Kinetic to rejig operations

In a bid to enhance shareholders' value, the Kinetic group is restructuring operations to house its two-wheeler and auto-component businesses in Kinetic Motor Company and Kinetic Engineering, respectively.

The restructuring may be announced this week. At the moment, both the companies are into the two product lines.

While Kinetic Motor would spearhead the group's two-wheeler business initiative, comprising the manufacture and sale of motorcycles, scooters and mopeds, Kinetic Engineering would focus on the emerging auto-component business, sources close to the development said.

Once the restructuring is completed, both the companies might induct strategic or financial investors, sources added.

Replying to an email questionnaire, Sulajja Firodia Motwani, joint managing director of Kinetic Motor and managing director of Kinetic Engineering, said, "It is premature to speak on this matter right now as there is no concrete plan."

The sources said the group had announced the transfer of Kinetic Engineering's moped assembling unit at Supa in Maharashtra to Kinetic Motor, formerly known as Kinetic Honda Motor, indicating that the two-wheeler business would be brought under Kinetic Motor.

The decision to transfer the Supa unit would be placed before the Kinetic Engineering shareholders on Wednesday.

Both companies are also in the process of increasing their authorised share capital "" Kinetic Engineering plans to increase it from Rs 28 crore to Rs 50 crore, while Kinetic Motor plans to raise it from Rs 35 crore to Rs 62 crore.