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Rico Auto Industries Ltd. Company History and Annual Growth Details

1983 - The Company was Incorporated on 1st February, at Jalandhar. The
Company was promoted by Arvind Kapur and Arun Kapur of the RICO
Group of Companies. The Company's object is to manufacture of
automotive parts, tractor parts and auto electrical parts.

1984 - 1,000 shares subscribed for by promoters etc. and 50 shares taken
up by employees of the RICO group.

1985 - 12,98,950 shares issued at par of which 4,16,450 shares to
promoters, directors, etc. and 1,30,000 shares to HSIDC were
reserved and allotted on a firm allotment basis. Out of the
remaining 7,52,500 shares, the following shares were reserved and
allotted on a preferential basis:

- (i) 65,000 shares to employees and

- (ii) 15,050 shares to business associates of the Company. The
balance 6,72,450 shares were offered to the public in December.
3,25,000 additional shares allotted to retain oversubscription
(1,99,518 shares to public, 1,02,550 shares to promoters,
directors, etc. and 22,932 shares to employees and business

1986 - The Company undertook to set up a project for the manufacture of
rear hub wheels and front hub wheels as an ancillary unit to
Hero Honda Motors Ltd.

1987 - The Company commissioned its project for the manufacture of
50,000 nos. gear oil pump for Maruti Udyog Ltd., 32,000 sets of
frames and housing for Shriram Honda portable generator sets and
1,20,000 rotor oil filters for Hero Honda.

- A letter of intent was received for the manufacture of valve
rocker arm, case differential and Retainer input shaft.

1990 - With a view to further expanding its capacity, the Company
acquired land for setting up Unit-II near Gurgaon for manufacture
of components for Maruti Cars as well as to set up specialised
facilities for export market.

- The Company proposed to undertake promotions of a new company
RICO AGROILS LTD. (RAL) for setting up a solvent extraction unit
of over 300 TPD cost of Rs.9.50 crores was to use soyabean as the
main raw material.

1991 - In addition, the Company's project for the manufacture of clutch
friction disc in collaboration with F.C.C. Ltd., Japan was
expected to go on stream by November/December. The product was
to serve import substitution.

1992 - The Company had decided to promote Rico Agroils Ltd. (RAL) with
our participation at 26% of the equity.

1993 - The Company reached a landmark by being the first automobile
component manufacture to obtain the ISO 9002 certification from

- Significant progress has been achieved in the setting up of a
'state-of-the-art' Spheroidal Graphite (SG)/Grey Iron Foundry at
Gurgaon, Haryana with an installed capacity of 1200 TPA.

- During October-November, the Company issued 8,12,500 - 17%
non-convertible Debentures of Rs.75 each with a detachable
warrant with each debenture on Rights basis in prop. 1 deb : 2
equity shares held (all were taken up). 50 debentures were kept
in abeyance. Each warrant entitles the holder to apply for 1
equity share of Rs.10 each at a prem. of Rs.30 per share between
18 to 24 months from the date of allotment of debentures.

- During October-November, the Company issued 1,80,000 No. of
equity shares of Rs.10 each at a prem. of Rs.30 per share on
preferential basis to members of the promoter group of company.

- 16,25,000 Rights equity shares of Rs.10 each issued (prop. 1:1
prem. Rs.30). 100 shares kept in abeyance. 1,80,000 shares of
Rs.10 each allotted at a prem. of Rs.30 per share on private
placement basis.

1994 - The overall working was excellent due to the additional
capacities created in the expansion programme.

- To cater to the stringent OE Standard and to develop intricate
castings and components for present day generation automobiles,
a development department was set up.

- Hero Honda Ltd., would purchase 100% of their requirements from
the company and the balance production would be supplied to other
2 and 3 wheeler industries.

- The Company took up a project for the manufacture of 4,00,000
nos. per annum of clutches in technical collaboration with Fuji
Chemical Co. Ltd.

- 10,00,000 No. of equity shares of Rs.10 each issued to promoters,
their relatives etc. (Rs.3 per share called up).

- The Company's Rights Issue of 18,05,000 (including preferential
offer of 1,80,000 Equity Shares to promoters) to Rs.10/- each at
a premium of Rs.30/- per share and 8,12,500, 17% Secured Non
Convertible Debentures (NCDs) of Rs.75/- each wth detachable
warrants was overwhelming.

1995 - As a part of expansion cum diversification, the company proposed
to set up a joint venture company with Daewoo Precesion
Industries Ltd., Korea as a single source OE supplier for Daewoo
in India and to emerge as an OE supplier to Daewoo Car
manufacturing units in other countries as well.

- 812,450 No. of equity shares (prem. Rs.30) allotted against
conversion of warrants.

1996 - The Company has entered into a JV agreement with Daewoo Precision
Industries Ltd. (DPI), Korea, a leading auto component
manufacturer within the Daewoo Group.

1997 - The Company also entered into a Joint Venture Agreement with FCC
Co. Ltd. the largest manufacturers of clutches in Japan and OEM
supplier to such well known names as Honda, Yamaha and Suzuki.

1998 - The Company is proposed to form an independent project to
manufacture Dies & Moulds under the name of Rico Dies & Moulds
Pvt. Ltd.

1999 - The Gurgaon Plant has been accredited with the QS 9000
Certification and Dhawhera Plant has been recommended for QS 9000
Registration as per 1998 Edition. The QS 9000 Certification is a
recognition of the march towards the globalisation of the
Company's quality system management.

2000 - The Company has signed the agreements for dematerialisation of
the shares with NSDL and CDSL and appointed MCS Ltd.

- Crisil has upgraded the BBB rating assigned to a Rs 6.09-crore
non-convertible debenture (NCD) issue of Rico Auto Industries to


-Board approves for the issue of Bonus Shares at the ratio of 1:1

-Board of Directors approve for the acquisition of Auto component Manufacturing Company in India and abroad.


-Kapsons Associates Pvt Ltd acquires 40,399 shares amounting to 0.37% of the total paid up capital of the company.

-Ford Motor Company selects Rico Auto Industries to participate in its Global supplier Development programme.

-Board approves for the scheme of amalgamation of Rico softech.


-Rico Auto Industries Board approves sale of Agro Division at Bundi

-Rico Auto Industries Ltd has informed that the equity shares of the Company have been delisted from The Delhi Stock Exchange Association Limited (DSE) wef January 23, 2004.


-High Court of Punjab & Haryana approves Amalgamation of Rico Softech Limtied with Rico Auto Industries Ltd
Oct 24, 12:00 am
Oct 24, 4:14 pm
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