With the expected addition of Rs 1,200 crore from strong Luna's domestic sales, the Group is targeting a group turnover of Rs 2000 crore by the end of FY25 from the current Rs 1000 odd crore turnover.
07 Feb 2024 | 9541 Views | By Amit Vijay M
With the booming e-commerce market and the growing need for gig workers for last mile delivery in the emerging markets, Kinetic Green is looking at a global play with its upcoming Luna in an electric avatar. The Pune-based company which introduced the E-Luna today, at Rs 69,990, is optimistic on ...
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With the booming e-commerce market and the growing need for gig workers for last mile delivery in the emerging markets, Kinetic Green is looking at a global play with its upcoming Luna in an electric avatar. The Pune-based company which introduced the E-Luna today, at Rs 69,990, is optimistic on the upside volumes of its EV business, and the growing revenues of its group companies, it sees the Group revenues double to Rs 2000 crore by the end of 2025.
"The revenues of Kinetic Green is expected to more than triple to Rs 1,200 crore from strong Luna sales, and with another Rs 800 crore of other group subsidiaries, the Group is targeting a turnover of Rs 2000 crore by the end of 2025 from the Rs 1000 crore turnover," a senior company official said.
Having relied on a multitude of partners over the last few decades - right from Honda, Hyosung and recently AIMA from China, Kinetic has decided to go solo on its EV journey.
The Group is hoping to reignite its mojo with the popular "Luna" brand domestically and sell one lakh electric vehicles per annum and aims to ship vehicles to Vietnam, Malaysia, Thailand and even the African markets.
Similar to India, these markets are at their nascent stage of evolution, and the company may explore an assembly base in these markets when they mature.
To fund its ambitious EV plans, the company is in the middle of its Series A Rs 250 crore fundraising, company officials said without divulging further information.
Autocar Professional learns that the final funding announcement is likely to be expected in March 2024, around the same time at which its new production line at Supa in Maharashtra will go fully operational, with the capacity to produce 1 lakh electric scooters.
The company is looking to aggressively target the Luna with its signature 'Chal meri Luna' ad campaign to strike the right chord for the Rs 25–30,000 income range in tier 2 and tier 3 markets, which translates to a monthly cost of ownership of just Rs 2,300.
Kinetic may look at an introduction of the step-through bike in the South East Market by December 2024 confirmed Sullaja Firodia Motwani, Founder and CEO of Kinetic Green, a part of Kinetic Group.
While speaking to Autocar Professional, Sulajja appeared confident that its latest bet with electric Luna may take the brand Kinetic back into the mainstream, much like the days of the Kinetic Honda.
She claims that the success of Luna or Kinetic Honda does put the brand in a positive light for prospective buyers and the company has spent significant resources in developing the Luna in its new avatar.
Explaining the rationale for the renewed optimism in the company's fortunes, Sulajja said “For example, in Luna, the chassis and the gearbox are made by Kinetic Engineering, motors are made by the Kinetic Electric Motor Company, the controller cluster converter is made by Kinetic communications, clearly indicated that the Group has emerged stronger after the restructuring now actually we're larger and resurgent than before.”
She also said they will invest Rs 100 crore for Luna over the next one year. The company will also increase its dealerships to 500 by September from the current 300-350, and further it to 1,000 in next 2 years.
Kinetic Green is looking to build a new manufacturing plant launch new e-two-wheelers and reach the 1-million-unit mark over the next five years.