Kinetic Engineering Ltd (KEL), a key player in India's automotive components business, plans to issue convertible warrants worth INR 1.77 billion with an 18-month conversion term as part of a strategic move proposed by its promoters. With the consent of SEBI and shareholders, the promoters have pledged to spend INR 550 million by March 2025, which comprises 25 percent of the warrant subscription amount for further investments. A total of INR 171 million has also been subscribed for by outside investors in warrants; Transaction Square LLP and Sai Geeta Penumetsa are two significant contributors.

A phased commitment of INR 600 million by March 2025, INR 440 million by March 2026, and INR 730 million by March 2027 is outlined in the investment plan. With the help of this strategic plan, Kinetic Engineering Ltd. (KEL) hopes to surpass its present sales of INR 1.5 billion and reach its ambitious revenue objective of INR 10 billion by 2029. Additionally, it supports the promoters' goal of raising their ownership of the business from 59 percent to 70 percent by 2027.

The promoters' share has increased gradually since 2017, rising from 49 percent to 70 percent, representing a 21 percent total gain. By July 2027, the promoters will have received about INR 9.36 million in additional shares as part of this plan, increasing their overall holdings to 22.6 million shares and the company's total outstanding shares to 32.6 million. Along with family-owned trusts, the Arun Firodia Trust and the Jayashree Firodia Trust, the investment is led by Arun Firodia, the company's founder and chairman.

The promoters' faith in KEL's long-term plan is demonstrated by this capital injection and the sale of strategic warrants, which position the business to take advantage of new possibilities in the changing mobility market. The investment will be used to improve production capacities, boost working capital, and stimulate product development innovation, especially in high-growth sectors like electric vehicle (EV) components.

Ajinkya Firodia, Vice Chairman, Kinetic Group, 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 10 billion 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. This capital infusion empowers us to accelerate our transformation journey, explore new business verticals and unlock greater value for our stakeholders. The time for Kinetic to reinvent, grow and scale up has arrived. Our priority is to build a future-ready organisation that anticipates market shifts and responds proactively.”

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Switzerland-headquartered tier 1 supplier Autoneum signed an agreement to acquire all shares of Chengdu FAW-Sihuan Interior Parts Co, an automotive supplier for acoustic and thermal management in China.

Together with the recently completed acquisition of Jiangsu Huanyu Group, Autoneum's Business Group Asia is further expanding its customer base to include other major Chinese vehicle manufacturers such as FAW-Volkswagen, FAW-Audi, FAW-Toyota and Geely. The transaction is scheduled to close in July 2025.

The tier 1 supplier states that with around 30 million light vehicles produced annually, China is the world’s largest automotive market and with an expected increase to 31.5 million cars by 2030, it is also one of the most important growth markets for the automotive industry.

Established in 2011, Chengdu FAW-Sihuan Group operates four production facilities with around 240 employees in the immediate vicinity of local automotive manufacturers in the north, centre and south of China.

Chengdu FAW-Sihuan Group’s product portfolio is very similar to that of Autoneum and includes components such as floor insulators, wheelhouse liners, trunk trims, inner dashes, hoodliners and outer dashes. In FY2024, Chengdu FAW-Sihuan Group generated a preliminary revenue of around CHF 27 million, with a strong growth projected for the coming years. The purchase price is around CHF 16 million (excluding cash and cash equivalents and debt) and closing is expected in July 2025 following the necessary approvals by the authorities. It intends to continue operating the Group under the Chinese company names. From an organisational perspective, however, Chengdu FAW-Sihuan Group will be fully integrated into Autoneum’s Business Group Asia in order to fully leverage the synergies.

Chengdu FAW-Sihuan Group, like the Jiangsu Huanyu Group, offers access to local vehicle manufacturers in China. This will enable Autoneum to continue to expand and complete its customer base in this key market.

Eelco Spoelder, CEO, Autoneum, said, “The acquisition is in line with our corporate strategy Level Up and marks another important step in implementing our strategic pillar Accelerate global growth. By adding further local Chinese car manufacturers to our customer portfolio, this latest takeover, together with the acquisition of Jiangsu Huanyu Group, will bring us even closer to our medium-term target of generating 20 percent of Group revenue in Asia.”

