Kinetic to make gearboxes for Rs 1 lakh Tata car

Two wheeler manufacturer Kinetic Group has been mandated as a vendor for gearboxes for the Rs 1 lakh car proposed by Tata Motors.

Sulajja Firodia, joint managing director, Kinetic Motors told media persons that the company has received letter of intent and a purchase order for gearboxes from Tata Motors for supply of gearboxes. She did not, however, discuss the volumes but indicated that Tatas intends to make 300,000 units of the small car every year.

Firodia said the gearboxes will be made by group company Kinetic Engineering which has shifted its entire focus from two wheeler manufacturing to components making. "The Tata order will result into a business of Rs 75 crore for the company."

Kinetic Engineering will supply both manual gearboxes as well variomatic gearboxes for the Tata car, she informed, adding that the manufacturing of the gearboxes will be undertaken at Kinetic's Ahmednagar (Maharashtra) unit as well as its new unit in Tata's vendor park at Singur, West Bengal.

The company has invested a sum of Rs 50 crore for plant and machinery at both locations.

Kinetic's relationship with the Tatas began in March this year, when it started making gearboxes for Tata 407 truck and the recently launched Winger.