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Premier Ltd. Company History and Annual Growth Details

1944 - The company was incorporated on 1944 at Mumbai. The main
objective of the company is to manufacture passenger cars, trucks
and bus chassis, industrial/marine engines and air conditioners.

1956 - Equity 'B' shares converted into Equity 'A' shares. During the
period 1950-195, 1,236 shares taken up.

1959 - 277 shares subscribed for during 1956-59. 7,387 shares were
allotted in conversion of debentures.

1960 - During 1959/61, further 1,46,373 debentures converted into
shares. In February 1960, 1,84,600 Rights shares issued at par
in the proportion 1:2.

1962 - Further 6,043 shares issued in conversion of debentures. 271
shares subscribed for. In April, 1,87,237 Right shares offered
(prem. Rs. 10 per share; prop. 1:3) Only 47,000 shares were
allotted by June.

1963 - During the year, further 12 shares issued in conversion of
debentures. Further, 1,39,232 shares out of the 1962 issued
allotted. The shares were fully called-up by 1st February 1964.

1964 - Further 39 shares allotted during 1963 and 161 shares allotted
during 1964 out of the 1962 issue.

1970 - Technical collaboration agreements with North American Rockwell
Corporation for axle and components manufacture and that with
Fiat S.P.A., Italy expired on 30th September and 30th June.

1972 - The collaboration agreement wth Chyrsler Corporation for the
manufacture of commercial vehicles expired on 31st December.

1980 - During Government approval was received for foreign collaboration
and for import of capital goods for improving fuel economy of the
engine as well as upgrading of Premier Padmini car through
adoption of Fiat 124 car body on the existing power train.
Simultaneously, another project was undertaken for modernisation
(phase-II) and shifting of car assembly plant to Dombivli at an
estimated cost of Rs. 28.5 crores. Subsequently technical
documentation for the new model car was received from foreign

1981 - 40 Forfeited shares either reissued or forfeiture on them
annulled. 60,000 shares allotted on conversion of
loans/debentures. 13,000 shares to IDBI on 18.4.1982; 15,000
shares to ICICI on 28.4.1982; 13,000 shares to UTI on 28.4.1982;
6,000 shares to IFCI on 1.5.1982 and 13,000 shares to LIC on

1983 - During the licensed capacity was augmented from 18,000 to 28,600
passenger cars per annum.

1985 - The Company received an endorsement on its license from the
Government increasing its licensed capacity to 50,000 vehicles.

- The Company revalued its freehold land, buildings, plant,
machinery and equipment as on 30th June, and the net surplus of
Rs. 7,01,125 lakhs was credited to revaluation reserve.

1986 - In recession in the automotive industry affected the overall
working of the Company. The situation was aggravated by the
unfair competition in terms of discriminatory benefits offered
to passenger car units in the public sector.

- As a part of its phased manufacturing programme towards
indigenisation, the Company proposed to implement various
projects for the manufacture of 118 NE with transmission and FNM
diesel engine.

- The Company acquired the facilities including technical
collaboration agreement with Technolicence Ltd., U.K. from
Walchandnagar Industries, Ltd., for the manufacture of automotive
diesel engines of Frateli Negri Machine (FNM), Italy. Padmini
cars fitted with diesel engines performed well in the test

- Capital reclassified. 80,94,910 bonus equity shares then issued
in prop. 1:1.

1987 - On 2nd August, the Company acquired the machine tool division of
Walchand Industries Ltd., Chinchwad, a unit in collaboration with
reputed companies of Japan and W. Germany. This Acquisition of
Machine Tool, well equipped to manufacture a range of machine
tools including computerised numerical control machines and
special purpose machines, had been exporting regularly to USA,
UK, USSR, etc.

1988 - During Government finally rejected an application made by the
Company to manufacture 'SUNNY' model cars of Nissan of Japan.

- During August/September, the Company offered 20,00,000-14%
secured redeemable non-convertible debentures of Rs. 100 each for
cash at par on rights basis in the proportion 1 debenture: 8
equity shares. All were taken up.

- The debentures were to be redeemed at a premium of Rs. 5 per
debenture in 3 yearly instalments from the expiry of 6 years from
the date of allotment of debentures.

- 53,89,940 Right shares issued (Prem. Rs. 7.50 per share) in prop.
1:32. 2,69,497 shares offered to employees. Additional 8,43,922
shares allotted to retain oversubscription.

1989 - The Company's diesel car was supplied on a fairly regular basis
to the taxi trade during the year.

- During the Company tied up with AVL of Austria and Power Design
Intra (PDI) of USA. AVL were to assist in upgrading the Padmini
engine for better fuel economy, improved rated output of
horsepower and torque, improved emission control, etc. PDI were
to assist in improving the aerodynamic features, reduction of
body weight, increase in safety and comfort of occupants and
general restyling to enhance the interior and exterior

1990 - Profitability was adversely affected due to increase in excise
duty, rise in interest burden and devaluation of rupee coupled
with discrimination of Government between Maruti Udyog Ltd. and
rest of the automobile manufacturers. During the year,
production operations at Kural suffered a set back for few days
due to floods in June 1991.

- The Company entered into an agreement with M/s. Dorries Scharmann
GmbH, Germany for the manufacture of CNC Vertical turning centres
in the machine tools division at Chinchwad near Pune.

