BEML Ltd

BEML Ltd is the leading manufacturer of heavy earth moving equipment in Asia and an Indian Public Sector Company under the Ministry of Defence, Govt. of India. It is a Mini Ratna Category - I Public Sector Enterprise, operating in three distinct business verticals namely Mining & Construction, Defence & Aerospace and Rail & Metro. The company's International Business Division exports equipment and spares manufactured and also provide services by all the three verticals. The major markets for exports are Middle East countries, African countries and South East Asian countries. As part of the globalization strategy, the company's products have been exported to about 68 countries. The company has four manufacturing complexes located at Bengaluru, Kolar Gold Fields (KGF), Mysuru and Palakkad and a subsidiary steel foundry functioning in Tarikere, Chikkamagaluru district. The company's Mining & Construction division offers range of mining machinery for both opencast and underground mines. The Rail & Metro business vertical supplies integral rail coaches, overhead electric inspection cars and postal vans to Indian Railways. Defense Division manufactures variants of Tatra vehicle for all terrain operations including bridge layer, field artillery tractor, medium and heavy recovery vehicle. In addition to the above, Technology Division of the company provides end-to-end technology solutions in Auto, Aero, Defence and Rail & Metro related areas. The Trading Division deals with non-company products and commodities, such as iron ore, coal and steel billets for both captive in-house requirements. International Business Division deals with export activities. BEML Ltd was incorporated on May 11, 1964 as a public sector undertaking with the name Bharat Earth Movers Ltd under the administrative control of Department of Defence Production and Supplies, Ministry of Defence. The company commenced operations at Bangalore with the transfer of railway coach manufacturing facilities from Hindustan Aeronautics Ltd with land, building, plant and machinery for a consideration of Rs 600 lakh. In the very first year of starting operations, they started manufacturing wide range of wheeled mining and construction equipment under technical collaboration with a US company. During the year 1967-68, the company commissioned Heavy Earthmoving Equipment Division at Kolar Gold Fields. In the year 1979, they entered into a collaboration agreement with Komatsu Limited, Japan for technical know-how in a wide range of mining and construction equipment such as bulldozers. In the year 1985, the company established the Dump Truck Division at Mysore. Also, Vignyan Industries Ltd became a subsidiary of the company during the year, by transfer of shares constituting over 75% from the GoK. In the year 1987, the company set up an exclusive Hydraulics and Powerline Division and a full-fledged R&D centre in the Kolar Gold Field (KGF) facility. In the year 1991, they set up their engine division at Mysore for manufacture of heavy duty diesel engines. In the year 1992, the Government of India divested the equity shares in the company and in February 21 1992; the company was converted into a public limited company. Also, the company was recognized as an Export House with Star Exporter status during the year. In the year 1994, the company shares were listed at the Stock Exchanges at Bangalore, Mumbai, Kolkata, Delhi and Chennai. Also, the company launched the Mammoth equipment 'walking dragline'. In the year 1996, the company entered a major counter trade agreement with Syria executed against import of rock phosphate. In the year 1998, the company bagged orders against World Bank tenders valued at Rs. 70,000 lakh for equipment supply to CIL projects. During the year 2003-04, the company entered the Metro Railway business with the manufacture and supply of hi-tech stainless steel metro coaches to the Delhi Metro Rail Corporation. In the year 2004, they acquired over 1,100 acres of land and 2 workshops on lease basis from the now-defunct public sector undertaking Bharat Gold Mines Ltd in Kolar Gold Fields for supporting their expanding production activities in the defense and railway sectors. Also, they formally launched 7 T Class Excavator - BE71 and Backhoe loader - BL 9H. During the year 2005-06, the company introduced the R&D's innovative product, Load Haul Dumper (LHD) - BL15 and exhibited in the IMME - Kolkata. A four-cylinder indigenous engine B4D105 was successfully built, tested, evaluated and fitted on one of the earthmoving equipment for user trials. Also, the in-house developed 20T class Excavator BE200 has successfully completed user trials and released for production. From April 1, 2006, the company underwent organizational restructuring to improve their competitiveness in the global market. Consequent to this, the company's operations were divided into three business groups, namely Mining & Construction, Defence and Railway & Metro Business. In April 12, 2006, the company diversified into new business areas by opening two new divisions, namely Technology Division and Trading Division. In August 29, 2006, the company was conferred 'Mini Ratna - Category 1' status by the Ministry of Defense. In September 2006, the company signed a MoU with CCC (Compagnie Comercio E Construcoes) and established a joint venture company for manufacturing and supplying of rail wagons & bogies, mining & construction equipment and spares. In December 2006, the company entered into an agreement with US based Terex Mining to manufacture, sell and service and to provide support for certain mining haul trucks of Terex design. In February 2007, Taneja Aerospace & Aviation Ltd signed a MoU with the company at Aero India 2007 in order to explore the aeronautical offset opportunities in the defence and civilian sectors and also the development opportunities in the domestic market. During the year 2007-08, the company's R&D Centre developed Pipe Layer BP70X with unique features like modular planetary winches mounted on one side for improved visibility, rugged boom, pilot operated hydraulic system. Also, the company launched the R&D Centre developed equipments, namely Hydraulic Excavator BE700 and Transmission for BH35-2. In April 18, 2007, the company formed a joint venture company namely BEML Midwest Ltd at Hyderabad. The joint venture is a professionally well-knit company with the company having 45% shares, Midwest Granite Pvt Ltd and P T Sumber Mitra Jaya of Indonesia as partners with 55% share. The name of the company was changed from Bharat Earth Movers Ltd to BEML Ltd with effect from October 5, 2007. In October 2007, the company launched marketing office cum warehouse at Malaysia in the name of BEML (Malaysia) Sdn Bhd (787108-A) at Johor Bharu. Also, they secured an order from Delhi Metro Rail Corporation (DMRC) for manufacture and supply of 156 numbers state of the art standard gauge stainless steel metro cars towards second phase of operation worth Rs 1144 crore. During the year 2008-09, the company's R&D developed BE300 with Rexroth Hydraulics, BL200 Re-engineered version, WS70 High Capacity water Sprinkler, BA28 Air craft Towing Tractor, Transmission and Torque Converter for BH35-2. In May 2008, the company entered into an MoU with Steel Authority of India Ltd in which SAIL will purchase a total number of 261mining equipment over a period of next three years. Also, the company signed a long term agreement for 12 years with Coal India Ltd for joint production of Off the Road (OTR) to meet the requirement for production by the company and after sale requirement by Coal India Ltd. During the year 2009-10, the company's R&D developed Snow cutter, 125 Ton Excavator, upgraded version of BD 65 with joystick controls for work attachment, Arm chair steering control and hexagon ROPs cabin, transmission and torque converter for BH 50M. In April 2009, the company established their assembly unit Beml Brasil Industrial Ltda at Rio De Janeiro, Brazil. In August 2009, the company launched their local company, namely PT BEML Indonesia at Jakarta in Indonesia. Also, they inaugurated the Indonesian Marketing cum Spares Depot and Service Centre at Balikapapan, Indonesia. In October 8, 2009, the company received Construction World Award 2009 for the fastest growing construction equipment company by Union Minister for Roads Transport and Highways at Mumbai. In October 15, 2009, the company received SCOPE Award from Hon'ble Prime Minister for Excellence and Outstanding Contribution to the Public Sector Management