History of LML Ltd.
YEAR EVENTS 1972 - The Comp. was Incorporated on 1st May, at Kanpur. The Company manufacture finished leather & processing of synthetic yarn.
1975 - The Comp. undertook the manufacture of highly sophisticated machinery required for man-made fibre industry like crimping machines, draw texturising machines, assembly twisting machinery, uptwisting machine, tow to top conversion equipment, screen printing carriages, etc.
1977 - All shares allotted to promoters, directors etc.
1979 - Allotted 54,000 No. of Equity shares to directors & 47,450 No. of Equity to SIT on 30.7.1979. 49,750 No. of Equity shares allotted otherwise. 48,800 No. of Equity shares allotted to Goldrock Investments, limited 4,60,000 Bonus Equity shares then issued in prop. 4:5 on 3.10.1979.
1980 - Allotted 54,000 No. of Equity shares to directors & 47,450 No. of Equity to SIT on 30.7.1979. 49,750 No. of Equity shares allotted otherwise. 48,800 No. of Equity shares allotted to Goldrock Investments, limited 4,60,000 Bonus Equity shares then issued in prop. 4:5 on 3.10.1979.
1981 - Suryodaya Investment and Trading Co. Ltd., offered out of its holding certain number of equity shares as rights at par to the existing shareholders, who were holding upto 50 No. of equity shares in the following manner: [is] 8 No. of equity shares for every 25 No. of equity shares held & [iis] 5 No. of equity shares for shareholders holding 26 to 50 No. of equity shares.
1982 - [15 monthss] the Comp. installed one magnetic crimping machine which increased the production capacity of yarn processing unit to 3 tonnes per day. A rapid dyeing plant was also installed to increase the production of texturised dyed yarn.
- The Twister Machines Division was started for manufacture of twisting machines such as two-for-one uptwister, assembly twister, etc., in collaboration with Verdol SA, France, Lezzeni Mario, Italy, etc.
- The Comp. issued 2,82,500-13.5% secured convertible debentures of Rs 200 each during September. Rs 70 out of each debenture was converted into 7 No. of equity shares of Rs 10 each at par at in November 1983. The balance Rs 130 per debenture was to be redeemed as follows: [is] Rs 50 at the expiry of 7th year; [iis] Rs 40 at the expiry of 8th year & [iiis] Rs 40 at the expiry of 9th year.
- The Comp. issued 8,00,000 - 13.5% partially convertible debentures of Rs 125 each to meet part of cost of VESPA XE scooter project. A portion of Rs 10 of each debenture was converted into one equity share of Rs 10 each at par on the expiry of 6 months from the date of allotment. The residual amount of Rs 115 each was to be redeemed in three instalments of Rs 40, Rs 40 & Rs 35 on 4th August of 1991, 1992 & 1993.
1983 - The Engineering Division fabricated & supplied a part of plant & machinery required for Nylon-6 chips project.
- The Comp. received industrial licences to manufacture 10 Nos. draw winders & 400 Nos. spinning frames per annum. DGTD registration was received to manufacture 30 Nos. metal cutting including grinding machines & special purpose machines per annum. Spinning & take-up equipment was also added in the licence to manufacture tow to top conversion equipments. The Comp. initiated effective steps for implementation of these projects.
- The Comp. received letters of intent to manufacture additional 2,00,000 scooters as well as 50,000 three-wheelers per annum. Government approval was received for technical collaboration with Piaggio and C.S.P.A., Italy for manufacture of three-wheelers.
- 19,77,500 No. of Equity shares allotted in conversion of debentures. 19,95,000 No. of equity shares allotted as Rights [Prop. 21:12; prem. Rs 2.50 per shares].
1984 - To implement the licences, a new Comp. was incorporated under the name & style of Vespa Car Comp. Limited during the year. This new Comp. is a sub-licencee, for scooters & a large number of components were to be supplied to the new Comp. by the company.
- 20,91,018 No. of Equity shares issued in conversion of debentures of i & II series.
1985 - The Comp. offered 9,09,090 - 13.5% partly convertible debentures of Rs 110 each to the equity shareholders of the Comp. on a right basis in the proportion of 2 debentures: 25 equity.
- A portion of Rs 10 of each debenture was convertible into one equity share of Rs 10 each at par on the expiry of 6 months from the date of allotment. 2,27,272 additional debentures were allotted to retain over-subscription. The residual amount of Rs 100 was to be redeemed in three instalments of Rs 35, Rs 35 & Rs 30 on 31st October of 1992, 1993 & 1994.
- Preference shares redeemed. 73,020 shares allotted on extinguishment of debs. of series I. 11,72,578 shares issued at par in conversion of III and III series debs. Another 37,000 shares issued. 40,00,000 Rights shares issued [prem. Rs 80 per share; prop. 7:16s].
1986 - The Comp. introduced LML models name LML Vespa, NV3, Alfa, T5 and 4W. To restructure the Company activities of Scooter and Synthetic yarn manufacturing, the undertakings of Fibre division was transferred to one of wholly owned subsidiary' companies, viz. LML Fibres, limited with effect from close of business on 31st July, 1987.
