Kirloskar Oil Engines Transfers B2C Segment to Subsidiary in Strategic Restructuring

Kirloskar Oil Engines Limited (KOEL) has transferred its B2C segment—Water Management Solutions (Domestic & Exports)—to its wholly-owned subsidiary, La-Gajjar Machineries Private Limited (LGM), effective October 11, 2025. The slump sale, approved by KOEL’s Board, is part of a three-year strategy to separate B2C and B2B operations for greater focus and efficiency. As consideration, LGM will issue 10,65,150 equity shares (₹10 face value) to KOEL via private placement. The B2C segment contributed ~11.5% to revenue and turnover in FY24-25, though it carried a negative net worth. The move aims to streamline operations, optimize resources, and create a leaner corporate structure, enabling both entities to pursue targeted growth and innovation. There is no change in KOEL’s shareholding pattern. This restructuring underscores KOEL’s commitment to strategic agility and long-term value creation, with expectations of improved market responsiveness and enhanced shareholder value going forward.