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Eicher Motors > Company History > Auto - LCVs & HCVs > Company History of Eicher Motors - BSE: 505200, NSE: EICHERMOT
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Eicher Motors

BSE: 505200|NSE: EICHERMOT|ISIN: INE066A01013|SECTOR: Auto - LCVs & HCVs
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Company History - Eicher Motors
1982
  - The company was incorporated on 14th October, and the certificate
 of commencement of business was obtained on 28th March, 1983.  It 
 was promoted in the joint sector by Eicher Goodearth Ltd., Mitsubishi
 Corporation, Japan, Mitsubishi Motors Corporation, Japan and Madhya
 Pradesh Audyogik Vikas Nigam Ltd.  The main objective of the company
 is to manufacture of light commercial vehicles belonging to
 Mitsubishi `CANTER' series.
 
 - Either Goodearth Ltd., Mitsubishi Corporation and Mitsubishi Motors
 Corporation entered into a joint venture agreement which inter alia
 provided that MC, MMC and/or their subsidiary companies would
 participate to the extent of 15% in the equity share capital of the
 Company.  The joint sector agreement also provides for the nomination
 of two directors on the board of
 the Company MMC/MC.
 
 1985 
 - Eicher and Madhya Pradesh Audyogik Vikas Nigum Ltd. (MPAVM) entered
 into a Director Equity Subscription Agreement on 27th March, which
 inter alia provided that MPAVN would participate to the extent of
 9.8% in the equity share capital of the Company. The agreement also
 provided for the following: 
 
 - (i) MPAVN shall be entitled to appoint a maximum of 2 directors on
 the Board of the Company at any time during the currency of the
 agreement; 
 
 - (ii) Eicher and/or its subsidiaries shall buy back the entire
 equity held by MPAVN in a phased manner and such buy back of  equity
 shares shall be completed in a period of not more than 7 
 years from the date of the agreement.
 
 - A Technical Assistance Agreement was entered into between Eicher
 and MMC on 4th October, 1982 as amended on 16th May, 1984 and 20th
 September, 1984.  This agreement was assigned in favour of the
 Company by Eicher.  This agreement was taken on record by  Government
 of India on 23rd May, 1984 and shall be effective from the aforesaid
 date for a period of ten years, or for a period of 7 years from the
 commencement of commercial production, whichever is earlier.
 
 - Under the agreement MMC has granted to the Company (a) An exclusive
 licence to manufacture and sell in India its Canter series of vehicles
 and its variations, as specified and the components and spare parts
 thereof.
 
 - (b) A non-exclusive licence to sell Canter series of vehicles, its
 variation and parts outside India.
 
 - The agreement requires MMC to provide the following:
 
 - (a) Technical assistance, drawings, designs, information and
 services to assemble and manufacture Canter series of vehicles in
 India, as referred to in the Technial Assistance Agreement. 
 
 - (b) Deputing MMC's personnel to India.
 
 - (c) Training the personnel of the Company at MMC's facilities and
 Company's Plan with regard to manufacturing, product engineering and
 after sales service etc.
 
 - The agreement also provides that MMC would make available
 information with regard to all future inventions and improvements
 relating to the designs and specifications of the Canter series of
 vehicles of the Company during the period of the Agreement without
 any additional charge. 
 
 - In consideration for the above services, the Company will pay to
 MMC a lumpsum know-how fee of 330 Million Japanese Yen, inclusive of
 taxes in 4 equal instalments.  In addition, it will pay royalty at
 the rate of 3% of F.O.B.  Japanese port prices of local parts
 corresponding to those manufactured by the Company and used in the
 manufacture of the products.
 
 - The Company undertook to set up a project for the manufacture of
 Mitsubishi `Canter' series of commercial vehicles with an installed
 capacity of 6,000 vehicles per annum.
 
 - 100 No. of equity shares and 100 preference shares were taken up by
 Eicher Goodearth, Ltd.  99,99,000 No. of equity shares then issued at
 par of which the following shares were reserved and allotted:
 
 - (i) 27,19,900 shares to Eicher Goodearth, Ltd.,
  
 - (ii) 6,00,000 shares to friends and
 
 - (iii) 10,00,000 shares to Mitsubishi Motors Corporation Japan;
 
 - (iv) 5,00,000 shares to Mitsubishi Corporation, Japan and
 
 - (v) 9,80,000 shares to MPAVN.
 
 - The balance 42,00,000 shares were offered at par for public 
 subscription during August-September 1985 of which the following
 shares were reserved and allotted on a preferential basis; 
 
 - (i) 2,90,000 shares to employees and business associates of the
 Company and
 
 - (ii) 10,00,000 shares to non-resident Indians.
 
