood-affected people
in Bengal. When one of the social workers approached Laxmanrao for
contribution, he withdrew the whole amount of his balance in the bank
and handed it over to the volunteer.
Laxmanrao was honoured by several dignitaries such as Late Tatyasaheb
Kelkar, Shrimant Balasaheb Pantprathinidhi, Pandit Jawaharlal Nehru,
Loakmanya Tilak when they visited Kirloskarwadi. He had also been honoured
by the award of Kaisar-E-Hind by the Raja of Aundh.
Various personal qualities and the landmarks in the life of Laxmanrao
that are mentioned above clearly indicate that Laxmanrao was the great en
trepreneur of Maharashtra and of our country.
The 87 years of life span of Laxmanrao came to an end on 25th September,
1956. The demise of Laxmanrao brought the first chapter in the History of
Kirloskar Brothers to an end»
(38)
3.4 SHRI. SHANTANURAO LAXMANRAO KIRLOSKAR -
THE CHIP OF THE OLD BLOCK
Shantanurao Klrloskar is the eldest son
of Laxmanrao. He was bom on 28th May,
1903 at Solapur. He completed his school
education alongwith the children of the
workers dt Kirlosloskarwadi. In 1913, he
was taken to Aundh by his uncle Ramuanna
with other boys at Kirloskarwadi for their
highschool education. He completed his
secondary education from New English
School. Pune. His favourite subjects were arithmetic, algebra, geometry and
physical sciences. Therefore, on the recommendation of their family friend
Mr.Nagudada Ogale, who had undertaken a tour to U.S.A., papa (Laxmanrao)
sent Shantanurao to Massachusetts Institute of Technology, U.S.A. for studying
Mechanical Engineering. He also worked on the shop floor in the machine
tools manufacturing plant of Pratt & Whitney at Hartford, Connecticut for a
period of four months and gained some practical knowledge.
During 1923-26, he stayed in the MIT Students' dormitory, where he
developed his own contacts with relatively senior people studying with him.
Shantanurao passed his examination in MIT with credit and received his B.
Sc. degree (Engineering) in 1926.
(39)
When Shantanurao Klrloskar returned from foreign country, India was
In a political turmoil. The freedom movement had spread throughout the
country. In the freedom struggle started under the leadership of Mahatma
Gandhi, he was also a participant.
In 1927, Shantanurao played a major role In establishing the Federation
of Indian Chamber of Commerce & Industries (FICCI) as a deliberate counterblast
to the British Businessman's Association. The objective of FICCI was to
obtain valuable information about current business developments and the
future policy of British Government.
In 1928, Shantanurao got an opportunity to diversify the production of
Klrloskar Brothers when the centrifugal pumps were proposed to be produced
alongwith the other farm machines and machine-tools. Mysore Klrloskar Ltd.
was established for the purpose of providing machines to the farmers.
After 1928, Shantanurao was instrumental in establishing and develop
ing different companies in the Business House of Kirloskars. We will be
referring to these developments in the History of Klrloskar Brotliers in detail.
His djoiamic personality. Industriousness and entrepreneurship brought
him a number of honours at national and international levels. He was awarded
Padama Bhushan by the President of India Dr. S. Radhakrlshnan for his
distinctive contribution in the field of Indian Industries.
(40)
3.5 HISTORY OF KIRLOSKAR BROTHERS
-rh.-TTl!>SThe History of Kirlokar Brothers and the lives of the Laxmanrao and
Shantanurao can not be studied in isolation. This is because the development
of the business of Kirloskar Brothers is the result of the pioneering efforts of
these two entrepreneurs. Therefore, in this part of the chapter also frequent
references to the work of Laxmanrao and Shantanurao are inevitable.
3.5.1 PERIOD FROM 1888 TO 1920
(TRANSFORMATION OF PARTNERSHIP FIRM INTO A LIMITED COMPANY)
TABLE NO. 1
TABLE SHOWING THE GRWOTH OF KIRLOSKAR BROTHERS
SINCE 1888 TO 1920
Year Landmarks (FYom Kirloskar Brothers to Kirloskar Limited)
1888 Kirloskar Brothers' Bicycle Shop at Bombay and Belgaum
1900 Shivaji Works - converted into a public company
1901 Chaff-cutters were manufactured
1903 i) Bicycle shop - sold
ii) Shifted the business to Thalakwadi First Indigenous Iron Plough was manufactured shifted from Thalakwadi to Kundal Road
a. Conversion into a Limited Company
b. First Sugarcane Crusher was produced
c. Film on Kirloskars
d. Kirloskar Khabar
T h T J ^ S '
The Kirloskar legend started about a hundred years ago i.e. in 1888
(41)
when Laxmanrao and his elder brother Ramuanna brought them together on
catalogue under the name of Kirloskar Brothers. As mentioned earlier, in
those days they sold bicycles and bicycle parts, repaired bicycles and also
taught bicycle riding to the people. Thus in the initial period the name of
Kirloskar Brothers was popular as bicycle agents. They had two branches one
at Bombay and other at Belgaum. Laxmanrao imported bicycles and supplied
them to Ramuarma who looked after the branch at Belgaum.
