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Sunday, May 30, 2004

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BEML gears up to make metro rail coaches — MoU with S. Korean co soon

Our Bureau

Hyderabad , May 29

EXPECTING a huge demand for metro rail coaches in the next few years, Bharat Earth Movers Ltd (BEML) will join hands with Rotem of South Korea to manufacture world-class stainless steel air-conditioned metro coaches in India for the first time.

The two companies will sign a memorandum of understanding (MoU) in the second week of June, allowing the Indian company to gear up for the upcoming metro rail projects in Bangalore, Hyderabad, Mumbai and Ahmedabad.

Announcing the collaborationat a press conference on Friday, Mr V. R. S. Natarajan, Chairman and Managing Director of the Bangalore-based public sector company, said that the MoU facilitated transfer of technology from the Korean company.

"We are expecting huge business from this segment. The company's rail coach segment contributed 10 to 15 per cent to its turnover. It will grow to 25 per cent in a couple of years," Mr Natarajan said.

Mr Natarajan was in Hyderabad in connection with the launch of BL9H Backhoe Loader - a backhoe loader for construction, mining, irrigation and power.

"The market size of backhoe loaders is about 5,000 units in the country. We are hoping to get a sizeable share in that as there is a huge increase in investments in urban infrastructure and highway development," he said.

For the year 2003-04, the company posted a profit before tax (PBT) of Rs 52 crore on a sales turnover of Rs 1,770 crore. "With an order book worth Rs 2,150 crore and new launches, we are confident of crossing Rs 2,000 crore this financial year," he said.

The company has recently forayed into the underground equipment segment by launching a side discharge loader. Incidentally, the first machine was sold to Singareni Collieries. BEML's defence arm has contributed 40 per cent to its total turnover. "It is expected to hover around the figure. But volumes will grow," he pointed out. In a bid to market its defence equipment abroad, the company will be was going to forging business partnerships

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BEML gears up to make metro rail coaches — MoU with S. Korean co soon

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