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.
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.