Financial Daily from THE HINDU group of publications
Thursday, Oct 28, 2004
Financial Daily from THE HINDU group of publications Thursday, Oct 28, 2004 |
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Corporate
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Outlook Kinetic Engg mulls contract manufacturing of engines Our Bureau
Bangalore , Oct. 27 KINETIC Engineering hopes to capitalise on the boom in the auto component industry and will start making complete engines or parts of it for various manufacturers, its Joint Managing Director, Ms Sulajja Firodia Motwani, has said.
Ms Motwani told newspersons on Tuesday after launching the Rs 1.67 lakh Comet motor cycle here that the company is scouting for a place in one of the South-East Asian countries to set up an assembly plant. She said the company expects to post revenues of around Rs 40 crore during the current fiscal from the auto component business, which is expected to increase to around Rs 60 crore next fiscal. Ms Motwani said that Kinetic expects to turnaround next fiscal and probably start generating cash profit from February 2005. This was in spite of the fact that Kinetic has halved the sales target for motorcycles to 50,000 this fiscal. It expects its turnover to remain the same at around Rs 250 crore during this fiscal compared with last year. The company posted a loss of around Rs 40 crore during 2003-04. She said one of the reasons for halving the sales target for motorcycles was because it didn't want to enter the discount war being played out by its competitors. "It would be easier to sell more if we also started giving discounts and nor do we have such scale of operations to sustain it for long," Ms Motwani said. Ms Motwani said Kinetic has tied up with a distributor in the US for selling Italjet scooters there. In India, Italjet scooters will be launched in December.Kinetic expects to sell 500 `Comet 250' and the bookings will close on November 20. It sold around 300 Aquilas made available for a limited period.
More Stories on : Outlook | Automobile Components | Two/Three Wheelers
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