Kinetic to hive off Pune plant

Company looking for an international JV for the hived off venture.

After Mahindra & Mahindra, the Firodia-controlled Kinetic group is the latest auto major to script an ambitious strategy for its auto components business.

Kinetic is planning to hive off a part of its manufacturing plant in Koregaon Bhima near Pune into a separate company and is scouting around for an international joint venture partner for it.

At present, the plant handles some manufacturing activity for global components giant Visteon, besides supplying parts to Kinetic's Ahmednagar moped manufacturing facility.

However, a large part of its total capacity remains unutilised. The Koregaon plant manufactures motorcycles and step-thrus.

"We have asked our investment bankers to look for some international auto component company that wants to enter India and is interested in partnering with us. This will be done by farming out a part of our Koregoan Bhima plant which currently has excess capacity. We have initiated talks with various parties but nothing has been finalised yet," Sulajja Firodia-Motwani, joint managing director, Kinetic Engineering, told Business Standard.

Firodia-Motwani also said that the move was a part of the group's renewed focus on the booming auto components business.

In the components business, the Firodia-group already has a joint venture with Sciaky, called Jaya Hind Sciaky, in Pune. The company manufactures resistance welding machines and controls.

It supplies equipment to Ashok Leyland, Mercedes-Benz, General Motors, Honda, Suzuki, Toyota, Mitsubishi, Nissan, Mazda, Daewoo, Yamaha, Ford, Kawasaki, Bajaj, Tata Motors and Escorts. It also manufactures variometric drive units (CVT) for Honda Scooter (Japan) and manufactures motorcycle front shock absorbers.

Its auto electronics division manufactures AC generators, magnetos, capacitor discharge units (CDI), and regulator rectifiers and flashers for application in mopeds, scooters and motorcycles.

The Kinetic group has technical alliances with global two-wheeler makers Honda, Hyosung and Italjet.