BEML Limited : Dedicatedly working for Atmanirbhar Bharat

An interview with Amit Banerjee | Chairman & Managing Director | BEML Limited

With what objective was BEML set up?

Reply: BEML Limited was incorporated on 11^th May 1964, under Companies Act 1956, as a Public Ltd Company, which was primarily established as a rail coach manufacturing unit at Bangalore. The Company started its business from January 1^st 1965, 100% ownership with Government of India.

As a part of Strategic decision, Earth Movers Division was established at KGF in 1967 for manufacturing of Heavy Earth Moving equipment for supply to Director General Border Roads (DGBR).

BEML Research & Development was established in mid 70’s, with a mandate to design and develop new Products and support indigenization efforts.

Subsequently, a full-fledged R&D centre was established at Kolar Gold Fields during 80’s, with Structural Engineering and Power Line Laboratory, along with Fluid Power Laboratory, Material Science Laboratory and Design Center with modern CAD/CAE tools and sophisticated equipments.

This R&D centre has comprehensive range of facilities to promote New product design, including aggregate level design involving design of Transmissions, Axles, Hydraulics, Electronics and support indigenisation. Technology tie-up was made with M/s. Komatsu for manufacturing of Dozers and Excavators in India

Subsequently, Truck Division in 1985 at Mysore for manufacturing of High-end Dump Trucks was established and the agreement with M/s. Komatsu was enlarged for Dumpers and Motor Graders.

Hydraulic & Power Line Division was set up in 1987 at KGF for manufacturing of Transmissions, Axles & Hydraulic aggregates and Engine Division was set up in 1991 at Mysuru for manufacturing of engines to cater to the requirement of our equipment.

In the year, 2010 Palakkad Complex at Kerala was established for manufacturing of Defence Products and Rail Parts.

What is the exact role of BEML in three major segments – Mining & Construction, Defence & Aerospace and Rail & Metro?

Reply: As you are aware, BEML operates in three business segments – Mining & Construction, Defence & Aerospace, Rail & Metro and International Business Division for export activities.

BEML under its Defence segment offers High Mobility & Recovery vehicles, Bridge Systems, vehicles for Missile projects, Tank Transportation Trailers, Milrail Wagons, Mine Ploughs, Crash Fire Tenders, Aircraft Towing Tractors and Aircraft Weapon Loading Trolley etc. Under Rail & Metro segment, BEML offers Passenger Vehicles, EMUs, Metro Cars, Maintenance & Utility Vehicles, etc. Under Mining &Construction segment, the Company offers Bull Dozers, Excavators, Dumpers, Shovels, Loaders, Water Sprinklers, Motor Graders, Pipe Layers, Tyre Handlers, etc. 

BEML has its own world-class composite R&D establishment for Design & Development of products. The R&D establishment has CAD Centre, Fluid-power, Power-line, Structural Engineering & Material Science laboratories and is continuously engaged in New Product Development and Upgradation of existing products to meet customer requirements. More than 69% of Company’s Sales Turnover is through in-house developed R&D products. The average R&D expenditure is more than 3% of its turnover.

BEML’s products are sold and serviced through a nationwide marketing network of 12 Regional Offices, 14 District Offices & Service Centres spread across the Country and Spare Parts depots within in close proximity to major customers.

BEML’s products are exported to various countries including   Indonesia, Thailand, Malaysia, Syria, Tunisia, UAE, Jordan, Suriname, South Africa, Sri Lanka, Bangladesh, Zimbabwe etc.

How do you view the BEML’s significance progress since its inception?

Reply: BEML has delivered many Firsts of India since its inception in 1964. As CMD, I feel honoured to be a part of this Company and its workforce, who not only stood resolutely during pandemic but also achieved a milestone of highest ever sales during 2020-21.

Some of the major achievements over the years are:

Indigenously Designed & Developed and supplied

• Nation’s first Stainless Steel Electrical Multiple Unit (SSEMU) to Indian Railways for sub urban Commuting.
• India’s first Intermediate Metro car for Delhi Metro Rail Corporation.
• India’s Biggest 180 Ton (BE1800E) Excavator which operates entirely on electrical power with zero emission. 
• India’s Biggest 205 Ton (BH205E) Dump Truck with environment friendly Electric Drive Systems.
• India’s Biggest 850HP (BD475) Bull Dozer.
• First proto of Arjun Armoured Repair & Recovery Vehicle (ARRV) to CVRDE.
• Nation’s First state-of-the-art six car Metro Train set to Kolkata Metro.
• Supplied India’s first Driverless Metro car to MMRDA

What are the challenges BEML is facing today? And what are the important steps taken by BEML to face the challenges?

