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Eicher Motors Ltd. Company History and Annual Growth Details

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

- (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, retractable
footsteps, 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

- 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.


-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).


-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


-Arisaig Partners (Asia) Pte. Ltd. acquires Eicher Motors Shares through open market.

--SBI partners with Eicher Motors on December 27, 2004


-Eicher Motors enters into definitive agreements with TMTL on May 27, 2005

-Eicher Motors acquires DESIGN, USA

-Eicher buys US design company for $2.5m


- 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


-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.


- Eicher Motors Ltd has appointed Mr. Prateek Jalan as an Additional Director on the Board of Directors of the Company.
Oct 28, 3:45 pm
Oct 28, 3:39 pm
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