Atul Auto Share Price

Atul Auto Ltd

Atul Auto Ltd., incorporated in June 1986 as a private limited company, transitioned into a public limited company in August 1994. The company was established by its promoters, Jayantibhai J Chandra, Atul J Chandra, and Mahendra J Patel, with the goal of becoming a leading manufacturer of three-wheeler commercial vehicles in Gujarat, India. Over the years, Atul Auto has evolved significantly, not only in terms of product offerings but also in its market reach, making it one of the most recognized names in the three-wheeler segment. From the iconic CHHAKADA to the modern ATUL Shakti, ATUL GEM, ATUL Smart, and the latest ATUL GeminiDz, Atul Auto has consistently expanded its product portfolio to cater to the diverse needs of its customers.

Establishment and Early Growth

Atul Auto’s journey began in the early 1990s, when it set up its manufacturing plant at Shapar, a town in the Rajkot district of Gujarat. The company secured financial assistance from Gujarat State Financial Corporation (GSFC) to establish the plant, and commercial production commenced in July 1992. The plant started by manufacturing diesel-powered three-wheelers, including six-seater auto rickshaws, pickup vans for local transportation of goods, and chassis for passenger vehicles. These vehicles were marketed under the popular "Khushbu" brand name.

By the mid-1990s, Atul Auto was making significant strides in the market, which led to the company expanding its capacity. In 1995-96, Atul Auto undertook a project to enhance its production facilities, increasing its capacity from 1,080 to 3,680 vehicles annually. Additionally, the company ventured into manufacturing diesel-operated motorcycles, with an expected production capacity of 3,500 units per year at its Rajkot facility. To finance this expansion, Atul Auto raised funds through a public issue, totaling Rs. 536.25 lakhs.

Product Innovation and Capacity Expansion

Atul Auto has always been at the forefront of innovation in the three-wheeler industry. In 1997-98, the company expanded its product portfolio with the introduction of the FUZI motorbike, which was initially produced in a batch of 3,500 units annually. This expansion into the motorcycle segment marked a new chapter for the company, enabling it to diversify its offerings beyond three-wheelers.

One of the company's major achievements came in 1999-2000, when its vehicle, the Khushbu RTVG, was approved by the Automobile Research Association of India (ARAI) for complying with EURO II emission norms, which was a significant milestone in Atul Auto's journey towards sustainability and environmental responsibility.

In 2001-2002, Atul Auto made a strategic move by acquiring 2,20,500 equity shares in Khushbu Auto Finance Pvt. Ltd., taking its stake to 51%. This acquisition marked the beginning of a long-term relationship between the two companies, which would eventually lead to Khushbu Auto Finance becoming a wholly owned subsidiary of Atul Auto in 2022.

Growth Through Strategic Investments and Wind Energy Initiatives

In 2003, Atul Auto made another significant move by subscribing to a rights issue offered by its subsidiary, Khushbu Auto Finance Limited (KAFL), and acquiring an additional 11.48 lakh equity shares, further solidifying its stake in the company. This investment helped Atul Auto strengthen its financial services arm, providing financing options to customers purchasing Atul Auto vehicles.

The company also demonstrated its commitment to sustainable energy by installing Wind Turbine Generators (WTGs) in Rajasthan and Jamnagar. In 2005, Atul Auto installed a 1.25 MW WTG at Village Soda near Jaisalmer in Rajasthan, followed by the installation of a 0.600 MW WTG in Gandhvi, Jamnagar in 2006. These wind energy projects allowed the company to contribute to the renewable energy sector while also helping to meet its own energy needs, showcasing Atul Auto's forward-thinking approach to business.

Introduction of New Models and Technological Advancements

In 2009, Atul Auto introduced the all-new rear-engine three-wheeler, the ATUL GEM, at a major event in Ajmer. This launch marked a significant step forward for the company as it moved toward producing modern, high-performance vehicles that could cater to evolving customer needs. To support the production of the ATUL GEM, Atul Auto invested in new manufacturing facilities, including the installation of Body-in-White (BIW) units for the fabrication of chassis with cabins.

The company’s commitment to innovation continued with the launch of the ATUL SMART in 2010-11, an improvised version of its front-engine three-wheeler, which was designed to offer better performance and fuel efficiency. The ATUL SMART quickly gained popularity in the market due to its modern features, making it an attractive choice for commercial vehicle owners.

Another key milestone in Atul Auto’s journey occurred in 2013 with the launch of the ATUL Gemini, a three-wheeler with a payload capacity of 0.35 tons powered by a diesel engine. The ATUL Gemini was a highly anticipated model and received a positive reception from customers due to its robustness and fuel efficiency.

In 2017, Atul Auto took a significant step towards the future by entering the electric vehicle (EV) market with the introduction of electric three-wheelers. This move aligned with the growing demand for environmentally friendly and energy-efficient transportation solutions, positioning Atul Auto as a leader in the green transportation space.

Recent Developments and Acquisitions

In 2022, Atul Auto made a major move to strengthen its financial services arm by acquiring 100% ownership of Khushbu Auto Finance Limited, which had previously been a subsidiary of the company with a 51% stake. The acquisition, valued at Rs 44.57 crore, allowed Atul Auto to gain full control over the financing operations and further expand its reach in the financing of three-wheeler vehicles. This acquisition was part of the company’s ongoing strategy to expand its services and provide customers with easy access to financing options for purchasing Atul Auto vehicles.

Atul Auto’s Market Position and Future Outlook

Atul Auto has grown from a small-scale manufacturer of auto rickshaws to one of the leading three-wheeler manufacturers in India. With a well-established network of over 150 exclusive dealers, 100 sub-dealers, 14 regional offices, and three training centers across 16 states in India, Atul Auto has solidified its presence in both domestic and international markets. The company has consistently focused on innovation, quality, and customer satisfaction, which has helped it build a loyal customer base and maintain a competitive edge in the market.

As of recent years, Atul Auto has shown a commitment to sustainability, technology, and expansion, making it well-positioned for future growth. The company’s diverse product portfolio, including both diesel and electric three-wheelers, gives it a significant advantage as the market continues to evolve towards more environmentally friendly transportation options. Furthermore, the company’s commitment to renewable energy projects and its financial services arm through Khushbu Auto Finance offers a comprehensive approach to business that extends beyond manufacturing.

Looking ahead, Atul Auto is poised to continue its growth trajectory. The expansion of its product range, its increasing presence in international markets, and its investments in renewable energy and electric vehicles are likely to keep Atul Auto at the forefront of the three-wheeler industry. As the company continues to innovate and expand, the Atul Auto Share Price is expected to reflect the positive market sentiment towards the company’s future prospects, making it an attractive option for investors.

Quick overview

Atul Auto Ltd. has come a long way since its inception in 1986, evolving into a major player in the Indian automotive industry. With its innovative product offerings, strong dealer network, and commitment to sustainability, Atul Auto has established itself as a leader in the three-wheeler market. The company’s recent acquisitions, investments in electric vehicles, and focus on renewable energy provide a solid foundation for future growth. As the company continues to expand its product range and market reach, the Atul Auto Share Price reflects the optimism surrounding the company's growth potential in both the domestic and international markets.