Rico Auto Industries Ltd

Rico Auto Industries (RAI), incorporated in Mar.'83, was converted into a public limited company in Apr.'85. RAI manufactures auto components for two-wheelers rear and front wheel hubs, clutches, brake systems, engine housings, crank housings, etc. It has also diversified into the production of gears and oil pumps for Maruti and gear shift drums for two-wheelers and installed pressure die casting machines to manufacture diesel generating sets, engine frames and housings. The Company supplies a broad range of high-precision fully machined aluminum and ferrous components and assemblies to Original Equipment Manufacturers across the globe. Its integrated services include design, development, tooling, casting, machining, assembly and research and development across aluminum and ferrous products. Presently, the Company is into the business of manufacturing and sale of auto components for two wheelers and four wheelers. RAI came out with a public issue of equity shares and NCDs with warrants and had financed the same for manufacturing and machining facilities for graded/spheroidal graphite machines, iron castings with automatic disamatic mould line with CNC machining facilities, and an installed capacity of 12,000 tpa for such castings in 1993. The subsidiaries of RAI are Rico Auto Industries (UK) Ltd and Rico Auto Industries Inc., USA. RAI is moving towards QS 9000 accredditation. Company has entered into JV agreement with Daewoo Precision Industries (DPL), Korea, for OE supplies. Company has another joint venture with FCC Co. Ltd the largest manufacturers of clutches in Japan. The company has proposed to form an independent project to manufacture Dies & Moulds under name of Rico Dies & Moulds Pvt. Ltd, the proposal has twin objective of becoming self-dependent for quality dies and moulds and to reduce the development time for new components. Rico Agroils Ltd (RAL) was merged with the company from Jan.'99. In 1999-2000, production capacities both at Dharuhera and Gurgaon plants were expanded by investment of Rs. 2800 lacs. The Company plans to amalgamate Rico Softech Ltd, a Wholly owned subsidiary of RAL with itself on approval of Shreholders, creditors and other statutory authorities. The company has merged Rico Softech Ltd a wholly owned subsidiary with itself with effect from 1st April 2004.Further it is also decided to sell its Agro Division at Bundi Rajasthan on Jan 14, 2004. The company has also disposed off its Agro unit at Silor Road, Bundi Rajasthan to M/s Adani Wilmer Ltd during 2004-05 for a consideration of Rs.783 lacs. Further the company has sold its 605000 equity shares of Hankook Motors Ltd which were entirely written off during the 2004-05 and received a full consideration amount of Rs.60500/-. In March 2005 the company has sub-divided its equity share face value from Rs.10/- per share to Re.1/- per share. During 2004-05 the company has planned to set up two new plants one each at Bangalore (Karnataka) and at Manesar (Haryana) to cater the needs of domestic and international OEMs. During FY 2006-07, the Company purchased approx. 25 acres of land in SIPCOT Industrial Growth Centre, Oragadam, Chennai; 16.5 acres of land in Eldeco Sidcul Industrial Park at Sitarganj and 10 acres of land in Singur, Kolkata. Bhoomi Poojan in Singur was commissioned on 11 July, 2007. Commercial production work at Haridwar Plant was commenced in 2009-10. The Civil work to establish a Plant to manufacture Auto Components was started at Oragadam, Chennai. The Joint Venture Company namely M/s. KRP Auto Industries Limited was incorporated on 15th January, 2010. The Company invested Rs. 0.05 crore in the Equity Share Capital of this Joint Venture Company as on 31st March, 2010 consequently it became the Subsidiary Company. During 2010-11, the Company took over Rupak Automotive Industries Limited by acquiring its entire paid-up equity capital of Rs.5 lacs on 8th April, 2011 as a consequence it became the wholly owned subsidiary Company and was renamed as AAN Engineering Industries Limited. It commissioned new plants at Sanand in Gujarat, Haridwar in Uttarakhand and Bawal in Haryana and resulting had commenced production during 2010-11 to cater the increasing demand for its products. The Company further made investment in Equity Share Capital of the Subsidiary/ Joint Venture