Kirloskar Industries Limited announced a temporary suspension of operations at its Ferrous Industries division's Hiriyur plant for a 40-day maintenance period. This planned shutdown, which began on October 14, 2025, is expected to affect the company's manufacturing activities at the facility during the maintenance window.

Details of the Shutdown

The company disclosed this information through a regulatory filing to the stock exchanges. According to the filing, Kirloskar Ferrous Industries Limited (KFIL), a listed material subsidiary of Kirloskar Industries, has suspended operations at its Hiriyur plant in Karnataka for routine maintenance and repairs.

Key Points of the Announcement

• Duration: The maintenance period is scheduled for approximately 40 days.
• Start Date: October 14, 2025
• Location: Hiriyur plant, Karnataka
• Purpose: Normal maintenance and repairs activities

Impact on Operations

While the company has not provided specific details on the impact of this shutdown on its production or financial performance, such maintenance activities are typically planned to ensure the long-term efficiency and reliability of manufacturing facilities.

Company's Disclosure

Kirloskar Industries, in compliance with regulatory requirements, promptly informed the stock exchanges about this material development. The company stated in its filing:

"We wish to inform you that Kirloskar Ferrous Industries Limited (KFIL), a listed material subsidiary of the Company, has intimated to the stock exchange, where the shares of KFIL are listed, an intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015."

This transparent communication demonstrates the company's commitment to keeping its shareholders and the market informed about significant operational changes.

Conclusion

The temporary halt in operations at the Hiriyur plant is a planned activity aimed at maintaining and potentially improving the facility's capabilities. Investors and stakeholders will likely be keen to see the plant resume operations after the maintenance period and assess any improvements in efficiency or capacity that may result from this shutdown.

Kirloskar Industries Limited (KIL) has disclosed a Deed of Family Settlement (DFS) dated September 11, 2009, following a legal clarification from the Securities and Exchange Board of India (SEBI). The disclosure comes in the wake of proceedings before the Bombay High Court, where KIL had challenged the constitutional validity of certain SEBI disclosure regulations.

Legal Proceedings and SEBI Clarification

KIL filed a writ petition (Writ Petition (OS) No. 702 of 2025) before the Bombay High Court, contesting the constitutional validity of Regulation 30A read with Clause 5A of Part A of Para A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's primary contention was that mere disclosure of an agreement should not automatically bind a listed entity if it is not a party to such an agreement.

During the court proceedings, SEBI provided a crucial clarification, agreeing with KIL's stance. The regulatory body stated that the mere disclosure of any agreement by a listed entity does not imply that the entity admits to the agreement being binding or having an impact on its management, control, or liabilities. SEBI further allowed listed entities to include a disclaimer as part of their disclosure.

Disclosure of the Family Settlement

Relying on SEBI's clarifications, as contained in the Bombay High Court's order dated September 23, 2025, KIL has now disclosed the 2009 Deed of Family Settlement. The company has emphasized several key points in its disclosure:

1. KIL is not a party to the DFS and has never ratified or approved it.
2. The company does not admit that the DFS is binding on it or has any impact on its management or control.
3. KIL expressly states that the DFS does not impose any restrictions or create any liabilities for the company.

Details of the Family Settlement

The disclosed family settlement, entered into by individual members of the Kirloskar family, involved the distribution of shares across various Kirloskar Group companies. Key family members involved in the settlement include Atul Kirloskar, Sanjay Kirloskar, Vikram Kirloskar, Rahul Kirloskar, and Gautam Kulkarni.

While specific details of the share allocations and financial arrangements were not provided in the disclosure, the settlement is reported to involve transactions totaling hundreds of crores of rupees.

Implications and Future Outlook

The disclosure of this family settlement, while significant for transparency, does not directly impact Kirloskar Industries Limited's operations or management, according to the company's statement. KIL's decision to disclose the DFS, along with its clear disclaimers, aligns with SEBI's clarified regulations on disclosure requirements for listed entities.

This development highlights the ongoing efforts to balance regulatory compliance with the protection of companies' interests, especially in cases involving complex family settlements in large business groups. As the situation unfolds, stakeholders will be watching closely to see if this disclosure leads to any further developments within the Kirloskar Group or sets a precedent for similar cases in the future.

Kirloskar Industries Limited continues to maintain its stance that the family settlement does not affect its corporate governance or operational decisions, emphasizing its commitment to transparency while protecting its interests as a listed entity.