The Hindu Business Line : BEML plans assembly units in Africa, Latin America

Bharat Earth Movers Ltd on Tuesday said that it has bagged orders worth Rs 1,500 crore from Delhi Metro Corporation (DMRC). It also plans to set up assembly units in northern and western Africa, Asia-Oceania and Latin America over the next three to five years. It would set up marketing offices in these regions over the next one year.

"We have received the letter of intent from DMRC to provide 312 coaches for Rs 1,500 crore, which are to be delivered by 2009," said the BEML Chairman and Managing Director, Mr V.R.S. Natarajan, adding that the order could go up to 400 coaches.

Regions spotted

"We have identified three regions — Indonesia and Australia, Latin American countries such as Chile and North and West African nations such as Morrocco, Algeria and Tunisia," he said on the sidelines of Hannover fair. The assembly units in these regions would be set up in partnership with local companies. The plants would be set up through the joint venture route with either 51:49 equity share or 50:50 equity share.

"We will soon be setting up sales and marketing offices in about six countries and later on assembly plants for mining equipment," Mr Natarajan said. The sales offices would be set up in the next one year and the assembly plants would be established within 3-5 years.

The public sector company is already Asia's second largest manufacturer of earth moving equipment and exports to 33 countries. It plans to boost exports to Rs 500 crore by 2013-14 from about 64 crore, he said.

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