labels: auto ancillaries, cars, automobiles - general
Kinetic Engineering to make gearboxes for the Rs1-lakh Tata car news
12 September 2007

Mumbai: Pune-based two-wheeler major Kinetic group company Kinetic Engineering has been mandated to supply gearboxes for the Rs1-lakh car proposed by Tata Motors.

The group''s auto components manufacturing arm, Kinetic Engineering Ltd, will also invest around Rs40-50 crore to set up a manufacturing facility for gearboxes at Tata Motors'' vendor park at Singur in West Bengal.

"We strongly believe in the potential of the small car and our company, Kinetic Engineering, will be supplying gearboxes for the car," Kinetic Engineering''s director Sulajja Firodia Motwani said.

Kinetic would be supplying two types of gearboxes - manual and variomatic - she said without divulging the figures.

Tata Motors'' order for a full year is expected to be in the range of Rs60-70 crore.

"Normally, auto manufacturers make gearboxes themselves because of the complex machining involved but in Kinetic Engineering''s case, given our good reputation as an original equipment manufacturer, we have been given the order to supply the full gearbox to Tata Motors," she said.

Kinetic has begun work at the Singur site and the plant is expected to be operational in about 6-8-months, Motwani said, adding that manufacturing of the gearboxes will be undertaken at Kinetic''s Ahmednagar unit as well as its new unit in Singur.

The company has invested a sum of Rs50 crore for plant and machinery at both locations.

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

Motwani said the company would most likely go in for mezzazine financing of around Rs75-80 crore. Kinetic Engineering expects to close FY08 with a turnover of Rs130 crore, she said, adding "we are also hopeful of breaking even this fiscal."

also see : Other reports on Kinetic Engineering
Other reports on Tata Motors

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Kinetic Engineering to make gearboxes for the Rs1-lakh Tata car