Eicher Ltd.

YEAR                                                               
 EVENTS
 1955 - The Company was incorporated on 3rd of November.
 
           - The manufacture of motorcycles,three     
              wheelers, scooters, components, agricultural engines
 etc. The
              company's motorcycles are marketed under the trade name
              ROYAL ENFIELD.
         
 1983 - The company issued 35000 14% mortgage debentures
              aggregating to 3.5cr and redeemable in 12 half yearly
              instalments beginning from 20 june 1986. A super deluxe
 of the 
              `Bullet' was introduced and it gained good market
 acceptance.
         
 1984 - The Company  issued 3,00,000 15% NCD's aggregating to 3cr to
              UTI on private placement basis. These were redeemable at
 a
              premium of 5% on 4th March 1992. Work in Chennai  was
 distrupted
              due to a cyclone in November 84 , and power shortage.  
 
 1985 - The company revalued it's land and buildings,
              plant, machinery and equipment on 30 June and the net
              surplus of 1312.97 lacs was transferred to Capital
 Reserve.
         
           - 50,000 15% NCD's amounting to 50 lacs were
              issued to LIC on private placement.  
         
 1987 - The  company was declared sick and a reference was
              made to BIFR.It entered into a revival plan with Eicher
              Tractor. A technical collabration was entered into with
 
              Mitsubishhi Heavy Industries Ltd., of Japan for the
 manufacture 
              of a new series of engines and portable generating sets
 of
              contemporary design.
         
 1990 - This year saw the company entering into an alliance
              with Eicher Tractors for synergistic benefits in
              capacity,manpower and marketing.The amount invested is
              2.5cr by Eicher Tractors.
 
            - Sri S Viswanathan was appointed as Chairman and
 Whole-time
               Director with effect from 19th November 1990 and Shri
 Badri Agarwal
               as Managing Director with effect from 4th April.
 
 1992 -  The company undertook a modernisation programme of
                it's motorcycle division  which was partly funded by
 ICICI, IDBI
               and IFCI.The company increased  it's licensed capacity
 to 1,20,000
               vehicles per annum for  two wheelers and also decided
 to manufacture
               light weight  motorcycles, mini motorcycles and geared
 mopeds for which
               it entered into a  collaboration with ZUNDAPP of 
 W.Germany.The
               subsidiaries of this company are Enfield Sales Ltd. and
 Enfiels Mofa Ltd.
 
            - Sales of Agro Engines were also adversely affected due
 to reduced availability
              of concessional Bank credit and lower subsidy for
 purchase of Pumpsets for
              agricultural use by various State Governments.
 
            - A New Genset marketing division has been set up for
 promoting the sale of portable
              gensets.
 
 1993 -  The  Company  is taking steps to introduce the concept  of 
 Total Quality 
               Management  (TQM) and studies are  being  undertaken to
 understand  the
               allied areas like Total Quality  Control  (TQC), Total
 Employee Involvement (TEI),
               Just in Time (JIT), etc.
 
 1994 -  The Company has sold its Agro-Engines & Geneset businesses
 along with
               Thoraipakkam and Ranipet Units to Greaves Limited for a
 consideration.
 
            -  The Company has sold its Corporate Office Building on
 Anna Salai, Chennai, in July,
                to Industrial Development Bank of India.
 
            -  The Company has sold the entire equity shareholding of
 Enfield Mofa Limited.
 
           -  The Company successfully launched the lowest fuel-cost
 motorised two-wheeler on 
               Indian roads - Diesel Motorcycle, in november 1993.
 
            - Prototypes of a new Bullet model 'Citi Bike' has been
 developed and are currently
              under road testing.
 
            - The Company is currently in touch with several foriegn
 two-wheeler manufaturers to
               explore the possibilties of expanding the current
 product range of the Company.
 
            - The compny has entered into a long term agreement with
 world-renowned R&D
              Company -AVL of Austria - with a view to continuously
 upgrade the Bullet motorcycle
              for exports as well as for the domestic market.
 
            - The company has reached an understanding with Fritz Egli
 and Switzerland for acquiring
               know-how for production of 535 & 624 cc Bullets.
 
            - The Company has taken up modernisation of its Bullet
 plant.
 
            - With effect from 23rd June, the name of the company
 stands changed to ROYAL ENFIELD
               MOTORS LIMITED.
 
             - The Company has issued 10.3 Lacs Equity Shares at par
 to the Financial Institutions
                as per terms of the One Time Settlement Package.  The
 company proposes to redeem
                by reissue, Series I and Series II Perference Shares
 aggregating to Rs.100 Lacs 75% of
                the arrears of dividend on the preference shares held
 by Financial Institutions has been
                waived as part of the One Time Settlement.
 
              - During the year, Enfield Mofa Limited ceased to be a
 Subsidiary of the company.
 
