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LML Ltd. Company History and Annual Growth Details

1972 - The Company was Incorporated on 1st May, at Kanpur. The Company
manufacture finished leather and processing of synthetic yarn.

1975 - The Company undertook the manufacture of highly sophisticated
machinery required for man-made fibre industry like crimping
machines, draw texturising machines, assembly twisting
machinery, uptwisting machine, tow to top conversion equipment,
screen printing carriages, etc.

1977 - All shares allotted to promoters, directors etc.

1979 - Allotted 54,000 No. of Equity shares to directors and 47,450 No.
of Equity to SIT on 30.7.1979. 49,750 No. of Equity shares
allotted otherwise. 48,800 No. of Equity shares allotted to
Goldrock Investments, Ltd. 4,60,000 Bonus Equity shares then
issued in prop. 4:5 on 3.10.1979.

1980 - Allotted 54,000 No. of Equity shares to directors and 47,450 No.
of Equity to SIT on 30.7.1979. 49,750 No. of Equity shares
allotted otherwise. 48,800 No. of Equity shares allotted to
Goldrock Investments, Ltd. 4,60,000 Bonus Equity shares then
issued in prop. 4:5 on 3.10.1979.

1981 - Suryodaya Investment & Trading Co. Ltd., offered out of its
holding certain number of equity shares as rights at par to the
existing shareholders, who were holding upto 50 No. of equity
shares in the following manner: (i) 8 No. of equity shares for
every 25 No. of equity shares held and (ii) 5 No. of equity
shares for shareholders holding 26 to 50 No. of equity shares.

1982 - (15 months) the Company installed one magnetic crimping machine
which increased the production capacity of the yarn processing
unit to 3 tonnes per day. A rapid dyeing plant was also
installed to increase the production of texturised dyed yarn.

- The Twister Machines Division was started for manufacture of
twisting machines such as two-for-one uptwister, assembly
twister, etc., in collaboration with Verdol SA, France, Lezzeni
Mario, Italy, etc.

- The Company issued 2,82,500-13.5% secured convertible debentures
of Rs 200 each during September. Rs 70 out of each debenture was
converted into 7 No. of equity shares of Rs 10 each at par at in
November 1983. The balance Rs 130 per debenture was to be
redeemed as follows: (i) Rs 50 at the expiry of 7th year; (ii) Rs
40 at the expiry of 8th year and (iii) Rs 40 at the expiry of 9th

- The Company issued 8,00,000 - 13.5% partially convertible
debentures of Rs 125 each to meet part of the cost of VESPA XE
scooter project. A portion of Rs 10 of each debenture was
converted into one equity share of Rs 10 each at par on the
expiry of 6 months from the date of allotment. The residual
amount of Rs 115 each was to be redeemed in three instalments of
Rs 40, Rs 40 and Rs 35 on 4th August of 1991, 1992 and 1993.

1983 - The Engineering Division fabricated and supplied a part of plant
and machinery required for Nylon-6 chips project.

- The Company received industrial licences to manufacture 10 Nos.
draw winders and 400 Nos. spinning frames per annum. DGTD
registration was received to manufacture 30 Nos. metal cutting
including grinding machines and special purpose machines per
annum. Spinning and take-up equipment was also added in the
licence to manufacture tow to top conversion equipments. The
Company initiated effective steps for the implementation of these

- The Company received letters of intent to manufacture additional
2,00,000 scooters as well as 50,000 three-wheelers per annum.
Government's approval was received for technical collaboration
with Piaggio & C.S.P.A., Italy for the manufacture of

- 19,77,500 No. of Equity shares allotted in conversion of
debentures. 19,95,000 No. of equity shares allotted as Rights
(Prop. 21:12; prem. Rs 2.50 per share).

1984 - To implement the licences, a new company was incorporated under
the name and style of Vespa Car Company Limited during the year.
This new company is a sub-licencee, for the scooters and a large
number of components were to be supplied to the new company by
the company.

- 20,91,018 No. of Equity shares issued in conversion of debentures
of I and II series.

1985 - The Company offered 9,09,090 - 13.5% partly convertible
debentures of Rs 110 each to the equity shareholders of the
Company on a right basis in the proportion of 2 debentures: 25

- A portion of Rs 10 of each debenture was convertible into one
equity share of Rs 10 each at par on the expiry of 6 months from
the date of allotment. 2,27,272 additional debentures were
allotted to retain over-subscription. The residual amount of
Rs 100 was to be redeemed in three instalments of Rs 35, Rs 35
and Rs 30 on 31st October of 1992, 1993 and 1994.

- Preference shares redeemed. 73,020 shares allotted on
extinguishment of debs. of series I. 11,72,578 shares issued at
par in conversion of III & III series debs. Another 37,000
shares issued. 40,00,000 Rights shares issued (prem. Rs 80 per
share; prop. 7:16).

1986 - The Company introduced LML models name LML Vespa, NV3, Alfa, T5 &
4W. To restructure the Company's activities of Scooter and
Synthetic yarn manufacturing, the undertakings of the Fibre
division was transferred to one of the wholly owned subsidiary'
companies, viz. LML Fibres, Ltd. with effect from close of
business on 31st July, 1987.

