Kinetic Engineering and Kinetic Motor Company expect to return to the black by the financial year ending September 2006. Kinetic Motor is betting on its new scooters - Millennium and Euro - to achieve this target. The company will launch Millennium this month and Euro in May-June.
The company will start exporting Millennium (165 cc), Jetset (135 cc) and Dragster (100 cc) to the US and western Europe from April 2006.
"We are expecting the latest model of Millennium to do well in the market. Good sales from our new products should take the company back to profitability for the year ending September 2006 ," said Sulajja Firodia Motwani, joint managing director, Kinetic Motor.
This week, Taiwan-based two-wheeler maker San Yang Industry Co (SYM) bought 11.1 per cent shares in the company by way of preferential route.
"Similarly, Kinetic Engineering would focus on enhancing its auto component business comprising gear boxes and engine components, which hold a good potential overseas. We expect a turnover of Rs 250 crore (Rs 2.50 billion) this year, compared to the last year's Rs 140 crore (Rs 1.40 billion). This year, the auto component business may fetch Rs 120 crore (Rs 1.20 billion)," Motwani said. The company is planning to step up its motorcycle and moped exports to Africa and South Asia.
Kinetic Motor suffered a net loss of Rs 31.3 crore (Rs 313 million) for the year ended March 2005 as against a net loss of Rs 21.34 crore (Rs 213.4 million) in the previous period.
Kinetic Engineering reported a net loss of Rs 45.5 crore (Rs 455 million) for the year ended March 2005, compared to a net loss of Rs 51.6 crore (Rs 516 million) in the previous corresponding period. The net sales of both the companies also declined by more than 25 per cent on a y-o-y basis for the year ended March 2005.
The grim results are attributed to lack of impressive products as well as tough competition from players like Honda Scooters & Motorcycles, Bajaj and TVS.
