City-based Kinetic group company, Kinetic Green, Thursday announced forming a joint venture with Italian luxury accessories maker Tonino Lamborghini SpA to design and manufacture premium segment electric and solar golf carts for the global market.
The JV is eyeing Rs 500 crore revenue over the next four to five years, besides garnering a 2.5 per cent of the total global market pie, an official release said.
Kinetic group will hold 75 per cent stake in the JV through its electric vehicle specialist company, Kinetic Green Energy and Power Solutions (KGEPSL), while the Lamborghini family will own the remaining 25 per cent through Tonino Lamborghini SpA, according to the release.
"Kinetic Green is keenly looking to tap the global market with high end golf carts and off-road electric vehicles along with our JV partner, the Lamborghini family," said Sulajja Firodia Motwani, founder and chief executive officer, KGEPSL.
"As a first step, we have set a reasonable goal to build a top line of Rs 500 crore in the JV in the next four to five years, that will represent just 2.5 per cent of the global market," she added.
The JV will leverage Kinetic Green's existing R&D as well as manufacturing facilities in Ahmednagar, which produces various electric vehicles, including electric three wheelers, according to the release.
The golf cart sector has a global market size of USD 2 billion and is increasing at a compound annual growth rate of 8-10 per cent.
Currently, North America and Europe account for over 45 per cent market share. The Asian market is also one of the fastest growing and it will represent a growing part of the global market, the release said.
Both the companies will leverage their existing network and marketing channels to promote and market the joint venture products in India and globally, the release said.
"Today we are very proud to announce the JV with Kinetic Green. In the following weeks, all the aspects will be defined in order to jointly put all our values into the project to soon participate to this change," said Ferruccio Lamborghini, chief executive and vice-president of Tonino Lamborghini SpA.
Ferruccio will also represent the interests of Tonino Lamborghini SpA on the JV board, the release said.
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