Amit Banerjee, CMD, BEML
AK Srivastava, Director Defence Business, BEML
Vayu: How does BEML contribute to the modernisation of India’s armed forces? What are the ongoing projects in the defence sector?
BEML: BEML is in intense competitive environment across all its business verticals and more than 85% of its business is coming through open competition. Modernisation of facilities and upgradation of products is essential to be on par with global players. BEML is steadily upgrading its manufacturing facilities, IT infrastructure and R&D facilities and CAPEX is about Rs. 50 Crs. to Rs. 70 Crs. per year. BEML is going for outsourcing wherever capability/ capacity is available in the private sector and generally restricts capital expenditure only to add machines for carrying out very critical operations. The Company’s CAPEX is funded through internal accruals and borrowed funds. BEML has taken up many projects to support the modernisation of Indian Armed forces, which includes development of improved cabins for high mobility vehicles and introducing AI based systems in existing vehicles. Following AI based projects have been taken to serve the Armed Forces: Medical Health Diagnostic System, Autonomous Dozer for snow clearing application, intelligent machine controlled robotic arm for weapon loading, Lighting Control System on HEMM and finally Autonomous All Terrain Surface Vehicle.
VAYU : How strong is BEML’s international business and how do you intend to expand it? What are the major products on export and who are the clients?
BEML: BEML has an exclusive International Business Division (IBD), working in tandem with marketing divisions for the execution of export orders. BEML has exported its products to around 68 countries across the globe. Considering the prevailing market conditions, BEML’s experience base and future aspirations, the geographical countries/regions that are of interest to BEML for exports are African countries: Nigeria, Ethiopia, Ghana, Kenya, Tanzania, Senegal, Zambia, Tunisia, Malawi and Cameroon; SAARC countries: Bangladesh, Sri Lanka, Nepal and Middle East countries: Oman, Egypt, Saudi Arabia. BEML will expand the export business through various strategies:
- Enhancing market network by way of appointing distributors/representatives in various countries.
- Written to 25 defence attaches in Africa, Middle East and neighbouring countries for export of defence products.
- Registered in defence portals of foreign countries like Philippines and Singapore.
- Kenya region has been allotted to BEML by DDP for carrying out all the export promotional activities on behalf of all DPSUs/OFB. BEML branch office at Kenya has been registered since January 2021.
- Organised global outreach programme with EXIM Bank of India and ECGC for promotion of BEML defence products through EXIM Bank’s global offices.
- Organised Webinars in Senegal, Kenya, Zambia, Azerbaijan, Saudi Arabia, Abu Dhabi, Oman and Sri Lanka for promotion of defence exports.
- Brand building and visibility through international exhibitions.
- Exporting defence products through LoC under Govt. of India and utilising
- EXIM bank opportunities.
The products planned for exports are Armour Personnel Carrier, Wheeled Armoured Vehicles, Armoured Recovery vehicles, HMV 6X6, HMV 8X8, Engineering Plant equipment (Dozers, Excavators, Motor Graders), Prime mover with trailer 20 & 50 ton, Heavy Recovery Vehicle and Aircraft Towing Tractors, Medium Bullet Proof Vehicle, Crash Fire Tenders.
Armoured Recovery and Repair Vehicle
VAYU : Could you shed some light onto the indigenisation efforts of BEML? What are the indigenisation levels in various divisions?
BEML: BEML has made considerable efforts during the last few years to indigenise large number of imported parts across all the three business verticals under Atmanirbharatha. Around 1400 parts have been identified for indigenisation over a period of five years and same have been uploaded in SRIJAN Portal for indigenisation. BEML has indigenised the products manufactured under license and technology transfer agreements through extensive R&D efforts and achieved over 90% indigenisation level on most of mining and construction products, over 80% on defence and aerospace products and over 60% on metro and rail products. BEML recognises outsourcing as one of the strategic tools to achieve cost benefits and also complement the strengths of private sector to build a strong industrial base. BEML has established itself as a system integrator by outsourcing substantial part of manufacturing activities to domestic suppliers. Further, BEML has indigenously developed and manufactured various equipment by involving Indian private industries such as Arjun Armoured Recovery & Repair Vehicle (Arjun ARRV), Medium Bullet Proof Vehicle (MBPV), Vehicles for Mounted Gun System (MGS) Dhanush, Vehicles for Mounted Gun System (MGS) with AK630, AI based Medical Health Care Diagnostics System (MHDS), Mobile Stand by command post vehicle (MSCPV) on 4x2 chassis, Sarvatra Bridge System, 10 mtr and 5 mtr Short Span Bridge System, Mine Field Marking Equipment (MFME), Mechanical Munition Self Propelled (MMLSP), India’s biggest high-end Dump Trucks of 150 ton and 190 ton, India’s biggest high-end Excavator of 180T and also Unmanned Train Operation (Driverless) Metro Rolling Stock.
