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Escorts Ltd. Company History and Annual Growth Details

1947

- After partition the Registered office of the Company was shifted from
Lahore to New Delhi. The name of the Company was changed from Escorts
(Agents) Pvt. Ltd., to Escorts Ltd. upon its conversion into a public
company.

1959

- The Company 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 Company has been functioning as a representative of well-known
foreign manufacturers like M.A.N. Company of the United States, Massey
Ferguson of the United Kingdom and Canada and several others.

- The Company has an all-round sales and service organisation and 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 and auxiliary engines. The Company has a network of
all-India dealers for sale of products manufactured by itself and by
its subsidiaries.

- Capital structure reorganised. Equity and 'A' Equity shares
converted into one class of Rs 10 each. 200 Pref. shares were
subscribed for. 2,000 Pref. and 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's option.

1960

- The Company commenced the manufacture of pistons and established at
Bahadurgarh, near Patiala, in collaboration with Mahle Komm-Ges Bad
Constatt, West Germany.

- The Company undertook a phased expansion of the installed capacity of
pistons from 7,21,000 to 10,80,000 numbers per annum and the installed
capacity of piston pins from 6,60,000 to 9,90,000 numbers per annum.

1962

- The Company commenced commercial production of X-ray equipment,
railway shock absorbers and heating equipments in technical
collaboration with the Westinghouse Trading Co. (Asia) Ltd., New York,
Eheimmetall GmbH, West Germany and Eltra K. G., West Germany
respectively.

1965

- The Company entered into a technical collaboration agreement for the
manufacture of transmission and gears for Escort tractors with
Motoimport Warszawal, Poland, by outright purchase of drawings.

- The Company 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 and 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 15-8-1981).

1970

- 580,608 Right Equity shares issued at a premium of Rs 4 per share in
the proportion 1:5.

1973

- The Company 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 (i) Farm
implements manufacturing plant, (ii) Bicycle assembly plant and (iii)
Raw material sold to support PVC plant.

1979

- The Company concluded an agreement with Andhra Pradesh Scooters Ltd.,
to produce Rajdoot motorcycles in their plants at Hyderabad for
distribution in Southern States. The Company 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 the year, Escort-355 tractor with three cylinder
and 47 HP engine was introduced.

1985

- The Company commissioned a project for the 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 and other
equipment for collection of bio-mass from straw and 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 Company issued 20,00,000-15% non-convertible
debentures of Rs 100 each for Rs 20 crores and offered them as rights
to its resident Indian equity shareholders. The Company 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 and the balance Rs 2.10 crores for normal capital expenditure.

1986

- The Company undertook expansion of the installed capacity of shock
absorbers to 15 lakh numbers, in technical collaboration with Bilstein
AG of West Germany. The Company 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 Company entered into a technical collaboration agreement with
Mercury Marine (Brunswick Group), U.S.A. for the manufacture of 24,000
outboard motors per annum.

- The Company established facilities for the manufacture of nearly
5,000 line sets of electronic telephone exchanges (EPABX) in
collaboration with Jeumant Schneider of France.

- The Company proposed to manufacture the fuel efficient Citroen 2
CV(6) car in collaboration with Citroen of France.

- During February 15% secured redeemable debentures of the aggregate
value of Rs 5 crores were privately placed with Army Group Insurance
Fund.

1987

- During June the Company 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 the Company as rights in
proportion 1 Deb.: 71 No. of Equity shares (all were taken up).

- Out of the remaining 7,00,000 debentures, the following debentures
were reserved for preferential allotment; (i) 50,000 debentures to
employees and working directors of the Company and (ii) 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 the Company
and 1,75,000 debentures to the public).

- As per the terms of the 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 and 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 and 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 share) on 31.12.1987 in
conversion of debentures.

1988

- 62,50,000 No. of Equity shares issued (prem. Rs 25/- per share) in
conversion of 12.5% debentures.

1990

- The Company 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 the 6th, 7th and 8th years from the date of allotment of the
debentures.

1994

- The new products i.e., 3 cylinder engine tractor and a 50cc Moped
were launched.

1995

- Escorts 40 H.P. and two models of Farmtrac, VIZ 50 and 60 H.P.
tractors were introduced. The Company combined all synagestic product
activities in Escorts group of companies into independent and
autonomous entities.

- Escorts Tractors Ltd. was merged with the company effective 1st
April. The shareholders issued 3 equity shares of the company for
every two equity shares of erstwhile Escorts Tractors Ltd. Accordingly
227,75,452 No. of equity shares of the company was allotted.

