Kinetic Engineering Grants Brand License To EV Arm Kinetic Watts And Volts; Marks Strategic Push Into Electric Mobility

In a significant move underscoring its transition into the electric vehicle (EV) space, Kinetic Engineering Limited (KEL), one of India's pioneering names in the automotive sector, has announced that it has officially granted brand licensing rights to its wholly owned subsidiary, Kinetic Watts and Volts Ltd. (KWV). Formed on September 27, 2022, KWV was established with a clear mandate to explore emerging opportunities in the EV segment. The subsidiary is now preparing to unveil its product lineup, go-to-market strategy, and partnership roadmap, signalling its entry into the commercial phase of operations.

The licensing agreement, valid for an initial period of three years, grants KWV the non-exclusive rights to use the iconic Kinetic brand name and trademarks in its electric vehicle business. The move allows the fledgling EV company to capitalise on the legacy and goodwill of the Kinetic group.

Kinetic Engineering, along with other promoters, has already infused Rs. 42.83 crore into KWV and has committed to releasing an additional Rs. 29 crore soon. This will bring the total investment to Rs. 71.83 crore, giving KEL an 80 per cent stake in the EV-focused entity. The capital injection is expected to bolster KWV's product development and operational readiness as it readies for its market debut.

Ajinkya Firodia, Vice Chairman and Managing Director of Kinetic Engineering Ltd., commented on the development, stating: "The Kinetic brand has stood for trust, innovation, and progress for more than 50 years. As we transition into a new era of electric mobility, it is a proud moment for us to see Kinetic Watts and Volts carry this legacy forward. This is not just a licensing arrangement; it's a generational handover that aligns with our mission to shape the future of transportation in India."

Kinetic Engineering, known for its manufacturing of essential EV components such as gearboxes, axles, and chassis, continues to play a vital role in India's evolving EV supply chain. In a further push to diversify its presence in the electric mobility space, the Kinetic Group has also recently forayed into battery manufacturing under a new entity branded as "Range X."

At the conclusion of the initial licensing term, KEL and KWV are expected to revisit and potentially renew the agreement, taking into account evolving market conditions, international expansion opportunities, and the group's long-term strategy.

The brand licensing announcement is a pivotal step in Kinetic Group's evolution from a traditional two-wheeler powerhouse into a forward-looking player in India's fast-growing EV sector.