Medium PSE Category for the year 2006-07. In January 16, 2010, the company received the Golden Peacock Award (Innovative management category) at Bangalore. In March 2010, the company bagged an order worth Rs 632 crore from the Ministry of Defence for supply of BEML Tatra variants. In May 16, 2010, the company inaugurated the Greenfield Project at Kanjikode, Palakkad and the Unit became operational rolling out Defence products and Rail parts. In June 2010, the company signed an MoU with Karnataka Government for establishing another manufacturing complex in Bangalore. In February 7, 2011, the BEML Aerospace Manufacturing Division at Mysore with Horizontal Machining Centre facilities was inaugurated at their Mysore Complex. This division will manufacture Gears for helicopters, Jigs for aircraft structures, Machining of aerospace components, fabrication of structural sub-assemblies for Su-30 aircraft and Variety of Ground Support and Ground Handling equipment. Further, this new Division will undertake manufacture of complex gears and gearboxes for helicopters and aero engines, landing gears of aircraft, fabrication of minor and major structural assemblies and upgrades of aircraft and helicopters. During the financial year ended 31 March 2014, BEML's international presence increased to 63 countries with exports to Taiwan and Gabon during the year. During 2013-14, BEML procured goods and services to the extent of Rs. 98.58 crores from Micro and Small Enterprises (MSEs) which constituted 6.67% of the total procurement value of Rs. 1476.86 crore. During the year under review, BEML's Mining & Construction business vertical designed, developed and supplied Motor Grader BG 605I and Hydraulic Excavator BE 220G. The business vertical designed, developed and rolled out 100 Ton Dumper with Electric transmission, MTU engine and rear axle with ABS, ASR and integral parking brake. It also rolled out BD 155 Dozer with electronic engine, Electronic Transmission, joystick controls, Integral Hexagonal ROPS / FOPS cabin and improved aesthetics. During the year under review, BEML's Defence business vertical procured order for manufacturing aggregates for Akash Missile from BDL. The business vertical also bagged an order for design and manufacturing of 2 nos. of ARRV from CVRDE. During the year under review, the company's Rail & Metro business vertical bagged a new order for manufacture and supply of 92 Standard Gauge Metro Cars for the prestigious Phase III, RS-9 Project of Delhi Metro Rail Corporation Limited (DMRCL). The first trial run of Jaipur Metro Rail Car, manufactured and supplied by BEML was flagged off by Chief Minister of Rajasthan during the year. During the financial year ended 31 March 2016, BEML achieved all time high Sales (net of consortium) of Rs 3287.44 crores. BEML's international presence increased to 66 countries with exports to Djibouti and Congo during the year. During the year under review, the company's Mining & Construction business vertical designed, developed and rolled out Compact Loader cum Excavator BL120H for construction sector. It also designed, developed and rolled out 117HP Dozer BD50 with Hydrostatic Transmission. This business vertical supplied the biggest Made-in-India Electrical Excavator BE1800E to the market. During the year under review, BEML opened its District Office at Leh for extending after sales support to its Mining & Construction equipment deployed through DGBR and E-In-C. During the year under review, the company's Defence business vertical designed and developed SMERCH 8x8 & 10x10 High Mobility Vehicle with additional steerable rear wheel. The business vertical bagged order for manufacturing and supplying of 2 nos. ofT-72 Trawl Hull. It also bagged order for manufacturing and supplying Surface Mines Clearing System. The Defence business vertical got Bulk Production Clearance for manufacturing and supplying aggregates for section IV & V of Akash Missile to M/s. Bharat Dynamics Limited. During the year under review, the Defence business vertical completed designing part of Arjun Repair & Recovery Vehicle (ARRV) in association with CVRDE and Army. During the year under review, BEML's Rail & Metro business vertical bagged a new order for manufacture and supply of 96 Cars for RS-13 Project