Reply: Presently, the major challenge is to keep our supply chain uninterrupted and maintain the margin which is getting affected due to rise in fuel prices and other inputs viz. steel & aluminium. We have taken all advance actions and long-term contracts have been entered with major suppliers to meet delivery requirement of the customers. We are optimistic about quantum growth in our top line and bottom line by end of the current fiscal.

Also, stiff competition in all segments of business against global players and the retention of talent is a key challenge which we are facing. The same is being addressed on Priority.

What are the recent activities of BEML?

Reply: During recent times number of accomplishments has been achieved by the Company. Some of them are:

• Designed, Developed and supplied India’s biggest
• Excavator to Coal India Limited
• Dump Trucks to Coal India Limited
• Bulldozer to Coal India Limited
• Indigenously designed, developed & supplied Metro cars to Kolkata Metro
• Catenary Maintenance Vehicle (CMV) was successfully designed & developed and supplied to Delhi Metro Rail Corporation.
• Developed and supplied the country’s first unmanned train operated (driverless) metro rolling stock for supply to MRS1 project of Mumbai metro line 2A and line 7.
• India’s first High Powered 1500HP Engine for Defence Application is under development.
• Mechanical Minefield Marking Equipment (MMME – Mark II)
• Hydrostatic drive dozer BD50HST. 
• Power Angling & Tilting Dozers BD65PAT
• Developed BD50 PAT (Power Angling & Tilting) Dozer

How do you see the BEML in the year 2025?

Reply: At present, we are optimistic of achieving targeted revenue for the current year. In Mining & Construction Business, we are hopeful of achieving minimum 10% growth over previous year. In Defence and Rail & Metro Business Group all orders are available and execution is under progress. Some of the issues w.r.t supply chain with overseas vendors are being sorted out. Orders over Rs. 2000 crore is under pipeline in addition to our current order book position of Rs. 9500 crore. Further, GoI impetus on exports and new positive list will provide boost for added revenue to the Company.

On export front, we are very enthusiastic and confident to achieve minimum 10% growth during current year. We have received major order from Cameroon for supply of Mining & Construction equipment. Further orders from Bangladesh are under execution and additional orders are expected for Defence equipment in next FY.

Also, I am very happy to share that during 3^rd Qtr. Of FY22, we have posted growth of over 44% as compared to last year and poised to achieve minimum revenue of Rs. 4000 crore during current FY22 including minimum 10% sales through exports. Based on the current growth pattern, the Company should be able to achieve a minimum revenue of Rs. 8000 crore by FY25. This will certainly make us become a mega Company.

What about the Govt.’s policy – “Make in India” and BEML?

Reply: BEML is dedicatedly working on Government Policy of Make in India and Atmanirbharata. BEML has taken-up many development projects along with Industry partners & collaboration with OEMs towards nation building. Also, BEML has made considerable efforts during the last few years to indigenize large number of imported Parts across all the three Business verticals under Atmanirbharata. Accordingly, 1458 parts have been identified for indigenisation over a period of five years and the same have been uploaded in SRIJAN Portal for indigenisation.  

• BEML has indigenized the products manufactured under license and technology transfer agreements thru extensive R&D efforts and achieved over 90% indigenisation level on most of Mining and Construction products, over 84% on Defence & Aerospace products and over 65% on Metro & Rail products.
• BEML recognizes 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;
• Arjun Armoured Recovery & Repair Vehicle (Arjun ARRV)
• Medium Bullet Proof Vehicle (MBPV)
• Mounted Gun System (MGS) Dhanush
• Mounted Gun System (MGS) with AK630.
• AI based Medical Health Care Diagnostics System (MHDS)
• Mobile Stand by command post vehicle (MSCPV) on 4×2 chassis.
• Pinaka 5^th to 10^th Regiment.
• Sarvatra Bridge System
• 10 Mtr. & 5 Mtr. Short Span Bridge System
• Mine Field Marking Equipment (MFME)
• Mechanical Munition Self Propelled (MMLSD)
• India’s Biggest High-end Dump Trucks of 150 Ton & 190 Ton
• India’s Biggest High-end Excavator of 180T
• Unmanned Train Operation (Driverless) Metro Rolling Stock

Further, the following are the projects under pipeline, planned for future launching.