 1990
  - In order to suit the customers' requirement, new applications 
 like container van with double cabin, milk tanker and soft drink
 carrier were developed.
 
 - Three new markets were opened up in East Africa during the year. A
 new 4 tyre model was launched in select pockets and another model
 with higher payload was ready for launch.  Plans were afoot to
 indigenise the remaining major parts viz. Cab panels, side members
 etc.  During the year, the Company started an independent `auto
 finance division' for financing retail vehicles in underdeveloped
 areas.
 
 - The company was gearing up its capacity to 12,000 vehicles per
 annum to exploit the opportunity in commercial vehicles market.
 
 - During the year, a new model was introduced with improved
 gradeability in select markets.
  
 - The assets of the Company together with its inter-connected
 companies exceeded Rs. 100 crores and consequently effective April,
 the provision of Section 20(a)(ii) & Section 26 of the
 MRTP Act became applicable to the Company.  The Company was
 registered as an MRTP undertaking.
 
 1992
  - The company has also successfully commissioned a state of the art 
 machining line for machining cylinder head - a critical component of
 engine. 
 
 1993
  - During Jan.-Feb. 1994 the Company issued 100,00,000 rights equity
 shares of Rs. 10 each for cash at par in proportion 1:1 (1300 shares
 were kept in abeyance).
 
 1995
  - 500 No. of equity shares kept in abeyance were issued.
 
 - A new 4 Tyre model was launched in select pockets to enlarge our
 market reach. 
 
 1997 
 - Left Hand Drive (LHD) vehicle primarily for export markets was
 developed.  A new model was introduced during the year with improved
 gradeability in select markets.
 
 - EML has also tied-up with financiers to provide financing options
 to customers. 
 
 - Eicher Motors Limited (EML), launched the company's latest LCV -
 the Eicher 10.70 - in Karnataka.  The latest offering from EML has
 new and improved capabilities, designed to meet the needs of
 transport sector.
 
  - A new model was introduced during the year with improved
 gradeability in select markets.       
 
 1998 
 - The Company also introduced product variants such as Eicher 10.60
 G. 10.90 and an improved 10.90 launched in February.  An left hand
 drive (LHD) light commercial vehicle was also introduced. 
 
 - The Company recently introduced the skyline schoolbus, which
 incorporates safety features like a stop sign, retractablef ootsteps,
 hazard warning lamps.  The bus has been designed
 jointly with institute of road traffic education, a  non-governmental
 organisation.
 
 - The company has entered into a technical collaboration agreement
 with the Finland-based Valtra Inc. for the manufacture of 61 and
 higher to hp tractors.
 
 - Eicher, which had introduced a new 42 hp tractor recently, launched
 a 50 hp model this year.
  
 - Eicher Motors had entered into a technical assistance agreement
 with Mitsubishi Motor Corporation in 1986 to manufacture the canter
 range of light commercial vehicles (LCV) at its
 Pithampur plant.
 
 - The Company has introduced several new variants in the market and
 has also implemented                                          
 improvements in theexisting products. 
 
 - The Company has been awarded Certificate of merit for improving the
 overall productivity in the Automobiles sector by the National 
 Productivity Council of Government of India.
 
 1999
  - Eicher has tied up with Volkswagen to enter the passenger car
 segment.  
 
 - The company has introduced cellular concept of machining in
 cylinder block line resulting in higher capacity utilisation by
 avoiding the cascading  effect of line stoppages.
 
 2000
  - Eicher Motors forayed into the powerful tractor segment with the
 launch of a 61 HP tractor designed and developed in collaboration
 with Valtra Inc. of Finland.
 
 - Eicher Motors displayed its 10.5 tonne vehicle, its first in the
 medium commercial vehicle category.
 
 - Mr. Rakesh Kalra has been appointed as Managing Director and Mr. K
 K Vij has been appointed as an Additional Director on the Board of
 the Company.
 
 2002
 
 -Mr Rakesh Kalra steps down as the Managing Director of the company.
 
 -Launches new 34 seater bus under the name ' Voila' priced at Rs.8.25
 lakhs.
 
 -Launches India's first indigenously designed and developed Heavy
 Commercial Vehicle (HCV).
 
 2003
 
 -Introduces its first HCV called 'Eicher Jumbo 20.16' in Karnataka.
 
 -Files Expression of Interest in acquiring Punjab State Industrial
 Development Corporation stake in Punjab Tractors.
 
 -Posts a 32% growth in the sales of its CV in the domestic market.
 
 -UBI ties up with Eicher and L & T for financing eqipment and farm
 vehicles
 
 -Appointment of Advisors/consultants for reviewing the current
 business of the company.
 
