India's manufacturing sector must significantly enhance its intellectual property (IP) portfolio not only to secure robust and sustained growth but also to establish a competitive advantage, asserted Gauri Kirloskar, Managing Director of Kirloskar Oil Engines (KOEL). The company achieved revenues of Rs 4,073 crore in FY23, and Gauri, the fifth-generation Kirloskar involved in the business, emphasised the pivotal role of intellectual capital in India's growth trajectory.

Speaking at the India Science Fest in Pune, Gauri highlighted the correlation between the nation's growth narrative, the escalating manufacturing output, and the imperative need to fortify intellectual capital for global competitiveness. Currently, the manufacturing sector contributes 17% to the GDP and employs over 27.3 million workers, with the government targeting a 25% share by 2025.

Despite the manufacturing sector's commendable export performance, reaching $447.46 billion in FY23 with a 6.03% growth, Gauri emphasised the importance of owning intellectual property. KOEL, renowned for manufacturing diesel engines, farm equipment, and generator sets, secured 12% of its turnover from international markets in FY23.

Gauri elucidated on the strategic choices in engine manufacturing, emphasising the preference for designing and developing engines in-house to own intellectual property. This, she noted, provides a distinct advantage over partnerships involving technology transfer from global companies. KOEL, with its three primary business segments (B2B, B2C, and Financial Services), strategically diversified into electric pumps to align with market shifts. The company entered the electric pump domain through a minority stake in La-Gajjar Machineries (LGM) in 2014 and recently acquired full ownership, consolidating its presence in the diesel and electric pump market.