Majestic Auto Ltd Company Summary

Majestic Auto Ltd Summary

Majestic Auto Ltd (MAL), established in April, 1973, was earlier engaged in manufacture of Silencers, Auto Components, Fine Blanking Components, Bicycle Spokes and Electrical Motors. It had facilities for tool design and tool making which enables the Company to meet-up the expectations of the automobile manufacturers in the country by supplying high quality Fine Blanking components on schedule. It was running its Plants in Ludhiana and Greater Noida. But due to diversification in business, it got engaged into providing facilitymanagement and rental services.MAL came into existence with a plant at Ludhiana to manufacture 50 cc mopeds, marketed under the Pacer, Panther and Ankur brands. The company went public in 1986. But in a market which exhibited a CAGR of 30% between 1978 and 1988, it was unable to make a definitive dent. Realising the need to make its presence felt, it upgraded its capacity in Oct.88 by setting up a plant in Ghaziabad, Uttar Pradesh, to manufacture 65-cc Hero Puch mopeds. But the moment the new product hit the road, it hit something else too -- MALs bottom line. In the period from 1989 to 1991 when it came under the purview of the BIFR, after having completely wiped off its net worth, MAL started focussing increasingly on the export market. Luckily for MAL, the turnaround was quick to come. With exports shooting up 75% to Rs 6.58 cr and the sales realisation improving over 50%, the companys bottom line for 1991-92 turned black again.A new launch, the Hero Allegro fit-kit exerciser, paid off. In 1994-95, its plant at Tehsil Dadri, Uttar Pradesh, was awarded the ISO 9002 certification. In the same year it launched two more models - three-gear 65- and 75-cc mopeds During 1995-96 MAL, launched new products such as BMW 650 Funduro and 74cc Scooter Hero Winner. In 1997-98, the company increased the installed capacity of its motorised two wheelers upto 350cc to 2,30,000 Nos.During the year 2003-04, through the Scheme of Arrangement between the Company and Hero Auto Limited (now called Hero Motors Limited), all the assets and liabilities of erstwhile Ghaziabad Unit of the Company were transferred to Hero Motors Limited effective 01.04.2003. In accordance with the Scheme, the shareholdings of the existing Equity Shareholders of the Company was reduced proportionately by 4,40,000 Equity Shares of Rs. 10/- each. Thus the paid up Equity Shares Capital of the Company was reduced by Rs. 44,00,000/-. Hero Global Design Private Limited ceased to be a subsidiary of the Company w.e.f. 29.9.2003.The Company floated Majestic IT Services Limited as Wholly Owned Subsidiary (WOS) of the Company for setting-up business of providing a broad range of information and technology related services during the year 2010. Consequent to the inter-se transfer of shareholding amongst the Promoters, Anadi Investments Private Limited became the holding company of the Company with effect from 31st March, 2012. The Company acquired Emirates Technologies Private Limited during 2014-15.The Company discontinued their manufacturing operations (Fine Blanking, Electric & Winding) in the second half of the year 2017-18 due to unviable business operations; lack of viable orders, profitability the losses incurred, external environmental challenges & technology moving forward and diversified into the business of Facility Management Services, Office space leasing construction of property, in the last quarter of the year 2017-18.