Menu

KEL Team

About KEL Team

https://kineticindia.com/

Posts by :

blog-post-12

Turnaround, new prospects fuel Firodias’ plan to further hike stake in Kinetic Engineering

The component maker is on a turnaround journey and looks to strike collaborations for developing design capabilities, and for EV technologies. Both are crucial for the company’s financial improvement and sustainable growth.

New Delhi: Last week, component maker Kinetic Engineering announced a net profit INR 1.7 crore for April – September 2023, which the company’s  MD Ajinkya Firdoia points out, is the seventh consecutive quarter of net profit. “After years of turnaround efforts, and struggle, we have now stabilised the business into a profitable and growing business,” Firodia told ETAuto. As that happens, the promoters look to now ramp up their equity stake in the company.

Over the past few years, the Firodias have increased their stake in the company from 49% to 59%. Regulations allow a maximum of 75% stake for promoters, in a listed company. The Firodias are mulling to go the full distance. “We are looking forward, as the company progresses, to continue to increase to maximum allowable limits as we can,” Firodia said.

A two-pronged strategy fuels the thought process. One is to earn investor confidence, and the other is to fund future expansion plans by diluting some stake at a higher valuation. “I’m foreseeing that at some point for the next level of growth, the company is going to require a huge amount of  CapEx funds or a huge amount of renovation funds that we are going to require,” Firodia said.

New partners for new growth avenues
The big bet for new growth is on the obvious growing electrification megatrend. Seen as a “gold mine”, Kinetic Engineering has developed a rigid axle, or a transaxle solution for some EVs. Revenue from EV-focused solutions contribute to 10% of the company’s turnover of INR 139 crore.

Firodia expects the business share to grow significantly, but he also knows that building EV tech capabilities is extremely crucial to tap the opportunities. Therefore, Kinetic Engineering is exploring collaboration with foreign companies. “We are open to all kinds of technology collaborations, especially in the EV space, with someone from Korea, Japan or China, in order to strengthen ourselves in transmission, or anything to do with EV,” Firodia said.

Kinetic Engineering is currently generating revenue largely with the build-to-print business model. This approach will not help much in an increasingly disruptive and competitive age. Having competency in design and development is crucial. Recognising the fact, Firodia said, “We are adding designers to our team and we are looking at some European companies, we are looking at some external companies where we can have some kind of collaboration to design products.”

American shot in the arm
What also gives confidence to Firodia for his company to progress well in the turnaround journey is the renewal of a longstanding association, as a supplier, with global Tier 1 company, American Axle. Kinetic has been supplying forged driveline components to American Axle for the past 14 years. Firodia recently signed a contract extending the association by another seven years.

It is a major development, as American Axle contributes to around 50% of Kinetic Engineering’s exports revenue. According to Firodia, half of his company’s annual revenue comes from exports. The extended contract, with a possibility of supplying additional components, is expected to assure a business of around INR 300 crore for the Indian company.

Kinetic Engineering also supplies to Ashok Leyland, Mahindra & Mahindra, and Renault-Nissan (domestic and overseas).

Kinetic Engineering, the flagship of the Kinetic Group, has seen phases of growth, decline, and growth again. In the current phase of the turnaround journey, the company’s debt:equity ratio, according to Fiodia, has improved to 8:1, from 6:1 about four years ago. There’s improvement in the company’s performance, but the current performance doesn’t necessarily guarantee sustained growth. After regaining business stability, Firodia and his team have to devise ways for sustained success in the increasingly technology-intensive game.

blog-post-11

Kinetic Engineering Reports Strong H1 Results Amid New EV Initiatives

Kinetic Engineering reports a 485% growth in net profit in H1 FY 24 with growing revenues. Profit increases by 485% from ₹54 Lakh in H1 FY23 to ₹316 Lakh in H1 FY24. The company has commenced supply of various parts, including fully painted & CED coated frames, swing arms & main stands amongst others, for E-Luna, the new-age, electric iteration of the iconic moped; ramping up production steeply to cater to the high consumer demand, from 40,000 annually to 100,000 in the coming months. KEL’s new EV initiative has launched and secured orders for transmission assemblies for e-rickshaws and e-autos up to 5 kW. KEL inaugurated a new world-class facility in Ahmednagar to produce high-quality gears and shafts for its premium customer, Mahindra & Mahindra; the dedicated plant consists of an exclusive shed with epoxy flooring, and exclusive CNC machines. Catch Sakshi Batra with Ajinkya Firodia, Managing Director of Kinetic Engineering discussing the company’s results.

blog-post-10

Kinetic Engineering posts Rs 1.7 crore profit for Q2 FY2024

The company says it has extended its supply programme for driveline products to American Axle for another 7 years.

