History of Escorts Ltd.
1947
- After partition the Registered office of Comp. was shifted from Lahore to New Delhi. The name of Comp. was changed from Escorts [Agentss] Pvt. Ltd., to Escorts limited upon its conversion into a public company.
1959
- The Comp. was Incorporated on 21st December, at Lahore. The Company manufactures motor cycles, tractors, automotive parts, railway shock absorbers, agricultural implements, X-rays equipment, heating elements, etc.
- The Comp. has been functioning as a representative of well-known foreign manufacturers like M.A.N. Comp. of United States, Massey Ferguson of United Kingdom & Canada & several others.
- The Comp. has an all-round sales & service organisation & has put up in conjunction with Garden Reach Workshops, Calcutta, a marine service base for servicing ocean going vessels equipped with M.A.N. promulsion & auxiliary engines. The Comp. has a network of all-India dealers for sale of products manufactured by itself & by its subsidiaries.
- Capital structure reorganised. Equity & `A' Equity shares converted into one class of Rs 10 each. 200 Pref. shares were subscribed for. 2,000 Pref. & 17,500 No. of Equity shares allotted to M/s. Mahle Komm-Ges, West Germany, against supply of machinery and technical know-how. The remaining shares issued as rights. The new pref. shares redeemable after 5 years from the date of issue at the Company option.
1960
- The Comp. commenced the manufacture of pistons & established at Bahadurgarh, near Patiala, in collaboration with Mahle Komm-Ges Bad Constatt, West Germany.
- The Comp. undertook a phased expansion of installed capacity of pistons from 7,21,000 to 10,80,000 numbers per annum & the installed capacity of piston pins from 6,60,000 to 9,90,000 numbers per annum.
1962
- The Comp. commenced commercial production of X-ray equipment, railway shock absorbers & heating equipments in technical collaboration with the Westinghouse Trading Co. [Asias] Ltd., New York, Eheimmetall GmbH, West Germany & Eltra K. G., West Germany respectively.
1965
- The Comp. entered into a technical collaboration agreement for the manufacture of transmission & gears for Escort tractors with Motoimport Warszawal, Poland, by outright purchase of drawings.
- The Comp. acquired near its existing plant at Faridabad, an area of 23 acres together with 55,000 sq. ft. of built-up space at a cost of Rs 43 lakhs for scientific research activities.
1968
- 1,229 Pref. shares in 1968 & 336 Pref. shares in 1969 subscribed for. In Dec. 1969, 580,608 Bonus Equity shares issued in prop. 1:4. 25,000 9.5% `A' Pref. shares offered to public in Aug.1969 [redeemable on 15-8-1981s].
1970
- 580,608 Right Equity shares issued at a premium of Rs 4 per share in the proportion 1:5.
1973
- The Comp. undertook to set up a 100% export oriented unit for the production of X-ray equipment in the Santacruz project area, in collaboration with Compagnie General de Radiologie who brought over Westinghouse Manufacturing Company, under the name CGR India Ltd., was incorporated
1974
- 17,41,824 Bonus Equity shares issued in the proportion 1:2.
1977
- 31,35,283 Bonus Equity shares issued on 31-12-1977 in prop. 3:5.
1978
- The following contracts were secured for execution [is] Farm implements manufacturing plant, [iis] Bicycle assembly plant & [iiis] Raw material sold to support PVC plant.
1979
- The Comp. concluded an agreement with Andhra Pradesh Scooters Ltd., to produce Rajdoot motorcycles in their plants at Hyderabad for distribution in Southern States. The Comp. was to undertake, in due course, production of scooters for Andhra Pradesh Scooters Ltd., for distribution in Northern States.
- 50,16,453 bonus equity shares issued in prop. 3:5. 1980
- A new tractor model Escort-345 was introduced in the first quarter of the year.
1981
- Towards the end of year, Escort-355 tractor with three cylinder and 47 HP engine was introduced.
1985
- The Comp. commissioned a project for manufacture of 1,50,000 - 100 cc motor cycles per annum in technical collaboration with Yamaha of Japan.
- Other products proposed to be manufactured were paddy transplanters, a small size tractor in collaboration with Japan, boilers & other equipment for collection of bio-mass from straw & other agricultural wastes.