When Laxmanrao and Ramuanna were looking after the bicycle shop,
their brother Dr.Vasudeorao opened a workshop named "Shivaji Works" at
Solapur, He manufactured tifln carriers, stoves, etc.. In 1900, the Shivaji
Works was converted into a company called Shivaji Works Limited with a
capital of Rs.30,000/-. It is the oldest company in Maharashtra with Registration
Number 75.
In 1901, Kirloskar Brothers produced a chaff-cutter that was used for
cutting grass for feeding cattle. Kirloskar Brothers sold the chaff-cutters for
Rs.lO and 5 annas each. For the purpose of producing the chaff-cutter, they
purchased a two and half horse power engine of Mits and Molier company, one
small lathe from Bamoss Company, a drilling machine and one emery grinder.
It was the first time in the History of Kirloskar Brothers that machinery was
imported for indigenous production of chaff-cutter. They employed about
live men to work in the workshop. The chaff-cutter happens to be the first
product of Kirloskar Brothers.
(42)
In 1903, Kirloskar Brothers sold their bicycle shop to Mr.Nanasaheb
Dewal for Rs.2,000/- and focused its attention on the production of chaff-
cutters. Laxmanrao was making lots of experiments for improving the quality
of chaff-cutters. These efforts made the chaff-cutter popular among the
customers. The business of Kirloskar Brothers started increasing. The plant
at Belgaum was too inadequate to cater to the increasing orders of the customers.
Therefore, Laxmanrao had to shift the business to Thalakwadl.
The chalf-cutters were in great demand from the farmers who had cattle
on their farms. Now, Laxmanrao thought of producing some such other item
that would be useful to the farmers. India being an agricultural country, such
a product could get a nationwide market. Therefore. Laxmanrao decided to
produce iron ploughs for Indian farmers. It was a novel Idea because farmers
used wooden ploughs before this time. In 1905, the first Iron plough was
made In India by Kirloskar Brothers. However It took some time to make the
iron plough popular among the farmers because they were superstitious and
slow to change from their traditional methods. The first batch of six ploughs
therefore remained unsold for nearly two years. After two years of producing
the first batch of iron ploughs, some farmers from MiraJ, district Kolhapur,
purchased some ploughs. They found these ploughs better than the traditional
ones. They started recommending the use of iron ploughs. Thereafter, there
was less resistance from the farmers to use these ploughs. Gradually, the
iron ploughs of Kirloskar Brothers became popular. The sales showed an
(43)
increase from 6 to 200 ploughs per year. Nearly 14 years later, the sale of
iron ploughs shot up to 40,000 ploughs per annum. The number of workers
working with Kirloskar Brothers also increased to 40. The earlier two and half
horse power engine was changed for eight horse power engine of Black Stone
Company.
In 1910, the Municipality of Belgaum, issued a notice for shifting the
works of Kirloskar Brothers, within a period of 6 months. This posed a
problem to Laxmanrao. The Raja of Aundh rescued Laxmanrao out of this
difficulty by not only offering 32 acres of land but also giving a loan of
Rs. 10,000/- for assisting the work of shifting the business from Thalakwadi
to Kundal. Kundal was a very small village on the outskirts of Aundh area.
It was literally a barren plot of land. Laxmanrao went to Kundal in 1910 with
33 faithful workers. There was nothing except a choultiy and two or
three houses near the railway station. It was because of the growing business
of Kirloskar Brothers that the name of the village was changed from Kundalroad
to Kirloskarwadi.
The business of Kirloskar Brothers increased rapidly. The number of
workers working in the industry increased to 800. The price of the iron
plough was increased to Rs.70/-. However, there was a limitation to the
growth of business due to the inherent limitations of the partnership form of
(44)
business organisation. Therefore. Laxmanrao thought of converting the part
nership ftrm into a limited company.