1991 - During the year, the Wadala plant was closed down.

1992 - During March, the company issued 25,00,000-19% secured redeemable
non-convertible debentures of Rs. 100 each at par to financial
institutions on private placement basis. These debentures were
to be redeemed at a premium of 5% in 3 yearly instalments from
the expiry of 6 years from the date of allotment of debentures.

1993 - Company successfully installed diesel engine on the 118 NE car
and the version was given a new name viz., 1.38 D. The
synchromesh transmission which has been a common feature of 118
NE model car, was also introduced on the Padmini Cars.

- In addition, improved petrol engines developed with technical
assistance of AVL Austria was introduced in Padmini Cars. The
machine tool division developed new attachments to the various
machine tools manufactured such as automatic pallet changes,
automatic tool changes, rigid tapping attachment, through
coolant attachment etc.

- During the Company entered into a joint venture agreement with
Automobiles Peugeot of France to manufacture their model 309 car
in India. In due course of time, the equity base of the said
Company was to be enlarged and name changed to PAL Peugeot Ltd.

- During the year, the Company entered into a technical
collaboration agreement with Fiat Auto Spa., Italy for
manufacture of model UNO Car at the Company's Kurla plant. With
this in view, the Company envisaged an appreciable rehabilitation
and modernisation of the existing facilities including the paint
shop at Kurla Plant.

1994 - The machine tool division developed CNC gear tooth chamfering
machine, special CNC turning machine for wheel rim etc.

- During the machine tool division entered into a technical
collaboration agreement with Hermann Pfauter of Germany to
manufacture CNC gear hobbing machine Model PE 250 in the country.
A team of engineers was deputed to Hermann Pfauter works to
obtain the knowledge of production techniques, fabrication
procedure as also inplant training.

- During October the company issued 33,94,664 warrants at Rs. 52.25
per warrants to promoters with an option to convert them after 18
months from date of allotment. The company allotted 33,94,664
No. of equity shares of Rs. 10 each at a premium of Rs. 42.25 per
share to promoters on conversion of warrants.

- PAL Hire Purchase, Ltd. is a wholly owned subsidiary of the
Company. Kalyan Motors Company Ltd. became a subsidiary of the

1995 - Equity shares fully paid-up.

1996 - UNO cars were launched on 5th January. During the year, the
Company had to suspend the production of Padmini petrol cars
pending certain modification to meet the new emission norms
introduced effect 1st April. Some of the attachments developed
to the various machine tools manufactured were, pick-up station
for right angle attachment and 400 mm dia milling cutter on
horizontal machining centre, ring type autoloader on gear
shaping machine, state-of-the-art CNC systems like NUM1060,
Siemens 840C and Fanuc 0 in machining centres and gear hobbing
machines etc.

- The operations of the Auto division were adversely affected due
to the demand recession in the passenger car industry coupled
with financial difficulties caused by the lock-out at the

- Modifications and improvements were carried out in the power
train for both Padmini diesel and petrol models to meet
stringent requirements in central motor vehicles rules (CMVR)
with regard to exhaust omission, crank case emission and safety
nors. Synchromesh transmission which is fitted on 118 NE, was
introduced on both Padmini diesel and petrol models. During the
year, the machine tools division developed vertical turning
lathe, special propose gap milling machines, CNC gear hobbing
machines, CNC gear tooth, rounding chamfering machine and 3 Axes
CNC gear shaping machines.

- During machine tool division signed a MOU with Comars, Italy for
marketing and developing components for their high speed centres
in India.

- 3,394,664 shares issued to promoters.

1997 - To reduce the dependence on imports and to achieve reduction in
costs, the Company undertook expenditious indigenisation of UNO
Cars and indigenisation of 55% was expected to be achieved by the
end of June.

- During the year, the Company had localised wheels, wheel caps,
jacks, seats, tyres horns, batteries etc. The Company introduced
the synchromesh transmission on Premier Padmini Diesel. Also,
PP137D car with bucket seats were introduced.

- Company's automobiles business at Kurla was transferred to Ind
Auto Ltd. as a going concern effective from 29th September.

- Ind Auto Ltd. is the joint venture company in which Fiat Auto,
Italy through its Indian subsidiary FIAL holds 51% of the equity
capital while PAL holds 49%.

- Another collaboration agreement was entered into with Hermann
Pfauter of Germany to manufacture CNC gear hobbing machine, model
PE 250 in India.

2000 - Premier Auto Electric Ltd (PAE) has acquired from PAL Credit &
Capital Ltd 2,39,950 No. of equity shares of Rs. 10 each of the
company, representing 0.92 per cent of the share capital of the
company. The holding of PAE in the company will be 5.86 per cent

- PAL has entered into an agreement with a Mitsubishi Motor Group
company China Motor Corporation of Taiwan - to foray into the
light multi-utility vehicle (MUV) segment from its now-defunct
Kalyan facility.

2001 - PAL has entered into an agreement with China Motor Corporation of Taiwan to
manufacture a lightweight van called 'Varica' in India.


-Rolls out of a multi-purpose vehicle late last year, Premier Automobiles Ltd on January 24, 2005

-Premier Auto rolls out Sigma, Roadstar on Feb 10, 2005


-Premier Ltd has appointed Mrs. Kavita Khanna as Director.

Oct 26, 12:00 am
Oct 26, 4:14 pm
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