Kinetic Engineering Ltd. (KEL), a key player in India’s automotive components industry, unveiled a major strategic initiative involving a convertible warrant issue worth INR 1.7 billion. The warrants, with an 18-month conversion period, include an initial investment of INR 550 million by March 2025 from the promoters. This represents 25 percent of the warrant subscription amount for future investments, pending approval from SEBI and shareholders. Additional commitments include INR 171 million from external investors with notable contributors such as Transaction Square LLP and Sai Geeta Penumetsa.

The phased investment plan allocates INR 600 million by March 2025, followed by INR 440 million by March 2026 and INR 730 million by March 2027. This capital infusion supports KEL’s goal of achieving a revenue target of INR 10 billion by 2029, a dramatic increase from its current revenue of INR 1.5 billion. The strategy also aims to raise the promoters’ stake in the company from 59 percent to 70 percent by 2027.

Since 2017, KEL’s promoters have steadily increased their stake from 49 percent to 59 percent with the current initiative boosting holdings by an additional 11 percent. Approximately 93.5 lakh new shares will be issued to promoters, bringing their total to 2.26 crore shares and increasing the company’s outstanding shares to 3.26 crore by July 2027. The investment is led by founder and chairman Arun Firodia, supported by family trusts—the Arun Firodia Trust and Jayashree Firodia Trust.

The infusion of capital and warrant issuance highlights the promoters’ confidence in KEL’s long-term strategy, enabling the company to enhance working capital, improve manufacturing capabilities, and accelerate innovation in high-growth areas such as electric vehicle (EV) components.

Driving Growth Through EV and Innovation
KEL’s aggressive growth strategy focuses on an expanded export business, a diversified portfolio and cost-reduction initiatives. The company is sharpening its focus on EVs through its subsidiary, Kinetic Watts & Volts, incorporated in September 2022. The subsidiary is developing advanced drivetrain solutions, gear systems, and other innovative products set to be unveiled soon.

To deepen its footprint in the EV sector, KEL is bolstering its developmental capabilities and exploring collaborations with OEMs. Its long-term strategy emphasises sustainable growth, enhanced domestic and international market presence, and maintaining leadership in the automotive components sector.

The promoters’ commitment to increased investment and stake expansion underscores their confidence in KEL’s future, positioning the company to capitalise on opportunities in the evolving mobility landscape. With a focus on innovation, value creation, and strategic execution, KEL is poised for transformational growth in a competitive market.

Commenting on the development, Firodia said, “Kinetic Engineering Limited has over 50 years of experience in manufacturing. It has successfully transformed into an auto components business and enjoys strong relationships with the world’s largest OEMs. Leveraging these long-standing partnerships, we expect to finalise significant business deals shortly. Additionally, we are heavily focused on the EV segment, with plans for our subsidiary, Kinetic Watts & Volts, nearing finalisation. These initiatives will drive an 8x to 10x revenue growth, and we are pleased to make this investment to meet the required capital expenditure, working capital, and growth initiatives. This infusion of capital from the promoters reinforces our growth blueprint, enabling us to take bold strides toward achieving our INR 1,000 crore revenue milestone. We are committed to using this investment to fuel innovation, improve operational efficiencies, and meet the evolving demands of the automotive and EV industries.”

American tier 1 supplier BorgWarner has further strengthened its business with two new orders from a Chinese transmission manufacturer and an extension from a German OEM in China for its dual clutch modules used in dual clutch transmissions (DCT).

Isabelle McKenzie, Vice-President, BorgWarner, said, “Our success in securing new projects in the Chinese market underscores BorgWarner's commitment to delivering innovative solutions in the region. We are dedicated to helping our customers grow their business in China and succeed in international markets.”

The seven-year extension with a German OEM in China follows a decade of successful collaboration. Compared to conventional longitudinal wet DCTs, the clutch assembly produced in BorgWarner’s Tianjin facility provides superior performance by reducing rotational inertia and minimising friction losses and leakage. These not only reduces drag torque but enhances transmission efficiency and provides a smoother responsive driving experience.

The company’s new business for supplying DCT clutch to a Chinese transmission manufacturer, will see the product being used in Chinese OEM’s SUVs and sedans, which will be sold in China and export markets. The clutch module will be produced in BorgWarner’s Taicang facility, features multiple key advantages – a compact design, superior thermal robustness and outstanding cost-effectiveness. Mass production is scheduled to commence by the end of 2025.

Bosch Group reported EUR 90.3 billion in revenue for 2024, down 1.4 percent YoY, with operating EBIT falling to EUR 3.1 billion. Despite the decline, the company remains committed to its Strategy 2030, targeting 6–8 percent annual growth and a 7 percent EBIT margin by 2026.

Chairman Stefan Hartung confirmed ongoing cost optimisation, structural adjustments, and job cuts in Europe to improve competitiveness. Bosch posted a 4 percent YoY sales increase in Q1 2025.