• Unmanned Aerial Vehicle in collaboration with IIT, Kanpur
• Development of 1500HP Engine for Armoured Fighting Vehicles.
• 1^st Set (FOPM) vehicles for Pinaka 5^th to 10^th Regt will be supplied during the FY 2022-23
• BEML has indigenously designed, developed and manufactured Advanced Towed Artillery Gun System (ATGAS) with armoured cabin to customer VRDE.
• BEML has designed, developed and manufactured Mechanical Minefield Marking Equipment Mark-II. One no. is offered for field evaluation on NC-NC basis. Also, BEML has submitted the offer for supply of 56 Nos. under Buy (Indian–IDDM) with minimum 60% indigenous content. After successful completion of trial, orders will be placed on BEML.

Upcoming Projects / Co-operation:

• BEML is entering into a License Agreement with R&DEE for Transfer of Technology to develop & supply Self Propelled Mine Burier (SPMB)
• Indigenous development of High Mobility Vehicle, HMV12X12.
• BEML is planning to obtain the consultancy services from IIT, Kharagpur for development of projects Mine Protected Vehicle (MPV), Mounted Gun System (MGS) & Wheeled Infantry Combat Vehicle (WICV).
• BEML will be signing an MoU with Advanced Weapons and Equipment India Limited (AWEIL) for the development of Mounted Gun System (MGS) 155mm 52 Cal on modified 8×8 Chassis.
• BEML will be signing a MoU with Armoured Vehicles Nigam Limited (AVNL) to work on Hull & Transmission for T72 Tank, Aggregates for Arjun MBT, Armoured Vehicle Tracked- Light Repair & self-recovery (AVT-LR) vehicle on BMP-II Chassis.

How is BEML emerging as a prominent international player in the core sectors?

Reply: BEML is operating under highly competitive environment and 74% of sales is achieved on competition basis.

Under Mining & Construction segment, the Company competes with global companies viz. Caterpillar, Komatsu, etc. and holds over 50% market share in Dozer & Dumper market.

Also, BEML is the only Indian PSU manufacturing State-of-the-Art Metro Cars competing with Global Players viz. Alstom, CRRC, etc. and has market share of over 45% in Metro segment.

With the ever-increasing competition in the retail market, competitive pricing is fast becoming one of the most sought-after pricing strategies.

BEML has the highest indigenous content in its construction and mining machinery among all players, and this is one of the major factors in ensuring cost competitiveness.

We are continuously striving to reduce cost through standardization, improved processes, tooling and alternate sourcing backed by our extensive test facilities in our R&D centre at KGF. Further, we have launched Industrial Design Centre to:

• Focus on implementing Industrial Design and human factors in all products.
• Global benchmarking for Industrial Design and ergonomics and integration with R&D and manufacturing.
• Hub for exchange of creative ideas and concepts to provide the ‘design-edge’ for better market and user acceptance.

Further, we are focussing on providing latest innovative technologies viz., Artificial Intelligence which are suitable for Indian mining conditions and with competitive pricing. Also, we have designed, developed and supplied Driverless Metro cars to Mumbai Metropolitan Region Development Authority.

We believe in delivering best value for our customers in all the products and services we offer. The products developed through our own in-house R&D centre are extensively tested for customer satisfaction and desired optimization.

Local availability of spare parts and service support for all aggregates including engine, transmission, axle and hydraulics, ensures the life cycle costs are most competitive in the market.

BEML has a dedicated International Business Division and exported its products to over 69 countries across the globe. BEML International Business Division working tirelessly to cater to the need of the global customers. Till date, we have supplied over Rs. 4000 crore of goods and services to overseas customers. Further, we have bagged major export orders from Cameroon and Bangladesh which is under execution.

Have you any observation on any other issues?

Reply: As you are aware, India is poised to achieve US$ 5 trillion economy by 2024-25 and services sector including exports will play a major role. Presently, lack of technology and know-how is a big challenge in India. Foreign OEM’s are reluctant to invest in these fronts. Also, FDI proposals need to be seriously gauged.

Further, on achievement of Self-Reliance front, budgetary support from Government is required for ToT of critical items from foreign OEMs. However, the Production Linked Incentive (PLI) Scheme which is introduced by the government is focusing on enhancing India’s manufacturing capabilities and enhancing exports. The scheme will surely attract investment and make Indian manufacturers globally competitive.

(Shilpa Bichitra | Anniversary Edition | 2022)