The Hindu Business Line : Kinetic pins hopes on components biz

Looking ahead
Launches 165-cc scooter `Kinetic Blaze' priced at Rs 49,999
Plans to launch 2 more models from Italjet stable.
To introduce two 100 cc motorcycles by March 2007.

New Delhi , June 9

Two-wheeler maker Kinetic on Thursday said it expected its group companies Kinetic Motor and Kinetic Engineering to be in black by September 2007, on the back of a recent restructuring exercise and increasing focus on the components business.

Kinetic Motor Managing Director, Ms Sulajja Firodia Motwani, said that the company was on the path to revival and expected business to be profitable from the next fiscal.

``We have completed the restructuring process and are also deploying our existing capacities optimally. This includes using the idle motorcycle capacity for getting into the auto components business and shifting focus from the highly-competitive bike market to scooters,'' Ms Motwani said.

The company, which is banking heavily on scooters to lead the revival in profitability, on Thursday announced the launch of a 165-cc scooter `Kinetic Blaze' priced at Rs 49,999.

To double sales

Overall, the Group is aiming to sell 100,000 scooters and motorcycles this fiscal that ends September 30 and 210,000 of the same in the next fiscal. Ms Motwani said the doubling of sales would largely be driven by the motoscooter Blaze.

``We should be selling 65,000 units of Blaze in the domestic market next year (beginning October) and 15,000 units of exports,'' she said.

Blaze is the first of the seven scooter models whose manufacturing and distribution rights were bought by Kinetic Motor from Italy's Italjet Spa in January 2004 in an attempt to lift the company's sales.

Launching more models

Ms Motwani said two additional scooter models from the Italjet stable would be launched this year. Of this, the first model, a 135cc scooter, wouldbe launched in August, while the second model wouldbe introduced by December.

She said Kinetic Motor would also introduce the first scooter model from its alliance with Taiwan's San Yang Industry Co. by March 2007. Kinetic Engineering wouldalso introduce two 100 cc motorcycles by March 2007.

High volume motorcycles such as those with 100 cc engines will mainly be produced for smaller towns in India and exported to neighbouring countries such as Sri Lanka and Africa.

The Group would also use the unutilised capacity for motorcycles to make engines for other customers, she added.

``We should be selling Rs 75 crore worth of auto parts this year and Rs 100 crore next year,'' Ms Motwani said.

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