Kinetic Engineering Limited (KEL) which revolutionized the two-wheeler industry and transformed itself into auto component manufacturer has announced the formation of a subsidiary company which will focus on the growing EV Market. The new company will be a subsidiary of Kinetic Engineering Limited in which Kinetic Engineering Limited will own more than 51% stake. The company will have an authorized capital of upto INR 25 Crore.
The decision was made in the board meeting of Kinetic Engineering Limited where the company laid a clear focus on the growing EV sector. KEL is developing several products such as axles for electric 3 wheelers, gear boxes for electric 2 wheelers as well as 3 wheelers, frames for electric 2 wheelers, chassis for electric 3 wheelers. With the explosive growth of electric 2W and 3Ws expected over the next few years, the company sees tremendous opportunities in the EV space and a need to have a very strong focus on exploiting the emerging opportunities quickly. With strong technical knowledge and vast manufacturing experience, Kinetic Engineering Limited now will be able to house the entire EV portfolio including components and assemblies to clearly focus and quickly scale up to exploit the opportunities.
Speaking on the development, Mr. Ajinkya Firodia, Managing Director of Kinetic Engineering Limited said, "The electric 2W sales in the past L year have crossed 356000 units and that of electric 3W crossed223000 units! Globally also, there are talks with all major players on electrification. Such rapid pace of change from IC vehicles to EVs needs a very clear and strong focus and we are pleased to announce the formation of the new subsidiary with the clear objective to be part of the growth story of Electric Mobility. As a company with 50 years of legacy in automobile manufacturing and marketing, Kinetic must explore all the avenues of the growth potential of the segment. Being an innovation led company Kinetic Engineering Limited's focus has always been on addressing automotive mega trends and in line with that strategy KEL has decided to form this subsidiary so that dedicated resources and funds can be deployed to evolve the correct strategy for a long term sustainable and expansive future."
Currently, the company is developing new products for electric mobility. It has recently finalized orders for the development of chassis and other parts for electric moped manufacturers and has bagged an order for a gearbox for a leading 3-wheeler manufacturer. Last year the company celebrated its 50th year of anniversary.
Shares of KINETIC ENGINEERING LTD. was last trading in BSE at Rs. 86.75 as compared to the previous close of Rs. 97.30. The total number of shares traded during the day was 57354 in over 461 trades.
The stock hit an intraday high of Rs. 97.15 and intraday low of 80.65. The net turnover during the day was Rs. 5037727.00.