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.”

Automotive component supplier Sundram Fasteners has announced its financial results for the quarter and year ended 31 March 2025.

For Q4 FY2025, the revenue came at INR 13.53 billion, up from INR 12.78 billion in the same period last year. Domestic sales stood at INR 9 billion (INR 8.4 billion in Q4 FY2024), while exports were INR 4 billion (INR 3 billion in Q4 FY2024). Net profit came at INR 1.34 billion as compared to INR 1.32 billion.

For FY2025, total revenue was INR 52 billion, as against INR 49 billion, which includes domestic sales of INR 34 billion, as against INR 33 billion last year. Exports grew by 12.39 percent to INR 15 billion, as against INR 14 billion last year. The net profit came at INR 5 billion, as against INR 4 billion last year.

The consolidated revenue for FY2025 came at INR 59.83 billion, as against INR 57.2 billion last year, while net profit came at INR 5.4 billion, compared to INR 5.25 billion last year.

Arathi Krishna, Managing Director, Sundram Fasteners, said, “We achieved the highest-ever quarterly PAT at INR 1.34 billion by maintaining strong financial discipline, sustaining a positive cash balance and adopting best practices in quality management and automation. This growth is particularly encouraging as we have witnessed significant progress in our non-auto business, which has contributed to our overall robust performance. Our growth is supported by strong domestic and export order book. We remain committed to driving volume-led growth by leveraging emerging opportunities in the electric vehicle segment and continuing our focus on innovation which will enable us to outpace industry growth rates.”

During the year, Sundram Fasteners incurred a CAPEX of INR 3.7 billion towards capacity expansion and new projects across internal combustion engine vehicles (ICE), plug-in hybrids and electric vehicles.

Tier 1 supplier UNO Minda has got approval from its Board to set up a new greenfield plant for manufacturing of high-voltage electric powertrain for the passenger vehicle and commercial vehicles segment. These products include combined charging units, e-axles, inverters, and motors. The location still being determined is expected to see an investment of around INR 4.23 billion, which will be funded through a combination of debt and equity.

UNO Minda Auto Innovations, a subsidiary of the company, will execute the project, which subsequently will be converted into a joint venture company with Suzhou Inovance Automotive (Inovance Automotive).

The JV eventually will see Uno Minda hold 70 percent equity stake. The CAPEX will be phased over the next three years, with Phase 1 expected to be commissioned by Q2 FY2027.

Ravi Mehra, Managing Director, UNO Minda Group, said; “This investment underscores Uno Minda's commitment to driving the future of electric mobility in India. By establishing this state-of-the-art facility, we will be well-positioned to meet the growing demand for high-voltage EV powertrain solutions. Our partnership with Inovance Automotive brings together our respective strengths and will enable us to deliver cutting-edge technology to our customers.”

German tier 1 supplier ZF will introduce the next generation of its range extender technology for electric vehicles (EVs), with volume production beginning in 2026.

A range extender combines a combustion-powered generator with an electric motor, producing energy for the vehicle battery once its charge drops.

Dr Otmar Scharrer, Senior Vice President R&D, Electrified Powertrain Technology at ZF, said, "Although the all-electric range of passenger cars is around 500 km on average, range anxiety still influences a wide range of buyers when choosing their next vehicle. These (range extenders) represent a real alternative to larger – and thus more expensive – batteries or plug-in hybrids."

The German supplier has gained experience with range extenders, including supplying systems for the iconic London taxi. Now, it is advancing the technology with two new systems: the electric Range Extender (eRE) and electric Range Extender plus (eRE+).

Both designs are highly integrated and flexible across performance levels, 400V or 800V architectures and semiconductor types. The eRE combines an electric motor, integrated inverter, dedicated software and a planetary gearset. The eRE+ adds an intelligent clutch and differential, enabling it to serve as a generator or a secondary drive. Output is scalable: 70–110 kW for the eRE and 70–150 kW for the eRE+.

Dr Scharrer, added, "The new interest and the increased demand for range extenders shows that the potential of this technology is far from exhausted – in particular for model platforms that are already designed for battery-electric drivelines. Behind our solutions is a system and platform concept. This means that we are optimally equipped to respond to all customer and market requirements with shorter development cycles."

Compared to plug-in hybrids (PHEVs), range extenders offer lower additional costs, faster development, simpler platform integration and easier supply chain management — especially attractive for newer automakers with little combustion engine expertise.

China is currently leading with ‘Range Extended Electric Vehicles’ (REEVs) covering over 700 kilometres, thanks to such technology.

"This is where we find it convenient that there is a wide range of BEV platforms that can be supplemented by range extenders," said Scharrer.

The company is also seeing growing interest in the U.S. and European market.

"The market for all-electric vehicles has not developed as much as predicted a few years ago," Scharrer observed. "For this intermediate phase, range extenders can be the ideal solution."

Uno Minda, a tier 1 automotive supplier to OEMs, has introduced projector headlights for seven-seater MPVs in the Indian aftermarket.

The new headlights are designed to improve visibility and meet safety needs during night driving and adverse weather. They feature a hard-coated lens to prevent yellowing and damage and include Japanese optics with an integrated projector for better beam focus.

Anand Kumar, Head of Product & Strategy – Aftermarket, Uno Minda, said, “At Uno Minda, we believe that style and safety should go hand in hand. Our newly launched headlights for 7-seater cars are designed to enhance both visibility and aesthetics, ensuring a superior driving experience. The bright and advanced headlights, featuring Japanese optics technology with an integrated projector, deliver a superior beam pattern for enhanced visibility and a well-illuminated driving experience. Engineered for safety, they ensure optimal performance during nighttime and adverse weather conditions. These headlights come with a 100 percent coated lens that provides a shatterproof surface, preventing discoloration and maintaining long-term clarity. The rust-free silicon-coated reflectors ensure extended durability while sustaining optimal light output.”

The headlights are priced at INR 5,200, come with a one-year warranty, and is available across online and e-commerce platforms in India.