History of Hindustan Motors Ltd.
YEAR EVENTS 1942 - The Comp. was incorporated on 11th of February, at Baroda.
- The Comp. manufactures & Assembles Hindustan Ambassador cars, Bedford trucks, lion diesel engines, Harion shovels, scrapers and bulldozers, M.A.N cranes & all types of steel fabrications.
- Hindustan Motor Corporation Limited, Uteco Limited are the companies subsidiaries.
1945 - 48,75,000 shares issued through a prospectus, of which existing shareholders subscribed for 9,75,000 shares & the directors and their friends for 24,00,000 No. of equity shares. Remaining 15,00,000 shares offered to public.
1959 - The Comp. entered into an agreement with Universal Marion S.A., Switzerland & the Marion Power Shovel Comp. for the manufacture & sale in India of 93M crawler mounted diesel powered excavators & components; with the Caterpillar Tractor Company, USA, for manufacture & sale of bulldozers and scrapers; with M.A.N. Nuremberg for manufacture & sale of crane engineering products of M.A.N design in India.
1967 - The Comp. entered into a collaboration agreement with the General Motors Corporation, USA, for manufacture of earthmoving equipment at Trivellore.
1970 - 1,757 Right equity shares allotted out of previous Right issue till March 1970 & in February, 1971, 21,94,201 Bonus Equity shares issued in the prop. 1:5.
1971 - HM diversified its activities by setting up a plant at Tiruvallur, near Chennai, Tamil Nadu for manufacture of earthmoving equipment such as dumpers, front-end loaders, crawler tractors, etc.
1980 - Authorised capital reclassified. Dividend on pref. shares raised to 11% w.e.f. 7.6.1980. 21,455 pref. shares redeemed.
1983 - The Government approved the company proposal to increase its production capacity of passenger cars to 50000 units per annum out of which 20000 were to be produced in Madhya Pradesh.
1984 - In January the Comp. launched its new passenger car Contessa with a new aero dynamic body. A technical collabration agreement was entered into with Isuzu Motors Ltd, Japan for the manufacture of 'TROOPER' a general utility vehicle.
- Another collaboration was entered into with Caterpillar of USA to manufacture their diesel engines.
1985 - The new product 'CONTESSA CLASSIC' was intoduced. The company entered into a collaboration agreement with Liebherr Induetrieanlagen AG, Switzerland for manufacture tyre mounted mobile cranes [hydraulic telescopic booms] ranging from a capacity of 20 tonnes to 60 tonnes.
- HM set up a plant at Hosur, Tamil Nadu for manufacture of heavy duty transmission required for earthmoving equipment [Power Products Divisions].
- The Comp. entered into an collaboration agreement with Caterpillar Tractor Comp. [CATs] of USA for manufacture of earthmoving equipment. The 50 tonne dumper was launched in October.
1986 - There was also acute power shortage. During the year, crawler tractors & front end loaders based on caterpillar technology were introduced.
- The name of Hindustan Motor Corporation Ltd., was changed to Hindustan Motor Finance Corporation Ltd., with effect from 24th November.
- 131,65,208 Bonus equity shares issued in prop. 1:1, as on 29.4.1986.
1987 - The Comp. introduced during the year 85 tonnes dumper on caterpillar technology.
- During August-September the Comp. issued 3300000 - 14% secured 1988 - The Comp. entered into an agreement with Birla Technical Services Ltd [BTSs] a unit National Engineering Industries Ltd., for services & supply of materials for modernisation of Rourkela & Durgapur steel plants.
- Also, another agreement was entered into with Ricardo Consulting Engineers, U.K. for modernisation of Ambassodor petrol & diesel power trains.
- In addition, an agreement was entered into with Pragoti Industries Ltd., Bangladesh for technical know-how for manufacture of company Hindustan Tractors in Bangladesh for a period of 10 years. The Comp. in joint venture with Caterpillar Commercial N.V., Belgium incorporated a new company at Tamil Nadu called Hindustan Power Plus Ltd.
- The Comp. had entered into collaboration with Twin Disc Inc., [TDIs] of USA for a specific line of transmissions, the technology for which was sold to TDI by ATD in 1986.