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Tier 1 supplier Lumax Auto Technologies has signed an agreement to acquire the remaining 25 percent stake in IAC International Automotive India (IAC India) from the International Automotive Components Group (IAC Group).

It was in March 2023, Lumax had acquired 75 percent stake in IAC India and now plans to merge it with its operations. At present, IAC India is a key components supplier to OEMs such as Mahindra & Mahindra, Maruti Suzuki India, Volkswagen and Volvo Eicher Commercial Vehicles among others. Interestingly, IAC India is the sole supplier of integrated cockpits and door panels for Mahindra’s BE6 and XEV 9e.

IAC India has five manufacturing plants across the country including two in Chakan, Pune and one each in Manesar, Nashik and Bangalore. The company also has an in-house Engineering centre in Pune with key capabilities in product designing and engineering, dimensional engineering, product development, program management and tooling development. The Engineering centre has a team of 330 engineers and designers with Global experience catering to all tool development requirements from customers as well as from its global sister concerns.

Deepak Jain, Chairman, Lumax Group, said, “The consolidation will strengthen our strategic vision and enable future growth, building on the strong foundation to drive continuity, performance and scalability. This development marks a significant milestone in our journey towards long-term value creation and providing comprehensive solutions across lighting, plastics and interiors. It also reinforces its strategic position within IAC India and expands our footprint on major electric vehicle platforms of leading OEMs such as Mahindra & Mahindra, emphasising our commitment to the future of sustainable mobility.”

Anmol Jain, Managing Director, Lumax Auto Technologies, added, “This strategic move will further strengthen Lumax Auto Technologies’ foothold in four-wheeler automotive plastics. This further integration will allow for better cost optimisation and rationalisation of resources, potentially creating financial flexibility at the parent level to pursue future strategic, inorganic opportunities that align with our long-term vision.  In addition, it will accelerate innovation and enhance our value proposition per vehicle that is seeing a shift towards improved interiors in passenger vehicles.”

IAC Group will continue to support IAC India through a technology support agreement.

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Auto components major Pricol reported a consolidated net profit of INR 1,670 million for FY2025, marking an 18.79 percent increase over the previous financial year.

The company also posted a consolidated revenue of INR 26,20 billion for FY2025, reflecting a YoY growth of 18.69 percent. EBITDA stood at INR 3.3 billion, up 19.91 percent, with an EBITDA margin of 12.75 percent.

For the fourth quarter (Q4 FY2025), revenue rose 32.81 percent YoY to INR 7.5 billion, while EBITDA reached INR 883 million. Q4 PAT was reported at INR 349.48 million.

During the quarter, Pricol Precision Products, a wholly-owned subsidiary, acquired the Injection Moulded Plastic Component Solutions Division of Sundaram Auto Components on a slump sale basis, completed on 31 January 2025.

Vikram Mohan, Managing Director, Pricol Industries, said, “Our performance for this quarter underscores both the progress we have made and the obstacles we have encountered in a balanced manner. Strategic efforts have led to meaningful gains in many areas; however, the current geopolitical climate has had an impact on our overall results. We have taken multiple actions to counter the effects of the same; the results of which will be visible from Q2 of FY 26 onwards. Nevertheless, our sustained commitment to technological advancement is opening many more doors which will ensure steady growth and a good future for our company. Looking forward, we are taking deliberate steps to address operational challenges while reinforcing our focus on delivering enduring value for our stakeholders.”

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Mumbai-based automotive components supplier Remsons Industries has secured its largest-ever single business win of USD 35 million order from Stellantis North America.

As per the understanding, Remsons will supply critical components for Stellantis’ vehicle platforms such as Jeep Wrangler and RAM. It is also expected to supply products for Smart car and three-wheeler for Stellantis Europe.  

Rahul Kejriwal, Executive Director, Remsons Industries, said, “This is not just a new project; it is a moment that defines our journey and reaffirms the faith that global automotive leaders place in our capabilities, quality, and commitment.”

Amit Srivastava, Group CEO, Remsons, added, “This milestone reflects the strength of our collective persistent efforts and unwavering commitment.”

For the last five decades, Remsons Industries has been supplying components for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and off-highway vehicles to OEMs in India. The company has set-up manufacturing facilities in Gurgaon, Pune, Pardi and Daman in India, also Stourport & Redditch in England (UK).

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