Kirloskar Industries Limited's subsidiary, Kirloskar Ferrous Industries Limited (KFIL), has secured a significant contract from Oil and Natural Gas Corporation Limited (ONGC), marking a notable development in the oil and gas supply sector. The contract, valued at approximately ₹358.00 crores (including 12% GST), involves the supply of crucial oil field equipment.

Contract Details

Key Points

• The contract specifies the supply of regular EUE Tubing, Pup Joints, and Cross overs, which are essential components in oil and gas exploration and production.
• The agreement is set to run for one year, commencing from October 21, 2025, until October 20, 2026.
• The contract value includes a 12% Goods and Service Tax (GST), which may be subject to revision based on government notifications.

Corporate Governance Aspects

Kirloskar Industries Limited, the parent company of KFIL, has informed the stock exchanges about this material update from its listed subsidiary. This transparency aligns with regulatory requirements and good corporate governance practices.

Impact and Implications

This contract represents a significant business opportunity for Kirloskar Ferrous Industries Limited. It not only provides a substantial revenue stream but also strengthens the company's position in the oil and gas supply chain. The domestic nature of the contract aligns with initiatives to boost local manufacturing and supply in the energy sector.

It's important to note that this transaction does not involve any promoter group interest and is not classified as a related party transaction, ensuring arms-length dealings and maintaining corporate integrity.

As the oil and gas sector continues to play a crucial role in India's energy landscape, such contracts highlight the ongoing demand for quality equipment and the capabilities of domestic manufacturers in meeting industry requirements.

Kirloskar Industries , through its listed material subsidiary Kirloskar Ferrous Industries Limited (KFIL), has announced a temporary suspension of operations at its Baramati plant in Maharashtra. The shutdown is scheduled to commence on October 19, 2025, and is expected to last for approximately 12 days.

Purpose of Suspension

The primary reason for this temporary halt in operations is to conduct annual maintenance and repair activities at the manufacturing facility. This scheduled maintenance work is a crucial part of KFIL's operational strategy to ensure the plant's efficiency and longevity.

Key Details

Impact and Implications

While the temporary suspension of operations may result in a brief interruption of production, it is important to note that such maintenance activities are standard practice in the manufacturing industry. Regular maintenance helps in:

1. Ensuring the longevity of equipment
2. Maintaining operational efficiency
3. Preventing unexpected breakdowns
4. Adhering to safety standards

KFIL's proactive approach to scheduling this maintenance demonstrates the company's commitment to maintaining its production facilities and ensuring long-term operational efficiency.

Investors and stakeholders should view this temporary suspension as a routine operational measure rather than a cause for concern. The company's transparency in announcing this planned maintenance activity well in advance is a positive sign of its operational management and commitment to keeping stakeholders informed.