Kinetic Engineering Limited , a veteran in the automotive industry, has taken a significant leap forward in its manufacturing capabilities with the inauguration of an advanced Robotic Chassis Line at its Ahilya Nagar facility in Maharashtra. This cutting-edge addition is set to revolutionize the production of the Kinetic DX Electric scooter, marking a new era in the company's 52-year journey.

Automation at Its Finest

The newly commissioned Robotic Chassis Line is a testament to Kinetic's commitment to innovation and quality. It features:

• Robotic welding systems for enhanced precision
• Clamping auto fixtures for improved efficiency
• A dedicated cell for scooter framing

This advanced setup is designed to boost structural accuracy, consistency, and overall productivity in the manufacturing process of the Kinetic DX Electric scooter.

Comprehensive Facility Upgrades

The inauguration of the Robotic Chassis Line is part of a broader facility enhancement initiative. Key upgrades include:

Enhanced Metal Body Panel Production

The line now boasts hydraulic and mechanical presses, spot welding guns, and pneumatic clamping fixtures, ensuring higher efficiency and accuracy in panel fabrication.

Modernized Paint Shop

A state-of-the-art 7-tank process with CED (Cathodic Electrodeposition) coating followed by metallic top coating has been introduced. This upgrade promises world-class corrosion resistance and premium-quality finishes for the scooters.

Digitized Parts Store

The facility now features a dedicated store for frame child parts, complete with robust receipt quality systems, individual gauges for every part, and a kit-based supply system aligned with sub-assembly requirements.

Setting New Benchmarks

Ajinkya Firodia, Vice Chairman & Managing Director of Kinetic Engineering Ltd., emphasized the significance of this automation upgrade. He stated, "With the inauguration of our Robotic Chassis Line, we are not just upgrading a facility, we are reimagining how manufacturing should be done in India. This move positions us to deliver unmatched consistency and reliability, while also setting a benchmark for how automation can transform traditional industries."

About Kinetic Engineering Limited

Kinetic Engineering Limited (KEL) stands as the flagship company of the Kinetic Group, boasting over five decades of manufacturing experience. The company's Ahmednagar manufacturing plant employs around 1,000 people and houses 32 manufacturing sheds equipped with more than 400 machines.

KEL's commitment to quality is evident in its IATF 16949 certification for all products. The company serves a prestigious clientele including Renault, TATA Motors, Mahindra & Mahindra, and Ashok Leyland, among others.

As Kinetic Engineering Limited continues to push the boundaries of automotive manufacturing, this latest investment in advanced robotics and automation underscores its dedication to innovation, quality, and efficiency in the evolving landscape of electric vehicle production.

Kinetic Engineering Limited (KEL), a prominent player in the Indian automotive component industry, has released its financial results for the first quarter, showcasing resilience in the face of market challenges.

Financial Performance

KEL reported net sales of ₹353.40 million for Q1, marking a decline of 10.7% year-over-year and 8.3% quarter-over-quarter. Despite the revenue dip, the company demonstrated improved operational efficiency, with EBITDA growing by 13.3% year-over-year to reach ₹35.80 million. The EBITDA margin stood at a healthy 8.7%, reflecting the company's ability to manage costs effectively in a challenging environment.

Business Segments and Operations

Kinetic Engineering operates through three key verticals:

1. Transmission
2. Driveline
3. EV Components

The company serves major Original Equipment Manufacturers (OEMs) including Tata Motors, Mahindra, and Ashok Leyland. KEL's manufacturing prowess is anchored by its state-of-the-art 50+ acre facility in Ahmednagar, which employs over 1,000 people and holds the prestigious IATF 16949 certification, underscoring its commitment to quality in automotive manufacturing.

Geographical Reach

KEL's sales composition reflects a strong domestic presence while maintaining a significant export footprint:

(Export markets include the US and Mexico)

Strategic Initiatives and Future Outlook

The company has been making strategic moves to position itself for future growth, particularly in the electric vehicle (EV) sector:

1. EV Subsidiary: KEL has expanded into electric vehicles through its subsidiary, Kinetic Watts & Volts Ltd (KWVL), in which it holds a 72.5% equity stake. KWVL has recently relaunched the iconic Kinetic DX electric scooter, marking KEL's re-entry into the two-wheeler market with an electric offering.

2. Battery Manufacturing: Through its associate company Micro Age Instruments (24.9% equity), KEL is venturing into EV battery manufacturing under the Range-X brand, with an annual capacity of 60,000 units.

3. Powertrain Solutions: The group company Kinetic Communication Ltd (0.3% equity) is focused on developing EV powertrain solutions, complementing KEL's EV strategy.

Investor Confidence

The promoter group has demonstrated strong confidence in KEL's future, increasing their shareholding to 61% through a significant capital infusion of ₹160.00 crore via warrants. This move underscores the promoters' commitment to fueling the company's growth initiatives, particularly in the EV segment.

Management Commentary

Ajinkya Firodia, Vice Chairman & Managing Director of Kinetic Engineering Ltd., stated, "While we faced some headwinds in revenue this quarter, our focus on operational efficiency has yielded positive results, as evidenced by our EBITDA growth. We are particularly excited about our strides in the EV segment, which we believe will be a key driver of our future growth."

Conclusion

Despite the revenue challenges in Q1, Kinetic Engineering Limited has demonstrated resilience through improved operational efficiency and strategic initiatives in the EV space. The company's diversified product portfolio, strong OEM relationships, and focus on innovation position it well to navigate the evolving automotive landscape and capitalize on the growing opportunities in the electric vehicle market.

Disclaimer: This article is based on the company's investor presentation and financial results for Q1. Investors are advised to conduct their own research and consult financial advisors before making investment decisions.