Kinetic Engineering Limited,
part of the Kinetic Group of Companies headed by Arun Firodia which transformed
its business from two-wheelers to auto component systems since 2009, has in a board
meeting held on December 11, 2017, recorded a net sales figure of Rs 26.63
crore for the quarter ended September 2017. Considering the net sales figure of
the same quarter last year, which was Rs 17. 71 crore, KEL has increased its
sales by 48%.
The EBITDA stood at Rs 2.08 core for the same
period, as compared to negative EBITDA of Rs 74 lakh last year. Commencing major debt reduction activities,
and hence a low interest of Rs 1.24 crore, KEL has shown a cash profit of Rs 84
lakh for the quarter.
Kinetic engineering limited
has recently won another new business worth Rs 30 crore annually, which is
expected to start in the second quarter of 2018
Kinetic Engineering Limited manufactures
its own gearboxes for commercial vehicle applications and has even designed a
new gearbox for Ashok Leyland, which enjoys a joint IPR with the customer in
collaboration with its technical partner Magna Styer. KEL also makes
transmission components for tractors, passenger cars, and off road
vehicles. KEL believes that it specialises
in auto components and is one of the few makers of complete gearboxes. It also has a huge export focus and has
developed components such as a spline yoke, stub shafts, sleeves and flanges
for customers in the US.
KEL’s notable customer list
includes Renault, American Axle, Tata Motors, Mahindra & Mahindra, Ashok
Leyland, Magna Powertrain, Bombardier Recreational products and many
others. It has over 1000 employees at
its large manufacturing plant in Ahmednagar where the manufacturing takes
place, whereas its corporate office is based in Chinchwad, Pune.
Ajinkya Firodia, Managing Director, KEL
commented on the performance: “Kinetic Engineering Limited has a large
infrastructure in its 50 acre plant in Ahmednagar, along with vast technical
knowledge of making gearboxes and engine components. We undertook a major challenge to restructure
our operations from being a moped manufacturer to this growing segment of
auto-components and systems. I am happy
to announce that on the back of our experience and strategy, KEL today is one
of the fastest growing companies in this field; and has turned the corners by
recording cash profits. This was
achieved by a strategy designed 3 years ago which included; building a high
volume export business through prestigious customers, focusing on complete
gearbox assemblies and material cost reduction program including a backward
integration into forgings.
“We also focused on long term
debt reduction/elimination and have brought down the same from Rs. 140 crores
in the year 2014 to Rs. 10 crores today.
I strongly believe that we are moving in the right direction and the
potential for our business is growing immense by the day.”
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