BEML eyes huge profilt from Metro rail projets.

BHARAT EARTH MOVERS LIMITED


Monday, 13 Jul 2009
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BEML eyeing INR 25,000 crore biz from metro rail projects
Monday, 13 Jul 2009

Mr VRS Natarajan CMD of BEML Limited said that maker of metro rail coaches and mining equipment smells a huge business opportunity of INR 25,000 crore in the metro rail projects that are coming up across the country.

BEML has supplied coaches worth INR 1,400 crore for the Delhi metro project and has won the INR 1,672-crore Bangalore contract. Its sights are on Chennai, Pune and Hyderabad.

Mr Natarajan said “Over a dozen cities could be floating metro rail projects in the next decade. We hope to capture at least one-fourth of the INR 100,000 crore business in metro projects.”


Mr Natarajan said “The company plans to invest INR 410 crore in existing facilities including INR 260 crore at the new Palakkad unit in Kerala, this fiscal. Last fiscal, it spent INR 100 crore. We expect the first product to roll out from Palakkad by March 2010.”

He said “We have signed an MoA with Alstom of France to make light rail, medium and high speed rail coaches. Alstom will exclusively source components and bogies made by BEML using this technology for its global uses. It is looking at India as a low cost manufacturing base.”

He added that “BEML plans to supply 90 tonne to 100 tonne stainless steel wagons for the high speed freight corridors proposed on Mumbai to Delhi and Howrah to Ghaziabad sectors. It has signed a MoU with SAIL for sourcing steel for the wagons.”

For the current fiscal, BEML is looking at a turnover of INR 4,000 crore compared with INR 2,797 crore for fiscal 2009, driven by all the 3 divisions rail, mining and defense. Order book stands at over INR 5,000 crore.


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ABOUT BEML
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Bharat Earth Movers Limited (BEML) is an Indian Public Sector Undertaking, with headquarters in Bangalore. It manufactures a variety of heavy equipment, such as that used for earth moving, transportation and mining.

BEML incorporated in May 1964, and commenced operations on January 1, 1965. It was wholly owned and operated by India's Ministry of Defense until 1992, when the government divested 25% of its holdings in the company. BEML is Asia's second-largest manufacturer of earth moving equipment, and it controls 70% of India's market in that sector. Its stock trades on the National Stock Exchange of India under the symbol "BEML", and on the Bombay Stock Exchange under the code "500048". The company went for Follow On Public offer (FPO) and fixed the price band for its FPO between Rs.1,020 and Rs.1,090.

BEML has manufacturing plants in Kolar Gold Fields, Bangalore and Mysore. It has numerous regional offices throughout the country. KGF unit is the main unit accounting for the manufacture and assembly of a wide array of earth-moving equipment such as Bulldozers and Excavators. Railcoaches are made in the Bangalore complex and the Mysore facility makes Dump Trucks and engines of various capacity .