Auto Engineering Company’s Board of Directors Grant Brand License to Kinetic Watts and Volts Ltd for EV Business
The stock is up by 29.33 per cent from its 52-week low of Rs 131.05 per share.
Kinetic Engineering Limited (KEL), a name synonymous with India's automotive history, has taken a significant stride towards the future of mobility by granting a brand license to its subsidiary, Kinetic Watts and Volts Ltd. (KWV). This strategic decision empowers KWV with the non-exclusive rights to utilise the esteemed Kinetic brand name and trademarks for its electric vehicle (EV) endeavours. Established on September 27, 2022, KWV was specifically created to explore and capitalise on the burgeoning opportunities within the electric vehicle sector.
Kinetic Watts and Volts Ltd. is currently in the advanced stages of finalising its EV product lineup and is actively developing its comprehensive rollout strategy, key partnerships and go-to-market plans. This progress signals a crucial phase as KWV prepares to commence commercial operations and introduce innovative and sustainable electric mobility solutions to the Indian market. Demonstrating its strong commitment to this venture, KEL, along with other promoters, has already invested Rs 42.83 crore in KWV and is set to inject an additional Rs 29 crore, elevating the total investment to Rs 71.83 crore. This increased financial backing will result in KEL holding a substantial 80 per cent ownership stake in KWV, underscoring its dedication to establishing a robust EV business within the group.
Beyond this brand licensing agreement, Kinetic Engineering Limited already plays a vital role in India’s evolving EV supply chain as a key supplier of essential components such as gearboxes, axles and chassis. Furthermore, the Kinetic Group has expanded its presence in the electric mobility ecosystem through a separate entity operating under the brand “Range X,” which focuses on battery manufacturing. The three-year non-exclusive brand license granted to KWV allows it to leverage the Kinetic brand's strong legacy and reputation, fostering trust and goodwill as it introduces innovation, sustainability and contemporary design to the rapidly expanding Indian EV market.
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About the Company
Kinetic Engineering Limited (KEL) is the flagship company of the Kinetic Group, with over five decades of manufacturing excellence. Headquartered in Pune and led by Ajinkya Firodia, Vice Chairman & Managing Director, KEL has been a pioneer in India’s automotive industry. KEL’s state-of-the-art manufacturing facility in Ahmednagar spans 32 sheds, houses over 400 machines and employs around 1,000 personnel. All products are IATF 16949 certified, underscoring KEL’s commitment to global quality standards. The company recently celebrated its 52nd anniversary and boasts an esteemed clientele that includes Renault, American Axle, TATA Motors, Mahindra & Mahindra, Ashok Leyland, Magna Powertrain, Sonalika Tractors, Carraro Products, among others.
The company has a market cap of over Rs 400 crore and reported amazing numbers in its Quarterly Results and annual results. The stock is up by 29.33 per cent from its 52-week low of Rs 131.05 per share.
Disclaimer: The article is for informational purposes only and not investment advice.