Companies including Continental Rico Hydraulic Brakes India Private Limited costing Rs .10.40 crores; Magna Rico Powertrain Private Limited worth Rs 4 crores and KRP Auto Industries Limited for Rs 20.25 crores through transfer of land. During the year 2011-12, the Company sold the entire 475680 fully paid-up equity shares of Rs.100/- each of the Joint Venture and Subsidiary Company namely KRP Auto Industries Limited to its other Joint Venture Partner, namely Kailash Royal Premium Projects Private Limited and consequently KRP Auto Industries Limited has ceased to be Subsidiary Company w.e.f. 12th December, 2011. The Company's new plant at Bangalore commenced commercial production in the month of July, 2012. The Company sold entire 5,50,00,000 fully paid-up equity shares of Rs.10/- each of the Joint Venture Company namely Continental Rico Hydraulic Brakes India Private Limited to its Joint Venture Partner Group Company namely, Continental Automotive Holding Netherlands BV and consequently Continental Rico Hydraulic Brakes India Private Limited has ceased to be our Joint Venture Company w.e.f. 9th March, 2012. The Bawal plant production for High Tonnage High Pressure Die Casting work with full automation and controls and high precision machining for Auto parts and assembly was commenced in Mar' 13. During the year 2013-14, Rico Jinfei Wheels Limited, Rasa Autocom Limited and Rico Aluminium and Ferrous Auto Components Limited (formerly RAA Autocom Limited) became step-down subsidiaries of the Company. During the year 2014-15, Rico Investments Limited was formed as subsidiary Company w.e.f 7th January, 2015. The Company with the said approval has sold the investments held in its three subsidiary companies namely Rico Jinfei Wheels Limited, Rasa Autocom Limited and Rico Aluminium and Ferrous Auto Components Limited (formerly RAA Autocom Limited) to this Company, consequently these Companies have become step down subsidiaries during year 2014-15. The Company sold entire 39,50,000 fully paid up equity shares of Rs 10/- each of the Joint Venture Company, FCC Rico Limited to its JV Partner's two Group Companies, FCC Clutch India Pvt. Ltd and FCC (Philippines) Corporation and FCC Rico Ltd resultantly has ceased to be its Joint Venture Company effective from December 23, 2014. The Chennai Plant for supply of Machined Aluminium Auto Components to Renault-Nissan was commissioned, which later on started commercial production during 2015-16. In the Phase I, the plant had installed capacity of 1,50,000 sets per annum for making Engine Parts including Cylinder Blocks. During the year 2015-16, Rico Aluminium and Ferrous Auto Components Limited and Rico Investments Limited became material subsidiaries of the Company. Uttarakhand Automotives Limited, a Wholly Owned Subsidiary was amalgamated with the Company w.e.f. the appointed date i.e. 1st April, 2015 as per the Scheme of Amalgamation approved by the Hon'ble National Company Law Tribunal, Chandigarh Bench vide its order dated 14th December, 2017. consequently, its entire assets and liabilities stand transferred to Rico Auto Industries Limited with effect from the appointed date. During FY 2019-20, the Company acquired shares of Magna Powertrain GMBH, Joint Venture Partner jointly with stepdown subsidiary Rasa Autocom Limited and renamed to Rico Fluidtronics Limited (formerly Magna Rico Powertrain Private Limited) & thus became the Subsidiary Company. During FY 2020-21, the Company purchased 27,00,000 equity shares of Rs 10/- each of Rico Investments Limited, a Subsidiary Company from its existing shareholders and consequently, Rico Investments Limited became Wholly Owned Subsidiary of your Company w.e.f. 7th July, 2021. The new plant commissioned at Halol (Gujarat) had started commercial production in 2020-21. The Board of Directors of Company in their meeting held on 26th July, 2021 has approved the Scheme of Amalgamation for merger of its Subsidiary Companies, M/s. Rico Investments Limited, M/s. Rasa Autocom Limited, M/s. Rico Aluminium and Ferrous Auto Components Limited, (Transferor Companies) with the Company (Transferee Company) with effect from Appointed Date i.e. 1st April, 2021. The Company in 2020-21, acquired 70% shareholding of Rico Friction Technologies Limited (formerly Matalart Friction Private Limited) consequently it became Subsidiary Company.