Pune-based component supplier Kinetic Engineering (KEL) has reported its financial results for Q2 and H1 FY2024.

In Q2 the company reported revenue of Rs 3.7 crore, up 6 percent, compared to Rs 3.5 crore for the same period last year. The net profit grew by 7 percent to Rs 1.7 crore as against Rs 1.6 crore last year.

For H1 FY2024, the revenue came at Rs 7.5 crore, as against Rs 6.8 crore last year, while net profit came at Rs 3.1 crore as against Rs 54 lakh last year.

The company says it has extended its supply programme for driveline products to American Axle for another 7 years, which it says will yield nearly Rs 280 crore in revenue over the time period. It has also commenced the supply of parts, such as fully painted & CED coated frames, swing arms & main stands, for the E-Luna, the electric version of the Luna moped. To help cater to the high consumer demand, KEL is ramping up production by 1.5x, increasing its capacity from the current 40,000 annually to 100,000.

Furthermore, it also opened a new manufacturing unit in Ahmednagar to produce gears and shafts for Mahindra & Mahindra. The company also reported the launch of transmission assemblies for e-rickshaws and e-autos, as part of its EV initiative, and boasts a robust order book.

Ajinkya Firodia, MD, Kinetic Engineering said, “The extension of our alliance, till 2030, with American Axle to supply driveline products will ensure a steady revenue stream for the company, and we are developing more such partnerships to grow our footprint. We have also built a brand-new manufacturing unit of world-class standards to support one of our biggest customers, Mahindra & Mahindra, with high-quality gears and shafts. We have also begun the supply of various parts for the E-Luna and have increased our manufacturing capacity by 150% to meet the growing demand.”

blog-post-09

Kinetic Engineering on growth track, H1 FY24 profit at INR 3.16 cr

Standalone EBITDA was at INR 9.61 crore for H1 FY24 as against INR 7.27 crore for H1 FY23, the company said.

KEL also announced the launch of a new world-class manufacturing unit in Ahmednagar which will produce high-quality gears and shafts for its premium customer Mahindra & Mahindra.

New Delhi: Kinetic Engineering Limited (KEL), a leading auto component manufacturer, has reported nearly five-fold increase in profit for H1 FY24 to INR 3.16 crore from INR 54 lakh in H1 FY23. Standalone EBITDA was at INR 9.61 crore for H1 FY24 as against INR 7.27 crore for H1 FY23.

Among the company’s key accomplishments is the extension of its biggest programme to supply driveline products to American Axle. The partnership has been extended for another 7 years, which will yield nearly INR 280 crore in revenue over this-period.

KEL also announced that it has commenced the supply of parts, such as fully painted and CED coated frames, swing arms and main stands, for the E-Luna, the electric version of the iconic Luna moped. To help cater to the high consumer demand, KEL is ramping up production by 1.5x, increasing its capacity from the current 40,000 annually to 100,000.

KEL also announced the launch of a new world-class manufacturing unit in Ahmednagar which will produce high-quality gears and shafts for its premium customer Mahindra & Mahindra. The company also reported the launch of transmission assemblies for e-rickshaws and e-autos, as part of its EV initiative, and boasts of a robust order book.

Ajinkya Firodia, Managing Director, Kinetic Engineering Limited, said, “KEL has witnessed a robust performance in the second quarter of FY24, as part of our strong growth trajectory. The extension of our alliance, till 2030, with American Axle to supply driveline products will ensure a steady revenue stream for the company, and we are developing more such partnerships to grow our footprint.” 

“We have also built a new manufacturing unit of world-class standards to support one of our biggest customers, Mahindra & Mahindra, with high-quality gears and shafts. We have also begun the supply of various parts for the E-Luna and have increased our manufacturing capacity by 150% to meet the growing demand. Prospects for the rest of the year appear promising, and we look forward to our growth trends continuing, with a focus on driving volumes and a healthy profit margin, along with maintaining resource efficiency,” he added.
indian-angels

Indian Angels OTT release: Jio Cinema starts streaming ‘angel investment’ show

Indian Angels OTT release: Jio Cinema starts streaming ‘angel investment’ show from November 3.

Indian Angels will offer an opportunity to viewers to become investors alongside the panel of industry leader.