of Delhi Metro Rail Corporation Limited (DMRCL). It also bagged order for manufacture and supply of 84 Cars for Kolkata East-West Metro Line Project of Kolkata Metro Rail Corporation Limited (KMRCL). During the year under review, the business vertical designed, developed and supplied Catenary Maintenance Vehicle for Navi Mumbai Metro Corporation. During the year under review, about 70% of the company's total requirements of materials and services were sourced through e-procurement platform on ERP system. During 2015-16, BEML placed orders for goods and services to the extent of Rs.188.58 crores from Micro and Small Enterprises (MSEs) which constituted 12.37% of the total procurement value of Rs.1524.45 crores. The Ministry of Defence (MoD) vide its letter dated 1 December 2016 communicated that Cabinet Committee on Economic Affairs (CCEA) had accorded 'in-principle' approval for strategic disinvestment of BEML. Department of Investment and Public Asset Management (DIPAM) vide its O.M. dated 19 December 2016 communicated that an Inter-Ministerial Group (IMG) had been constituted by the competent authority for the purpose of appointing intermediaries such as Asset Valuer (AV), Transaction Advisor (TA) and Legal Advisor (LA) for the strategic disinvestment of 26% equity in the company out of Government of India shareholding of 54.03%. After confirmation, BEML vide letter dated 06 January 2017 intimated NSE and BSE about the inprinciple' approval of CCEA and also posted on the web-site of the company, in terms of Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. As per the terms, MoD has appointed M/s RBSA Valuation Advisers LLP, Ahmadabad, as Asset Valuer, and DIPAM has appointed M/s. SBI Capital Markets Limited as TA and M/s Crawford Bayley as LA respectively. Preliminary Information Memorandum (PIM) and Expression of Interest (EoI) has been submitted by TA. BEML recorded Profit before Tax of Rs 98.29 crores in 2016-17 as against Profit before Tax of Rs 77.92 crores recorded in the previous financial year, which is the highest ever in the last five years. On the exports front, the international presence of BEML increased to 67 countries with the entry to Benin during the year. During the year, about 70% of the company's total requirements of materials and services were sourced through e-procurement platform on ERP system. During 2016-17, BEML placed orders for goods and services to the extent of Rs 303.93 crores from Micro and Small Enterprises (MSEs) which constituted 20.42% of the total procurement value of Rs1488.14 crores and 32.93% of indigenous procurement of Rs 922.90 crores. During the year ended 31 March 2017, the company's R&D Centre designed, developed and launched upgraded version of 100T Dumper (BH 100-1) to suit customer requirements, in addition to successful up-gradation of other existing products of the company. During the year under review, BEML's Mining & Construction business vertical signed a Memorandum of Understanding (MoU) with Dredging Corporation of India Ltd for indigenous design, development and manufacture of spares for dredgers. During the year under review, the company's Defence business vertical successfully indigenised Power Take Off Assembly for 8x8 High Mobility Vehicle. During the year under review, the company's Rail & Metro business vertical bagged a new order for manufacture and supply of 150 Cars for Bangalore Metro Rail Corporation Limited (BMRCL). During the year under review, BEML opened its District Office at Vijayawada, Andhra Pradesh for extending all sales support for its all Business Vertical. During the financial year ended 31 March 2018, BEML achieved all time high Revenue from Operations of Rs 3305 crores as against Rs2835 crores in the previous year, registering growth of 16.61% compared to previous year Revenue from Operations. The increase in sales is mainly on account of increase in the turnover of Rail & Metro Business due to increase in sale of metro cars to Delhi Metro Rail Corporation under RS-10, RS-13 and Kolkata Metro Rail Corporation projects. The Profit before Tax was about Rs 164 crores as against Profit before Tax of Rs 98 crores recorded in the previous financial year, which is the highest ever in the last six years. During the year under review, under