- Escorts JCB Ltd., Escorts Class Ltd., Escorts Automotive Ltd.,
Escorts Herion Ltd., Escorts Communications Ltd., Escorts Construction
Equipment Ltd., Escorts Finance Investments & Leasing Ltd. are all
subsidiaries of the Company.

- 27,04,226 No. of Equity shares (prem. Rs 130.17) allotted to
promoters on conversion of warrants. 22,775,452 shares allotted to
shareholders of erstwhile Escorts Tractors Ltd.

1996

- The Company proposed to set up a joint venture company with equity
participation from Mahle GmbH (Germany). Piston manufacturing activity
of the company was proposed to be transferred to the said joint venture
company.

- The Company has decided to form a joint venture to manufacture shock
absorbers. Company is at advanced stage of negotiations with M/s.
COFAP of Brazil.

- Company has decided to Spun off Escorts Hospital & Research Centre
into a seperate corporate entity.

- The Escorts Employees Ancillaries Ltd. 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 Ltd. at a price of Rs 33.33 per share.

1997

- The Company 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 Company has entered into a joint venture with Carraro SPA of
Italy and promoted a joint venture company under the brand name Carraro
India Ltd. 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
Ltd. 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 (EYML) 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 and 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 (HECL) a joint venture between Hughes
Network Systems Inc (HNS) and 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's V-sat based communications network as part
of the integrated solutions designed for its customers.

- Escorts Ltd. transport and 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 Ltd. (EYML), launched a brand new motorcycle,
the RXZ.

- Escorts Yamaha Motor Ltd (EYML), 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 and the Rs 1,650 crore Escorts ltd, has tied up
its entire debt with IFC Washington and Exim bank.

1998

- The company has signed an MoU with Long Manufacturing Inc.

- Close on the heels of the introduction of sporty look Yamaha RXZ late
last year, SMM Escorts and Escorts Yamaha Motor Limited (EYML), the
joint venture between Escorts Limited and the Yamaha Company Limited of
Japan have launched yet another new model - Yamaha RX-135 - in
Maharashtra.

- Escorts Limited, the flagship company of the Rs.3,500 crore Escorts
Group, which is engaged in the manufacture of tractors, has signed an
MoU (Memorandum of Understanding) with an American company 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's turnover declined to Rs.1319.70 crores due to depressed
market conditions.

- The Company launched a new 'Powertrac' range of tractors with vastly
improved engine performance, fuel consumption and meeting the emission
norms not only in the domestic markets but also complying with very
stringent EPA norms prescribed in the USA and other overseas markets.

- 10,96,672 No. of equity shares of Rs.10 each (prem. Rs.25 per share)
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 share) 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 and resulted in production loss.

2000

- The Company has approved the proposal to divest 24 per cent equity in
Escorts Yahmaha Motor Ltd (EYML), a joint venture between Escorts Ltd
and Yamaha Motor Co. (YMC), Japan, manufacturing a wide range of
motorcycles in India for the domestic market and exports.

- The Company has launched Esconet Services Limited. This company is a
100% subsidiary of Escorts Limited.

- The Company has launched its wheel type crop harvestor.

- ICRA has downgraded the rating assigned to the Rs 75-crore NCD
programme of Escorts Ltd. from 'MAA' to 'MAA+'. ICRA has retained the
'A1+' assigned to the Rs 75-crore commercial paper programme of EL.

- Yamaha Motor Escorts Ltd. the joint venture between Yamaha Motor Co.
Ltd. of Japan and the Delhi-based Escorts group, has launched a new
100cc four stroke motorcycle (Crux).

- The Company 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 the 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 (IT) infrastructure
related corporate solutions.

2002

-Escorts Ltd on July 12, 2002 announced the divestment of its equity in Escorts JCB Ltd & Escorts Class Ltd in favour of its joint venture partners, J C Bamford UK and Claas (Germany) 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 rates).

-Escorts Ltd has informed BSE that Mr Mantosh Sondhi, Director of the Company has expired on October 29, 2002.

2003

-Mr Jahar Sengupta, Director of the company 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 company 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 the Company. He will, however, continue to be a Director and Vice Chairman of the Company.

-Escorts Ltd has tied up with Bank of Baroda, Indo Farm Tractors & Motors Ltd to beef up agriculture lending

- Anil Nanda, vice-chairman of Escorts and 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.
 
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