Jio Cinema has released ‘Indian Angels’ which is touted as the world’s first angel investment show on an OTT platform.

The first two episodes were released on November 3 and will be followed by two episodes that will be streamed on Jio Cinema every week. The show launched by Digikore Studios is based upon promoting startup investment with the help of established business angels.

Abhishek More, the founder and CEO of Digikore Studios, said, “We’re thrilled for the debut of ‘Indian Angels’ .. with the release of two initial episodes.”

The show involves a panel of accomplished business leaders all of whom hail from small towns but became big entrepreneurs over time and built thriving startups of their own. Indian Angels will also offer an opportunity to viewers to become investors alongside the panel of industry leaders, as per a press release.

The show will feature a panel of angel investors including Ankit Agrawal, founder and CEO of InsuranceDekho; Shreedha Singh, CEO and Co-founder of T.A.C – The Ayurveda Co; Kunal Kishore, founder and Director of Value 360; Ajinkya Firodia, Managing Director of Kinetic Engineering Ltd; Rikant Pittie, Co-founder of EaseMyTrip and Aparna Thygarajan, Co-founder and Chief Product Officer of Shobitam.

“This innovative endeavour places investment opportunities at the forefront of your screens, democratising angel investing for all,” said a Jio Cinema spokesperson.

indian-angels

JioCinema to release ‘world’s first angel investment show’, Indian Angels

OTT platform JioCinema is set to release another investment show named ‘Indian Angels’. The show will increase competition into a space currently dominated nationwide by hit show Shark Tank India

Streaming platform Jio Cinema is ready to release ‘Indian Angels’, which is portrayed as the world’s first angel investment show on the OTT platform, according to a media release on October 17.

The inaugural episode is planned to be released later this month, and will be trailed by two episodes streamed on Jio Cinema each week. The show is being launched by Digikore Studios.

The release noted, Indian Angels will provide an exceptional opportunity to the audience to become investors alongside the board of industry leaders.

Who are the investors on ‘Indian Angels’?

The show’s board of angel investors incorporates:

  • Ankit Agrawal, Founder and CEO of InsuranceDekho
  • Shreedha Singh, CEO and Co-founder of T.A.C – The Ayurveda Co
  • Aparna Thygarajan, Co-Founder & Chief Product Officer of Shobitam. 
  • Kunal Kishore, Founder and director of Value 360
  • Ajinkya Firodia, Managing Director of Kinetic Engineering Ltd.

  • Rikant Pittie, Co-Founder of EaseMyTrip and director.

Statement issued for the show ‘Indian Angels’

“Indian Angels embodies the essence of innovation and the boundless possibilities of OTT platforms. It transcends mere entertainment; it signifies a movement that promises to reshape our understanding of investment”, Abhishek More, founder and CEO of Digikore Studios stated.

“This innovative endeavour places investment opportunities at the forefront of your screens, democratising angel investing for all. Prepare to be inspired, educated, and empowered as you witness the dawn of a new era in business entertainment,” JioCinema spokesperson said.

Beginning of shooting Shark Tank season 3

In related news, the third season of the business reality show and competitor Shark Tank India will also feature a few new sharks. Zomato founder and CEO, Deepinder Goyal, OYO founder Ritesh Agarwal and Inshorts CEO Azhar Iqubal have likewise joined the board. 

Incorporating the Season 3 judges Namita Thapar (Executive Director–India Business, of Emcure Pharmaceuticals), Vineeta Singh (co-founder and CEO of Sugar Cosmetics), Anupam Mittal (Shaadi.com founder), Aman Gupta (co-founder and CMO of boAt), and Amit Jain (CEO and co-founder of CarDekho) as the other primary sharks.
indian-angels

JioCinema launches ‘Indian Angels’; claimed to be the ‘world’s first’ Angel investment show on OTT

Digikore Studios has announced the launch of “Indian Angels,” calimed to be the world’s first angel investment show which will be streamed on OTT platform Jio Cinema. Indian Angels will offer angel investors the opportunity to support emerging startups as well as extend invitation to viewers to become investors themselves.

The show panel of angel investors includes Ankit Agarwal, founder and CEO of InsuranceDekho; Shreedha Singh, Co-founder of T.A.C – The Ayurveda Co.; Kunal Kishore, founder & Director of Value 360; Ajinkya Firodia, Managing Director of Kinetic Engineering Ltd.; Rikant Pittie, COO & Co-founder of EaseMyTrip and Aparna Thygarajan, Co-founder & Chief Product Officer of Shobitam.