- Government approval was obtained for a new range of road construction machinery i.e. paver finishers butimen distributors, aggregate spreaders, pavement profilers, etc. Approval was sought for the manufacture of vibratory compactors in collaboration with Dynapac of Sweden.
- During July the Comp. issued 20,00,000-15% non-convertible debentures of Rs 100 each for Rs 20 crores & offered them as rights to its resident Indian equity shareholders. The Comp. allotted a further 10,00,000-15% debentures to retain the excess subscription. Rs 27.90 crores out of this issue of Rs 30 crores was utilised for working capital & the balance Rs 2.10 crores for normal capital expenditure.
1986
- The Comp. undertook expansion of installed capacity of shock absorbers to 15 lakh numbers, in technical collaboration with Bilstein AG of West Germany. The Comp. also introduced disk brakes for Indian Railways.
- It was proposed to introduce tractors with engine capacity below 1,800 cc for which excise duty exemption was announced.
- The Comp. entered into a technical collaboration agreement with Mercury Marine [Brunswick Groups], U.S.A. for manufacture of 24,000 outboard motors per annum.
- The Comp. established facilities for manufacture of nearly 5,000 line sets of electronic telephone exchanges [EPABXs] in collaboration with Jeumant Schneider of France.
- The Comp. proposed to manufacture the fuel efficient Citroen 2 CV[6s] car in collaboration with Citroen of France.
- During February 15% secured redeemable debentures of aggregate value of Rs 5 crores were privately placed with Army Group Insurance Fund.
1987
- During June the Comp. issued 10,00,000-12,5% fully convertible debentures of Rs 350 each. Out of this, 3,00,000 debentures were offered to the existing equity shareholders of Comp. as rights in proportion 1 Deb.: 71 No. of Equity shares [all were taken ups].
- Out of remaining 7,00,000 debentures, the following debentures were reserved for preferential allotment; [is] 50,000 debentures to employees & working directors of Comp. & [iis] 1,40,00 debentures to non-resident Indians on repatriation basis. The remaining 5,10,000 debentures, along with the unsubscribed portion of 1,03,085 debentures were offered for public subscription during June.
- Additional, 2,50,000 debentures were allotted to retain over subscription. [75,000 debentures to equity shareholders of Company and 1,75,000 debentures to the publics].
- As per the terms of issue, on 31st December, Rs 175 was converted into 5 fully paid-up equity shares of Rs 10 each at a premium of Rs 25 per share & on 30th June, 1988, the remaining Rs 175 was converted into 5 fully paid-up equity shares of Rs 10 each at a premium of Rs 25 per share.
- 80,26,325 bonus equity shares issued in prop. 3:5 & were allotted on 30.3.1987. All Pref. shares redeemed on 30.11.1987. 62,50,000 No. of equity shares allotted [prem. Rs 25 per shares] on 31.12.1987 in conversion of debentures.
1988
- 62,50,000 No. of Equity shares issued [prem. Rs 25/- per shares] in conversion of 12.5% debentures.
1990
- The Comp. privately placed with financial institutions 35,00,000-14% secured redeemable non-convertible debentures of Rs 100 each. The debentures are redeemable in three equal instalments on the expiry of 6th, 7th & 8th years from the date of allotment of the debentures.
1994
- The new products i.e., 3 cylinder engine tractor & a 50cc Moped were launched.
1995
- Escorts 40 H.P. & two models of Farmtrac, VIZ 50 & 60 H.P. tractors were introduced. The Comp. combined all synagestic product activities in Escorts group of companies into independent and autonomous entities.
- Escorts Tractors limited was merged with the Comp. effective 1st April. The shareholders issued 3 equity shares of Comp. for every two equity shares of erstwhile Escorts Tractors limited Accordingly 227,75,452 No. of equity shares of Comp. was allotted.
- Escorts JCB Ltd., Escorts Class Ltd., Escorts Automotive Ltd., Escorts Herion Ltd., Escorts Communications Ltd., Escorts Construction Equipment Ltd., Escorts Finance Investments and Leasing limited are all subsidiaries of Company.