1989 - Effective from 11th January, the name of Uteco, Ltd., was changed to HM Export, Ltd.
- The Comp. offered 23,00,000 - 12.5% partly convertible debentures of Rs.200 each as rights to equity shareholders in prop. 2 debentures : 23 equity shares. All were taken up. Additional 3,43,746 debentures were allotted to retain oversubscription.
- Simultaneously 1,15,000 - 12.5% parly convertible debentures of Rs.200 each were offered to employees [including working directorss]/workers of Comp. on an equitable basis. Only 7,550 debentures taken up. The balance 1,07,450 debentures were allotted to Canbank Mutual Fund with the permission of the Controller of Capital Issues.
- Rs.50 [Part-As] of face value of each debenture was to be converted into 5 ordinary shares of Rs.10 each at par at the end of six months from the date of allotment of debentures.
- Another Rs.50 [Part-Bs] of debentures was to be converted into 5 ordinary shares of Rs.10 each at par at the end of 12 months from the date of allotment of debentures.
- The non-convertible portion [Part-Cs] of Rs.100 of each debenture was to be redeemed at par in 5 equal instalments of Rs.20 each on the expiry of 5th, 6th, 7th, 8th & 9th year from the date of allotment of debentures.
1990 - 137,93,730 No. of equity shares allotted at par on conversion of Part-A of 12.5% debentures.
1991 - 137,93,730 No. of equity shares of Rs.10 each allotted at par on conversion of Part-B of 12.5% debentures. 1992 - The Automobile division introduced a new 20 tonne dumper with disc brakes & higher & improved power train to meet international specifications.
- Two new transmissions adopting caterpillar technology were introduced.
- The Comp. proposed to enter into a joint venture agreement with General Motors Corporation.
- During Nov./Dec. 1992, the Comp. offered 539,17,876 No. of equity shares of Rs.10 each for cash at a prem. of Rs.5 per share, prop. 1:1 [all were taken ups]. 2,97,732 shares were kept in abeyance.
1993 - A new version of Ambassador 1800 ISZ which has a power train manufactured at the company factory at Pithampur, M.P. based on Isuzu technology.
- Production at the auto division was only marginally higher due to production constraints in the later part of year. The division developed & indigenised a two litre diesel engine based on Isuzu technology.
- The joint venture between the Comp. & General Motors was launched. A joint venture agreement was signed & a new Company under the name General Motors India limited was incorporated with the Comp. having 50% stake.
1995 - A new joint venture with General Motors Corporation of US is launched in the name of General Motors India Limited.
- Company Power Product Division at Hosur received ISO 9001 certification. Comp. has introduced a new version of Ambassador [Amabassador 1800 ISZs] Car.
- Hindustan Motors Ltd., has launched its environment friendly compressed natural gas[CNGs]/petrol bi-fuel Ambassador car. The Comp. also has plans to introduce Ambassador & Contessa Classic cars fitted with catalytic converters, which will be suitable for lead free petrol in the four metros by 1 April.
- The passenger car division of Hindustan Motors Limited, has been awarded the coveted ISO 9001 certificate by Indian Register Quality System.
- The power products division of Hindustan Motors Limited [HMLs] has developed a prototype of fuel-efficient automatic transmission system which the Comp. wants to market to on-highway vehicles i.e., trucks & buses.
- Hindustan Motors Limited, the CK Birla flagship company, is all set to enter the small car segment.
- Hindustan Motors to make new earthmoving equipment called `blackhoe loaders'. The machine will be produced in technical collaboration with Fermec of UK.
- The Comp. entered into a technical collaboration agreement with Mitsubishi Motors Corporation, Japan for providing technical assistance to the Comp. for manufacture of Mitsubishi-Lancer Car.
- 86,432 shares were forfeited.
1996 - During the year, production suffered due to the stoppage of work by convoy drivers for about 71 days.
- The Contessa Classic model was phased out & a new Contessa 1.8 GLX with power steering, new seats and improved suspension was introduced. The Comp. also introduced Contessa 2000 CC Diesel.