 -Board of Directors approves the following restructuring proposal:
 
 1) The BOD have agreed that the 'Automobile undertaking' of Eicher
 Ltd comprising business relating to tractors, two wheelers, gears and
 engines, to be de-merged from Eicher Ltd into the Company. The
 additional shares to be issued in Eicher Motors Ltd (the Resulting
 Company) (EML) for the demerged undertaking, shall be issued in the
 ratio of 2 equity shares of EML for every 5 equity shares of EL, as
 determined by the valuation reports submitted by Ernst & Young Pvt.
 Ltd. and N M Raiji & Co., Chartered Accountants and as agreed to by
 the Board of Directors. 
 
 2) The Scheme also envisages the following: a) Amalgamation of
 Malbros Investments Ltd (Malbros), a wholly owned subsidiary of
 Eicher Ltd engaged in the business of finance and investment
 activities, with Eicher Ltd after the demerger is effected. b)
 Reorganisation of the Share Capital of EL. 
 
 3) The Appointed Date for the aforesaid Scheme is April 1, 2003.
 
 The aforesaid is subject to requisite approvals
 
 2004
 -Arisaig Partners (Asia) Pte. Ltd. acquires Eicher Motors Shares
 through open market.
 -SBI partners with Eicher Motors on December 27, 2004
 
 2005
 -Eicher Motors enters into definitive agreements with TMTL on May 27,
 2005
 -Eicher Motors acquires DESIGN, USA
 -Eicher buys US design company for .5m
 
 2006
 - Eicher Motors Ltd (EML) on Feb 20, announced Mr Siddhartha Lal as
 its new Managing Director designate.
 -Eicher join hands with Wipro to source hydraulic kits
 
 2007
 -Eicher Motors Ltd has informed that the Board of Directors of the
 Company in its meeting held on October 22, 2007 approved appointment
 of Mr. Rajesh Arora as Company Secretary as well as Compliance
 Officer of the Company.
 
 2008
 - Eicher Motors Ltd has appointed Mr. Prateek Jalan as an Additional
 Director on the Board of Directors of the Company.
 
 2009
 -Indian promoters buy out Mitsubishi's stake in Eicher Motors
 
 2010
 -Eicher Motors firms up on strong Dec sales
 -Volvo is working hard with its partner Eicher Motors in order to
 develop Asia Truck.
 -Lalit Malik has been appointed as the Chief Financial Officer of the
 Company.
 -The company launched the VE-series of Heavy Duty trucks
 
 2011
 -Eicher Motors, a company that manufactures iconic Royal Enfield
 motorcycles.
 -Registered Office of the Company has been shifted To 3rd Floor -
 Select Citywalk, A-3 District Centre, Saket, New Delhi - 110017
 
 2012
 - Vinit Kumar has been appointed as Company Secretary and Compliance
 Officer of the Company.
 -EicherMotors - Change in Corporate Office(#96, Sector - 32,Gurgaon -
 122001(Haryana), India.
 
 2013
 -EICHER Unveils The Future Of Indian Trucking With The All New Pro
 Series
 -ROYAL Enfield Prepares For Its Next Level Of Global Growth:
 Commences Commercial Production From The Oragadam Manufacturing
 Facility
 -Royal Enfield Prepares For Its Next Level Of Global Growth
 -Royal Enfield Starts Commercial Production At Oragadam Manufacturing
 Unit
 
 2014
 -ROYAL Enfield Recreates History And Completes Top To Tip Ride In
 Record Time
 -Eicher Motors Board Recommends Dividend
 
 2015
 -Eicher Motors Ltd has entered into a Business Purchase Agreement ,
 relating to the purchase of the business and assets of Harris
 Performance Products Limited, UK
 -Eicher Motors - Royal Enfield acquires UK-based Harris Performance
 -Eicher Motors - Eicher Polaris Pvt. Ltd. Launches Multix India's
 First Personal Utility Vehicle
 -Eicher Motors Ltd - Royal Enfield announces direct distribution
 subsidiary in North America
 -Eicher Motors resumes production at Royal Enfield facilities
 
 2016
 -Eicher Motors -Royal Enfield introduces Himalayan- the most
 definitive motorcycle for your Himalayan adventure
 
 2017
 -Eicher Motors -Royal Enfield has started commercial production from
 its new manufacturing facility at Vallam Vadagal near Chennai. 
 -Eicher Motors -Royal Enfield has unveiled its ground-up modern twin
 motorcycles the Interceptor INT 650 and the Continental GT 650 at the
 EICMA Motor Show, Milan. 
Source : Dion Global Solutions Limited
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