Accordingly, an application was made to the Registrar of Companies for
registering Kirloskar Brothers as a Limited Company, with an authorised capital
of Rs. 12.00,000/- divided Into 48,000 shares of Rs.25/- each. The Raja of
Aundh agreed to purchase some shares of the company and also agreed to act
as the chairman of the company. The Board of Directors of the company
consisted of some influential and knowledgeable people. The company as
sured the shareholders of atleast 9% dividend eveiy year. They also promised
that the managing agents would not take any share of profits unless the
dividend was so paid by the company. The total assets of the company were
worth Rs.5.00.000/-. However, the public issue was made only for Rs.3,80,000/
- shares. The people started buying the shares when they were assured of the
returns on their investments.
"Kirloskar and Sons" was established as the managing agents. laxmanrao,
Shambhorao Jambhekar, Anantrao Phalnlkar. Shankarrao Kirloskar and
Nanasaheb Gurjar were co-opted as partners of the Kirloskar and Sons.
After the establishment of Kirloskar Brothers Limited. Laxmanrao started
thinking about diversification. He produced the first sugarcane crusher within
a short period from the establishment of the company.
(45)
Some of the other noteworthy activities undertaken by Laxmanrao during
the period of 1920 are the publication of a news magazine called "Kirloskar
Khabar" and a film on growth of the business of Kirloskar Brothers Ltd..
Laxmanrao always aspired to take Kirloskar Brothers Ltd. on the lines
as those of foreign companies. Therefore, when he leamt that Ford Company
in U.S.A. issued a news magazine called "Ford Times" to review the internal
progress of the workers and their work, he also decided to publish a news
bulletin called "Kirloskar Khabar" on 1st January. 1920. That was how the
Kirloskar Press was started at Kirloskar wadi as an ancillaiy activity of Kirloskar
Brothers Limited. Subsequently, the press was shifted to Pune. Kirloskar
Press published monthly magazines, "Stree", "Kirloskar". "Manohar". etc. over
a long period. However, since 1988, the business of publishing was closed by
selling it to Apurwa Publishing (Pvt.) Ltd.. At present the press undertakes
printing work only.
In 1922, Laxmanrao conceived the idea of preparing a film on the indus
trial development achieved by Kirloskar Brothers Limited. The two reknowned
personalities in the field of film industty, Mr.Baburao Penter and Mr. Phattelal
Damle were invited for the purpose of shooting the film on how Kirloskar
Brothers Limited produced the iron ploughs, chaff-cutter and iron castings,
etc.. This film was released for public viewing at Bangalore in an industrial
exhibition.
(46)
3.5.2 PERIOD BETWEEN 1921 to 1952
(STRUGGLE AGAINST DEPRESSION AND FURTHER DEVELOPMENT)
The following table shows the major landmarks of this period :
TABLE NO. 2
TABLE SHOWING THE GROWTH OF KIRLOSKAR BROTHERS LIMITEDSINCE 1921 TO 1952
YEAR LANDMARKS
1926 Return of Shantanurao from MIT, U.S.A.
1930 STRUGGLE AGAINST DEPRESSION
- Drilling machine, nut and bolts
- Steel furniture, hand pumps- Groundnut decortlcators
1930 to 1939 Diesel engines, electric motors, lathes and concrete mixers
1929 to 1952 Branching out - promotion of different companies
On 26th October 1926, Shantanurao returned from U.S.A. after under
going a rigourous training in the field of Mechanical Engineering at the MIT.
Indian industries were not as advanced as the industries in U.S.A. Kirloskar
Brothers Limited also was not an exception to this. Kirloskar Brothers Limited
was using those techniques of producing their products which the American
Industries had used 50 years earlier. Kirloskar Brothers Limited was lagging
behind the advanced countries of the world.
(47)
In 1926, Kirloskar Brot±iers Limited was producing 20 types of iron ploughs,
four different types of sugarcane crushers and three types of chaff cutters.
Due to the great depression of 1930s the demand for Kirloskar products
was decreasing. There was a period during 1926 to 1930 when there was no
work for the workers in the foundry and machine shop at Kirloskarwadi.
Shantanurao had to take certain steps to overcome the situation. Shantanurao,
(i) removed the temporary workers,
(ii) made a five day week instead of a six day week.
(iii) tried to explore the markets for Kirloskar products in Madhya pradesh
and Madras States,
(iv) changed the method of advertising the products. He insisted on dem-
onstrallng the product to the customers as a niclhod of advertising,
(v) for the purpose of selling the company's products, he builtup a sales and
distribution network. This was the time when Parry and Company was
appointed as the agents of Kirloskars. They assured the company to give
fixed sales of Kirloskar products per annum,
(vi) applied to the Railway company for concessions in transporting the
goods. Shantanurao endeavoured to reduce the cost of the products.
