Kinetic Engineering Ltd. Plans Rs 177 Crore Investment to Achieve Ambitious Revenue Target of Rs 1,000 Crore by 2029
Mumbai, 21st January 2025: Kinetic Engineering Ltd. (KEL), a prominent name in India’s automotive components industry, has unveiled a strategic investment plan worth INR 177 crore, aimed at transforming its operations and achieving a significant revenue milestone of INR 1,000 crore by 2029. This marks a substantial growth projection compared to its current revenue of INR 150 crore.
The investment will be executed through convertible warrants, with the promoters leading the initiative by committing an initial INR 55 crore by March 2025. These funds represent 25% of the subscription amount required for future investments, pending approvals from SEBI and shareholders. Outside investors, including Transaction Square LLP and Sai Geeta Penumetsa, have also pledged INR 17.10 crore in support of this initiative.
The funding will be phased, with INR 60 crore planned by March 2025, INR 44 crore by March 2026, and INR 73 crore by March 2027. This financial infusion will also facilitate the promoters’ stake in KEL to rise from 59% to 70%, reinforcing their long-term commitment to the company’s vision.
Since 2017, the promoters, led by founder and chairman Arun Firodia, have steadily increased their stake in KEL, growing it from 49% to a projected 70% by 2027. The capital raised will be used to issue approximately 93.5 lakh new shares, increasing the total outstanding shares to 3.26 crore.
The investment will be allocated toward expanding working capital, upgrading manufacturing capabilities, and fostering innovation in electric vehicle (EV) components.
Ajinkya Firodia, Vice Chairman of Kinetic Group, emphasized the significance of the initiative:
“Kinetic Engineering has a legacy of over 50 years in manufacturing and has successfully transitioned into a thriving auto components business. Our strong relationships with leading OEMs worldwide are key to driving growth. This strategic investment underscores our commitment to achieving an 8x to 10x revenue growth, primarily fueled by the rapidly expanding EV sector. The infusion of capital will enable us to meet critical capital expenditure, strengthen our operational efficiency, and innovate for the future of mobility.”
KEL has outlined a robust roadmap centered on electric mobility. The company’s subsidiary, Kinetic Watts & Volts, is set to play a pivotal role in this transformation, focusing on advanced drivetrain solutions, gear systems, and other EV components. Established in September 2022, the subsidiary is gearing up to unveil its first line of innovative products shortly.
Ajinkya Firodia further highlighted the company’s emphasis on the EV sector:
“We are heavily investing in our subsidiary, Kinetic Watts & Volts, which will drive our EV-focused growth. The demand for advanced, efficient components in this segment is immense, and we aim to position ourselves as a leader in this space. This investment is a testament to our belief in KEL’s ability to evolve and seize emerging opportunities in the automotive and EV industries.”
KEL’s growth strategy also includes expanding its export portfolio and diversifying its product range to cater to a broader market. The company is enhancing its R&D capabilities to develop cutting-edge solutions while exploring collaborations with domestic and international OEMs.
“This capital infusion empowers us to accelerate our transformation journey, explore new verticals, and deliver greater value to our stakeholders,” said Arun Firodia. “We are building a future-ready organization that anticipates market shifts and responds proactively to evolving demands.”
