New Delhi: Armed with an autoparts order book worth Rs460 crore, Kinetic Engineering Ltd, which previously made mopeds and motorcycles, is targeting revenues of Rs500 crore in three years by focusing solely on making auto-parts.
Sulajja F. Motwani, director, Kinetic Engineering, said the company now has 15 clients including Tata Motors Ltd, India’s largest automobile maker,and Piaggio SpA, the Italian maker of two and three wheelers. Kinetic, which entered the components business in 1974, started by supplying engines and engine parts to joint venture partner, Japan’s Honda Motor Co. The company, which has been making losses for past three years, said it posted a profit of Rs5.14 crore for the quarter ended 31 December 2006 after it got a write-off worth Rs30 crore from lenders and a capital infusion from the Anil Dhirubhai Ambani Group and private equity firm Clearwater Capital Partners.
“We had a one-time settlement with our lenders. We had debts of Rs120 crore and it came down to Rs90 crore,” said Motwani. The sector, with a current annual turnover of $14 billion (Rs60,200 crore), is estimated to grow five-fold to Rs70 billion by 2015, according to the Automotive Mission Plan 2006-16, the government’s blueprint for the automotive sector.