(48)
All these efforts and Ideas of Shantanurao contributed materially in the
struggle of Kirloskar Brothers Limited against the depression.
The traditional products of Kirloskar Brothers Limited had a less demand
in the markert. Therefore, the company diversified its activities and started
producing products which were in demand. It produced nuts and bolts,
drilling machines, steel furniture such as steel tables, chairs, hospital furni
ture such as beds, shelves, ten different types of groundnut decorticators and
centrifugal pumps used by sugar industries.
Thus, Shantanurao on his return from U.S.A. was successful in facing
the period of depression by using most practical and modern methods of
business.
The great depression of 1930s was followed by the Second World War.
The World War had a favourable effect on the business of the company. The
Government stopped importing machine-tool items from France and decided
to buy them from Indian producers. lOrloskar Brothers Limited produced a
lathe for making the outer cover of the bombshell and sold it to the British
Government. The sales rose rapidly. They got many orders for various other
machine tool products such as planning and processing machines, etc. for
defence purposes. Kirloskar Brothers Limited executed all these orders promptly
and efficiently.
(49)
During 1926 to 1936 the company was producing 5. 8 and 16 Horse
Power engines at Klrloskarwadi. Shantanurao wanted to develop a greater
Horse Power engine. However, the required forging and fuel injection equip
ment was not available In India. He thought of importing the required parts
and machines from other countries. During this period Kirloskar Brothers
Limited was thinking of producing diesel engines but was not able to find a
wayout.
In the mean time Pariy and Company accepted the agency contract with
Kirloskar Brothers Limited. Parry and Company was a British firm. It was
working as an agent for selling the Electrical Motor and Oil Engines of Brush
Manufacturing Company and British Oil Engine Export Company respectively.
Shantanurao discussed the possibility of producing electrical motors, diesel
and oil engines in India. Due to the World War, the idea did not materialise.
Considering the increasing demand lor concrcte mixers that were used in
construction work, the company also made an attempt to produce them at
Klrloskarwadi in 1936.
In conclusion, it can be observed that in the period of 1926 to 1945
Kirloskar Brothers Limited :
(I) struggled against the great depression,
(II) met the orders for defence products.
(50)
(iii) negotiated with foreign companies to secure their help in producing elec
trical motors and diesel engines.
(iv) prepared grounds for further expansion.
From 1939 to 1952, the House of Kirloskars branched out by establish
ing various companies. Following is a table showing the list of companies
established from 1900 to 1952
TABLE NO. 3COMPANIES ESTABLISHED BY THE HOUSE OF KIRLOSKARS
FROM 1900 TO 1952
Year of Establishment Names of Companies
1900 Shivaji Works Limited
1920 Kirloskar Brothers Limited
1938 G. G. Dandekar Machines Works Limited1941 Mysore Kirloskar Limited
1946 Kirloskar Oil Engines Limited (KOEL)1946 Kirloskar Electric Company Limited (KECL)1950 Lakaki Works Limited
(NOTE : It is important to note that the product that these companiesmanufactured were first tried and tested by Kirloskar Brothers Limited at
Kirloskarwadi.)
3.5.3 PERIOD FROM 1952 ONWARDS
(ERA OF FOREIGN COLLABORATIONS AND DIVERSIFICATIONS)
The following table shows the landmarks in the progress of Kirloskars
from 1952 onwards.
(51)
TABLE NO 4LANDMARKS OF THE HOUSE OF KIRLOSKARS SINCE 1952.
Year Landmarks
1952 First step in the House of Klrloskars towards foreign collaboration -KECL - entered into collaboration.
1958 First collaboration by KBL1959 Shifting of Kirloskar Press at Pune1961 Plant at Dewas
1963 Second collaboration by KBL1968 Production of the first Hermetic Compressor at Kirloskarwadi
- Third collaboration- Registered under MRTP Act
1968 Shifting of the Head Office1970 Fourth Collaboration
- Established the Hermetic Compressors Division at Karad.1974 Fifth Collaboration1980 Sixth Collaboralion1980to Further Growth in terms of employment, net-worth, sales, profits.
1988
Upto 1952, Kirloskar Brothers Limited was producing various types of
hand driven pumps and valves on a very large scale at Kirloskarwadi. It was
the right time to buy the plots of land at different places and shift a part of
business at new premises.