- Preference shares redeemed. 73,020 shares allotted on extinguishment of debs. of series I. 11,72,578 shares issued at par in conversion of III and III series debs. Another 37,000 shares issued. 40,00,000 Rights shares issued [prem. Rs 80 per share; prop. 7:16s].
1987 - The Name of Comp. was changed from Lohia Machines, limited to LML limited with effect from 6th May.
1988 - The Comp. proposed to implement the scheme of Indeginisation to bring about cost reduction.
- 75,00,000 Rights shares issued at par in prop. 5:9. Only 30,08,740 shares taken up.
1989 - The Company joint venture agreement with Piaggio V.E., SPA, Italy for participation in the Company equity & in the management reached its final stage of settlement during the year.
- LML Fibres, limited Prakti Synthetics, Ltd., & Anurag Synthetics limited are subsidiaries of Company. During 1990-91 LML Fibres, limited & Prakti Synthetics, limited ceased to be subsidiaries of the Company.
- A detailed proposal for revival & organisational/financial restructuring of Company, its subsidiaries & its sister concern Vespa Car Co. limited was submitted to financial institutions/banks.
1990 - The Company operations were affected by political instability, foreign exchange crisis & severe credit squeeze.
- Unsubscribed portion of Rights issued allotted in 1989/90 and 1990/91 [9,17,121 shares to foreign collaborators & 35,74,139 Shares to promoters etc.s]. Another 74,11,700 shares allotted at par to collaborators.
- LML Fibres limited & Prakti Synthetics limited ceased to be subsidiaries of Company.
1991 - The working results were adversely affected mainly due to the recession that prevailed in the automobile industry.
- 76,600 Shares allotted at par to foreign collaborators. In March 100,80,000 shares offered at par as follows: [96,00,000 shares as Rights in prop. 1:3 [all taken ups] & [iis] 4,80,000 shares to the employees of Comp. [only 1,46,153 shares taken ups]. 3,33,847 shares not taken up by employees allowed to lapse. 31,62,000 shares allotted at par to financial institutions upon conversion of lonas on 23.3.1992. [6,50,300 shares to IFCI; 15,04,700 shares to IDBI; 6,50,000 shares to ICICI & 3,56,700 shares to IRBIs].
1992 - The Comp. introduced during September a new range of highly fuel efficient scooters.
1993 - The Comp. launched a diversification-cum-expansion project involving a capital expenditure of Rs 204 crores as appraised by IFCI, which will be funded by term loans from Banks & Financial Institutions, lease finance, increase in share capital through public & Rights issue & internal accruals.
1994 - The Comp. undertook an expansion project to increase the capacity to 6,00,000 vehicles per annum as well as diversification of product range.
- The name of subsidiary has been changed from Anurag Synthetics limited to ASL limited ASL limited ceased to be a subsidiary of the Comp. with effect from 27.09.1997.
- 3,30,847 No. of Equity shares was cancelled by Board.
- The Comp. has launched the Diversification-cum-Expansion project involving a capital expenditure of Rs. 204 crores as appraised by IFCI.
- The Company Research & Development Wing is also adapting and absorbing the technology under transfer from its Collaborators.
1995 - Two new models of scooters - SUPREMO & STAR were introduced in the upper & middle price segments & well accepted in the market.
- The Comp. has entered into a new Joint Venture arrangement and executed several agreements, alongwith Piaggio & Indian Promoters.
- The Comp. proposes to make a Rights/Warrants issue, term loans from Financial Institutions & Banks, internal accruals, leasing etc.
1996 - The Comp. launched 125 cc scooter `Sensation' during the year.
- During the year under review, with the completion of first phase of expansion, the Comp. has achieved increase in its production capacity from 200000 units to 300000 per annum.
- The Comp. has entered into Several Licence Agreements with Piaggio of Italy for import of technology & know-how to manufacture new models of Scooters & other two wheelers in different segments.
1997 - LML manufactures only scooters but has access to collaborator Piaggio technology.
- LML Limited has launched its latest model - Star, the fuel efficient, 150 cc two stroke engine which boasts of several unique features for first time in the Indian scooter industry.
- LML & Asian Paints are set to enter into a joint venture to introduce a pay-by-scooter concept.
- LML was formed in joint venture between the Kanpur-based Singhanias & the Italian Scooter giant Piaggio.
- LML has entered into a buy-back agreement with Piaggio to manufacture two-wheeler engines of various capacities for the Italian firm.
- LML Ltd, the second largest scooter manufacturer in the country with more than 30 per cent market share, has decided to advance the launch of its motorcycles from 1999 to the last quarter of 1998.
1998 - LML Ltd has set up the first of its six planned service training centres outside Kanpur at Noida near Delhi.
- LML launched a unique facility, Tollfree helpline, for customers in Delhi offering assistance & information on its top of the line scooter Supremo 98.
- The Comp. has set up additional lines for enhancing capacity & introducing new models.
