Journey of the company

BEML Limited, previously commonly referred to as Bharat Earth Movers Limited, is a state-owned Indian company specialising in the production of heavy machinery used in earth-moving, transportation, mining, and railway sectors. The company is headquartered in Bangalore and is the second-largest manufacturer of earth-moving equipment in Asia. Established on May 11, 1964, BEML's formation was aided by the Soviet Union. Initially, it was entirely government-owned and operated by India's Ministry of Defence. However, in 1992, the government decided to divest 25% of its ownership in the company. BEML conducted a Follow-on Public Offer (FPO) during which the price band for its FPO was set between ₹1,020 and ₹1,090. Soon in 1993, the BEML was listed on the BSE and NSE. The Government of India has also granted 'in-principle' approval for strategic disinvestment of BEML Ltd., involving a transfer of management control to a strategic buyer, to the extent of 26% of the government's shareholding of 54.03%, with the remaining 44.97% being held by a mix of Financial Institutions, Foreign Institutional Investors, Banks, the Public, and the company's own employees. BEML is distinguished by manufacturing facilities in various locations, including Kolar Gold Fields, Bangalore, Mysore, and Palakkad. The KGF unit serves as the primary facility for manufacturing and assembling a wide range of earth-moving equipment like bulldozers and excavators. The Bengaluru complex is responsible for manufacturing rail coaches, while the Mysore facility produces dump trucks and engines of different capacities. Notably, on August 10, 2020, Defence Minister Rajnath Singh inaugurated the Industrial Design Centre (IDC) at BEML Bengaluru. This centre is aimed at enhancing research and development integration with the manufacturing processes. BEML Limited, classified as a 'Schedule 'A' Company' and operating under the Ministry of Defence, Government of India, plays a significant role in serving critical sectors in India, including Defence, Rail, Power, Mining, and Infrastructure. This company, which started its journey with a humble revenue of ₹5 Crores in 1965, has now diversified its business portfolio and achieved an impressive turnover exceeding ₹4,300 Crores in FY 2023.

Business Segments

BEML has three main business segments:

• Mining and Construction:BEML's Mining and Construction division is a prominent manufacturer of mining and construction equipment within India. Their equipment is esteemed for its exceptional quality and endurance. These products find utility among mining companies, construction firms, and government agencies across India and more than 60 other nations.

• Defence and Aerospace:BEML's Defence and aerospace sector stands as a reputable manufacturer of defence and aerospace equipment in India. The equipment from BEML is acknowledged for its superior quality and advanced features. It is the preferred choice of the Indian Armed Forces and various global military establishments.

• Rail and Metro:BEML's Rail and Metro segment is one of the foremost producer of rail and metro equipment in India. Their equipment is renowned for its top-notch quality and dependability. It is widely used by the Indian Railways, as well as metro operators in India and across the world.

Subsidiaries of BEML

• MAMC Industries Ltd.

MAMC Industries Ltd is a manufacturer of cranes and material handling equipment in India. They produce various cranes, including overhead, gantry, and jib cranes, along with forklifts, stackers, and reach trucks. Established in 1965 through a collaboration between BEML Ltd and Mitsubishi Heavy Industries Ltd, it is headquartered in Bangalore, Karnataka, India. Their clientele spans manufacturing, construction, logistics, and government sectors like Indian Railways and the Indian Army.

• Vignyan Industries Ltd.

Vignyan Industries Ltd. is a manufacturer of steel castings and fabricated products. Their product range includes carbon steel, alloy steel, and stainless steel castings, as well as pressure vessels, heat exchangers, and columns. Founded in 1963 as a subsidiary of BEML Ltd, it is headquartered in Bangalore, Karnataka, India. Vignyan Industries serves industries like manufacturing, engineering, and construction and is a supplier to government entities, including Indian Railways and the Indian Army. 🇮🇳

Corporate Actions

Demerger BEML announced a demerger with shareholder eligibility for a 1:1 share issue by BEML Land Assets Limited on September 9, 2022.

Management Outlook

• BEML is eyeing increased revenue streams from various sectors, with an expected rise in revenue from Defence and aerospace projects, estimated at approximately ₹500 crores over the next fiscal year. Additionally, they forecast a potential revenue surge of ₹250 crores in the Mining and construction sector due to increased demand for 'Made in India' heavy mining equipment.
• BEML has made a strategic entry into into MoUs and agreements with strategic partners to explore Defence and aerospace procurement opportunities. These alliances are estimated to contribute around ₹300 crores in revenue through collaborations in the supply of High Mobility Vehicles and aggregates for Missile Programmes.
• The organization is targeting global markets with a core priority on export orders. They've completed a major order from Cameroon worth around ₹150 crores for construction equipment. Furthermore, with orders from Russia and Indonesia, the export revenue is anticipated to reach approximately ₹200 crores in the coming year.
• With the expansion of Metro Rail to Tier-II cities, BEML is optimistic about securing orders for upcoming Metro Car projects, contributing an expected revenue of around ₹150 crores. The increased demand for suburban trains and Electric Multiple Units is projected to add approximately ₹100 crores to the organization's topline.
• With the government's push for 'Atmanirbhar Bharat' and policies supporting indigenous design and manufacture of defence equipment, BEML is determined to leverage this initiative for self-reliance. This core priority is anticipated to result in an estimated revenue increase of ₹400 crores in Defence-related projects.
• BEML is expanding its product portfolio and overhauling its enterprise to cater to emerging needs, potentially adding another ₹200 crores to its top-line revenue.