 "Indo National Ltd divests its 51% stake in Kineco Ltd for Rs 220 crore, shifting focus to aerospace and defence industries.")
Indo National Ltd, established in 1972, is a prominent manufacturer of dry-cell batteries in India, operating under the Nippo brand. Recently, the company announced its decision to sell its 51 percent stake in Kineco Ltd, a composites manufacturer, for Rs 220 crore. This move aims to fund new ventures in the aerospace and defense sectors, as well as enhance its presence in the fast-moving consumer goods Market. The Chief Operating Officer emphasized that this divestment aligns with their strategy to create more value for both consumers and shareholders. Indo National holds a significant position in the battery industry, with an annual production capacity of 800 million units and a diversified portfolio in electrical products.
Indo National Ltd, a prominent name in the dry-cell battery Market, has made headlines with its latest announcement on September 17, 2024. The company, which has been a key player in India’s consumer electrical products sector since its establishment in 1972, revealed that it is divesting its entire 51 percent stake in Kineco Ltd, a composites manufacturer. This decision comes with a price tag of Rs 220 crore.
The Chennai-based firm intends to channel the proceeds from this sale into emerging industries, particularly aerospace and defense, as well as various categories within the fast-moving consumer goods sector. Indo National’s board of directors confirmed the sale to a consortium of investors, reflecting a strategic shift towards sectors perceived as having high growth potential.
Indo National holds the position of the second-largest manufacturer in the dry cell industry, with an impressive annual production capacity of 800 million batteries. In addition to batteries, the company also produces consumer electrical goods and torchlights. Previously, in 2016, Indo National had invested in Kineco, which specializes in composite manufacturing for a wide range of applications including defense and railways.
Pavan Kumar BVS, Chief Operating Officer of Indo National, emphasized that the divestiture aligns with the company’s strategic goal of supporting national interests in defense and aerospace. By reallocating funds in this manner, Indo National aims to create greater value for both its consumers and shareholders.
With Kineco’s expertise in advanced composites—particularly in partnerships such as Kineco Kaman Composites, a joint venture with Kaman Aerospace Group from the USA—this move may reshape Indo National’s focus and growth trajectory in the fast-evolving industrial landscape.
This strategic divestment marks an exciting chapter for Indo National, showcasing its commitment to innovation and adaptation in a competitive Market.
Tags: Indo National, Kineco, divestment, aerospace, defense, dry-cell batteries, consumer goods, India, business news, manufacturing.
What does it mean that Indo National divested its stake in Kineco?
Indo National sold its entire 51% ownership in Kineco, which means it no longer has control or shares in that company.
Why did Indo National sell its stake in Kineco?
The company likely sold its stake to focus on other investments or for financial reasons, but specific reasons weren’t mentioned in the news.
How much money did Indo National make from this sale?
Indo National made Rs 220 crore from selling its 51% share in Kineco.
What will happen to Kineco after this sale?
Kineco will continue to operate, but it will now have different owners and possibly a new direction without Indo National’s support.
Is this sale common in business?
Yes, companies often buy or sell stakes in other businesses as part of their strategies or to raise funds.
