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Kinetic Engineering Limited (KEL) celebrates its 50th anniversary this year. On the occasion of the brand's Golden jubilee, the company has announced that it has achieved profits in two consecutive quarters.
In a statement, the company said that profits have been achieved by working aggressively on all fronts to reduce costs and improve margins.
The company reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 459 lakh in Q4 2021. While in Q1 2022 the company has registered an EBITDA of Rs 357 lakh, despite the slowdown due to Covid.
KEL has also managed to improve the employee costs from 28% to 16% over the years and trimmed nearly 140 crores of external debt from its books.
The company sharpened its focus on transmission products such as gears, shafts, and gearboxes. They also introduced backward integration to manufacture their forgings to reduce its material costs from 78% to 50%.
KEL currently produces various kinds of transmission products for cars, buses, trucks, tractors, and other general engineering applications. It also makes complete gearboxes for commercial vehicles and has also devised its own electric axle application.
Some of KEL's client list includes Mahindra, Tata, Ashok Leyland, Carraro, Renault and Nissan; among others. The company recently received new business from International Tractors, Sonalika and expects to start supplies soon.
Speaking on the anniversary, Mr Ajinkya Firodia, MD, Kinetic Engineering Limited, said, "I am proud to announce that our restructuring and business focus is finally complete. It has been a decade of effort of all our team members that involved debt restructuring, layout changes, quality systems up-gradation, customer hunting, backward integration and finally, turning the tide."
He further added, "It is fortunate and coincidental that it coincides with our 50th anniversary - and hence is a reward of sorts for our shareholders who continue to believe in us. We also plan to felicitate the employees who have stood by the company through the years and have been an integral part of this success."
A Brief History
Kinetic Engineering Limited began its fantastic journey by giving us the legendary Kinetic Luna moped. The two-wheeler was versatile and was showcased in its tagline "Chal Meri Luna''. The Kinetic Luna was a groundbreaking success, which provided affordable transportation in India.
The moped was sold in large numbers and registered over 80 lakh units in the 80s and the 90s. The entire vehicle was built by the brand in India, which made it affordable and better suited to Indian road conditions.
The entire manufacturing process involved such as pressing, painting, plating, engine and gearbox manufacturing and assembly of the moped was carried out at the brand's 50-acre plant in Ahmednagar.
Over the years, KEL has introduced many models such as Safari, Spark, Wings, King. However, when the market in early 2000 started to favour motorcycles over mopeds, the company also launched the Boss, Velocity and GF motorcycles to name a few.
Later Kinetic Engineering Limited took a strategic decision to sell its 2-wheeler business to its Pithampur Company, Kinetic Motor Company Limited; which in turn partnered with Mahindra.
Thoughts About The Kinetic Engineering Ltd Celebrating 50 Years
Kinetic has been a household name in India for years because of its affordable commuter offerings in the country. The company is celebrating its 50th anniversary and has now turned its attention to producing quality auto ancillaries. Chalte Raho Luna!