History of Ceat Ltd.

YEAR EVENTS 1958 - The Comp. was incorporated on 10th March, at Mumbai. The main objects of Comp. is to construct, produce, prepare, manufacture, press, vulcanize, repair, retread, purchase, sell, import & to deal in tyres, semi-tyres for all types of vehicles & inner tubes, flaps & repairs material in general. 1965 - The Comp. obtained a letter of intent from the Government for the manufacture of 2 million Bicycle Tyres & Tubes per annum.

1972 - Research & Development unit was set up at company Bhandup works. Various types of testing machines were installed in the laboratory.

1973 - 55,660 bonus equity shares issued in the proportion 1:6.

1976 - 55,660 bonus equity shares issued in the proportion 1:7.

1980 - Authorised capital reclassified in 1978. 89,056 bonus equity shares issued in prop. 1:5.

1981 - Deccan Fibre Glass Ltd., was amalgamated with the Comp. with effect from 1st June. In terms of Scheme of Amalgamation, members of Deccan Fibre Glass Ltd., were allotted 87,105 No. of equity shares of Rs 100 each of Comp. in the proportion of 1 equity share of Comp. for every 40 No. of equity shares held of DFL. A letter of intent was also in hand for manufacture of glass wool.

1982 - The Comp. along with the Pradeshiya Industrial & Investment Corporation of U.P. limited promoted a joint venture Comp. 'UPCOM Cables Ltd.' in technical collaboration with Ceat Cari of Italy.

- The Comp. entered into a collaboration agreement with Yokohama Rubber Comp. of Japan in order to keep abreast of the technological progress in the tyre industry as also to develop radial tyres suitable to the Indian road conditions.

- The Following companies became wholly owned subsidiaries of the Company: CTI Investments Ltd., Ceat Investment Ltd., Ceat Finance Co. Ltd.

- Authorised capital reclassified. 87,105 shares allotted without payment in cash to members of Deccan Fibre Glass limited on its merger.

1983 - Atlantic Holdings Ltd., & Malabar Coastal Holdings Ltd., became subsidiaries of Company.

1986 - During September, the Comp. offered 15% secured non-convertible redeemable debentures [third seriess] of Rs 10 crores on a rights basis to the holders of equity shares/debentures.

- Shares sub-divided on 1.1.1987. 31,07,205 bonus shares then issued in prop. 1:2.

1987 - An application was made for industrial licence for the manufacture of conveyor belts. The Comp. also took in hand a project for manufacture of radial tyres & this project was implemented in the middle of 1987.

- The Comp. undertook to set up a factory for production of nylon industrial yarn/cord & nylon tyre cord fabric, a high cost raw material input for tyre manufacture, at Malanpur, in the State of M.P. Technical collaboration & agreement was entered into with Toray Industries Inc. of Japan.

- During July-August, the Comp. offered 41,92,000-12% secured redeemable convertible debentures of 50 each for cash at par as rights in the ratio of 3 deb: 5 equity shares held. Additional 9,30,725 debentures were allotted to retain oversubscription. Another 1,17,275 debentures were allotted on private placement basis.

- 2,08,000 debentures offered to the employees & 1,98,700 debentures were taken up. The unsubscribed portion of 9,300 is allowed to lapse.

- The convertible portion of Rs. 25 was automatically and compulsorily converted into 1 equity shares of Rs. 10 each at a premium of Rs. 15 per share on the expiry of 6 months from the date of allotment. The non-convertible portion of Rs. 25 was redeemed at par in three instalments of Rs. 5, Rs. 10, and Rs. 10, at the end of 8th, 9th, 10th, year respectively from the date of allotment.

1988 - The Comp. proposed to expand production facilities at Nasik plat to 10 lakh nos. of automotive tyres & also to set up a third tyre plant at Waluj, a backward area near Aurangabad.

- The Comp. entered into an agreement with Nitto Boseki Co. Ltd., Japan for improved technology for expansion of licensed capacity of fibre glass division to 5,000 tonnes per annum.

- Meteoric Industrial Finance Co. Pvt. Ltd., became a subsidiary of the Comp. on 29th August, consequent upon Ceat Finance Co. Ltd., acquiring majority equity stake in that company.

1989 - During January & Febraury the production & sales went up despite interruption at Nasik plant due to labour strike. The Comp. proposed to introduce steel belted radials both for cars & light commercial vehicles by collaboration agreement with Yokohama Rubber Company, Japan.

- By the orders of Board for Industrial & Financial Reconstruction dated 31st August, 1990 Murphy India Ltd., was amalgamated with the Comp. with effect from 1st July, 1989.

