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.”

Comments (0)

ADD COMMENT

Link Copied!

Geopolitical shifts in global trade are positioning India's auto component industry as a key player in the international supply chain, with projections indicating the sector's value could soar to USD 200 billion (EUR 160 billion) by 2030 said a recent report by McKinsey.

The report suggests that as an estimated USD 12 trillion to USD 14 trillion in global trade is expected to shift across corridors by 2035, India, aided by its cost competitiveness and skilled workforce, is emerging as a primary beneficiary. The Indian auto component industry has already experienced a compound annual growth rate (CAGR) of about 10 percent over the last five years.

The projected growth of the industry is underpinned by a two-pronged strategy focused on both traditional and future mobility technologies:

• Internal Combustion Engine (ICE) Exports: A USD 20 billion to USD 30 billion export opportunity is forecast for ICE components by 2030, as global markets consolidate their supply base.
• Electric Vehicle (EV) Growth: Domestic EV sales are expected to see a sharp 35 percent CAGR, aligning the industry with worldwide electrification trends.

The industry must address key challenges, including reliance on critical components like rare earth elements (mostly sourced from China), capability gaps in advanced technologies, and compliance with new policy shifts like carbon taxes in developed markets.

The analysis proposes two core strategies to lock in long-term value:

1. The IGNITE Approach: This focuses on securing a ‘last person standing’ advantage in ICE global play by upgrading supply chains, future-proofing the industry with new technologies, investing in capabilities like global sales expertise, and creating a future-ready workforce.
2. The GAIN Approach: This calls for a collaborative effort between Government, Associations, Institutional finance, and a Network effort of MSMEs to address systemic issues and secure access to critical resources and innovation.

Comments (0)

ADD COMMENT

Link Copied!

German technology and services major Bosch has reported its financial results for Q2 FY2026, with revenue of INR 47.95 billion, up 9.1 YoY.

The company attributed the growth being driven by demand in the passenger car and off-highway segments. The profit after tax came at INR 5.54 billion, or 11.6 percent of revenue from operations.

During the quarter, overall automotive product sales increased by 11.9 percent. This includes 9.5 percent growth in the power solutions business driven by passenger car and off-highway segments. The two-wheeler business grew by 81.8 percent, primarily due to higher sales of exhaust gas sensors ahead of the ramp-up for OBDII norms implementation from 1 April 2025.

Mobility aftermarket business recorded 3.7 percent growth, supported by performance in diesel and filter systems.

On the other hand, Beyond Mobility Business net sales declined by 14.4 percent, mainly due to the sale of the ‘Video solutions, Access and Intrusions and Communication systems’ business in May 2025.

Guruprasad Mudlapur, President of the Bosch Group in India, and Managing Director, Bosch, said, “This quarter, we recorded growth led by sustained demand in passenger car and off-highway segments coupled with increased sales in key components. This performance reflects our commitment to innovation and customer-centricity despite multiple headwinds. Moving onto the next quarter, the festive season coupled with GST rationalisation bring renewed optimism. We anticipate healthy demand across components driven by changing customer sentiments. With a strong portfolio and customer-first approach, Bosch remains well placed to leverage these opportunities ahead.”

Comments (0)

ADD COMMENT

Link Copied!

Inteva Products LLC, a major global automotive systems and components supplier, is significantly increasing its investment in India with a new manufacturing plant in Pune and the introduction of advanced product technologies. This strategic expansion underscores the company's deep, long-term commitment to the Indian automotive market, where it has been operating for over 17 years. The move is designed to foster sustainable growth, create substantial local employment and deliver innovative solutions tailored to the evolving needs of the country's mobility sector.

The new facility, representing an investment of INR 500 million, is expected to create more than 400 new jobs. This expansion will substantially increase Inteva’s production capacity and enhance its integration with regional supply chains, complementing its existing Pune manufacturing plant and its technical centre in Bengaluru. To support the Indian automotive industry's progression, Inteva will launch a suite of next-generation products. These include frameless window regulators, various actuators, its compact SLIM motor and advanced systems like E-Latches and power tailgates. These innovations are focused on improving vehicle safety, supporting electrification and reducing overall weight.

Concurrently, the India Technical Centre in Bengaluru remains a critical global hub for engineering excellence. Staffed by over 320 professionals, including a strong contingent of more than 180 engineers, the centre drives product design, validation and simulation. This expansion is also guided by a strong emphasis on environmental responsibility. The company’s Pune plant now features a 335-kW solar installation with over 1,000 panels, significantly cutting carbon emissions. Inteva is further advancing its sustainability goals through research into repurposed materials and active participation in customer-led ESG initiatives, reinforcing its dedication to responsible manufacturing.

Gerard Roose, President & CEO, Inteva Products, said, “Inteva’s expansion in India reflects our confidence in the region’s growth potential and our shared journey towards innovative and sustainable mobility.”

Sanjay Kataria, VP and Managing Director, India and Rest of Asia, Inteva Products, said, “We are excited to deepen our partnerships with OEMs in India, invest in advanced manufacturing and create meaningful opportunities that fuel automotive growth across the country. This expansion aligns with the Make in India initiative and underscores our commitment to delivering localised, customer-centric solutions.”

Comments (0)

ADD COMMENT

Link Copied!

American powertrain major BorgWarner has secured a supply agreement with Stellantis for its 50 mm variable turbine geometry (VTG) turbocharger. The turbocharger will be used in the automaker’s new Hurricane 4 Turbo four-cylinder gasoline engine.

The Hurricane 4 Turbo engine will feature in the 2026 Jeep Grand Cherokee. BorgWarner will also supply its electric variable cam timing (eVCT) technology for the OEM’s Jeep Cherokee platforms and its EP6 four-cylinder engine.

BorgWarner’s VTG turbocharger technology combines its turbo with wastegate functionality to improve emissions efficiency and engine performance. It is claimed to be the only turbocharger to combine VTG and wastegate technologies.

• The wastegate enables faster catalyst heating during cold starts.
• The VTG provides a tighter boost and control of the engine.

The VTG technology also supports a high Miller cycle, which optimises performance across engine speeds, delivering lower boost at low speeds for improved fuel economy and increasing boost at higher speeds for greater power output.

The integration of BorgWarner’s eVCT into the Jeep Cherokee’s EP6 engine is the first use of an eVCT on a Stellantis engine. This application is expected to improve fuel economy and performance while reducing emissions. The eVCT technology functions independently of oil pressure, offering a wider phasing range than traditional systems.

Dr Volker Weng, Vice-President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies, said, “We are pleased to partner with Stellantis on these exciting project launches. Our long-standing relationship includes supplying the OEM with several turbos for previous vehicle models, and this specific project marks our shift into the next generation of turbos.”

Comments (0)

ADD COMMENT

Link Copied!