- The Power Division of Comp. at Hosur produced more than 1000 numbers of transmissions.
- The Auto Marketing Division was awarded ISO 9001 certification during the year.
- The Comp. has entered into an agreement in October, with Fuel Management Systems Inc., USA for Multi-point Fuel Injection System for Isuzu petrol engines being manufactured at the Company Pithampur unit.
- The Comp. launched a project at Indore plant for manufacture of a Rural Transport vehicle in collaboration with Oka Motor Company of Australia.
- 33,900 No. of equity shares of Rs.10 each allotted during year.
1997 - The Comp. & the Association of Transport Contractors had entered into an agreement with the convoy drivers, whereby, they were assured of minimum driving of 4,600 km per month.
- HM has entered into a tie-up with Mitsubishi Motors Corporation [MMCs] for manufacture of 20,000 MMC Lancer passenger sedan cars annually at Chennai, competing with Esteem & Cielo.
- Hindustan Motors Ltd [HMLs] has signed memorandum of understanding [MoUss] with several leading vendors in the country including Lucas-TVS Ltd & Wheels India Ltd in the south & VS Ltd in the north for procuring auto components for its `Lancer MG41' car model.
- The Comp. set up another facility at Pondicherry for manufacture of smaller earth moving equipments in technical collaboration with Fermec of UK.
- Hindustan Motors Ltd in technical joint venture with the Australia-based OKA Motor Comp. will be launching its multi-utility vehicle christened HMRTV in July.
- The Comp. launched an improved version of Ambassador Diesel model with an improved engine.
- 525 No. of equity shares of Rs.10 each allotted during the year.
1998 - MRF Tyres Ltd, the country largest manufacturer of tyres has entered into an OEM partnership with Siel Honda Motors and Hindustan Motors.
- The board of Hindustan Motors Ltd [HMs] proposes to make a public offer of both equity and/or fully convertible debentures for an aggregate value not exceeding Rs.54 crore to the existing shareholders.
- Hindustan Motors Ltd., announced the launch of first Rural Transport Vehicle [RTVs] from its factory at Pithampur.
- Hindustan Motors [HMs] became the seventh automobile Comp. to sign the mandatory Memorandum of Understanding [MoUs] with the government for manufacture of Lancer passenger cars in collaboration with Japan Mitsubishi Motors.
- 2,57,570 No. of equity shares of Rs.10 each issued on rights basis [prop. 1:2s]. Another 6,400 shares kept in abeyance issued.
1999 - The Credit Rating Information Services of India Limited has downgraded the financial programmes of three major Calcutta-based companies, Hindustan Motors Limited, GKW Limited & Orient Paper & Industries Limited. Hindustan Motors Limited Rs 537.4-million fully convertible debenture issue has been downgraded by Crisil from 'A' to 'BBB'.
- Hindustan Motors Ltd [HMs] will sign a memorandum of understanding [MoUs] with Malaysia national car manufacturer Perusahaan Otomobil National Bhd, or Proton on Friday for assembly of Proton cars.
- MALAYSIAN automobile major Perusahaan Otomobil Nasional Berhad _ popularly known as Proton _ & Hindustan Motors Ltd [HMs] entered into an alliance for assembly & manufacture of Proton `Wira' model in India.
- Mahindra and Mahindra [M&Ms] has tied up with Hindustan Motors for sourcing Isuzu petrol engines to fit them on its utility vehicles.
2000 - Hindustan Motors launched two more variants of its Lancer model in a bid to strengthen its presence in the high-end car market. Launching the SFX & SLX variants here, the Comp. expects to sell about 10,000 units of Lancer.
- From January, the Mitsubishi Lancer is available in three versions - Lancer GLX, Lancer SLX & Lancer SFX.
- Visteon Automotive Systems, a fully-owned subsidiary of Ford Motor Company, has been chosen by Hindustan Motors to supply airconditioning parts to the Mitsubishi Lancer.
- The earthmoving equipment division of Hindustan Motors limited has received the QS 9000 certification. The certification was the first of its kind bagged by any manufacturer of earthmoving and construction equipment in the country.
