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Kinetic not to merge Kinetic Engineering and Kinetic Motor Company

The Pune-based Kinetic group has decided against merging its two bi-wheeler manufacturing subsidiaries -- Kinetic Engineering Limited and the Kinetic Motor Company Limited, group chairman Arun Firodia said.

"Though there are synergies in the functioning of both companies, it makes better sense for these companies to operate as separate entities utilising their own strengths,'' Firodia told UNI.

Besides, both companies are engaged in different areas of bi-wheeler production. ''While KEL produces mopeds and motorcycles, KMCL is in the business of producing scooters. Both companies have common dealerships and all purchases for both units as well as computer software development are done jointly."

"Still each has its own strengths and we do want both companies to survive on their own,'' he added.

"If we have a complex organisation, decision making becomes slow. So, we do not intend to sacrifice quick decision-making by merging the two entities. KEL and KMCL will remain two different entities, but under the same management.''

The group plans to launch five new models of two-wheelers within a year to corner a larger share of the growing bi-wheeler segment. The group will roll out two scooter models and three motorcycles, both fitted with 4-stroke engines. This includes a 125cc geared scooter in March and a 125cc variomatic transmission driven model in September 2000.

The group has also indigenously developed a 100cc 4-stroke motorbike -- KX-4 -- that is expected to hit the roads around November. This would be followed by two models through its latest technological tie-up with Hyosung Motors of South Korea.

Besides, the Kinetic group is also working on a battery-powered two-wheeler, which is likely to hit the streets by November 2000.

"The project is still in the research and development stage and we are making good progress. We expect to launch the vehicle in the later half of next year," Firodia said.

Meanwhile, despite an aborted move to produce a mini car, Kinetic is now planning to re-enter the passenger car segment, albeit this time with an electric car priced at Rs 150,000. "The car is presently in the research and development stage and will be launched commercially within a year," he added. "The technology for producing the electric car has already been procured and now we are trying to acclimatise it to Indian conditions. With duty concessions already available on clean and green vehicles, we expect to price it at Rs 150,000,'' he added.

The car, which would have a running cost of as low as below 20 paise per km, would go up to 60 km per full charge. The battery would have a three year life.

Besides, marketing it in India, KEL is also planning to export the electric car as knocked down kits to the United States, Europe and Latin America.

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