Company Background - BEML

BEML was incorporated under the Government of India administrative control by the Ministry of defence in 1964. In 1992, Government dis-invested 25% of its shareholding over a period of two years. Presently 40% of its equity has been dis-invested to financial institutions and public.It is the largest manufacturer of earth moving equipment in India and the second-largest in Asia. The company commands 70% market shares in domestic earth mover industry.

The company's unit at Kolar Gold Field Mysore and Bangalore incorporate hi-tech manufacturing facilities with soptisticated CNC machines,Arc-welding robots and FMS.

BEML manufactures a wide variety of equipment like heavy earth movers, rail coaches, military tanks, heavy-duty trucks, trailers, and high-powered diesel engines. Its products find application in mining, construction, power, irrigation, fertilisers, steel, defence and the railways.

BEML made its maiden public offer of Rs 117 cr in Dec.'94 for 60 lac 12.50% PCDs of Rs 195 each. The main objective of the issue was to part-finance the backward integration of an engine project by installing a flexible manufacturing system required for the manufacture of engines; and for expanding the capacity for the manufacture of hydraulic cylinders, which are critical components in the manufacture of earthmoving equipment. The estimated cost of the project was Rs 50 cr. Vignyan Industries, a subsidiary of the company, manufactures casting to meet the requirements of BEML.

During 1999-2000, the company has entered into strategic alliances with multinational companies like M/s Steelfields, UK, Kawasaki, Japan, Europactor, Spain, Crossmobil, Germany and Hartl Crushtek, UK , which will improve growth opportunities.

In 2000-2001, BEML tied up with Technology Information Forecasting & Assessment Council (TIFAC) for manufacturing specialised equipment to be used in disaster management and is planning to productionise them for deployment in hazardous situations.

In 2003-2004, the company has entered the metro Railway business with the manufacture and supply of hi-tech stainless steel metro coaches to the Delhi Metro Rail Corporation. BEML has expanding production activities in the Defence and Railway sectors and acquired over 1,100 acres of land and two workshops on lease basis from now-defunct public sector undertaking Bharat Gold Mines Ltd (BGML) in Kolar Gold Fields in 2004. During the same year, the company has opened a new Railway Fabrication Unit at Kolar Gold Field Complex.

The company has undergone organizational restructuring to improve over competitiveness in the global market and boost the revenues and profitability. Consequent to this, the company's operations will now be run as three-business groups viz. Mining & Construction, Defence and Railway & Metro Business. The company has also diversified into new business areas by opening two new divisions, the Technology Division and Trading Division on 12th April 2006.

With effect from 29th August 2006, the company has conferred `Mini-Ratna (Category 1)' status by the ministry of Defence. The status has been given recognizing position in the industry, consistent performance, growing profitability and rapid absorption of changing technologies. With this status, the company has got enhanced powers from the Ministry of Defence.