- The Comp. is set to double its capacity to 8,00,000 numbers by 2000 AD.
- The Comp. had set up a new electric starter plant in Kanpur as the Comp. intends to make electric start a standard feature of all new vehicles, including the four motor cycles.
- The Kanpur-based LML Ltd is sewing up a comprehensive agreement with its Italian joint venture partner, Piaggio, to ensure that the latter buys back a specified amount of components, CKD kits or complete two-wheelers manufactured in India.
- LML Ltd has launched scooterette `Trendy', the first from the stable of Singhanias without support from their Italian joint venture partner Piaggio.
- Piaggio established its presence in the Indian two-wheeler market, in its collaboration with LML, by bringing in a number of models of its famous brand of scooters.
1999 - Leading two-wheeler manufacturing LML will launch its first 60 cc scooterette Trendy in the Delhi.
- LML Ltd, Carrier Aircon & Vesuvius India Ltd -- have failed to sign up with the depository on time to enable their institutional shareholders to dematerialise the shares of the companies.
- Italian scooter-maker Piaggio has decided to exit from its joint venture LML Ltd.
- Italian auto manufacturer Piaggio and CSPA is contemplating setting up a fully-owned subsidiary in India to manufacture the entire range of two-wheeler vehicles, ranging from mopeds to motorbikes, in addition to its recently launched big scooter X-9.
- The 100-cc model proposed to be launched by LML is akin to Kinetic Honda scooter.
- LML has already entered into a collaboration with Daelim of Korea for motorcycles.
- The Comp. launched new two wheelers, & has recently introduced 'Xpress 5' engine [which is based on reed valve induction technologys], on its 150 cc scooters.
- The Comp. undertook implementation of `JUST IN TIME' [JITs] system of inventory management.
- Piaggio has also issued a letter to the Comp. purporting to terminate the Joint Venture Agreement & various other agreements, to which Comp. is a party.
2000 - Castrol India, subsidiary of lubricant major Burmah Castrol Plc, has entered into strategic alliances with leading Indian automobile companies like Telco & LML Ltd to introduce its customised products.
- ICRA has assigned `A1' rating to the company commercial papers for Rs. 10 crores.
- The Comp. is to hive off the IT department of company including Computer Design Aided activities to its subsidiary/corporate body.
- The Comp. has proposed a preferential issue to the Indian promoters and/or their nominees at Rs 40 per share. 22.17 lakh shares shall be issued to the Indian promoters, which will increase their stake in the Comp. from 47.21 per cent to 49.89 per cent.
- Two wheeler major LML has chalked out a major organisational revamp entailing the 'transfer' of its information technology division in order to 'emerge as a flatter organisation' through manpower rationalisation.
- The Comp. has moved towards launching mobikes. To test market the new products, Adreno 100 cc & Energy 100 cc, LML has placed a dozen of them in the Kanpur market & will be introducing two other models this fiscal.
- LML Ltd is tying up with a Chinese two-wheeler manufacturer to make scooterretes an step-thrus.
- The Comp. besides its existing tie-up with Daelim of South Korea for two-wheelers, is looking at forging technical alliances with two other companies.
- The Board of Directors has allotted 22,16,067 equity shares of Rs.10 each at a premium of Rs.30 per share to the Indian promoters & their nominees on preferential basis. The paid up equity share capital of Comp. has increased from Rs.4143.95 lakhs to Rs.4365.56 lakhs.
- The Company 132-KV main power station has been recommissioned. The power station had tripped & suffered damage on August 30.
2001 - The Company 4-stroke motorbikes `Adreno' & `Energy' have been launched all over ndia during January, 2001.
2002
-Appointed Mr siromani Sharma as the Additional Director on the board of company.
-Releases a new version of 110 cc mobike price tagged at Rs.30,000 named 'Freedom'.
-Board decides to voluntarily delist the equity shares from Delhi Stock Exchange.
-Appoints Mr Dasu Govind Prasad as the Nominee Director of Export-Import bank of India.
-Purchases 50000 equity shares of Rs.10 each at par of its subsidiary Comp. Perfect Polycons Ltd.
2003
-Board approves the cessation of Perfect Polycons as its subsidiary.
2004
-Equity shares of Comp. delisted from Ahmedabad Stock Exchange [ASEs] w.e.f. January 16, 2004
-Lml limited has informed that pursuant to the application of Comp. for voluntary delisting of its equity shares from Delhi Stock Exchange Assn. limited [DSEs], the DSE has vide letter dated January 20, 2004 confirmed, the delisting of equity shares of Comp. from its Exchange wef January 23, 2004.
- LML launched two motorcycles & one variant in three different segments to boost sales & diversify product portfolio.
- Ropes in Sharukh Khan as brand ambassador
2006
-LML ancillary rolls out 3 wheeler as SA
2008
- LML Ltd has informed that Board for Industrial and Financial Reconstruction [BIFRs] under the provisions of Sick Industrial Companies [Special Provisionss] Act, 1985, has appointed Mr. K K Shangloo as Special Director on the Board of Comp. with immediate effect.
