Kinetic Engineering Limited (KEL), a leader in India’s automotive components industry, has unveiled a strategic investment plan of ₹177 crore, led by its promoters, to accelerate its transformation and growth initiatives. The announcement comes as the company sets an ambitious revenue target of ₹1,000 crore by 2029, marking an 8x to 10x increase from its current revenue of ₹150 crore.
The investment will be made through convertible warrants, with a conversion period of 18 months. Promoters have committed ₹55 crore by March 2025, including 25% of the warrant subscription amount. Outside investors, including Transaction Square LLP and Sai Geeta Penumetsa, have also subscribed to ₹17.10 crore worth of warrants.
Key Highlights of the Investment Plan
- Promoters’ Stake Increase: The promoters’ shareholding will rise from 59% to 70% by 2027.
- Phased Investment Schedule:
- ₹60 crore by March 2025
- ₹44 crore by March 2026
- ₹73 crore by March 2027
- Issuance of New Shares: Approximately 93.5 lakh new shares will be issued, increasing the promoters’ holdings to 2.26 crore shares.
The investment will bolster KEL’s capabilities in electric vehicle (EV) components, a key growth area for the company. Ajinkya Firodia, Vice Chairman of the Kinetic Group, highlighted the company’s commitment to innovation through its subsidiary, Kinetic Watts & Volts, which is set to launch advanced drivetrain solutions and gear systems for EVs.
“Our priority is to build a future-ready organisation that anticipates market shifts and responds proactively. This investment reinforces our growth blueprint and enables us to take bold strides toward achieving our ₹1,000 crore revenue milestone,” said Firodia.
The capital infusion will be deployed to strengthen KEL’s working capital, enhance manufacturing capabilities, and expand its R&D initiatives. The company’s manufacturing unit in Ahmednagar spans 70 acres, with over 1,000 employees and 400 advanced machines.
KEL’s robust client portfolio includes industry leaders such as Renault, Tata Motors, Mahindra & Mahindra, and Ashok Leyland.
The company’s aggressive growth strategy involves expanding its export business, diversifying its product portfolio, and deepening its presence in the EV sector. KEL aims to maintain its leadership in the automotive components industry while exploring collaborations with OEMs to accelerate growth.
Founded in 1970, Kinetic Engineering Limited is the flagship company of the Kinetic Group, with over five decades of expertise in manufacturing. Headquartered in Pune, the company is a pioneer in the automotive industry and a key player in the evolving mobility landscape.
