Kinetic Engineering Ltd. (KEL), a key player in India’s automotive components industry, unveiled a major strategic initiative involving a convertible warrant issue worth INR 1.7 billion. The warrants, with an 18-month conversion period, include an initial investment of INR 550 million by March 2025 from the promoters. This represents 25 percent of the warrant subscription amount for future investments, pending approval from SEBI and shareholders. Additional commitments include INR 171 million from external investors with notable contributors such as Transaction Square LLP and Sai Geeta Penumetsa.

The phased investment plan allocates INR 600 million by March 2025, followed by INR 440 million by March 2026 and INR 730 million by March 2027. This capital infusion supports KEL’s goal of achieving a revenue target of INR 10 billion by 2029, a dramatic increase from its current revenue of INR 1.5 billion. The strategy also aims to raise the promoters’ stake in the company from 59 percent to 70 percent by 2027.

Since 2017, KEL’s promoters have steadily increased their stake from 49 percent to 59 percent with the current initiative boosting holdings by an additional 11 percent. Approximately 93.5 lakh new shares will be issued to promoters, bringing their total to 2.26 crore shares and increasing the company’s outstanding shares to 3.26 crore by July 2027. The investment is led by founder and chairman Arun Firodia, supported by family trusts—the Arun Firodia Trust and Jayashree Firodia Trust.

The infusion of capital and warrant issuance highlights the promoters’ confidence in KEL’s long-term strategy, enabling the company to enhance working capital, improve manufacturing capabilities, and accelerate innovation in high-growth areas such as electric vehicle (EV) components.

Driving Growth Through EV and Innovation
KEL’s aggressive growth strategy focuses on an expanded export business, a diversified portfolio and cost-reduction initiatives. The company is sharpening its focus on EVs through its subsidiary, Kinetic Watts & Volts, incorporated in September 2022. The subsidiary is developing advanced drivetrain solutions, gear systems, and other innovative products set to be unveiled soon.

To deepen its footprint in the EV sector, KEL is bolstering its developmental capabilities and exploring collaborations with OEMs. Its long-term strategy emphasises sustainable growth, enhanced domestic and international market presence, and maintaining leadership in the automotive components sector.

The promoters’ commitment to increased investment and stake expansion underscores their confidence in KEL’s future, positioning the company to capitalise on opportunities in the evolving mobility landscape. With a focus on innovation, value creation, and strategic execution, KEL is poised for transformational growth in a competitive market.

Commenting on the development, Firodia said, “Kinetic Engineering Limited has over 50 years of experience in manufacturing. It has successfully transformed into an auto components business and enjoys strong relationships with the world’s largest OEMs. Leveraging these long-standing partnerships, we expect to finalise significant business deals shortly. Additionally, we are heavily focused on the EV segment, with plans for our subsidiary, Kinetic Watts & Volts, nearing finalisation. These initiatives will drive an 8x to 10x revenue growth, and we are pleased to make this investment to meet the required capital expenditure, working capital, and growth initiatives. This infusion of capital from the promoters reinforces our growth blueprint, enabling us to take bold strides toward achieving our INR 1,000 crore revenue milestone. We are committed to using this investment to fuel innovation, improve operational efficiencies, and meet the evolving demands of the automotive and EV industries.”

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German tier 1 supplier ZF’s Supervisory Board has announced changes to the leadership team, with Andreas Moser, the previous head of the Industrial Technology division, appointed to the Board of Management.

Effective 1 November 2025, he will be responsible for the Commercial Vehicle Solutions and Industrial Technology Divisions and the India Region. He has been with ZF for over three decades.

Sebastian Schmitt has been appointed head of the Electrified Powertrain Technology (E) division, which handles the company's conventional, hybrid and electric passenger-car drivetrain technologies. He currently leads the Electrified Powertrain Systems product line. CEO Mathias Miedreich retains Board of Management responsibility for the E division.

Dr. Rolf Breidenbach, Chairman, ZF Supervisory Board, said, “Following the changes to the Board of Management, it was important for the Supervisory Board to create clarity in the Group’s management. In Andreas Moser, we’ve found a Board member who has been with ZF for more than 30 years, many of them in management positions in ZF’s Commercial Vehicle Solutions and Industrial Technology divisions. This means competence and continuity. We’ve thus succeeded in setting up ZF’s management committee within a very short time so that the Group’s current challenges can be mastered.”

Mathias Miedreich, noted, “With this new Management Board, we have a strong and highly competent leadership team that will successfully guide ZF into the future.”

To drive the company’s realignment, the Group Board of Management will be reduced from six to five members. ZF is also establishing a Transformation Committee, a body that links key business areas – sales, materials management, production and strategy –directly with the Board. This team will manage the group-wide performance programme.

Miedreich, emphasised, “Our entire focus in the coming years will be on strengthening ZF’s operations, further increasing profitability and consistently expanding our financial stability. The new Transformation Committee stands for speed, clarity and impact – with the clearly defined objective of supporting our customers through forward-looking technologies and reliable partnerships.”