In 1952, for the llrst time in the history of the House of Klrloskars that
Kirloskar Electric Company Limited, Bangalore entered into a foreign collabo
ration with Brush Electric Engineering Co. Ltd., of Leicestershire, U.K.* for
manufacturing 1-50 H.P. Brush Electric Motors.
• Reference - 'Dictionary for foreign collaborations' Published by N. K. Vyan Publishers, Ahmedabad, 380 009, Fagel29 Sr.No.l630
(52)
Shantanurao Klrloskar gives the following two reasons for foreign
collaborations :
(i) "The saving of time which Is such a crucial factor In business and
(ii) the great advantages of benefittlng from the know-how and continuous
upgrading of the technical advances which our collaborators developed at
enormous cost."
Shantanurao further says, "Looking to India's large potentials, I felt we
should start making our own parts and components................. Production of
engines had to be sizable to make it economic and sizable production de
manded standardisation of each component. The production of components
called for proved drawings and specifications, machines, equipment, jigs, fixtures,
tools, measuring instruments, testing equipment and various other items in
addition to production disciplines and skills. We had no such production
base. Neither we nor anyone else in India had produced vertical high-speed
diesel engines in large quantities..........Being keen on putting our engines in
the market as early as possible, I wanted to cut short the time and efforts and
to reduce- the expenses. By signing the collaboration agreements, I saved
years of time and perhaps millions in costs of development." *
Klrloskar Brothers Limited entered into a collaboration with Suker Brothers
of Switzerland ** during 1958 to produce the power driven pumps. In the
* S.L.Kirloskar, 'Cactus & Roses' : An autobiography, (1982) Klrloskar Press, Pune 37,Page 117 to 119
•• Ibid. - Page 374, Sr. No. 5039
(53)
time the House of KIrloskars had established Kirloskar Pneumatic Company
Limited at Hadapsar, Pune.
In 1959, Kirloskar Press that was publishing the monthly magazine
"Kirloskar" at Kirloskarwadi, was shifted to Pune.
During the period of 1959-60 the nclworth of Kirloskar Brothers was Ite.
114 lakhs and Sales were Rs.l46 lakhs.
In 1961, considering the increasing demand for Kirloskar Products the
company shifted the activities of producing hand driven pumps that were used
by the farmers and the production of monoblock pumps at Dewas in Madhya
Pradesh State. In 1961, lOrloskar Brothers Limited entered in collaboration
with Tecumseh Products Co. Tecumseh, Michigan. U.S.A. * for the production
of Hermetically sealed compressors for refrigeration and air conditioning.
During 1962, the House of KIrloskars started a new company at Kothrud,
Pune. It was established under the collaboration with the Commins Engine
Company Inc., U.S.A. Therefore, It was called as Kirloskar Commins Limited.
In 1963, Kirloskar Brothers Limited, had entered into a collaboration
with Sulzer Brothers Limited of Switzerland ** for the purpose of exporting
the pumps produced by them.
• Ibid; Page 375. Sr.No.5040
** Ibid; Page 375. Sr.No.5041
(54)
During 1968, Klrloskar Brothers Limited started manufacturing the
Hermetically sealed compressors at Kirloskarwadi for the first time in its
history. In this year Klrloskar Brothers Limited was announced along-with
eleven other companies under the House of Kirloskars as the MKTP Companies
and were recorded under the Monopolies & Restrictive Trade Practices Act.
Klrloskar Brothers Limited started two separate divisions for manufac
turing pumps and compressors at Dewas. The workload at Kirloskarwadi was
reduced considerable. It was possible to enter the new areas of business.
Therefore, during the same period I.e. in 1964 Klrloskar Brothers Limited
entered into a collaboration with Butler Machine Tools Company Limited, Mile
Throne Halifax Yorkshlne, U.K. * for the purpose of producing Planing and
Shaping machines. In the mean time, up to 1965, the House of Kirloskars
had established five different companies : Klrloskar Systems Ltd. at Bangalore
(1962), Pratlbha Advertising Company Limited at Pune (1962), Klrloskar
Consultants (Private) Limited (1963), Pune Industrial Hotels (1964) and Klrloskar
Proprietary Company Limited. (1965).
Klrloskar Brothers Limited entered Into three collaborations with foreign
companies upto 1965 It was producing motors, power driven pumps and
planing and shaping machines. Their sales amounted to 1^.667 lakhs and
networth was Rs.256 laklis.