              - The Company has formed a new division - Customer
 Service Department - to strengthen
                 product deveopment/testing facilities with a view to
 quickly assimilate the acquired
                 know-how as well as to build necessary skills for
 continuous improvement of existing
                 product and development new products/variants in
 house
 
 1995 - The Company issued 7,00,000 No. of equity shares at par to the
 Banks and Financial
               Institutions during the year as per the terms of
 One-Time Settlement package.
 
            - The Company also issued 1,28,051 - 15% Cumulative
 Preference Shares of Rs. 100/-
               each fully paid up to the existing Preference
 Shareholders in redemption of existing Cumulative
               Preference Shares and towards arrears of Preference
 Dividend for the period 1.7.86 to 31.3.93
               as per the Company Law Board's approval dated 22.9.1994
 under Section 80(A) of the
               Companies Act. 1956.
 
 1996 -  The year witnessed merger of Eicher Tractors Ltd. (ETL) with
 Royal Enfield Motors
                Limited (REML) with effect from 1st April, 1995
 pursuant to the Orders of the Hon'ble High
                Courts of Delhi and Madras.
 
              - In accordance with amalgamation scheme, the Company
 will be allotting 1,40,10,478 No. of
                equity shares to the shareholders of erstwhile Eicher
 Tractors Limited in the ratio of 1:1.
 
              - During the current year, Company's tractor plant at
 Hyderabad was awarded ISO 9002
                 accreditation.  With this company's plants at
 Faridabad, Ballabgarh, Parwanoo,
                 Hyderabad and Marketing Division have been awarded
 ISO 9000 accreditation.
 
 1997 - The successful launch of SHAHENSHAH - New styling 39 HP (SAE)
 tractor
               in November 1996 was an important milestone for the
 company.
 
             - With Alwar plant also being awarded ISO accreditation,
 the entire tractor operations
                have now been integrated through one ISO-9001
 certificate.
 
              - Modernisation of the Bullet Plant at Chennai has been
 completed. The Company has
                also firmed up proposal for implementing the expansion
 programme at a new
                motorcycle plant.
 
             - During the year, Ramon & Demm was awarded ISO 9002
 accreditation and
                with this both divisions of Gear Business (Parwanoo &
 Thane) have obtained ISO 9002
               certification.
 
             - During the year Mr R C Maheshwari was appointed as
 Whole-Time Director
                for a period of 5 years. Mr Vikram Lal, Mr Badri
 Agarwal, Mr Alok
                Dutta, Mr S Sandilya - Directors, retire by rotation
 and being eligible
                offer themselves for reappointment.
 
 1998 -  A Technical Collaboration Agreement with M/s. Valtra Inc.,
 Finland for
               manufacture of 61 and higher HP tractors in India has
 been finalised.
 
             - At Ramon & Demm, the capacity has been expanded through
 productivity
               improvement achieved consequent to successful
 implementation of three
               year wage agreement signed during the year.
 
            - The Company has launched Information Technology led
 Business Process
               Reengineering.
 
            - A tie-up with M/s. Steyr, Austria, has been made for
 upgradation of transmission
             designs and also developing a new transmission with
 features required
              for export of tractors to USA and Europe.
 
           - Mr. Vikram Lal has resigned from the Board of all Group
 Companies and
              Mr. S. K. Bhargava has taken over as Group Chairman and
 CEO of the Group.
 
 1999 -Eicher Tractor Ltd (ETL) has joined hands with Vaitra group of
 Finland to foray into the powerful tractor segment
 
             -During the year two new Models of 50 & 61 HP with
 technology from Valtra Inc., Finland
              have been developed and are under extensive field
 testing.
 
            - The 535cc bike has been successfully launched in the
 European market in
               the third quarter of the year with plans for
 introduction in domestic market during the
               first half of 1999-2000.
 
            - During the year, a line for manufacture of Camshafts has
 been commissioned at
               Parwanoo.   Eicher Demm has achieved the distinction of
 ISO-14001 certification
               during this year.
 
            - The company had launched information technology lead
 business process reengineering.
 
 2000 - ICRA Ltd. has downgraded the Rs 88-crore long-term
 non-convertible debenture
              programme of tractor and two-wheeler marker Eicher Ltd.
 to `LA+' from `LAA'.
 
           - The Company has launched 312 SUPER-DI model with a 2
 cylinder engine giving a
              totally new look to the product.
 
           - The Company introduced new 61 HP model in April 2000 -
 `EURO POWER 6100',
              developed in technical collaboration with Valtra Inc.,
 Finland.
 
           - During the year Mr S Sandilya and Mr P K Kapse,
 Directors, retire by rotation and being
              eligible offer themselves for reappointment. Mrs Rita
 Vasan, Nominee of ICICI Limited and
 
              Mr Badri Agarwal ceased to be Directors during the
 year.
 
 
 2001
 - Royal Enfield Motors, a unit of Eicher Ltd, part of the Rs 1,000
 crore Eicher Group, has launched its new model ‘Bullet Electra’, here
 on August 23
 
 2003
 --Signed MoU to collaborate with corporation bank which will be
 financing eicher tractors to farmers.
 
 2004
 
 -Royal Enfield tied-up with Syndicate Bank to finance purchases.