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Kinetic Engineering has announced an additional investment of around ₹57 crore to fund manufacturing capex and accelerate the expansion of its electric vehicle business. Following the investment, promoter group shareholding in the company has increased from 50% to 69.27% over the past four years.
Under the company capital allocation plan, around 17 crore will be invested in manufacturing capex. The funds will be used to support newly acquired driveline export contracts. The long-term export orders for Europe and Mexico have a cumulative value of around ₹500 crore, with deliveries scheduled over a seven-year period.
The remaining ₹40 crore will be invested in Kinetic Engineering's electric mobility subsidiary, Kinetic Watts and Volts. The investment will support product development, supply-chain expansion and the rollout of the retail network for its electric two-wheeler portfolio.
Kinetic recently introduced the Kinetic DX and DX+ electric scooters. According to the company, it has signed letters of intent (LOIs) with more than 150 dealers across the country to strengthen its retail distribution network. More than 60 touchpoints are currently operational, offering integrated sales, service and spare-parts facilities.
Ajinkya Firodia, Vice Chairman and Managing Director, Kinetic Engineering, said the company is entering a new phase of growth across its automotive components and electric mobility businesses. He said the company will continue investing in capacity, technology and its retail network to scale both businesses and strengthen its presence in India's electric mobility segment.
