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Hindustan Motors Ltd. Company History and Annual Growth Details

1942 - The Company was incorporated on 11th of February, at Baroda.

- The Company manufactures and Assembles Hindustan Ambassador cars,
Bedford trucks, lion diesel engines, Harion shovels, scrapers and
bulldozers, M.A.N cranes and 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 and the directors and
their friends for 24,00,000 No. of equity shares. Remaining
15,00,000 shares offered to public.

1959 - The company entered into an agreement with Universal Marion S.A.,
Switzerland and the Marion Power Shovel company for the
manufacture and sale in India of 93M crawler mounted diesel
powered excavators and components; with the Caterpillar Tractor
Company, USA, for the manufacture and sale of bulldozers and
scrapers; with M.A.N. Nuremberg for the manufacture and sale of
crane engineering products of M.A.N design in India.

1967 - The company entered into a collaboration agreement with the
General Motors Corporation, USA, for the manufacture of
earthmoving equipment at Trivellore.

1970 - 1,757 Right equity shares allotted out of previous Right issue
till March 1970 and 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's 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 company 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 the manufacture tyre mounted
mobile cranes (hydraulic telescopic boom) 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 Division).

- The company entered into an collaboration agreement with
Caterpillar Tractor Company (CAT) of USA for the manufacture of
earthmoving equipment. The 50 tonne dumper was launched in

1986 - There was also acute power shortage. During the year, crawler
tractors and 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

- 131,65,208 Bonus equity shares issued in prop. 1:1, as on

1987 - The company introduced during the year 85 tonnes dumper on
caterpillar technology.

- During August-September the company issued 3300000 - 14% secured

1988 - The company entered into an agreement with Birla Technical
Services Ltd (BTS) a unit National Engineering Industries Ltd.,
for services and supply of materials for modernisation of
Rourkela and Durgapur steel plants.

- Also, another agreement was entered into with Ricardo Consulting
Engineers, U.K. for modernisation of Ambassodor petrol and diesel
power trains.

- In addition, an agreement was entered into with Pragoti
Industries Ltd., Bangladesh for technical know-how for
manufacture of company's Hindustan Tractors in Bangladesh for a
period of 10 years. The company in joint venture with
Caterpillar Commercial N.V., Belgium incorporated a new company
at Tamil Nadu called Hindustan Power Plus Ltd.

- The Company had entered into collaboration with Twin Disc Inc.,
(TDI) 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 the Uteco, Ltd., was
changed to HM Export, Ltd.

- The Company 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

- Simultaneously 1,15,000 - 12.5% parly convertible debentures of
Rs.200 each were offered to employees (including working
directors)/workers of the Company 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-A) of the 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-B) of the 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-C) 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 and 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 and higher and improved power train to meet
international specifications.

- Two new transmissions adopting caterpillar technology were

- The Company proposed to enter into a joint venture agreement with
General Motors Corporation.

- During Nov./Dec. 1992, the Company 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 up). 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's 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 the year. The
division developed and indigenised a two litre diesel engine
based on Isuzu technology.

- The joint venture between the Company and General Motors was
launched. A joint venture agreement was signed and a new Company
under the name General Motors India Ltd. was incorporated with
the Company 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's Power Product Division at Hosur received ISO 9001
certification. Company has introduced a new version of
Ambassador (Amabassador 1800 ISZ) Car.

- Hindustan Motors Ltd., has launched its environment friendly
compressed natural gas(CNG)/petrol bi-fuel Ambassador car. The
company also has plans to introduce Ambassador and 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 the Indian Register
Quality System.

- The power products division of Hindustan Motors Limited (HML) has
developed a prototype of a fuel-efficient automatic transmission
system which the company wants to market to on-highway vehicles
i.e., trucks and 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 the UK.

- The Company entered into a technical collaboration agreement with
Mitsubishi Motors Corporation, Japan for providing technical
assistance to the company for the 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 and a new Contessa 1.8
GLX with power steering, new seats & improved suspension was
introduced. The company also introduced Contessa 2000 CC Diesel.

- The Power Division of the company at Hosur produced more than
1000 numbers of transmissions.

- The Auto Marketing Division was awarded ISO 9001 certification
during the year.

- The Company 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's Pithampur unit.

- The Company 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 company and the Association of Transport Contractors had
entered into an agreement with the convoy drivers, whereby,
they were assured of a minimum driving of 4,600 km per month.

- HM has entered into a tie-up with Mitsubishi Motors Corporation
(MMC) for manufacture of 20,000 MMC Lancer passenger sedan cars
annually at Chennai, competing with Esteem and Cielo.

