VCCL Ltd Share Price

Summary

VESPA CAR CO LTDOBJECTS & ACTIVITIESManufacturing of all classes of automobiles including two-wheelers and three-wheelers.PROMOTIONThe Company was jointly promoted by Lohia Machines Ltd. (LML) and Piaggio of Italy. Piaggio and LML agreed to participate in the equity capital of the Company to the extent of 28% and 32% respectively.TECHNICAL COLLABORATIONThe Company entered into the following technical collaboration agreements: (i) LML gave sub-license to the Company with the consent of Piaggio Italy under which the Company have the same rights in regards to manufacture, technical information assembly, sale and marketing of the two-wheelers (Vespa Scooters) which LML has vis-a-vis Piaggio. Under this agreement, the Company agreed to pay (a) to LML Rs. 7.5 lakhs in lump sum , in two equal instalments and (b) to Piaggio royalty at the rate of 3% subject to taxes on the two-wheelers manufactured by the Company upto 3rd November, 1990, (ii) Piaggio agreed to transfer technical know-how to the Company for the manufacture of Three-wheelers, on payment of royalty at the rate of 3% subject to taxes for seven years during the period of agreement.OPERATIONSCommercial production commenced in September 1986. During 1986-87, the overall sales turnover reached Rs. 11.47 crores mark. Two new models of scooters named LML Vespa Alfa and T5 were introduced . The Company could not achieve full production targets due to non availability of power, delay i
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