* Ibid: Page 495, Sr.No.6660
(55)
In 1968, Kirloskar Brothers Limited took a review of the office depart
ment to find out the problems the office staff was facing. It observed that
there existed a problem of communication in sales office, secretarial office and
the overall management of the business. Therefore, to facilitate the concen
trated attention on the sale, secretarial and managerial activities, these offices
were shifted from Kirloskarwadi to Udyog Bhavan at Pune.
Because of the shifting of certain offices mentioned above at its head
office in Pune, it was thought to be the right time to expand at Kirloskarwadi.
Accordin^y in 1971, Kirloskar Brothers entered into a collaboration with Bullard
Company of White Consolidated Industries, Inc., 286, Canfield Avenue for the
production of Vertical Turret Lathes. *
Between 1971 and 1975, the business of Kirloskar Brothers Limited
prospered to a great extent. In 1970 the total number of employees on the
record was 5,060 with a networth and sales of Rs.374 lakhs and Rs. 1,418
lakhs respectively. In 1975, the employment increased to 5,163, networth to
Rs.560 lakhs and sales shot up to Rs.3,008 lakhs.
During October 1970, the company established a division at Karad for
the manufacturing of the Hermetically sealed compressors.
• Ibid: Page 491, Sr.No. 6661
(56)
In 1974, the company entered into another collaboration with the same
company ; Tecumseh Products, Michigan, U.S.A. * for the production of dif
ferent types of Hermetically Sealed Compressors. This helped in producing
the modern compressors.
Kirloskar Brothers Limited exported its products such as pumps, valves,
compressors, grinding machines to different countries such as U.S.A., Japan,
Newzealand, Australia and some other countries in Europe.
During 1965 and 1975, the House of Kirloskars established different
companies as shown in the following table :
TABLE NO. 5LIST OF COMPANIES ESTABLISHED BY KIRLOSKARS
FROM 1965 TO 1975
Year ofEstablishment Names of companies
1966 Mahila Udyog Limited1969 Kirloskar Fertilizers Private Limited1969 Precision Tools Systems Limited
1970 Kirloskar Kisan Equipments Limited1971 Kirloskar Engineering Limited
1973 Kirloskar Overseas (Private) Limited
1974 Kirloskar Tractors Limited (was later on merged with KPCL)
By 1975, Kirloskar Brothers Limited had already entered into live col
laborations with foreign companies.
In 1980, Kirloskar Brothers entered into collaboration with Tecumseh
* Ibid: Page 375, Sr. No.5040
(57)
Products, U.S.A.* again for the purpose of upgrading the technology for
hermetically sealed compressors upto 5 H.P. The total number of workers
now with Kirloskar Brothers Limited was 6,585 which was the highest employ
ment figure. The networth was Rs.782 lakhs with the sales of Rs.4,750 lakhs.
In 1985, the number of workers on the roll was reduced to 4,563. The
networth increased from Rs.782 to Rs.908 lakhs. Total sales amounted to
Rs.6,773 lakhs. From 1985 to 1988 the business of Kirloskar Brothers Limited
further developed in terms of sales, profits, etc.. Sales shot up to Rs.9,131
lakhs and profits to Rs.201 lakhs.
By 1988, the company entered into foreign collaborations as shown in
the following table.
TABLE NO. 6FOREIGN COLLABORATIONS SINCE 1985 TO 1988.
Products Name of the Company
1. Canned Motor Pumps Nikkison Co. Ltd.
2. Japan Fire Fighting Pump sets Godva Fire Pumps Ltd. U.K.3. Christmas Tree Valves Oil Tools Specialities Co. U.S.A.
& Well-Head Assemblies
Source : (Sampada) July 1988 issue. Page 57, MCCI.
Today we find that Kirloskar Brothers Limited produces various products
such as power driven pumps, valves, metal cutting machines, grinding ma
chines and hermetically sealed compressors. They exported their products to
the industrially advanced countries such as U.K., U.S.A., Japan, South East
* Ibid: Page 375, Sr.No.5043
(58)
Africa, New Zealand, Australia and some of the European countries. The
company has its own Hydraulic Research Centre for testing large size pumps
with a discharge of 10,000 litters per second requiring power of 1,850 KW
(2,500 H.P.). This laboratory has been recognised by the Government of India.
