BEML is planning to set up an assembling unit for mining equipment in Indonesia. The Bangalore-based public sector undertaking is also looking at hiving off its rail business into a new subsidiary, according to chairman and managing director V R S Natarajan.

“The market (in Indonesia) looks attractive for mining equipment. To tap that potential, we are planning to set up an assembly unit there," he told reporters after inaugurating a new research facility at Avadi on the outskirts of this metropolis. BEML has supplied mining equipment worth around Rs 150 crore in Indonesia and has orders worth around Rs 125 crore in hand from that Southeast Asian country.

“We have so far supplied items to 20 units in Indonesia," Natarajan informed. “Once the number touches 100, we will set up an assembling facility there — for dumpers, dozers, excavators and others. We expect to touch 100 units next year." This will be an extension to the upcoming spares depot and services centre in Indonesia, he added.

Rail biz to a subsidiary
BEML, incorporated in 1964, is now planning to hive off its rail business into a new subsidiary. With a business potential of around Rs 1 trillion in rail rolling stock over the next 10 years, floating a separate subsidiary would make the company’s business more focused in the next financial year, Natarajan said.

BEML is the only Indian company rolling out metro rail cars. It is supplying rolling stocks for Delhi Metro and Bangalore Metro and is negotiating for orders from other metro rail projects. The division will close this year with a revenue of Rs 1,500 crore, up from Rs 1,300 crore last year.

“Over the next five years the company has set a target of Rs 3,000-crore business from this division," he added.

Defence supplies
On the defence supplies, BEML is planning to make battle tank engines and transmissions for India’s main battle tank Arjun. Also, the company is in talks with a foreign firm for building and supplying 155-mm, 52-calibre tracked gun, Natarajan informed. The company is building a new facility for making components for aerospace sector at Mysore in Karnataka.

With an order book size of Rs 6,500 crore to be executed over the next 12 months, BEML would close this fiscal with a turnover of Rs 4,500 crore, according to Natarajan.