Make in India' concept launched by the Government of India, BEML designed and developed products such as 180T (BE1800D) Diesel Excavator, 850HP BD475-1Bull Dozer under Mining & Construction Segment, Arjun Armed Repair & Recovery Vehicle, Truck Mounted Crane, Medium Bullet Proof Vehicle, High Mobility Vehicle for 155mm caliber Mounted Gun System under Defence Segment and Metro Cars for Kolkata Metro Rail Corporation and Intermediate Metro Cars for Bangalore Metro Rail Corporation Limited under Rail & Metro Segment. The company's Mining & Construction business vertical launched 5.4 ton, 3.1 cum bucket Wheel Loader BL30-1 during Excon Exhibition 2017. During the year under review, the company's Defence business vertical opened spare parts and warehouse office at Pune, Maharashtra. During the year under review, the company's Rail & Metro business vertical established the 3rd line Metro Manufacturing facilities at Bengaluru Complex to increase the production capacity of Metro cars. During the year, BEML's R&D Centre designed, developed and launched upgraded version of various products under Mining & Construction, Rail & Metro and Defence segments of the company. The financial year 2017-18 was a milestone year for BEML, as major improvements and initiatives were implemented in the HR areas related to leveraging IT for HR, Succession Planning for critical senior positions, process reengineering and optimization of human capital, Leadership development programmes through training abroad and also at IIM's / XLRI etc. BEML entered into a Consortium Agreement with M/s. Coal India Limited (CIL) and M/s. Damodar Valley Corporation (DVC) on 8 June 2010 for acquiring specified assets of M/s. Mining and Allied Machinery Corporation Limited (MAMC) (under liquidation). The agreement, inter-alia, provided for formation of a Joint Venture company (JV) with a shareholding pattern of 48:26:26 among BEML, CIL and DVC respectively. Considering that further investment/expenditure on this project would be an additional burden on the company, the Board of Directors of BEML suggested taking up the matter with Interim Board of Management of Consortium of BEML, CIL and DVC for exit option rather than pursing with M/s. SBI Caps for preparing the 'Financial viability & Business Plan' report of the proposed JV. Hence, it was proposed to take up with Interim Board of Management of Consortium of BEML, CIL and DVC for exploring the possibility of selling the assets of erstwhile MAMC purchased through Court auction either by Consortium as a whole or the share of BEML to a prospective buyer, if any. Further to the discussion held on 25 April 2018 among the members of MAMC Consortium, a draft Deed of Conveyance has been proposed to submit to the Official liquidator of Calcutta High Court for further action. During the year 2018-19, R&D test facilities have been up-graded with addition of Salt Spray Chamber, Abrasive Cutting Machine, 50T Actuator, High Pressure Power Pack, 25 kN UTM, Air Screw Compressor etc., and Design CAD/CAE tools like PTC Creo 5.0, ANSYS Mechanical CFD 19R1 Enterprises, KissSYS, Oracle Primavera P6 & Flow master. During 2018-19 CVO inspected various Regional / District offices of BEML Limited and recommendations on systemic improvements were made such as improving stores activities including Quality clearance and clearing of bills, streamlining supplies to DGBR, improving stores activities as well as inventory management and management of BEML Estate. During FY 2019, the Company signed MoU with M/s. HEC to cater to the demand of Mining Industry with products such as, Rope Shovel & Walking Dragline in mining and construction business. During FY19, the Company developed aggregates for Quick Reaction Surface to Air Missile (QRSAM). T-72 Trawl assembly were supplied to R&DE. The Company bagged Order for supply of Metro Cars to Mumbai Metro. In FY 2019, it indigenously designed & developed Metro Train sets to Kolkata Metro Rail Corporation Limited were successfully undergone trials. The company's manufacturing facilities were shut down during April 2020 due to COVID-19 and gradually resumed from May 2020. The company has raised Rs 100 crore through Commercial Paper on 24.06.2020 for a period of 90 days.Further the company raised Rs 150 crore