The Pioneer Magnesia Works was established in 1915 at Kharagodha in the Little Rann(Desert) of Kutch. Prior to that the two founders, Behramji Lalkaka, Esq., JP, and his cousin the Hon'ble Sardar Sir Rustom Vakil, had started making magnesium chloride by carting the bitterns from that region all the way to Ahmedabad by train in 1913, for further process. By 1915 these two gentlemen ventured forth into the wild and arid region of Khara- godha, where the raw material "bitterns" was available. It was considered the best magnesium chloride in the world. It was exported all over the British Empire.

At that time it was an absolutely essential textile auxiliary, imported from Germany. Anticipating the outbreak of hostilities with Germany, Sir Rustom, who was then the President of the Gujarat Mill Owners Association set up the unit.

The region was not entire new to the two founders whose forefathers had made their presence felt in the area almost a century before then. After the Peshwa's exit from Gujarat, Mr. Dunlop, the Collector of Ahmedabad sent a report on October 2nd, 1820,captioned "Practicability of deriving Revenue from a Salt Monopoly in Bombay Presidency". Encouraged by this report the House of Commons authorized the East India Company to form a Select Committee in 1836. The entire desert region was surveyed by Douglas Murdoch and James Gillander in 1837.

In order to effectively implement the collection of Salt Tax, a boundary called Bombay Northern Frontier Preventive Line running from Siyal in the Gulf of Cambay up to Rahim-ki-Bazar in Sindh, was created by notification of the E.I.Co. dated Sept. 30th 1848. This line, which was and is even today colloquially referred to as "Line Dory" was manned under a contract called Sirdari.

The first Sirdar was Pestonji Framji Vakil of Ahmedabad (b.1796 to d.1870). He was the grand father and great-grand father of the two founders of the PMW. Under this contract, by Government Notification R.D. 106 dated 13th January 1849, Pestonji provided 400 native foot soldiers and 200 Silahdars, or native mounted irregulars, who came with their own horse and equipment. To pay for this outfit, Pestonji was granted Abkari rights or Saranjami of 13 villages along the Preventive Line. This contract remained effective up to 1891.

The Sirdari was taken over by Pestonji's yongest son Jehangirji (b.1843--- d.1901). Pestonji's illustrious and benevolent son Sir Navroji Vakil, KC I E along with the great Sir Charles Pritchard founded Kharagodha Nava Gam. Nowroji, founded his salt business in 1856 in the name of Nowroji Pestonji & Co. which lasted upto 1970. Sir Nowroji was called the "Salt Baron." The same family continues to control the Company even today.