The company has also announced EUR 250 million investment in startups via Bosch Ventures and plans to double its Scope 3 emissions reduction target to 30 percent by 2030.

Bosch expects modest global growth in 2025 (2.25–2.75 percent) and aims for 1–3 percent organic sales growth. Acquisitions of Johnson Controls and Hitachi’s HVAC businesses may further boost sales by up to 2 percent.

Mobility: Sales fell 0.7 percent to EUR 55.8 billion. Bosch is expanding in hydrogen and EV technologies.

Consumer Goods: Sales rose 1.6 percent to EUR 20.3 billion. Bosch is increasing product launches and regional manufacturing.

Industrial Technology: Sales declined 13 percent to EUR 6.4 billion amid weak global demand.

Energy & Building: Sales dropped 2.7 percent to EUR 7.5 billion, with growth expected from new HVAC acquisitions.

Regional sales fell in Europe but grew in the Americas (+4.8 percent) and Asia Pacific (+0.7 percent). R&D spend reached EUR 7.8 billion, with free cash flow at EUR 0.9 billion.

Bharat Forge, one of India’s leading automotive component suppliers, has demonstrated resilience in its standalone financial performance for the fourth quarter and full fiscal year 2025, navigating global headwinds while capitalising on robust growth in its defence sector business.  The company showcased a steady performance despite challenges in certain international markets.

For Q4 FY2025, Bharat Forge recorded standalone revenues of INR 21 billion, with an EBITDA of INR 6 billion, translating to a healthy EBITDA margin of 29.1 percent. The company also reported a Profit Before Tax (PBT) of INR 4.9 billion.

For FY2025, Bharat Forge reported standalone revenues of INR 88 billion, a marginal dip of 1.4 percent compared to the INR 89 billion recorded in FY2024. Despite this slight decrease in revenue, the company managed to improve its profitability, with EBITDA at INR 25 billion (EBITDA margin of 28.5 percent) and PBT at INR 19 billion, both showing a marginal improvement compared to the previous fiscal year. The company also highlighted a strong balance sheet with cash on books of INR 26 billion.

The company stated that FY25 Revenues remained flat despite weakness in European CVs, mixed performance in export PV business. Oil & Gas recouped from the lows of FY24 while Defence displayed steady growth.

At a consolidated level, Bharat Forge reported revenues of INR 15.1 billion in FY2025, remaining relatively flat compared to the INR 15.6 billion in FY24. However, the company saw a significant improvement in consolidated EBITDA margins, rising from 16.4 percent to 18.2 percent.

A significant highlight of the year was the strong order inflow, particularly in the defence sector. During Q4 FY25, the company secured new orders worth INR 43 billion, including a substantial INR 34 billion towards the ATAGS order. As of March 2025, the defence order book stood at a robust INR 94 billion. For the entire fiscal year, the Bharat Forge group secured new orders worth INR 69 billion, with the defence sector accounting for an impressive 70 percent of these new wins.

The company also highlighted the strong performance of its ferrous castings business, which witnessed significant growth with revenues increasing by 23 percent, EBITDA by 35 percent, and a doubling of profits compared to FY2024. Key return ratios for this segment exceeded 20 percent.

Looking ahead to FY2026, Bharat Forge outlined its strategic focus on improving consolidated profitability through several internal actions. These include reducing losses in the e-mobility vertical, evaluating options for the steel business in Europe, improving operational performance in the aluminium business, leveraging North American manufacturing footprint and focusing on new business wins across traditional forgings, defence, aerospace and castings. The company also anticipates the integration of the AAM India business in FY2026, which is expected to further enhance its product portfolio and presence in the Indian market.

German technology company Continental has achieved a new 200 million radar sensors production milestone, highlighting its leading position in automotive safety technology with over 20 percent market share. This achievement the company states reflects the increasing adoption of advanced driver assistance systems (ADAS) towards autonomous driving.

The company reached 100 million units between 1999 and 2021, doubling this figure in just four years. This rapid growth signifies technological advancements and strong demand for vehicle safety features. Continental has also secured major new orders for radar sensors worth around EUR 1.5 billion, with production starting in 2026 and 2027.

Ismail Dagli, head of Autonomous Mobility at Continental, said, “The mark of 200 million sensors produced – and the major series orders – emphasise that Continental stands for high-tech engineering, pioneering spirit and customised technology solutions for every application in the automotive market. Radar sensors are a key component for the mobility of today and tomorrow. Without a differentiated portfolio of various radar systems, such as those from Continental, autonomous driving would not be possible.”

The rise in radar sensor sales is due to their essential role in modern driver assistance systems, enhancing safety and comfort. Modern vehicles can utilise nine or more radar sensors for functions like adaptive cruise control, emergency braking and blind spot detection, often combined with other sensors. Radar systems are also vital for highly automated and autonomous vehicles, providing crucial 360-degree environmental awareness.