Kinetic Engineering secures ₹40 crore promoter infusion to support EV and component business

An automotive component manufacturer, Kinetic Engineering Limited (KEL), the flagship company of the Kinetic Group, announced that its promoter group has infused an additional ₹40 crore into the company through the conversion of warrants, subject to regulatory approvals. Following the transaction, promoter shareholding has increased to 65 percent from 49 percent four years ago.

According to the company, the capital will be used to strengthen its balance sheet and support expansion in its electric vehicle and automotive component businesses. The funds are also expected to support the expansion of the distribution network for the recently launched Kinetic DX electric scooter and capacity expansion in the auto component business.

Kinetic Engineering stated that it is expanding its activities in electric vehicle components, battery systems, and engineering solutions for automotive manufacturers. The promoter investment will support these initiatives.

Ajinkya Firodia, Vice Chairman and Managing Director of Kinetic Engineering Limited, said “It is highly exciting time for us at Kinetic.  The response to the scooter, Kinetic DX, launched by the subsidiary company is phenomenal.  We are expanding nationwide and plan to appoint over 150 dealers this year. Meanwhile Kinetic Engineering’s component business is showing great potential and new orders.  We will be using these funds for expansion of both projects as required and planned. This additional investment reflects the promoter group’s continued confidence in Kinetic Engineering and our long-term strategy. The automotive industry is undergoing a profound shift towards electric mobility, and we are building the capabilities needed to participate meaningfully in this transition. Strengthening the company’s capital base allows us to accelerate investments in technology, manufacturing, and innovation as we prepare for the next phase of growth.”

Kinetic Watts and Volts, a subsidiary of Kinetic Engineering Limited in which KEL holds an 80 percent stake, recently launched the electric version of the Kinetic DX scooter. The scooter includes features such as Easy Charge, Easy Flip, and Easy Key, and is powered by a Range-X LFP battery. It also has 37 litres of under-seat storage. The subsidiary has started sales and service operations in Pune, Mumbai, Vadodara, Surat, Indore, and Delhi NCR, and plans to expand to other markets in India.

Kinetic Engineering Limited manufactures automotive components and operates a manufacturing facility in Ahilyanagar. The company supplies to manufacturers including Tata Motors, Mahindra & Mahindra, Ashok Leyland, Renault, American Axle & Manufacturing, Magna Powertrain, and Sonalika Tractors. Its corporate office is located in Chinchwad, Pune.

Also read: Kinetic Engineering re-enters two-wheeler market with DX EV from ₹1.11 lakh