Thursday, October 9th, 2008
Kinetic which is partly owned by Mahindra & Mahindra, has bagged the order to make transmissions for the Nano and possible even its engines! If you could recall, The Kinetic group showcased a concept car that costed just 1 lakh. This would have happened had the Indian Govt obliged and reduced the taxes from 40% to the 16% that they wanted. Still, they always had some unfinished business and now there are in it again, and will be making thousands of transmissions for the coveted Nano.
Arun Firodia, Chairman, Kinetic said, “We’ll get the engine order, once we make this successful.” Firodia had earlier mentioned that the agreement with Tata Motors to supply gearboxes may help the company.
It is predicted that Kinetic may generate Rs 3,000 crore annually from Nano project. 500,000 units of the Nano are expected from the various plants within three to five years. Kinetic, it seems, wanted to make even the engine of the Nano, but Tata Motors weren’t interested, not at least in the initial stages.
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Saturday, September 27th, 2008
Pune-based two-wheeler manufacturer Kinetic Motor has announced that it will invest up to Rs 30 crore in Mahindra Two Wheelers Pvt. Ltd., to buy 2.95 crore equity shares of the latter. Kinetic took this decision during its extraordinary general meeting held yesterday.
Kinetic’s EGM also approved an increase in its authorized share capital from the current Rs 88.56 crore to Rs 93.56 crore, by creation of new five lakh redeemable cumulative preference shares of Rs 100 each.
[Via: Indiaautomotive]
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Tuesday, September 2nd, 2008
The Pune-based Kinetic Motor Company Ltd. (KMCL) has announced it will extend its brand licence agreement with Kinetic Engineering Ltd. (KEL) for the use of ‘Kinetic’ brand, and will also sub-licence the brand to Mahindra Two Wheelers Pvt. Ltd. The pact would be extended for another 25 years with effect from 1st April 2009, and the sub-licensing would also be for 25-year-period, Kinetic Motor said in a filing to the Bombay Stock Exchange.
‘For renewal of the said Brand Licence agreement, KMCL has agreed for a consideration of Rs 7.75 crore to be paid to KEL,’ the filing added. While Rs 2.75 crore has to be paid on or before 31st March 2010, the rest would by way of issuing five lakh redeemable cumulative preference shares of Rs 100 each, fully paid up, in the share capital of the company.
Further, Kinetic Motor would invest up to Rs 29.5 crore in equity shares of Mahindra Two Wheelers Pvt. Ltd., subject to shareholders approval and other necessary approvals. These decisions were taken at Kinetic Motor’s board meeting yesterday.
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Friday, August 1st, 2008
Mahindra & Mahindra Ltd. (M&M), one of India’s leading automotive companies, today announced that its Board of Directors has approved the acquisition of business assets of Pune-based Kinetic Motor Company Ltd. (KMCL). The acquisition will be done through a New Company to be formed.
The consideration for the acquisition is a sum of Rs. 110 crores (subject to closing due diligence) plus 20 percent stake to KMCL in the New Co. M&M will hold the balance 80 per cent of the equity. The deal will enable Mahindra to design and market a range of scooters, value engineered motorcycles and high-end motorcycles for the Indian and global markets, helping it establish a robust, end-to-end two-wheeler business in every segment of the industry.
Ms. Sulajja Firodia Motwani will be a Non-Executive Director in the new company. Within the overall two-wheeler strategy, scooters will form M&M’s entry point into the Indian market and will be an important part of the company’s overall two-wheeler product portfolio. There are several macro environmental trends which make the scooter market especially attractive to Mahindra.
These include a younger, more affluent customer base with a significant number of empowered women and increased scooter demand in tier-2 cities and small towns. M&M is strongly positioned to cater to this demand, given the company’s significant presence and brand equity in these markets.
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Thursday, May 22nd, 2008
Mahindra & Mahindra is planning to acquire a 76% stake in two wheeler maker Kinetic Motor Company for an estimated 120 crore rupees, for which it has signed up a term sheet and was doing due dilligence, sources have reported. The deal could frutify in the next two months. Kinetic Motor’s Managing Director Sulajja Firodia declined to comment on it, saying this is completely speculative. Kinetic Motor company is seeking fund infusions to the tune of Rs. 125 Crores and is looking at both financial institutions and staretegic investors, which would help the company to return to profit.
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