Kinetic Engineering Launches New Venture for EV Components Manufacturing
Reorganizing EV arms under Kinetic Watts & Volts to provide integrated solutions supplying essential components including motors, controllers, and batteries is Kinetic Engineering, which has transitioned from two-wheeler production to auto components with a focus on electric vehicles.
As a division of Kinetic Engineering, Kinetic Watts & Volts was established in September 2022 to concentrate on all things electric and secure a long-term future for EVs given the high rate of adoption.
The original company, which has its headquarters in Aurangabad, owns 92% of the new company; the remaining 8% is held by the Firodia family. The business is also willing to sell about 25% of its equity to a financial or strategic partner.
“We formed Kinetic Watts & Volts with a vision to provide integrated solutions offering the key three components of motors, controllers and batteries from one source to potential EV customers, be they small players or bigger ones. The objective is to ensure that our future customers need not worry about sourcing these key parts from a slew of standalone suppliers but focus on sales and marketing of their vehicles and we’ll do all the manufacturing, Kinetic Engineering managing director Ajinkya Firodia told PTI in an interaction.
“Our existing EV business under KEL and Kinetic Communications that makes electronic components for electric two- and three-wheelers will get merged into the new company,” he said.
The new firm can now provide a more targeted delivery because KEL has already been producing gearboxes, axles, and chassis for two-wheelers and three-wheelers (both traditional and EVs).
His sister Sulajja Firodia Motwani, who started and still runs the sibling company Kinetic Green, served as its first client. Kinetic Green also has plans to release an electric version of its formerly well-known Luna scooter. Since then, among others, the customer base has grown to include E-blu and E-fill.
“We are already making the gearboxes and chassis for EVs which are being imported from China now. So, we need to just approach or somehow get these customers to approach us and start delivering because there are today 700 players of two-wheeler EV makers. That means the market is so huge,” he said.
According to Firodia, the new business would also enter the EV powertrain market with a primary focus on three essential components: the battery, the controller, and the motor. He noted that the domestic EV companies currently do not have an integrated solution for the three components.
Currently companies are buying motors, controllers, batteries from different places. “But it doesn’t work like this because the brain is the controller and the muscle is the motor and the power and storage and range is the battery and everything moves an EV. So, they need to be integrated nicely to give the best performance. So that’s what we are planning to do,” Firodia said. “We have a sister company over here called Kinetic Communications which is an electronics manufacturing company for the last many years and it has developed controllers and motors with collaborations, and KEL is developing gearboxes and axles and is now also planning to develop a good solution for EV batteries. “So with Kinetic Communications, we will now offer motors, controllers, chassis, gearboxes, batteries, all in one complete kit to two and three wheelers. Whoever wants it, we will get them fine-tuned to their individual requirement in a completely integrated model,” Firodia said.
The development of KEL’s auto component business will include modernization as part of prepaying Rs 18 crore of debt and raising Rs 54 crore through the sale of two pieces of land at its Aurangabad location, he added, “so that we obtain more business from American Axle, Mahindra, and others.”
Another strategy to lower debt is for the promoters to subscribe to fresh shares worth roughly Rs 26 crore. The promoters have been turning debt into equity for the past three years, and as a result, the price of KEL stock has increased by 450%.
“For modernisation, we have already invested Rs 3-4 crore to upgrade the plant for Mahindras and will also invest another Rs 3-4 crore for other customers,” he added.
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Content Credit: OUTLOOK