- Hindustan Motors Ltd (HML) has signed memorandum of understanding
(MoUs) with several leading vendors in the country including
Lucas-TVS Ltd and Wheels India Ltd in the south and VS Ltd in the
north for procuring auto components for its 'Lancer MG41' car

- The company 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 Company will be launching its
multi-utility vehicle christened HMRTV in July.

- The Company 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's largest manufacturer of tyres has
entered into an OEM partnership with Siel Honda Motors and
Hindustan Motors.

- The board of Hindustan Motors Ltd (HM) 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

- Hindustan Motors Ltd., announced the launch of the first Rural
Transport Vehicle (RTV) from its factory at Pithampur.

- Hindustan Motors (HM) became the seventh automobile company to
sign the mandatory Memorandum of Understanding (MoU) with the
government for manufacture of Lancer passenger cars in
collaboration with Japan's Mitsubishi Motors.

- 2,57,570 No. of equity shares of Rs.10 each issued on rights
basis (prop. 1:2). 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 and Orient Paper
and Industries Limited. Hindustan Motors Limited's Rs
537.4-million fully convertible debenture issue has been
downgraded by Crisil from 'A' to 'BBB'.

- Hindustan Motors Ltd (HM) will sign a memorandum of understanding
(MoU) with Malaysia's national car manufacturer Perusahaan
Otomobil National Bhd, or Proton on Friday for the assembly of
Proton cars.

- MALAYSIAN automobile major Perusahaan Otomobil Nasional Berhad
_ popularly known as Proton _ and Hindustan Motors Ltd (HM)
entered into an alliance for the assembly and manufacture of
Proton's 'Wira' model in India.

- Mahindra & Mahindra (M&M) has tied up with Hindustan Motors for
sourcing Isuzu petrol engines to fit them on its utility

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 and SLX variants here, the company expects to
sell about 10,000 units of the Lancer.

- From January, the Mitsubishi Lancer is available in three
versions - Lancer GLX, Lancer SLX and 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 Ltd. 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 and the Rs 53.74 crore FCDs of
Hindustan Motors Ltd.

- The Company 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 Company 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 the compay w.e.f. December 19.

- The Company has sold off its earthmoving equipment divsion to M/s. Caterpillar
India pvt Ltd., on 9th Februrary located at Pondicherry and Tiruvellur near Chennai.

- Hindustan Motor Ltd. formally launched its rural transport vehicle (RTV) model in the
Maharashtra market.

- For car buyers who always wanted to own a dream machine on wheels, Hindustan Motors Ltd (HML) 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.


-Firms up an arrangement with Ford India Ltd for supply of Engines and 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 the Automotive Research Association of India for an LPG powered RTV.

-Launches Pajero, nation's first imported utility vehicle rated at Rs. 33.85 lakh.

-Maruti Udyog Ltd, Daewoo Motors and Hindustan Motors enters into a tie-up with Rohan Automotive Equipments Pvt Ltd for supply and 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 company for the 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 the Company.

-IDBI nominates R Vasudevan as Director on the Board of Hindustan Motors.


-Board decides to accept the offer in terms of public announcements to divest company's 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 and Bank of Punjab to offer loans for the 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 (LIC) but simultaneously has been co-opted as an additional director on the Board of the Company in his individual capacity both w.e.f. December 15, 2003. Mr. Subhash Chandra Jain has been nominated by LIC on the BOD of the company as a rotational director w.e.f. from the said date.

-Hindustan Motors (HM) has launched an upgraded range of the premium mid-size car Lancer Invex


-HM launches new variant of Lancer

- Launches 'LPG Ambassador' on April 19, 2005 in Chennai.


- Hindustan Motors Ltd (HM) has inked a pact with Shriram Properties Ltd of Bangalore for the development of an integrated IT township and an auto park in 314 acres of land specifically identified for the purpose at Uttarpara and in accordance with the conditions laid down by the West Bengal Government in its approval order dated September 13, 2006.

- Hindustan Motors Ltd. has informed vide its letter dated September 19, 2007 that on resignation of Mr.G N Pareek, Company Secretary, Y Goenka has been appointed as the Company Secretary. The contact details are as follows:- Email ID: hmcosecy@hindmotor.com Telephone Nos: 033-2242-0932/0930.


- In order to provide financing for its new mini truck 'HM - Shifeng Winner', Hindustan Motors Ltd has signed a three-year pact with Punjab National Bank (PNB) wherea under the MoU, PNB would provide easy and attractive finance schemes for three years to customers purchasing the 'Winner'.
Oct 27, 3:53 pm
Oct 27, 4:14 pm
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