- Preference shares redeemed. 73,020 shares allotted on
extinguishment of debs. of series I. 11,72,578 shares issued at
par in conversion of III & III series debs. Another 37,000
shares issued. 40,00,000 Rights shares issued (prem. Rs 80 per
share; prop. 7:16).

1987 - The Name of the Company was changed from Lohia Machines, Ltd. to
LML Ltd. with effect from 6th May.

1988 - The Company proposed to implement the scheme of Indeginisation to
bring about cost reduction.

- 75,00,000 Rights shares issued at par in prop. 5:9. Only
30,08,740 shares taken up.

1989 - The Company's joint venture agreement with Piaggio V.E., SPA,
Italy for participation in the Company's equity and in the
management reached its final stage of settlement during the year.

- LML Fibres, Ltd. Prakti Synthetics, Ltd., and Anurag Synthetics
Ltd. are subsidiaries of the Company. During 1990-91 LML Fibres,
Ltd. and Prakti Synthetics, Ltd. ceased to be subsidiaries of the

- A detailed proposal for revival and organisational/financial
restructuring of the Company, its subsidiaries and its sister
concern Vespa Car Co. Ltd. was submitted to financial

1990 - The Company's operations were affected by the political
instability, foreign exchange crisis and severe credit squeeze.

- Unsubscribed portion of the Rights issued allotted in 1989/90 and
1990/91 (9,17,121 shares to foreign collaborators and 35,74,139
Shares to promoters etc.). Another 74,11,700 shares allotted at
par to collaborators.

- LML Fibres Ltd. and Prakti Synthetics Ltd. ceased to be
subsidiaries of the Company.

1991 - The working results were adversely affected mainly due to the
recession that prevailed in the automobile industry.

- 76,600 Shares allotted at par to foreign collaborators. In March
100,80,000 shares offered at par as follows: (96,00,000 shares as
Rights in prop. 1:3 (all taken up) and (ii) 4,80,000 shares to
the employees of the Company (only 1,46,153 shares taken up).
3,33,847 shares not taken up by employees allowed to lapse.
31,62,000 shares allotted at par to financial institutions upon
conversion of lonas on 23.3.1992. (6,50,300 shares to IFCI;
15,04,700 shares to IDBI; 6,50,000 shares to ICICI and 3,56,700
shares to IRBI).

1992 - The Company introduced during September a new range of highly
fuel efficient scooters.

1993 - The Company launched a diversification-cum-expansion project
involving a capital expenditure of Rs 204 crores as appraised by
IFCI, which will be funded by term loans from Banks and Financial
Institutions, lease finance, increase in share capital through
public and Rights issue and internal accruals.

1994 - The Company undertook an expansion project to increase the
capacity to 6,00,000 vehicles per annum as well as
diversification of the product range.

- The name of the subsidiary has been changed from Anurag
Synthetics Ltd. to ASL Ltd. ASL Ltd. ceased to be a subsidiary of
the Company with effect from 27.09.1997.

- 3,30,847 No. of Equity shares was cancelled by the Board.

- The Company has launched the Diversification-cum-Expansion
project involving a capital expenditure of Rs. 204 crores as
appraised by IFCI.

- The Company's Research and Development Wing is also adapting and
absorbing the technology under transfer from its Collaborators.

1995 - Two new models of scooters - SUPREMO and STAR were introduced in
the upper and middle price segments and well accepted in the

- The Company has entered into a new Joint Venture arrangement and
executed several agreements, alongwith Piaggio and Indian

- The Company proposes to make a Rights/Warrants issue, term loans
from Financial Institutions and Banks, internal accruals, leasing

1996 - The Company launched 125 cc scooter `Sensation' during the year.

- During the year under review, with the completion of the first
phase of expansion, the Company has achieved increase in its
production capacity from 200000 units to 300000 per annum.

- The Company has entered into Several Licence Agreements with
Piaggio of Italy for import of technology and know-how to
manufacture new models of Scooters and other two wheelers in
different segments.

1997 - LML manufactures only scooters but has access to collaborator
Piaggio's technology.

- LML Limited has launched its latest model - Star, the fuel
efficient, 150 cc two stroke engine which boasts of several
unique features for the first time in the Indian scooter

- LML and Asian Paints are set to enter into a joint venture to
introduce a pay-by-scooter concept.

- LML was formed in joint venture between the Kanpur-based
Singhanias and the Italian Scooter giant Piaggio.

- LML has entered into a buy-back agreement with Piaggio to
manufacture two-wheeler engines of various capacities for the
Italian firm.

- LML Ltd, the second largest scooter manufacturer in the country
with more than 30 per cent market share, has decided to advance
the launch of its motorcycles from 1999 to the last quarter of

1998 - LML Ltd has set up the first of its six planned service training
centres outside Kanpur at Noida near Delhi.

- LML launched a unique facility, Tollfree helpline, for customers
in Delhi offering assistance and information on its top of the
line scooter Supremo 98.

