The Hindu Business Line : BEML to invest Rs 300 cr in off-road trucks venture

BHARAT Earth Movers Ltd (BEML) plans to invest Rs 300 crore in a joint venture with Czech truck maker, Tatra AS to set up a manufacturing plant to produce off-road trucks.

The PSU, which has massive export targets, proposes to set up manufacturing bases in over four countries in the current fiscal.

"We will invest Rs 300 crore to set up a 51 per cent BEML and 49 per cent Tatra company. This company will largely cater to the Indian defence forces by manufacturing 200-300 off-road vehicles every year,'' said Mr V.R.S. Natarajan, CMD, BEML, at the sidelines of a CII seminar on the globalisation of Indian manufacturing companies here today.

Tatra has been a supplier of super heavy trucks to the Indian Army through BEML for over 25 years.

There is no other manufacturer of off-road trucks in the country. These vehicles can traverse across several metres of water, sand and hills. BEML with a net worth of Rs 600 crore will make its entire investment in the joint venture from internal accruals and will not tap the capital market, said Mr Natarajan.

The company also has plans to set up assembly and manufacturing units in Sri Lanka, Ghana, China and South Africa. "Negotiations are currently underway in these countries and we plan to enter into co-production agreements. We will produce defence, construction equipment and railway coaches for these markets depending on their requirements,'' he said. Additionally, talks are also on in other countries such as Surinam and Iran.

On the export front, BEML has plans to generate Rs 500 crore of its turnover from exports by 2009-10. For the financial year ended March 2004, exports accounted for Rs 54 crore of turnover and the target for the current fiscal is set at Rs 100 crore. The company exports to over 25 countries in Europe, Africa and West Asia.

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