A) About Kineco Limited
Kineco Limited, established in 1995 by entrepreneur Shekhar Sardessai, is a prominent Indian company specializing in composite technology and manufacturing. Headquartered in Goa, Kineco has evolved from producing fiber-reinforced plastic (FRP) industrial equipment to offering a diverse range of composite products across multiple sectors, including railways, aerospace, defense, and industrial applications.
B) History of the Company
Kineco Limited, a public limited company, was incorporated on October 10, 1994, under the name "Mass Kinematics Pvt. Ltd." The company underwent a name change to "Kineco Private Limited" on January 10, 2001, and subsequently converted to a public company on March 23, 2016. Headquartered at Plot No. 41, Pilerne Industrial Estate, Pilerne, Bardez, Goa 403511, Kineco Limited is a multifaceted composite manufacturer with state-of-the-art, ISO 9001:2008 and AS9100 certified facilities in Goa, India. The company offers a diverse range of composite products catering to industries such as aerospace, defense, railways, automotive, motorsport, telecommunications, and chemicals.
Collectively referred to as "the Group," Kineco Limited and its subsidiaries have established significant joint ventures to enhance their market presence.
a) One notable venture is "Kineco Alte Train Technologies Private Limited," formed in collaboration with Alte, Spain, focusing on railcar interiors, exteriors, and toilet modules/systems. Kineco holds an 89.66% stake in this entity.
b) Another key joint venture is "Kineco Kaman Composites India Private Limited," established with Kaman Aerospace Group, a subsidiary of Kaman Corporation, USA. In this venture, Kineco maintains a 51% stake, and the existing advanced composite division's aerospace business was transferred to this entity.
" In October 2024, Kineco acquired an additional 49% equity stake in its subsidiary, Kineco Kaman Composites India Private Limited, from its U.S.-based joint venture partner, Kaman Aerospace Group Inc. This acquisition made Kineco Kaman a wholly-owned subsidiary of Kineco Limited, aligning with the company's strategic focus on strengthening its presence in the aerospace and defense sector"
c) In 2015, Indo National Limited, a publicly listed company, acquired a 51% controlling stake in Kineco Limited through its subsidiary, Helios Strategic Systems Limited. Consequently, Kineco Limited became a subsidiary of Helios Strategic Systems Limited, with Indo National Limited as the ultimate holding company.
d) On October 14, 2021, Kineco signed an agreement to establish a joint venture with Exel Composites Oyj, a Nasdaq Helsinki-listed and globally recognized composites company. This partnership aims to develop the Indian pultrusion market by combining Exel Composites Oyj's global pultrusion technology and market expertise with Kineco's local knowledge and resources, thereby expanding Kineco's pultrusion business in the Indian market.
C) Product Portfolio and Services
Kineco's expertise encompasses the design, development, and manufacturing of advanced composite parts and assemblies. Their product lineup includes rail coach interiors, aerodynamic components, pressure vessels, and specialized structures tailored for the defense and aerospace industries. The company employs cutting-edge technologies such as autoclave molding, resin infusion, and CNC machining to deliver high-quality, custom solutions to its clientele.
D) Industry Recognition and Clientele
Kineco has established itself as a trusted supplier in the composites industry, serving a global customer base. The company's commitment to innovation and quality has earned it recognition and contracts from various sectors, including significant projects in the railways and defense industries.
E) Business Overview Divison Wise
The company's operations are organized into several key divisions:
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Railways: Kineco manufactures rail coach interiors, toilet modules, aerodynamic front ends, driver cab interiors, and hard seating systems.
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Defense: The company has developed critical composite structures, including India's first indigenous sonar dome, carbon fiber reinforced lightweight rapid deployable bridges, and radomes for defense applications.
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Aerospace: Through its subsidiary, Kineco Kaman Composites India Private Limited, Kineco supplies advanced composite parts and assemblies for aerospace and defense customers.
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Industrial: Kineco produces pressure vessels and allied products designed for corrosive environments, catering to both domestic and international markets.
F) Helios Strategic System Exited from Kineco
Helios Strategic Systems Ltd., a wholly owned subsidiary of Indo National Ltd. (Nippo Batteries), exited its 51% stake in Kineco Limited in September 2024. The stake was sold to Gajanana Assets and Projects SPV LLP, a consortium in which Shekhar Sardessai, the Chairman and Managing Director of Kineco, is a partner.
Following this exit, Kineco Limited underwent significant corporate restructuring:
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The Shareholders Agreement dated 12 August 2015 between Helios Strategic Systems, Shekhar Sardessai, and Kineco Limited was cancelled.
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A new Shareholders Agreement was signed on 8 June 2024, reflecting the updated ownership structure.
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The company's Articles of Association were amended to align with the new agreement..
G) Valuaton of the Company
Based on the assessment by registered valuer, the fair market value of the Company has been determined as Rs. 586 Cr, and the value per equity share of the Company as of 1st April 2024 is Rs. 937/- per share.
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