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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Iochpe-Maxion, a world leader in automotive wheels production and a leading producer of automotive structural components in the Americas, has received official validation from the Science Based Targets initiative (SBTi) for its net-zero emissions strategy. This approval confirms that the company’s climate goals are consistent with the ambition to limit global warming to 1.5°C and achieve net-zero emissions by 2050 at the latest.

The SBTi has classified both the company’s near-term and long-term targets for Scope 1, 2 and 3 emissions as aligned with 1.5°C mitigation pathways. Iochpe-Maxion has committed to reducing its absolute Scope 1 and 2 emissions by 63.2 percent by 2030, using 2019 as a base year. Over the same period, it will also cut its absolute Scope 3 emissions from purchased goods and services by 25 percent, using a 2024 baseline.

By 2040, the company aims to achieve net-zero greenhouse gas emissions across its entire value chain. This long-term objective involves a 90 percent reduction in both Scope 1 and 2 emissions from the 2019 baseline, and a 90 percent cut in Scope 3 emissions from the 2024 baseline.

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The Automotive Component Manufacturers Association of India (ACMA), the apex body representing the Indian auto component industry, has appointed Vikrampati Singhania, Managing Director, JK Fenner (India), as President, ACMA for the 2025–26 term.

He succeeds Shradha Suri Marwah, who had been leading ACMA for the president. In addition, Sriram Viji, Managing Director, Brakes India, is the next President Designate.

Vinnie Mehta, Director General, ACMA, said, “The appointment of Vikrampati Singhania as President and Sriram Viji as President Designate comes at a decisive moment for our industry. The auto component sector is navigating geopolitical volatility, supply chain realignments, and accelerating electrification. Their proven leadership will be invaluable in steering ACMA’s agenda on strengthening India’s global competitiveness, securing critical raw materials, and fostering R&D and innovation. I am confident that under their stewardship, ACMA will further our industry’s vision of building a resilient, sustainable, and future-ready mobility ecosystem.”

Vikrampati Singhania, said, “It is a privilege to lead ACMA at a time when India is rapidly emerging as a trusted global partner in mobility value chains. With exports crossing record highs and EV adoption reshaping the market, our task is to strengthen resilience and competitiveness. We must deepen localization, invest in advanced technologies, and embrace sustainability as a core business imperative. Together, with the government’s continued support and our industry’s commitment, we will work towards making India not only self-reliant but also a global leader in the next generation of mobility components.”

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Delhi NCR-based component maker Sterling Tools, through its subsidiary, Sterling Gtake E-Mobility (SGEM), is foraying into the EV On-board Chargers and DC/DC converter for electric vehicles space. 

The company has inked a technology license and supply agreements with Landworld Technology Co, China to locally manufacture on-board chargers, DC/DC convertors and Multi-Function Units (incorporating On-Board Chargers, DC/DC converters as well as Power Distribution Units (PDUs)).

Sterling Tools estimates that the market size to reach around INR 30 billion by FY2030, while the revenue from the partnership to achieve INR 4.5 billion respectively.

The company will manufacture the crucial products required in the passenger and commercial vehicle segments at its EV campus in Faridabad.

Anil Aggarwal, Chairman, Sterling Tools, said, “This partnership creates greater depth in the EV ecosystem in India. We are expanding beyond our initial Motor Control Unit and powertrain platforms to meet our customer’s growing demand for advanced technology in the EV sector. EV sub-systems are being increasingly consolidated into multifunction units and Sterling hopes to offer our customers greater choices for stand-alone and multifunction units to cover multiple (vehicle) functions. The Sterling Group will continue to extend excellent technical and application support to its customers to help drive greater adoption of EVs in India.”

Lin Chen, Vice General Manager, Landworld Technology Co, said, “India’s EV market offer’s immense potential for growth and innovation. Through our partnership with Sterling Gtake, we are bringing our proven expertise in On-Board Chargers and DC/DC converters to Indian customers across several EV vehicle categories. Together, we aim to create high-quality solutions that cater to India’s EV market while contributing to the country’s self-reliance and sustainability goals."

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The Automotive Component Manufacturers Association of India (ACMA) convened its 65th Annual Session in New Delhi, focusing on the theme ‘Navigating Geopolitical Challenges - Creating a Resilient Automotive Supply Chain in India’. The event brought together senior policymakers, global leaders, and industry captains, including Nitin Gadkari, H D Kumaraswamy, Piyush Goyal, and Maros Sefcovic.

In her opening address, ACMA President, Shradha Suri Marwah, emphasised the industry's resilience. She stated, “India’s auto component sector expanded beyond USD 80 billion in FY25, with exports crossing USD 23 billion – a testament to our growing reputation as a trusted global partner".

She also acknowledged the challenges ahead, adding, "Yet the road ahead demands greater resilience as we navigate geopolitical headwinds, technology disruption, and sustainability imperatives".

A key highlight was the release of an ACMA–McKinsey study, which projects the industry will reach USD 200 billion by 2030.

H D Kumaraswamy noted the government's strong policy push, saying, “Bold reforms such as the PLI scheme have already attracted over INR 295 billion in investments and created more than 45,000 jobs, far exceeding expectations".

At the valedictory session, Nitin Gadkari underlined the long-term vision for the industry. He stated, “Our goal is to make India the world’s leading hub for smart, safe, sustainable, and affordable mobility by 2030".

Piyush Goyal reaffirmed India’s growing role as a trusted global partner, asserting, “As global trade undergoes disruption, India and the EU are working towards a fair and balanced Free Trade Agreement that will strengthen our partnership for decades". H.E.

Maros Sefcovic stressed the importance of India-EU collaboration, adding, "A balanced Free Trade Agreement will be a win-win, unlocking greater market access, high-value investments, and new technologies for both regions". The session saw over 1,200 delegates in attendance.

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