- 27,04,226 No. of Equity shares [prem. Rs 130.17s] allotted to promoters on conversion of warrants. 22,775,452 shares allotted to shareholders of erstwhile Escorts Tractors Ltd.
1996
- The Comp. proposed to set up a joint venture Comp. with equity participation from Mahle GmbH [Germanys]. Piston manufacturing activity of the Comp. was proposed to be transferred to the said joint venture company.
- The Comp. has decided to form a joint venture to manufacture shock absorbers. Comp. is at advanced stage of negotiations with M/s. COFAP of Brazil.
- Comp. has decided to Spun off Escorts Hospital and Research Centre into a seperate corporate entity.
- The Escorts Employees Ancillaries limited manufactures carburettors presently catering to the needs of Rajdoot motorcycles. More components like nipples, spokes, etc., were being added with technical know-how from Japanese manufacturers.
- 56,56,381 No. of equity shares allotted on conversion of warrants at a price of Rs 35 per share. 1,24,059 No. of equity shares allotted on conversion of warrants issued to the shareholders of erstwhile Escorts Tractors limited at a price of Rs 33.33 per share.
1997
- The Comp. undertook to set up a tractor plant with a capacity of 18,000 tractors p.a. with a total cost of Rs 200 crores at Ranjangaon in Maharashtra.
- The Comp. has entered into a joint venture with Carraro SPA of Italy & promoted a joint venture Comp. under the brand name Carraro India limited to manufacture transmission to be used in its higher HP range of tractors at a cost of Rs 110 crores.
- 83,956 shares issued against warrants of erstwhile Escorts Tractors limited 28,17,456 No. of equity shares issued on conversion of warrants.
- Escorts Ltd has recently entered into a joint venture agreement with Yamaha Motor Co Ltd of Japan for setting up a new venture Escorts Yamaha Motor Ltd [EYMLs] on the basis of equal participation in capital.
- Escorts has also signed a 50:50 joint venture agreement with Mahle GmbH of Germany to manufacture automotive & railway pistons, gudgeon pins. This venture would take over Escorts existing plant in Bangalore and Patiala.
- The Rs.2,900-crore Escorts group of companies is setting up a Rs.250-crore industrial complex at Ranjangaon in Pune.
- Hughes Escorts Communications [HECLs] a joint venture between Hughes Network Systems Inc [HNSs] & Escorts, announced a tie-up with Datacraft RPG to market satellite based wide area communications solutions. Under the agreement, Datacraft RPG will be a marketing associate, offering HECL V-sat based communications network as part of the integrated solutions designed for its customers.
- Escorts limited transport & agri-equipment company, is exploring the possibility of tying up with Yanmar of Japan for manufacturing high speed paddy transplanters in India. - Escorts Yamaha Motor limited [EYMLs], launched a brand new motorcycle, the RXZ.
- Escorts Yamaha Motor Ltd [EYMLs], has been awarded the ISO-9001 certificate by TUV Bayern for its manufacturing facility at Faridabad.
- Carraro India Ltd, a 51:49 joint venture between the $200-million Carraro SpA of Italy & the Rs 1,650 crore Escorts ltd, has tied up its entire debt with IFC Washington & Exim bank.
1998
- The Comp. has signed an MoU with Long Manufacturing Inc.
- Close on the heels of introduction of sporty look Yamaha RXZ late last year, SMM Escorts & Escorts Yamaha Motor Limited [EYMLs], the joint venture between Escorts Limited & the Yamaha Comp. Limited of Japan have launched yet another new model - Yamaha RX-135 - in Maharashtra.
- Escorts Limited, the flagship Comp. of Rs.3,500 crore Escorts Group, which is engaged in the manufacture of tractors, has signed an MoU [Memorandum of Understandings] with an American Comp. at North Carolina to acquire 49 per cent equity worth $9 million.
- Escorts Yamaha has launched Yamalube, a two-stroke motor oil, developed by Yamaha Motor Corporation, Japan.
- The Company turnover declined to Rs.1319.70 crores due to depressed market conditions.
- The Comp. launched a new `Powertrac' range of tractors with vastly improved engine performance, fuel consumption & meeting the emission norms not only in the domestic markets but also complying with very stringent EPA norms prescribed in the USA & other overseas markets.
