The company was founded in Schorndorf by entrepreneurs C. M. Bauer and Pfeiffer, who came from Stuttgart, in 1904. C. M. Bauer died in 1905, leaving his partner Pfeiffer. Some products bore the mark “Alt-Ludwigsburg” or a similar mark to that used by the Ludwigsburg-based factory, but by making the marks distinguishable, the company was able to stay with the existing marking.
The factory initially produced high-quality dinner sets and coffee and tea sets. Around 1910, the production of hotel tableware began, which proved to be a great success. Production was buoyant, with the factory already employing 200 people in 1913. In 1917, the business was transformed into a public limited company.