Auto component firm Kinetic Engineering targets Rs 1K cr revenue by 2029

Auto component manufacturer Kinetic Engineering (KEL) has announced an investment of Rs 177 crore through convertible warrants to achieve its target of Rs 1,000 crore revenue by 2029, up from Rs 150 crore currently.

 

The investment is primarily aimed at expanding the electric vehicle (EV) business and diversifying its strategy by exploring opportunities beyond the automotive sector. Approximately Rs 100 crore of the investment will be directed towards KEL’s EV business, which is expected to contribute up to Rs 650 crore of the targeted Rs 1,000 crore revenue.

 

The first phase of this initiative includes an infusion of Rs 55 crore by March 2025, with the remaining funds deployed in stages until 2027. This capital injection, contingent on approvals from the Securities and Exchange Board of India (Sebi) and shareholders, aims to strengthen Kinetic’s EV component manufacturing capabilities, drive innovation, and enhance working capital. By 2027, the promoters’ stake in the company is expected to increase from 59 per cent to 70 per cent.

 

The company is also establishing a battery manufacturing plant, which will initially produce 200 units per day. This capacity will scale up to 15,000 units per month across three shifts. Production will begin with batteries for two-wheelers and later expand to include batteries for three-wheelers.

 

Speaking about the development, Ajinkya Firodia, vice-chairman of Kinetic Group, said, “This infusion of capital reinforces our growth blueprint, enabling us to achieve our Rs 1,000 crore revenue milestone. We are committed to using this investment to fuel innovation, improve operational efficiencies, and meet the evolving demands of the automotive and EV industries.”

 

In addition to strengthening its EV portfolio, KEL is exploring opportunities in non-automotive sectors as part of its diversification strategy. Collaborating with an American company, KEL plans to manufacture gearboxes for solar panels. The company is also setting up a solar plant to optimise operational costs, with an investment of approximately Rs 50 crore.

 

The company’s diversification efforts come in the wake of challenges faced by the automotive industry over the past year, including inventory corrections and economic headwinds in export markets.

 

The funds from the investment will be utilised to enhance manufacturing capacities, including the production of transmissions and other EV components such as motors, controllers, and chassis.

 

Despite challenges in the automotive sector, KEL remains optimistic. Improved conditions in January 2025 and stable market trends in the United States have reinforced confidence in the company’s growth trajectory.