- 10,96,672 No. of equity shares of Rs.10 each [prem. Rs.25 per shares] allotted against detachable warrants. 30,00,000 No. of equity shares allotted against warrants which were issued to the employees under ESOS on preferential basis. Another 70,505 No. of equity shares of Rs.10 each [prem. Rs.25 per shares] allotted against detachable warrants.
1999
- Escorts Ltd, the second largest tractor manufacturer in the country, is set to launch its new tractor, Farmtrack 45, in the US next month after a silent entry in the domestic markets in August last.
- The fall in profits is mainly due to the labour strike which lasted for 70 days & resulted in production loss.
2000
- The Comp. has approved the proposal to divest 24 per cent equity in Escorts Yahmaha Motor Ltd [EYMLs], a joint venture between Escorts Ltd and Yamaha Motor Co. [YMCs], Japan, manufacturing a wide range of motorcycles in India for domestic market & exports.
- The Comp. has launched Esconet Services Limited. This Comp. is a 100% subsidiary of Escorts Limited.
- The Comp. has launched its wheel type crop harvestor.
- ICRA has downgraded the rating assigned to the Rs 75-crore NCD programme of Escorts limited from `MAA' to `MAA+'. ICRA has retained the `A1+' assigned to the Rs 75-crore commercial paper programme of EL.
- Yamaha Motor Escorts limited the joint venture between Yamaha Motor Co. limited of Japan & the Delhi-based Escorts group, has launched a new 100cc four stroke motorcycle [Cruxs].
- The Comp. will be launching tractors with higher horse power in the range of 60hp - Farmtrac 70 - by end of December, in a bid to push its market share to over 22 per cent. 2001
- On June 13th Escort withdraws from Yamaha JV. Yamaha set to buy out Escorts share in their Indian joint venture, by June 30, Yamaha India becomes the first 100% subsidiary in Asia for Japanese motorcycle company.
- The Rs 3,200-crore, Delhi-based Escorts Group has launched iServ India Solutions Pvt Ltd, a wholly-owned subsidiary with services to address the demand for information technology [ITs] infrastructure related corporate solutions.
2002
-Escorts Ltd on July 12, 2002 announced the divestment of its equity in Escorts JCB Ltd and Escorts Class Ltd in favour of its joint venture partners, J C Bamford UK & Claas [Germanys] respectively.
-Escorts Ltd has entered into an agreement to sell its entire 60% equity holding in Escorts Class Ltd for a consideration of 13.2 million Euros [approx. Rs.63 crs as per the current exchange ratess].
-Escorts Ltd has informed BSE that Mr Mantosh Sondhi, Director of Comp. has expired on October 29, 2002.
2003
-Mr Jahar Sengupta, Director of Comp. expires.
-Punjab Agro Industries Corporation signs a Memorandum with Escorts Ltd to undertake contract farming.
-Escorts successfully implements Oracle e-biz suite to increase the effeciency.
-The Comp. entered into an agreement with UCO Bank, to provide 100 per cent finance to farmers buying tractors.
-Escorts Ltd sells off its stake in Escorts JCB
2004
-Escorts Boards decides to sell holdings in mobile telecom subsidiaries to Idea Cellular
-Escorts Ltd has informed that Mr. Anil Nanda has ceased to be Managing Director of Company. He will, however, continue to be a Director & Vice Chairman of Company.
-Escorts Ltd has tied up with Bank of Baroda, Indo Farm Tractors and Motors Ltd to beef up agriculture lending
- Anil Nanda, vice-chairman of Escorts & chairman of Goetze, makes foray into real estate business in which he is investing in his personal capacity.
-Escorts has announced a tie-up with Castrol India for exclusive supply of engine oils for service refill as well as after market sales
2005
-Escorts wins $8.5-m tractor order from Ghana
-Escorts Ltd has acquired its Polish joint venture partner, Farmtrac Tractors Europe
-Escorts' US subsidiary teams up with SAME Deutz-Fahr Italia
2006
-Escort India is set to manufacture tractors in Bangladesh through a joint venture with the Nitol-Niloy group.
