India's Kinetic Takes 'Flyte'
Kinetic Group is undergoing a major restructuring programme for its two companies, mainly Kinetic Engineering and Kinetic Motor. They have managed to do a good job with Kinetic Engineering as far as transforming it from a two-wheeler manufacturer to component manufacturer with a good order book, including orders for Tata Motors’ Rs 1 lakh car project.
So, now they are trying to resurrect Kinetic Motor and make it a significant player in the mainstream market with the launch of ‘Flyte’, which is the first product from SYM, its Taiwanese partner. With this introduction, this new ‘Flyte’ will clash with its current scooter called ‘Kine’. So, they are going to phase it out and based on that design, they are going to launch an electric scooter. This will mark the company’s foray into this segment, which is currently averaging at about 1,500 units per month, if you look at the current fiscal. So, it should be Kinetic’s first electric scooter product.
Also, it is looking at new investors, because currently though it has got the Taiwanese partner, it needs more working capital, which is why it may have another investor in the next couple of months.
SYM - the Taiwanese partner has already increased its stake from their original level of 11%, by subscribing to some preference shares. Kinetic Motor has reached a level of a share below 15%. It remains to be seen whether they increase the stake to over 15% after which they will have to make an open offer
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