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Pune-headquartered automotive supplier Varroc has appointed Avinash Chintawar as its new Chief Operating Officer (COO) for Business I, effective 15 October 2025. He will report to Arjun Jain, Whole Time Director & CEO – Business I.

In his new role, Chintawar will oversee the Operations Vertical within Business I, with a focus on strengthening efficiencies and performance.

Prior to joining, Varroc, Chintawar served as Managing Director of Bosch Chassis Systems India and as Chairman of Bosch India Foundation. He previously held leadership positions within the Bosch Group, including Director of Operations at Robert Bosch Bamberg (Germany) and Managing Director at Bosch Electrical Drives India. He holds a Bachelor of Engineering from Visvesvaraya National Institute of Technology.

Jain, said, “We are delighted to welcome Avinash to the Varroc leadership team. His extensive experience and deep understanding of achieving operational excellence align perfectly with our needs as we drive the next phase of our growth. I am confident that under his leadership our operation will scale new heights of efficiency and sustainability.”

Chintawar, said, “I am excited to join Varroc at a time when the industry is undergoing such dynamic change. I look forward to working closely with the team to enhance operational excellence and contribute to its vision of sustainable and future-ready growth.”

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German tier 1 supplier ZF Group has secured a significant contract to supply its 430mm heavy-duty clutch systems to one of India’s leading commercial vehicle manufacturers.

The clutch systems, the company shared, is custom-engineered and manufactured locally, specifically adapted to meet the rigorous demands of Indian operating conditions and will power the OEM's higher horsepower engine platforms for both domestic and select export models.

The agreement, signed in May 2025, involves the supply of several thousand units, with the Start of Production (SOP) scheduled for mid-2026. The clutches will be produced at ZF's Chakan plant in Pune, reinforcing the Group's strategy to strengthen its regional manufacturing capabilities and commitment to localisation in India.

The new clutch system is designed for robust performance and features advanced lining materials that promise up to 20 percent longer clutch life, aiming to reduce maintenance costs and optimise the total cost of ownership for fleet operators. It is also designed to be compatible with both Manual Transmission (MT) and Automated Manual Transmission (AMT) systems.

Akash Passey, President - Region India, ZF Group, said, “ZF’s strategic focus on localisation and innovation for the Indian market, is reconfirmed with this business win. With our globally proven technological expertise and leveraging the strong local manufacturing footprint in India, our customers can access advanced technologies that meet global standards while being tailored for their markets. This win highlights our commitment to strengthening India’s role as a key hub in ZF’s commercial vehicles business.”

Paramjit Singh Chadha, Senior Vice President - CVS Division (India), ZF Group, said, “This business win is a strong endorsement of our advanced heavy-duty clutch technology which perfectly addresses the demanding operating conditions in India. This 430mm clutch system offers superior durability, optimised performance and compatibility with future-ready driveline architectures, including AMT. By localising production at our Chakan facility, we reinforce our commitment to the ‘Make in India’ vision and supporting our customers’ growth ambitions for both domestic and export markets.”

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French automotive component supplier OPmobility is accelerating its growth in India, with the strategic goal of more than doubling its sales by 2030.

The Group recently inaugurated its new facility Badhalwadi, Maharashtra and has commenced construction of another plant in Kharkhoda, Haryana. It already operates five plants in the country, is strengthening both its production footprint and its engineering and digital capabilities.

OPmobility is structured into four complementary business groups: exterior and lighting systems, complex modules, energy storage systems and battery and hydrogen electrification solutions, allowing it to offer a comprehensive range of mobility solutions. The company is a significant global player, reporting an economic revenue of EUR 11.6 billion in 2024. To meet the challenges of sustainable mobility, OPmobility relies on its 38,900 employees operating across a vast network of 150 plants and 40 R&D centres worldwide.

The Badhalwadi site is OPmobility’s first in India to integrate production capacities for both exterior systems and energy storage systems in one location. Furthermore, the facility is equipped with solar panels that supply 35 percent of its energy needs and predominantly employs women.

The Kharkhoda plant, which broke ground in August 2025, will focus on producing energy storage systems and is scheduled to begin operations in early 2026. This expansion comes as India's vehicle output is forecast to grow by an average of per year between 2025 and 2030. Currently, over one in three vehicles sold in India is equipped with OPmobility components.

Beyond manufacturing, OPmobility is boosting its engineering and digital presence to meet growing demand from both local and global customers. This includes operating four R&D centres that support both the Indian business and worldwide markets. The Group has also established an OP’nSoft software centre in Bengaluru, Karnataka, to enhance its dedicated software entity.

Laurent Favre, Chief Executive Officer, OPmobility, said, "India is a strategic country for OPmobility, with a fast-growing automotive industry and as a platform of skilled workforce. Having developed strong historical partnerships with international and Indian automotive manufacturers, who benefit from a dynamic domestic and international demand, the Group aims at more than doubling its sales in the country by 2030. This will notably contribute to one of the pillars of our strategy, which is the geographical diversification of our sales. The reinforcement of our engineering, digital and software capacities in the country allows us to improve our overall competitiveness in engineering in all our countries and to continue to enhance our performance.”

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