The company has announced INR 30 crore investment in Kinetic Watts and Volts to build R&D and manufacturing capabilities. It is also planning big for its electric vehicle business.Kinetic Engineering is revamping its business strategy by focusing on both auto and non-auto component manufacturing. It is working on 'new strategies' to increase its current revenue model.
These include investments in manufacturing gearboxes for the solar industry and development of a special nylon coating. The company is also planning to expand production capacity for gearboxes and chassis used in its E-Luna moped.
Facing slower revenue growth in the short term, Kinetic Engineering is investing in multiple ventures for the long run, according to Ajinkya Firodia, Vice Chairman. He told ETAuto that it expects to close this fiscal with a revenue of INR 165 crore, up from INR 135 crore in the preceding year.
E-Luna investment
The company has announced INR 30 crore investment in Kinetic Watts and Volts to build R&D and manufacturing capabilities. It is also planning big for its electric vehicle business.
“This is just a starting point to show our commitment in EVs where the two and three-wheeler segments are growing very rapidly,” said Firodia. Following the good response to E-Luna, Kinetic plans to more than double parts production. "We had initially set up capacity for about 3,000 per month but Kinetic Green has indicated that sales could be 6,000 to 7,000 per month,” he added.
The Ahmednagar plant, which has been earmarked for production of E-Luna parts will beed infusion of over INR 50-70 crore beyond the current investments. Kinetic Engineering is also focused on building its current product line, technologies and customer base. Indians are now opting for high-quality, reliable local products instead of imports from countries such as China.
The Ahmednagar plant, which has been earmarked for production of E-Luna parts will beed infusion of over INR 50-70 crore beyond the current investments.
Kinetic Engineering is also upbeat about the solar industry where it will make gearboxes. There will be a phased strategy where investments will be INR 15 crore, with the first tranche being INR 5 crore.
This initial investment will focus on special technologies such as warm cutting to kick off the exercise of making gearboxes for the Indian equipment. The US is likely to follow in due course.
These gearboxes are now being made in in China, said Firodia. The company has already established a collaboration with an American OEM for exports. Kinetic Engineering is also investing in a solar park, which is expected to be operational by March next year.