- Crisil has withdrawn the ratings Automotive Axles & the Rs 53.74 crore FCDs of Hindustan Motors Ltd.
- The Comp. is selling its earthmoving equipment division to Caterpillar Inc. of the US. An agreement has been signed to sell the division to the American earthmoving equipment major.
- The Comp. has sold 504 Lancer units during December. The Company manufactures the Lancer in its Chennai facility under licence from Mitsubishi Motors of Japan.
2001 - Mr. A.C. Muthiah ceased to be a Director of compay w.e.f. December 19.
- The Comp. has sold off its earthmoving equipment divsion to M/s. Caterpillar India pvt Ltd., on 9th Februrary located at Pondicherry & Tiruvellur near Chennai.
- Hindustan Motor limited formally launched its rural transport vehicle [RTVs] model in the Maharashtra market.
- For car buyers who always wanted to own a dream machine on wheels, Hindustan Motors Ltd [HMLs] has now introduced its unique my Lancer initiative. Customers can now choose from a range of important features, such as a whole range of colour palette choices, types of wheels embellishments etc.
2002
-Firms up an arrangement with Ford India Ltd for supply of Engines & Transmissions to them in a phased manner.
-Decreases the spare part prices of Mitsubishi Lancer, the prices will be cut down at a range of 30-60% depending upon the spare parts.
-Launches a new pick-up vehicle in the two tonne segment in association with an Australia Company.
-Receives permission of Automotive Research Association of India for an LPG powered RTV.
-Launches Pajero, nation first imported utility vehicle rated at Rs. 33.85 lakh.
-Maruti Udyog Ltd, Daewoo Motors & Hindustan Motors enters into a tie-up with Rohan Automotive Equipments Pvt Ltd for supply & fitting of LPG dual fuel kits in cars.
-Regains its leadership position in the JD power Asia Pacific 2002 India Sales Satisfaction Index study.
-HM-Mitshubishi leads the List of Industries in the Sales satisfaction.
-General Motors awards a Letter Of Intent to the Comp. for supply of power units to be fitted into their new model of utility vehicles introduced by them.
-Appoints Mr Naresh Chandra as the Director on the Board of Company.
-IDBI nominates R Vasudevan as Director on the Board of Hindustan Motors.
2003
-Board decides to accept the offer in terms of public announcements to divest company holding of 18.00.000 shares in Hindustan powerplus Ltd.
-Embarks on exporting the CNG version of its old workhouse 'Ambassador' to Bangladesh
-Board decides to delist its ordinary stakes from the Delhi Stock Exchange.
-Enters into an alliance with Sundaram Finance, Ashok Leyland Finance & Bank of Punjab to offer loans for Ambassador car.
-Launches new car 'Ambassador Grand'
-Truncates its Pajero prices from Rs.33 lakh to Rs.17 lakh.
-Slashes the price of Mishubishi Lancer to Rs.6.5 lakh.
-Mr. Kranti Sinha has ceased to be the nominee of Life Insurance Corporation of India [LICs] but simultaneously has been co-opted as an additional director on the Board of Comp. in his individual capacity both w.e.f. December 15, 2003. Mr. Subhash Chandra Jain has been nominated by LIC on the BOD of Comp. as a rotational director w.e.f. from the said date.
-Hindustan Motors [HMs] has launched an upgraded range of premium mid-size car Lancer Invex
2005
-HM launches new variant of Lancer
- Launches `LPG Ambassador' on April 19, 2005 in Chennai.
2007
- Hindustan Motors Ltd [HMs] has inked a pact with Shriram Properties Ltd of Bangalore for development of an integrated IT township & an auto park in 314 acres of land specifically identified for purpose at Uttarpara & in accordance with the conditions laid down by West Bengal Government in its approval order dated September 13, 2006.
- Hindustan Motors limited has informed vide its letter dated September 19, 2007 that on resignation of Mr.G N Pareek, Comp. Secretary, Y Goenka has been appointed as the Comp. Secretary. The contact details are as follows:- Email ID: hmcosecy@hindmotor.com Telephone Nos: 033-2242-0932/0930.
