New Delhi: Kinetic Engineering, the component arm of Kinetic Group, is expecting its revenue to cross INR 250 crore this fiscal year. The company has closed FY24 with a revenue of around INR 160 crore, and is targeting INR 250 crore earnings this year. The company is also in the process of raising INR 50 crore for its EV component subsidiary, Ajinkya Firodia, MD, Kinetic Engineering, said.
Kinetic Engineering, the flagship company of the Group, which was famous for its scooters and mopeds has changed the path by focusing on making auto components like transmissions, gearboxes, driveline products, and others for 2Ws and 3Ws for quite some time now.
E-Luna for which Kinetic Engineering has supplied the components, was re-launched in February 2024 has received a good response due to its load carrying capacity from fleet operators and people living in rural areas. “We’ve got some very good responses from delivery suppliers such as Zomato, Amazon and other fleet operators,” Firodia told ETAuto.
Electrification: Kinetic Engineering launched in 2022 a subsidiary, Kinetic Watts and Volts, to focus on EV components. The company is in the process of raising INR 50 crore. The subsidiary is 51% owned by Kinetic Engineering Limited (KEL) and 49% by its promoters, the Firodia family.
“We have formed a subsidiary company and for this we are going to raise INR 50 crore from Kinetic Engineering and deploy it to make products suitable for the EV business,” Firodia said.
Ajinkya told ETAuto that half of the funds have been raised and they are in process of raising the rest. The fundraising will be done by selling non-core assets which will be completed by next quarter.
The funds will be deployed mainly for launching products suitable for EVs and IT support for which a strategic committee has been formed. The committee will make recommendations, based on market research and analysis, to the board at the end of the quarter, by which the fundraising would be completed. In the second quarter a product launch from its subsidiary will be announced, Firodia added.
New tie-ups for growth: Kinetic Engineering which is currently having 50% of its revenue from exports is expecting to gradually increase it to 60% by this fiscal year.
The company is planning to keep on expanding in both global and Indian markets. Kinetic Engineering is already in discussion with some EV startups like Eblu and E-fill for its electric auto component supplies to strengthen its EV game.
On the global front the company’s big client portfolio includes American Axle (Mexico and America), Renault and Nissan (domestic and overseas).
In India, its portfolio includes Tata, Mahindra and Mahindra, Ashok Leyland, and many more. However, the company is also in talks with several new major players of the industry like Stellantis, Sonalika Tractors, Magna Powertrains, and New Holland. Sonalika Tractors is its existing client. It plans to supply new components for exports.
“We are looking to nurture this relationship and get maximum business out of these companies, as well as look at other customers and potentials that keep coming,” Firodia said.