through Commercial Paper on 22.09.2020 for a period of 92 days.The company raised Rs 150 crore through commercial paper on 23.12.2020 for a period of 90 days. During the year 2021, the Company incorporated a Wholly Owned Subsidiary in the name of 'BEML Land Assets Limited' on 15 July, 2021 for transfer of identified surplus / non-core assets as part of demerger under strategic disinvestment of BEML initiated by Government of India. It entered into a Consortium Agreement with M/s. Coal India Limited (CIL) and M/s. Damodar Valley Corporation (DVC) on 08 June, 2010 for acquiring specified assets of M/s. MAMC Industries Limited (Formerly known as Mining and Allied Machinery Corporation Limited (under liquidation). The agreement, inter-alia, provided for formation of a Joint Venture company (JV) with a shareholding pattern of 48:26:26 among BEML, CIL and DVC respectively. The Company has paid the proportionate share of Rs 48 crore towards the total bid consideration of Rs. 100 crore for the said acquisition, based on the order passed by the Hon'ble High Court of Calcutta. The said assets were taken possession by the MAMC Consortium. In the meantime, a company in the name of 'MAMC Industries Limited' (MIL) was formed and incorporated by BEML as a wholly owned subsidiary for the intended purpose of JV formation. During the year 2020-21, BEML signed contract with Coal India Limited for supply of India' s biggest indigenously Design & Developed 150T (7 nos.) and 190T (8 nos.) Dump Trucks costing at Rs. 398 crore. Hon'ble Raksha Mantri launched indigenously designed & developed products 150 Ton Dump Truck (BH150E) and 180 Ton Electrical Excavator (BE1800E) thru VC coinciding with Atmanirbharta Saptah. It completed supply of all 5 nos. BE1800E Electric Hydraulic Excavator to South Eastern Coal Fields Limited (SECL) for development in their Open cast mine projects at Kushmanda and Dipka. It designed & developed AI Based 360° Surrounding View Monitoring System for Mining equipment. Mainline Electrical Multiple Unit (MEMU) developed & manufactured with 3-phase Propulsion including Regenerative Braking System was flagged off. It flagged off the last train set for Kolkata Metro (East-West) Project from Bengaluru Complex and completed the supplies of all 84 cars. It supplied indigenously designed and developed Catenary Maintenance Vehicle (CMV) for Metro Corporations. It indigenously designed & developed Mainline Electric Multiple Unit that serve short and medium distance routes. During the year 2022, Company designed and developed products such as Mechanical Mine Field Marking Equipment (MMME), 1500 HP Engine for Future Main Battle Tank, sub assemblies for Geo Synchronous Satellite Launch Vehicle (GSLV) Mk-III for ISRO, BMP Transportation Platform, 60 Ton Dump truck with wet brakes in both front & rear axles and independent wheel mounting, engineering of CEV Stage-IV compliant engine on Motor Grader, 3.5 Ton capacity Tyre Handler meeting DGMS safety features for usage in mines, special attachments like tree pusher with forestry cabin for 324 and 180 HP dozer, wood grasper for 5 Ton Loader and Driverless Metro car (Unattended Train Operation) for Mumbai Metropolitan Region Development Authority. During year 2022, Hon'ble Coal Minister Shri Prahlad Joshi, flagged off 190T BH205E Dumper at NCL, Nigahi. The Company commissioned India's biggest Dump Trucks models 'BH150E' at M/s SECL and 'BH205E' at M/s NCL, Singrauli. Also, contract has been signed with M/s. Coal India Ltd. for supply of 21 Cu. M Electric Rope Shovel model 'BRS21'. BEML signed a ToT agreement with Defence Bio-engineering and Electro Medical Laboratory (DEBEL), DRDO for manufacture and supply of 960 Liters per Minute (LPM) Oxygen Plants, through which a total 81 nos. of Medical Oxygen Plants were supplied during 2021-22. First Proto of Minefield Marking Equipment Mk-II, was developed through ToT from R&DE, DRDO. It designed and developed 25 Kgs Class Tactical Unmanned Aerial Vehicle (UAV) in association with IIT, Kanpur. Proto train set of Mumbai Metro (MRS1) was flagged off by Hon'ble CM of Maharashtra for Dynamic Trials. The Company signed MoU with M/s. RITES Limited to explore and jointly bid for opportunities in the fields of Metro systems and export of rolling stock.