The company has a diversified range of products for manufacture. Therefore,
the company has been concentrating on improving the product quality and
service to customers. The company is planning to concentrate on the
manufacture of high technology products like canned motors, pumps, high
pressure valves, well-head assemblies and mobile lire flghllng pump sets, etc.
which will be in addition to the existing product line. The company also has
a programme to popularise the energy saving pump-sets to farmers and com
pressors to refrigeration and air conditioning industries.*
So far as the major opportunities and challenges in 2000 AD are con
cerned, they are supposed to be the following :
(i) Absorption and assimilation of computer technology application and other
automation in the existing lines of manufacture and related services to
achieve higher productivity and total customer satisfaction.
(II) To up grade their technologies to serve faster rate of growth in industries
and agriculture.
* "Sampada" MCCI, July 1988 Issue, Page 57.
(59)
(ill) The company might have to face the organised customer preferences,
choices and challenges. In many areas the existing seller's market might
be turned into buyers' market.
3.6 OBSERVATIONS
From the study of the history of Kirloskar Brothers Limited after 1952,
the following observations can be made :
(i) The company has adopted the policy of producing engineering products
and not to diversify into chemicals and electronics. The list of various products
developed by Kirloskar Brothers Limited is given in Appendix (7).
(ii) The company has entered into many collaborations with foreign compa
nies. Table showing the list of foreign collaborations entered into by Kirloskar
Brothers Limited is given in the Appendix (2)
(iii) It appiears that the company has taken all pains to update the products
that it was producing. The company has adopted the latest techniques for
manufacturing its products. The company has kept itself at par with the
industrially advanced countries like U.K. and U.S.A..
(iv) The company has rightly directed its attention to customer satisfaction,
quality update and computerisation.
(v) While promoting the business of Kirloskar Brothers Limited, Laxmanrao
(60)
had thought of producing products that would be capable of competing with
foreign products. It appears from the study of the growth of Kirloskar Broth
ers Limited thnt. the drcnm of Uixnmiirno has rome Into reality. The table
showing the list of companies under the house of Kirloskars is given in the
Appendix (1).
(vi) The future projects that the company has on cards are also well directed.
Ofcourse, only time will prove whether their forecasts were correct. However,
the past performance of Kirloskar Brothers Limited has shown that they do
take right decisions at right time. The company is aware of the latest and
future developments in the field of computers, automation, quality standards,
consumerism, customer satisfaction, etc..
(vii) The company has exported their products to the industrially advanced
countries.
(viii) By updating the technology in the Held of agriculture by providing pump
sets, ploughs, etc., the company has contributed materially to the development
of Indian agricultural methods.
3.7 BRIEF HISTORY OF KIRLOSKAR BROTHERS HERMETIC COM
PRESSORS DIVISION, KARAD
This thesis studies the Vendor Development Project that is implemented
by Kirloskar Brothers Limited, Hermetic Compressors Division, Karad. There
(6i:
fore, it is Important to know the background of this division.
The activity of manufacturing compressors was started at Kirloskarwadi
in 1966. However, the company was successful in manufacturing the first
compressor In 1968. For the purpose of this production, tlie company entered
into a technical collaboration with Tecumseh Products Company of U.S.A.
This foreign company is the world leader in compressor manufacturing.
Tecumseh Products Company, has two plants in U.S.A. It produces 30,000
compressors per day In each of these plants. This company has given its
technical knowhow to 14 different companies in the world. One of such
companies Is Kirloskar Brothers Limited. The collaboration between the
Klrloskars and Tecumseh lasted till 1980. In 1980, the Kirloskar Brothers
Limited entered Into another collaboration with Tecumseh Products Company,
for the purpose of upgrading Uie technology for hermetic compressors upto 5
H.P. units.
Kirloskar Brothers Limited has two plants for manufacturing the com
pressors ; one at Dewas and the other at l^arad. The Karad plant is one of
the most modern and well equipped plants of the Kirloskars. Karad is a
beautiful town in South Maharashtra, 160 Kins. South of Pune on Pune -
Bangalore National Highway (N.H.4) and also on Pune Bangalore Railway Line.
In October, 1970 Kirloskar Brothers Limited opened this separate division at
Malkapur^ Taluka Karad, District Satara and shifted the compressors plant
from Kirloskarwadi to Malkapur (Karad).
(62)
The factory area of Hermetic Compressors Division, Karad, is spread over
6 hectare and 48 R. and the built up area is 7.768 sq.mts. The factory has
also acquired additional premises for the benefit of ancillary units which
supply compressor components to Karad division. This area is spread over 3
hectare and 96 R, and the built up area of the ancillary units is 4,251 sq. mts.
Sophisticated machinery and excellent facilities for research and devel
opment are made available for producing hermetically sealed compressors at
the Karad plant. These facilities have helped the plant to achieve and maintain
a high standard of quality. It is able to mould the imported technology for
producing compressors to suit Indian conditions.