The inaugural episode is scheduled for exclusive release on Jio Cinema at the end of this month.

Abhishek More, founder and CEO of Digikore Studios echoed said, “At Digikore Studios, we are exceptionally proud to be part of this pioneering venture. ‘Indian Angels’ embodies the essence of innovation and the boundless possibilities of OTT platforms. It transcends mere entertainment; it signifies a movement that promises to reshape our understanding of investment. So get ready for a transformative journey that will have a profound impact on India’s investment landscape and the trajectory of Indian businesses.”

“We are thrilled to introduce ‘Indian Angels’ to the world—a transformative show that transcends traditional entertainment. This innovative endeavor places investment opportunities at the forefront of your screens, democratizing angel investing for all. Prepare to be inspired, educated, and empowered as you witness the dawn of a new era in business entertainment,” said Jio Cinema spokesperson in a statement.

blog-post-04

Kinetic Engineering hits 5% upper circuit; here’s why the stock rallied today

Kinetic Engineering share price: Shares of Kinetic Engineering were locked in the upper circuit limit of 5 per cent at Rs 124.20 on the BSE on July 12

Kinetic Engineering share price: Shares of Kinetic Engineering were locked in the upper circuit limit of 5 per cent at Rs 124.20 on the BSE on July 12. The stock jumped after the company announced that its board has approved the raising of over Rs 54 crore from various available sources, including promoters and the sale of its non-core assets.

Accordingly, the board approved the issue of 22.85 lakh equity shares on a preferential basis, to promoters and promoter group companies totalling Rs 26.27 crore at a price of Rs 115 per share (including a premium of Rs 105 per share), the company said in its regulatory filing on July 11.

In addition, the board also approved the sale of excess land parcels of the company at a consideration of Rs 25.50 crore after following due process, including a valuation done by a Registered Valuer, the company’s statement added.

About Kinetic Engineering
It is the flagship company of the Kinetic Group. The Pune-based company, which has been in the industry for over five decades, operates in the automotive industry. The company’s manufacturing unit in Ahmednagar is spread over 70 acres and has over 800 employees, 32 manufacturing sheds, and more than 400 machines.

Kinetic Engineering’s customer list includes Renault, American Axle, TATA Motors, Mahindra & Mahindra, Ashok Leyland, and Magna. Powertrain, Bombardier Recreational products, and many others, as per the company.

blog-post-05

Kinetic Engineering to raise INR 54 cr to expand, cut debt and invest in EV arm

The company Board has approved the raising of over INR 54 crore from various available sources including from promoters and sale of non-core assets.

Build a strong future in EV by capitalizing its subsidiary company, Kinetic Watts & Volts Ltd. (KWVL), with additional equity of INR 22 crore to 23 crore.”

New Delhi: Kinetic Engineering Limited, the flagship company which has completed 50 years, in its recently-concluded board meeting, has approved the raising of over INR 54 crore from various available sources including from promoters and sale of its non-core assets. The objective is to reduce debt, strengthen the auto component business and to invest in the electric vehicle subsidiary.

For these, the board has approved the issue of 22.85 Lakh equity shares on preferential basis, to promoters and promoter group companies totaling INR 26.27 crore at a price of INR 115 per share (including a premium of INR 105 per share).

This is the 3 year in a row that the promoters are increasing their stake in the company, which will now stand at 59.35%. The previous year’s conversion included 9,95,000 shares in 2021-22, and 11,72,879 shares in 2022-23.

The board has also approved Optionally Convertible Cumulative Preference Shares (OCCPS) totaling INR 2.18 crore to Jayashree Firodia Trust, part of the promoter group. In this manner nearly INR 28 crore would be raised by the company through equity, significantly increasing its net worth.

In addition, the board approved the sale of excess land parcels of the company at a consideration of INR 25.50 crore after following due process including valuation done by a registered valuer.

Ajinkya Firodia, Managing Director, Kinetic Engineering Limited, said. “KEL has completed its restructuring of auto-components and turned around its operations over the past 3 years and achieved continuous growth in net profit during the last couple of years. Now we strongly believe that the time has come to cash in on all the efforts, learnings and opportunities that lie ahead of our current business and future potential. We would like to utilize these funds for three main goals:

·Build a healthy balance sheet by further reducing debt of INR 18 crore;

·Build a strong auto component business by revamping our facilities, investing in new equipment, investing for new business and in working capital and capex in KEL to the tune of INR 13 crore to INR 15 crore;

·Build a strong future in EV by capitalizing its subsidiary company, Kinetic Watts & Volts Ltd. (KWVL), with additional equity of INR 22 crore to 23 crore.