VAYU : BEML recently signed a MoU with RITES Limited to explore opportunities in the field of Rail and Metro systems and export of rolling stock. Could you share the details?
BEML: The parties intend to synergise their efforts by complimenting their respective strengths for marketing, supply and services for Rail and Metro products including rolling stock manufactured by BEML in domestic as well as in overseas market.The duration of MoU is for 3 Years. Our role is to manufacture and supply rolling stock and spare parts and to provide technical and service support. RITES role is to provide design engineering, project management consultancy, marketing, O&M support and any other support that may be required. VAYU : BEML offers a comprehensive and diverse range of mining machinery for both opencast and underground mines. What are the latest business operations in the sector? BEML: The focus is on environmentfriendly and safety technologies in the mining sector:
a) BEML launched in house designed electric hydraulic shovels in the range of 70, 100 and 175 ton class. These mining equipments are well accepted and run completely on high voltage electricity.
b) The rope shovels and walking dragline are completely driven by DC/AC electric systems and are used extensively in the mining sector.
c) BEML has launched hybrid dumpers suitable for mining application.
d) BEML has strategic plan to develop hybrid and electric/battery operated driven dozer, wheel loader.
e) BEML has launched CEV stage IV compliance motor grader and wheel loaders.
f) All the equipment meets the strict safety guidelines issued by DGMS and also meets the ISO and IS standards.
Some of the key safety features are: Acoustic cabin with <80dbA noise level, ROPS/FOPS cabin, mechanical anticollision system for dumpers, operator fatigue monitoring system, 360° surround monitoring system, blind spot proximity warning system for dumpers, ABS braking system, air suspended operator seat, EMI/ EMC compliant electronic devices and fire retardant wire harness and hydraulic hoses.
Heavy Recovery Vehicle
VAYU : How well does the rail and metro division of BEML perform? How do you intend to tap business opportunities in expanding metro rails in the country?
BEML: BEML at present hold market share of about 44% in terms of metro car supplies in the country. We note that the Government of India is putting great thrust on infrastructure spending including development of many Metros rail projects in future. As premier supplier of rolling stock to metro corporations in the country, BEML is at the forefront of adapting to the latest technologies and expanding its expertise and capacities as well as strengthening its supply chains to cater to the substantial emerging market requirement. BEML is also looking for partnerships to address new product categories in Indian urban rail transport such as LRTs/Trams/High Speed trains etc. We hope BEML will continue its dominant position in Indian metro rolling stock market in the future.
VAYU : BEML organised a seven-day exhibition ‘Journey of BEML Since 1964’ showcasing its capabilities in both defence and non-defence segments. How successful has the expo been and what were the highlights?
BEML: During the week of 13- 19 December 2021, BEML Limited celebrated Azadi Ka Amrit Mahotsav across all its manufacturing Units i.e. Bengaluru, Mysuru, Kolar Gold Fields and Palakkad. An exhibition was organised to showcase the ‘BEML’s Journey since 1964’. The exhibition was inaugurated by the Defence Minister. We showcased our major equipment and aggregates during the exhibition. Arrangements were made for pickup and drop of school students. Wide media coverage was also imparted for citizens to witness the prowess of BEML equipment. Necessary arrangements were made for all visitors. All senior officials also visited and encouraged visitors. We are happy to share that during the period the footfall was around 22,000 visitors.
Mine Field Marking Equipment (MFME)
BH150E Dump truck
VAYU : BEML paid a dividend of Rs. 13.50 crs to the government. How strong is the order book of the company and what all operations decide the profits?
BEML: The order book is around Rs. 9500 Crs. Profitability is dependent on the product mix and all verticals combined.
VAYU : It has been less than a year since you assumed charge as the CMD. How do you assess the operations of BEML and what are the objectives ahead?
BEML: My vision for the Company is to become a cornerstone for India’s Make-in- India aspirations, a manufacturing hub for the highly competitive core businesses. Immediate priorities will be to leverage the strengths in our core business for significant growth in the next 4-5 years. This would involve diversifying in the aerospace and defence business, accelerate the growth in rail and metro business and sustain the mining and construction business. We need to develop new products adopting the latest technologies through strategic tie-ups with global players and premium academic institutions. Increasing the indigenisation levels in all the products will be a key thrust area. Exploring the international market opportunities in all the business areas to increase the exports will be a major priority. The goal in the next few years would be to increase the revenues substantially with reasonable margins and contribute significantly towards exports.