Kinetic to breakeven in Q1 2007; launch 3 vehicles

New Delhi, Dec 18: Kinetic Motor Company Ltd will breakeven in the first quarter of next year and expects to post net profits from the second quarter of the year.

Aiming at Rs 1,300 crore revenues, the company will launch three vehicles -- including two scooters (135cc and 250cc) and one scooterretti-- in the calendar year 2007-08.

''We incurred losses because of the burden arising out of the acquisition of seven models from Italjet Moto and our aggressive revamp programme. We have entirely shifted our focus to automatic and gearless scooters. We expect to breakeven and make cash profits in the first quarter of next year and net profits from second quarter onwards,'' company Vice President (Sales and Marketing) Ajinkya Firodia told reporters here today.

The company incurred net loss of Rs 15.9 crore during the quarter ended September 30, 2006.

The two scooters will be from the seven-vehicle Italiano series that Kinetic Motor acquired from Italian two-wheeler major Italjet Moto.

The third launch lined up for the next year will be out of the company's association with Taiwan-based San Yang Motor Company (SYM), which acquired a 11.1 per cent stake in the company this year.

As per the agreement, the company will launch three two-wheelers --two sccoters and one motorcycle -- in the next three years.

KMCL's sales target for the next fiscal (January 2007 - December 2007) are 1,65,000 units, constituting 1,25,00 units in domestic market and exports of 40,000 vehicles.

It also has plans to enter atleast five new overseas markets including Egypt, Sudan, Turkey and the United States, for which it is awaiting a homologation certificate.

It currently exports its products to Japan, Canada, European, African, West and South Asian countries. A major part of its exports, around 13,000-14,000 units, go to Sri Lanka.

The company, which enjoys a market share of 25 per cent in the gearless scooter segment, today launched the improvised version of its 165cc Blaze, introduced early this year. The new addition to the Blaze is a disk brake.

UNI