- Murphy plant at Thane manufacturing audio & TV products has been christened as the Electronics Division. This unit was to be set up with technical assistance from Richo of Japan.

- The Comp. undertook the modernisation of electronics division at Thane plant under technical support from Goldstar of South Korea.

- During December '89-Jan '90, the Comp. offered 73,80,158-12.5% secured partly convertible debentures of Rs. 160 each on rights basis in the proportion 1 deb.: 2 No. of equity shares held. Additional 11,07,000 debentures were allotted to retain over subscription.

- The Comp. issued 3,69,008-12.5% secured partly convertible debentures of Rs 160 each to the employees on an equitable basis [only 16,850 debentures were taken ups]. The balance 3,52,158 debentures were allowed to lapse.

- Rs. 60 [Part As] of face value of each debentures was compulsorily & automatically converted into 1 equity share of Rs.10 each at a premium of Rs. 50 per share at the end of 6 months from the date of allotment of debentures.

- Rs. 100 [Part Bs] of face value of each debentures was to be redeemed at par in 4 equal instalments at the end of 7th, 8th, 9th, & 10th year from the date of allotment of debentures.

- The name of Comp. changed from Ceat Tyres of India limited to Ceat Ltd.

1990 - During October, the Comp. offered 90,00,000-14% secured redeemable non-convertible debentures of Rs. 100 each on right basis in the ratio of 5 Debentures : 7 equity shares held. Additional 1,01,69,000 debentures were allotted to retain oversubscription.

- Simultaneously, the Comp. offered 4,50,000 Debentures to the employees [160 taken ups] & the remaining treated as unissued.

- Further 2 warrants were issued for every five debentures allotted. Each warrant holder entitled to one equity share at a premium not exceeding Rs. 65 per share either by payment of further contribution or by surrender of appropriate value of non-convertible debentures within a period of 3 months which would commence from the end of 4th year from the date of allotment.

- As per the scheme of amalgamation of Murphy India limited with the company, 1 equity share of Rs. 10 each of CEAT LTD. was to be allotted to the holders of 25 equity shares of Murphy India Ltd. Accordingly 49,719 No. of equity shares were allotted to the shareholders of Murphy India limited on 1st January, 1991.

1992 - The Operations of Electronics Division was suspended and continued to remain suspended during 1993 & all the workers accepted voluntary retirement subsequent to a settlement with the Union for employees.

- The Comp. undertook a programme of modernisation of its plant & machinery at Mumbai with a view to improving its productivity & availing of increased licensed capacity granted.

- A project was set up in technical & financial collaboration with goodyear Tyre and Rubber Co. of USA. The plant being set up at the Company erstwhile site at Aurangabad is to be manufacture latest radial tyres & earth mover tyres. In addition the Comp. was to receive from South Asia Tyres two & three wheeler tyres being manufactured at Aurangabad.

- During September, the Comp. offered 67,74,193-15% Secured redeemable partly convertible debentures of Rs. 155 each on Rights basis in the ratio of 8 Debentures : 25 Equity shares held. Additional 10,16,129 Debentures allotted to retain oversubscription.

- Another 3,38,700-15% Debentures were offered to employees on an equitable basis [46,003 taken ups] Unsubscribed portion of 2,92,706 debentures were allowed to lapse.

- Rs. 75 of face value of each Debentures was to be automatically & compulsorily converted into 1 equity shares of Rs. 10 each at a premium of Rs. 65 per share on expiry of 6 months from the date of allotment of debentures. Balance Rs. 80 of face value of each debentures was to be redeemed at par in four instalments of Rs. 20 each commencing from the expiry of 10th year from the date of allotment of debentures.

1993 - A collaboration agreement entered into with Yokohama Rubber Comp. of Japan for manufacture of Tyres at Nasik Plant.

1995 - The Comp. was gearing up to launch the Country latest technology car radials, produced at its Aurangabad Factory. New brands of truck tyres viz., `CLT NOVA', `HCL-80 Plus' & `Turbo Lug' were introduced. Further supported by introduction of specialised variants of well established 'FM Series'.

- 40,62,953 No. of equity shares of Rs 10 each allotted against warrants allotted with 14% NCDs [Series VIs] on 1st January.

1996 - The Comp. launched a new radial car tyre `Maestro' the first radial tyre in India to use state-of-the-art polyester tyre cord technology combined with steel belts.

- The Comp. also launched a new heavy duty product `Stamina' a light commercial vehicle tyre.

2003-Delsit equity shares of Comp. from Ahmedabad, Calcutta, Madras and Delhi Stock Exchanges.