“In the current business, the existing customers including prestigious players such as Mahindra & Mahindra as well as American Axle have indicated various new business opportunities in the transmission and axle domain. Further the company is in the process of adding new customers including Sonalika Tractors & Case New Holland. It is also bullish on the new product line of making chassis for 2 and 3- wheelers beginning with the very exciting project for E-Luna. All these opportunities require a focus on revamping the facilities, working capital, new machinery and capacity enhancement. KWVL shall continue to tap the glorious opportunity in the booming EV space where KEL has already developed axles, chassis & various other parts. It recently revived and restructured its paint shop and CED shop to offer fully painted body parts to EV players. Various other plans in EV space are underway and shall be revealed in phases as they fructify,” he said.

“The opportunities are huge. The time is ripe. So we are moving ahead confidently to make it happen. After all, all Kinetic stakeholders deserve the best,” Firodia added.

blog-post-03

Kinetic Engineering to raise Rs 54 cr from promoters, non-core assets’ sale

Kinetic Engineering Ltd on Tuesday said it will raise Rs 54 crore through preferential issue of shares to promoters and sale of non-core assets to cut debt and invest in new business

This Is The Third Year In A Row Where Promoters Have Increased Their Stake In The Company, Which Will Stand At 59.35 Per Cent. The Previous Conversions Include 9,95,000 Shares In 2021-22 And 11,72,879 Shares In 2022-23, The Company Added.

Kinetic Engineering Ltd on Tuesday said it will raise Rs 54 crore through preferential issue of shares to promoters and sale of non-core assets to cut debt and invest in new business and electric vehicle vertical.

The company’s board in a recently concluded meeting approved the raising of over Rs 54 crore from various available sources, including promoters and sale of its non-core assets, Kinetic Engineering Ltd (KEL) said in a regulatory filing.
 
“Accordingly, the board approved the issue of 22.85 lakh equity shares on preferential basis, to promoters and promoter group companies totalling Rs 26.27 crore at a price of Rs 115 per share, including a premium of Rs 105 per share,” it said.
 
This is the third year in a row where promoters have increased their stake in the company, which will stand at 59.35 per cent. The previous conversions include 9,95,000 shares in 2021-22 and 11,72,879 shares in 2022-23, the company added.

The board also approved issuance of Optionally Convertible Cumulative Preference Shares (OCCPS) totalling Rs 2.18 crore to Jayashree Firodia Trust, part of the promoter group, it said, adding that a total of nearly Rs 28 crore would be raised by the company through equity.

At the same time, the board has approved sale of excess land parcels of the company for Rs 25.50 crore following due process, including valuation done by a registered valuer, Kinetic Engineering said.

KEL Managing Director Ajinkya Firodia said the company has completed its restructuring of auto components and turned around its operations over the past three years and achieved continuous growth in net profit during the last couple of years.

“Now we strongly believe that time has come to cash in on all the efforts, learnings and opportunities that lie ahead in our current business and future potential,” he added.

Firodia said the company would utilise these funds for three main areas, including building a healthy balance sheet by further reducing debt of Rs 18 crore.

KEL will also look to enhance the auto-component business by revamping facilities, investing in new equipment, new business, working capital and capex to the tune of Rs 13 crore to Rs 15 crore, he added.

Moreover, KEL will also aim to build a strong future in EV by capitalising its subsidiary company, Kinetic Watts & Volts Ltd (KWVL), with additional equity of Rs 22 crore to Rs 23 crore, Firodia said.

In the current business, he said existing customers, including Mahindra & Mahindra and American Axle, have indicated various new business opportunities in transmission and axle domain.

“Further, the company is in process of adding new customers, including Sonalika tractors and Case New Holland,” he added.

Besides, Firodia said KEL is “also bullish on the new product line of making chassis for two and three-wheelers beginning with the very exciting project for E-Luna”.

“All these opportunities require a focus on revamping the facilities, working capital, new machinery and capacity enhancement,” he added.

KWVL would continue to tap opportunities in the booming EV space, where KEL has already developed axles, chassis and various other parts and recently revived and restructured its paint shop and Cathodic Electro Deposition shop to offer fully painted body parts to EV players, Firodia said. 

Load More