Kirloskar Industries Limited has announced the successful resumption of operations at its material subsidiary following the resolution of supply chain disruptions that temporarily affected manufacturing activities. The company filed updated regulatory disclosures with stock exchanges regarding the restoration of normal production at its key facility.

Operations Successfully Resumed

Kirloskar Ferrous Industries Limited (KFIL), a listed material subsidiary of Kirloskar Industries, has successfully resumed operations of the affected High Pressure Moulding Line at its Solapur plant. The production line, which was temporarily suspended due to LPG supply disruption, recommenced operations on 21 March 2026 through the implementation of alternate fuel solutions.

Supply Chain Challenge Resolution

The operational disruption that began on 17 March 2026 stemmed from Liquefied Petroleum Gas (LPG) supply issues caused by disruptions in global energy supply chains linked to the Middle East conflict. KFIL management successfully addressed the challenge by implementing alternate fuel sources, demonstrating the company's operational flexibility and crisis management capabilities.

Management's Effective Response

The swift resolution of the supply chain crisis highlights KFIL management's proactive approach to operational challenges. The company's mitigation strategies proved effective:

• Successfully identified and implemented alternate fuel sources
• Maintained continuous monitoring of supply chain developments
• Minimized operational downtime to just four days
• Ensured no material financial impact from the temporary disruption

Regulatory Updates and Compliance

Both companies maintained full regulatory compliance throughout the incident. Kirloskar Industries filed comprehensive updates under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. KFIL separately informed stock exchanges about both the initial disruption and subsequent resumption of operations, ensuring complete transparency with stakeholders.

The successful resolution demonstrates the subsidiary's operational resilience and management's ability to navigate supply chain challenges effectively. With the second High Pressure Moulding Line having continued operations throughout the period, the Solapur plant has now returned to full production capacity.

Kirloskar Industries Limited has received regulatory approval for a significant corporate restructuring involving its material subsidiary Kirloskar Ferrous Industries Limited (KFIL). The National Company Law Tribunal (NCLT) Mumbai has approved a comprehensive merger scheme that will consolidate KFIL's operations with two wholly owned subsidiaries.

NCLT Approval and Key Dispensations

The NCLT Mumbai passed an order dated 17 March 2026 approving the scheme of arrangement and merger by absorption of Oliver Engineering Private Limited (OEPL) and Adicca Energy Solutions Private Limited (AESPL) with Kirloskar Ferrous Industries Limited. The tribunal granted several key dispensations to streamline the merger process:

Business Profile and Rationale

The three companies involved in the merger operate in complementary business segments. Oliver Engineering Private Limited is primarily engaged in ferrous casting and machining operations. Adicca Energy Solutions Private Limited focuses on executing turnkey projects for solar power systems and provides technical consultancy for renewable energy installations. Kirloskar Ferrous Industries Limited manufactures pig iron, grey iron castings, tubes and steel, serving tractor, automotive and diesel engine industry sectors.

The merger rationale encompasses multiple strategic objectives:

• Consolidation of businesses to enable long-term sustainability and growth
• Streamlining of holding structure reducing regulatory compliances
• Cost optimization through standardization and elimination of duplication
• Leveraging synergies and achieving economies of scale
• Greater operational integration and enhanced asset base

Share Capital Structure

The merger involves companies with varying capital structures, reflecting their different business scales and operational requirements:

Creditor and Shareholder Consent

The merger received overwhelming stakeholder support, enabling the tribunal to dispense with formal meetings. Oliver Engineering has 192 unsecured creditors with outstanding amounts of Rs. 2,45,45,95,049.49 as on 31.12.2025. Adicca Energy Solutions has 1 unsecured creditor with Rs. 3,97,30,340 outstanding. Significantly, KFIL constitutes 93% of Oliver Engineering's creditors and 100% of Adicca Energy's creditors, providing substantial consent for the scheme.

Regulatory Compliance and Next Steps

The companies must serve notices to various regulatory authorities including the Central Government, Registrar of Companies, Income Tax Authority, GST Authority, and BSE Limited. The merger scheme benefits from SEBI exemptions applicable to wholly owned subsidiary mergers, eliminating the requirement for stock exchange no-objection certificates. Upon scheme effectiveness, both transferor companies will stand dissolved without winding up, with their assets and liabilities transferring to KFIL automatically.