History of Eicher Motors Ltd.
YEAR EVENTS 1982 - The Comp. was incorporated on 14th October, & 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 & Madhya Pradesh Audyogik Vikas Nigam limited The main objective of Comp. is to manufacture of light commercial vehicles belonging to Mitsubishi `CANTER' series.
- Either Goodearth Ltd., Mitsubishi Corporation & 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 Company. The joint sector agreement also provides for nomination of two directors on the board of the Comp. MMC/MC.
1985 - Eicher & Madhya Pradesh Audyogik Vikas Nigum limited [MPAVMs] 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 Company. The agreement also provided for following:
- [is] MPAVN shall be entitled to appoint a maximum of 2 directors on the Board of Comp. at any time during the currency of the agreement;
- [iis] Eicher and/or its subsidiaries shall buy back the entire equity held by MPAVN in a phased manner & such buy back of equity shares shall be completed in a period of not more than 7 years from the date of agreement.
- A Technical Assistance Agreement was entered into between Eicher & MMC on 4th October, 1982 as amended on 16th May, 1984 and 20th September, 1984. This agreement was assigned in favour of the Comp. by Eicher. This agreement was taken on record by Government of India on 23rd May, 1984 & 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 Comp. [as] An exclusive licence to manufacture & sell in India its Canter series of vehicles & its variations, as specified & the components & spare parts thereof.
- [bs] A non-exclusive licence to sell Canter series of vehicles, its variation & parts outside India.
- The agreement requires MMC to provide the following:
- [as] Technical assistance, drawings, designs, information and services to assemble & manufacture Canter series of vehicles in India, as referred to in the Technial Assistance Agreement.
- [bs] Deputing MMC personnel to India.
- [cs] Training the personnel of Comp. at MMC facilities and Company Plan with regard to manufacturing, product engineering & after sales service etc.
- The agreement also provides that MMC would make available information with regard to all future inventions & improvements relating to the designs & specifications of Canter series of vehicles of Comp. during the period of Agreement without any additional charge.
- In consideration for above services, the Comp. 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 Company & used in the manufacture of products.
- The Comp. undertook to set up a project for manufacture of Mitsubishi `Canter' series of commercial vehicles with an installed capacity of 6,000 vehicles per annum.
- 100 No. of equity shares & 100 preference shares were taken up by Eicher Goodearth, limited 99,99,000 No. of equity shares then issued at par of which the following shares were reserved and allotted:
- [is] 27,19,900 shares to Eicher Goodearth, Ltd., - [iis] 6,00,000 shares to friends and
- [iiis] 10,00,000 shares to Mitsubishi Motors Corporation Japan;
- [ivs] 5,00,000 shares to Mitsubishi Corporation, Japan and
- [vs] 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 & allotted on a preferential basis;
- [is] 2,90,000 shares to employees & business associates of the Comp. and
- [iis] 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 & 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 & 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 Comp. started an independent `auto finance division' for financing retail vehicles in underdeveloped areas.
- The Comp. 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 Comp. together with its inter-connected companies exceeded Rs. 100 crores & consequently effective April, the provision of Section 20[as][iis] and Section 26 of the MRTP Act became applicable to the Company. The Comp. was registered as an MRTP undertaking.
1992 - The Comp. has also successfully commissioned a state of art machining line for machining cylinder head - a critical component of engine.
1993 - During Jan.-Feb. 1994 the Comp. issued 100,00,000 rights equity shares of Rs. 10 each for cash at par in proportion 1:1 [1300 shares were kept in abeyances].
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 [LHDs] 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 [EMLs], launched the company latest LCV - the Eicher 10.70 - in Karnataka. The latest offering from EML has new & 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 Comp. also introduced product variants such as Eicher 10.60 G. 10.90 & an improved 10.90 launched in February. An left hand drive [LHDs] light commercial vehicle was also introduced.
- The Comp. recently introduced the skyline schoolbus, which incorporates safety features like a stop sign, retractable footsteps, hazard warning lamps. The bus has been designed jointly with institute of road traffic education, a non-governmental organisation.
- The Comp. has entered into a technical collaboration agreement with the Finland-based Valtra Inc. for 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 [LCVs] at its Pithampur plant.
- The Comp. has introduced several new variants in the market & has also implemented improvements in theexisting products.
- The Comp. has been awarded Certificate of merit for improving the overall productivity in the Automobiles sector by National Productivity Council of Government of India.
1999 - Eicher has tied up with Volkswagen to enter the passenger car segment.
- The Comp. 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 61 HP tractor designed & 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 & Mr. K K Vij has been appointed as an Additional Director on the Board of Company.
2002
-Mr Rakesh Kalra steps down as the Managing Director of company.
-Launches new 34 seater bus under the name ' Voila' priced at Rs.8.25 lakhs.
-Launches India first indigenously designed & developed Heavy Commercial Vehicle [HCVs].
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 & L and T for financing eqipment & farm vehicles
-Appointment of Advisors/consultants for reviewing the current business of company.
-Board of Directors approves the following restructuring proposal:
1s] The BOD have agreed that the 'Automobile undertaking' of Eicher Ltd comprising business relating to tractors, two wheelers, gears & engines, to be de-merged from Eicher Ltd into the Company. The additional shares to be issued in Eicher Motors Ltd [the Resulting Companys] [EMLs] for demerged undertaking, shall be issued in the ratio of 2 equity shares of EML for every 5 equity shares of EL, as determined by valuation reports submitted by Ernst and Young Pvt. limited & N M Raiji and Co., Chartered Accountants & as agreed to by Board of Directors.
2s] The Scheme also envisages the following: as] Amalgamation of Malbros Investments Ltd [Malbross], a wholly owned subsidiary of Eicher Ltd engaged in the business of finance & investment activities, with Eicher Ltd after the demerger is effected. bs] Reorganisation of Share Capital of EL.
3s] The Appointed Date for aforesaid Scheme is April 1, 2003.
The aforesaid is subject to requisite approvals
2004
-Arisaig Partners [Asias] Pte. limited 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 Comp. for $2.5m
2006
- Eicher Motors Ltd [EMLs] 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 Comp. in its meeting held on October 22, 2007 approved appointment of Mr. Rajesh Arora as Comp. Secretary as well as Compliance Officer of Company.
2008
- Eicher Motors Ltd has appointed Mr. Prateek Jalan as an Additional Director on the Board of Directors of Company.
