Pune: Kinetic Motor Company Ltd has posted a net profit of Rs 142 million for the financial year ended 31 March 2002 as compared to Rs 159.10 million the previous year. The total income (net of excise) has decreased from Rs 3,588.90 million in FY01 to Rs 3,352.80 million in FY02.
The company had recently tied up with its collaborator, Hyosung Motors of Korea, to boost its volumes in the overseas market. Kinetic Engineering, which is spearheading the group's motorcycle foray, will initially target markets that include Latin America, South Asia and the Middle East through its own distribution network.
Under the export agreement signed recently, the Kinetic group will also export the GF 125 and GF 150 (launched in India in May 2002) to European and Asian countries, where the Korean giant is already present, by using Hyosung's extensive distribution network.
The company expects that exports, in the initial stages, would aggregate to around 10,000 units per year. The bikes to be exported would bear joint-branding logos. Kinetic Engineering has also been authorised to undertake marketing initiatives and will sell spare parts in markets where Hyosung does not have a presence, according to company officials.
Hyosung, which is among the top 10 conglomerates in South Korea with an annual turnover of over $4 billion, currently exports motorcycles to over 60 countries worldwide with GF well entrenched as a dominant brand in Germany, France, Egypt, Indonesia and Vietnam. The Kinetic group currently exports its own models to the US, Canada, Latin America, Africa and the Middle East.
Says Kinetic group chairman Arun Firodia: ''Hyosung has expressed confidence in our manufacturing and product quality with this arrangement. We hope to sell 10,000 motorcycles in the coming year.''