- The company has set up additional lines for enhancing capacity
and introducing new models.

- The company is set to double its capacity to 8,00,000 numbers
by 2000 AD.

- The company had set up a new electric starter plant in Kanpur as
the company intends to make electric start a standard feature of
all new vehicles, including the four motor cycles.

- The Kanpur-based LML Ltd is sewing up a comprehensive agreement
with its Italian joint venture partner, Piaggio, to ensure that
the latter buys back a specified amount of components, CKD kits
or complete two-wheelers manufactured in India.

- LML Ltd has launched scooterette `Trendy', the first from the
stable of the Singhanias without support from their Italian
joint venture partner Piaggio.

- Piaggio established its presence in the Indian two-wheeler
market, in its collaboration with LML, by bringing in a number
of models of its famous brand of scooters.

1999 - Leading two-wheeler manufacturing LML will launch its first
60 cc scooterette Trendy in the Delhi.

- LML Ltd, Carrier Aircon and Vesuvius India Ltd -- have failed
to sign up with the depository on time to enable their
institutional shareholders to dematerialise the shares of the

- Italian scooter-maker Piaggio has decided to exit from its joint
venture LML Ltd.

- Italian auto manufacturer Piaggio & CSPA is contemplating
setting up a fully-owned subsidiary in India to manufacture the
entire range of two-wheeler vehicles, ranging from mopeds to
motorbikes, in addition to its recently launched big scooter X-9.

- The 100-cc model proposed to be launched by LML is akin to
Kinetic Honda scooter.

- LML has already entered into a collaboration with Daelim of
Korea for motorcycles.

- The Company launched new two wheelers, and has recently
introduced "Xpress 5" engine (which is based on reed valve
induction technology), on its 150 cc scooters.

- The Company undertook implementation of `JUST IN TIME' (JIT)
system of inventory management.

- Piaggio has also issued a letter to the Company purporting to
terminate the Joint Venture Agreement and various other
agreements, to which Company is a party.

2000 - Castrol India, subsidiary of the lubricant major Burmah Castrol
Plc, has entered into strategic alliances with leading Indian
automobile companies like Telco and LML Ltd to introduce its
customised products.

- ICRA has assigned `A1' rating to the company's commercial
papers for Rs. 10 crores.

- The Company is to hive off the IT department of the company
including Computer Design Aided activities to its
subsidiary/corporate body.

- The Company has proposed a preferential issue to the Indian
promoters and/or their nominees at Rs 40 per share. 22.17 lakh
shares shall be issued to the Indian promoters, which will
increase their stake in the company from 47.21 per cent to 49.89
per cent.

- Two wheeler major LML has chalked out a major organisational
revamp entailing the "transfer" of its information technology
division in order to "emerge as a flatter organisation" through
manpower rationalisation.

- The Company has moved towards launching mobikes. To test market
the new products, Adreno 100 cc and Energy 100 cc, LML has placed
a dozen of them in the Kanpur market and will be introducing two
other models this fiscal.

- LML Ltd is tying up with a Chinese two-wheeler manufacturer to make
scooterretes an step-thrus.

- The Company besides its existing tie-up with Daelim of South Korea for
two-wheelers, is looking at forging technical alliances with two other

- The Board of Directors has allotted 22,16,067 equity shares of Rs.10 each at a
premium of Rs.30 per share to the Indian promoters and their nominees on preferential
basis. The paid up equity share capital of the company has increased from Rs.4143.95
lakhs to Rs.4365.56 lakhs.

- The Company's 132-KV main power station has been recommissioned. The power
station had tripped and suffered damage on August 30.

2001 - The Company's 4-stroke motorbikes `Adreno' and `Energy' have been launched all
over ndia during January, 2001.


-Appointed Mr siromani Sharma as the Additional Director on the board of the company.

-Releases a new version of 110 cc mobike price tagged at Rs.30,000 named 'Freedom'.

-Board decides to voluntarily delist the equity shares from Delhi Stock Exchange.

-Appoints Mr Dasu Govind Prasad as the Nominee Director of Export-Import bank of India.

-Purchases 50000 equity shares of Rs.10 each at par of its subsidiary company Perfect Polycons Ltd.


-Board approves the cessation of Perfect Polycons as its subsidiary.


-Equity shares of the company delisted from Ahmedabad Stock Exchange (ASE) w.e.f. January 16, 2004

-Lml Ltd. has informed that pursuant to the application of the Company for voluntary delisting of its equity shares from Delhi Stock Exchange Assn. Ltd. (DSE), the DSE has vide letter dated January 20, 2004 confirmed, the delisting of equity shares of the company from its Exchange wef January 23, 2004.

- LML launched two motorcycles and one variant in three different segments to boost sales and diversify product portfolio.

- Ropes in Sharukh Khan as brand ambassador


-LML ancillary rolls out 3 wheeler as SA


- LML Ltd has informed that Board for Industrial & Financial Reconstruction (BIFR) under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985, has appointed Mr. K K Shangloo as Special Director on the Board of the Company with immediate effect.


- Re-appointment of Mr. Deepak Singhania as Chairman & Managing Director.