Kinetic Motor to post profits after fund infusion

By Aniruddha Basu

MUMBAI (Reuters) - Two-wheeler maker Kinetic Motor Co Ltd expects to turn profitable 6-8 months after a proposed fund infusion of 1.25 billion rupees in July, a top official said on Friday.

For the quarter ended March 31, Kinetic Motor had posted a net loss of 181 million rupees.

"We need to complete the fund expansion project by July…we can build up the volumes of Flyte and that will help us turn profitable 6-8 months after the fund infusion," Managing Director Sulajja Firodia Motwani told Reuters.

"Flyte" is Kinetic Motor's 125CC engine scooter launched in association with Taiwan's Sanyang Industry Co.

Motwani had said in December that Kinetic Motor, which lags rivals Hero Honda Motors, Bajaj Auto and TVS Motor in sales, would be able to post profits by May this year.

"Our critical requirement right now is we complete the fund expansion programme...the board has given us a wide mandate to look at various options to do that," Motwani said.

She added that firm was looking at both financial institutions as well as strategic investors to raise funds, but did not name any company.

Motwani declined to comment on whether Kinetic was looking at any of India's top vehicle makers for a stake sale or tie-ups.