Compressor is an assembly line product. Nearly 80 difTerent parts are
assembled for producing a compressor. All these parts are packed in an air
tight cover. Once the compressor is sealed, it is not possible to change or
repair its components without breaking the compressor shell. Therefore, the
compressor design is made fault less and every care is taken for keeping it of
a high quality before sealing these components in the shell. Because of non
leakage of gas, these compressors do not require any maintenance. Kirloskar
compressors are suitable for the Indian conditions and show a high degree of
performance at 180 and 260 volts of electric pressure. Manufacturing of the
hermetically sealed compressors is supposed to be a modem experiment in
the world. Compared to the other competitors, the Kirloskar compressors are
noise-less, durable, economical in electric consumption and maintenance. The
(63)
Karad factory produces 25 different models of compressors. Some of these
models are AJ, AJT, CAJ, AE, etc.. The list of such models is given in
Appendix (3).
Kirloskar Company strives for maintaining a high quality of various gadg
ets that are used in the compressor. The standard of measuring the quality
of compressors are mentioned in Appendix (4).
The company has made a good progress since 1982-91. The following
table shows the number of compressors that the company has produced since
1982-91.
TABLE NO. 7TURNOVER OF KIRLOSKAR BROTHERS
HERMETIC COMPRESSORS DIVISION. KARAD.
Year Production (Number of Units)
Turnover * (Million of Rs.)
1982-83 34.603 46.849
1983-84 37.856 70.024
1984-85 41,885 92.787
1985-86 62.603 126.9911986-87 63.163 163.471
1987-88 75.511 221.2741988-89 1.05.194 296.8161989-90** 73.909 216.6681990-91 1.46.646 454.691
NOTES :
* Excluding Excise Duty & Taxes.
** For 8 months only (August 1989 - March 1990)
(64)
The above table reveals that the production of compressors has Increased
by 423.80% since 1982 to 1991. Similarly there is an increase in the turnover
(sales) of compressors by 970.10% during the same period mentioned above.
This progress Is highly remarkable and noteworthy. During 1982-83 the
company had suffered a financial loss of worth Rs. 15 millions. It is revealed
from the profit figures of March 1991 that the company has made a profit of
Rs.90 millions. Thus it can be concluded that the company has been success
ful in transforming itself from a loss making unit to a profit making unit.
The progress the company has made since its inception at Karad, is the
result of the able leadership provided by experienced persons like Shri. P. D.
Gune (1968-74). Shri. V. G. Lele (1974-82), Shri. A. R. Kalluraya (1982-89).
At present Shri. M. N. Morab is looking after this factory in his capacity as
Vice-President. The names and designations of other olficers are given in
Appendix (5).
Karad factory provides various facilities to its employees. The examples
of these facilities are : Subsidized Medical Expenses to Workers and their
Families, Canteen Facility (food at subsidized prices), Research and Develop
ment Centre. Training Hall, Quality Circles, Ancillary Industrial Estate for the
employees who wish to start their own business units under the Vendor
Development Project.
The company has a long list of more than 23 customers vide Appendix 6
(65)
For the purpose of meeting their needs the company has 12 offices and
65 dealers who are spread all over India. Klrloskar compressors have captured
nearly 54% of the total demand for the compressors in India.
It is generally believed that for the purpose of achieving higher standards
of production, additional number of employees are required. However, it is a
note worthy feature of Klrloskar Brothers Hermetic Compressors Division,
Karad, that they have been successful in increasing their turnover even after
reducing the number of employees. The folloAving table shows the number of
employees since 1982.
TABLE NO. 8NUMBER OF EMPLOYEES AT KARAD FACTORY
Year Number of Workers
1982 4001983 3841984 3691985 3481986 3051987 2991988 2951989 2831990 2801991 267
The above table shows that since 1982 till 1991, the number of employ
ees has been reduced by 133. This reveals that there is a decrease in the
number of employees by 33% approximately over a period of 10 years. Thus
nearly 3% of the number of employees are reduced per year.
(66)
It Is important to note that this reduction in the number of employees
Is primarily due to the Voluntary Retirement Scheme and the Vendor
Development Projects that were launched in 1983 when Shri. A.R.Kalluraya
was officiating as the Vice-President of Karad factory.
Under the Vendor Development Project the Company has helped 36 em
ployees either to start their own Job-work business or truck transporting or
some other business on their own. In this thesis the researcher has examined
this Vendor Development Project as implemented by this division.
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