Bharat Earth Movers Ltd (BEML)

BEML

• 1964

• PSU (54% Government of India)

• Mini-Ratna

• Main Line of Business– Mining & Construction– Defence– Rail & Metro

BEML

• Eight manufacturing units spread over four locations – Kolar Gold Fields (KGF) Complex (around 100 Km

from Bangalore) • Earth Moving Division • Rail Coach Unit II • Heavy Fabrication Unit • Hydraulic & Powerline Division

– Mysore Complex (around 130 Km from Bangalore) • Truck Division • Engine Division

– Bangalore Complex - Rail & Metro Division– Vignyan Industries, Tarikere - Steel Castings

Vision

• To become a market leader, as a diversified company, supplying products and services to Mining & Construction, Rail & Metro and Defence sectors and globalize its presence.

Mission

• Improve competitiveness through organizational transformation and collaboration / strategic alliances / joint ventures in technology.

• Grow profitably by aggressively pursuing opportunities in national and international markets.

• Attract and build people in a rewarding and inspiring environment by fostering creativity and innovation.

Objectives

• To maintain a dominant position in design, development, manufacture and marketing of Defence, Earthmoving & Construction and Rail & Metro equipment.

• To diversify and grow. • To provide total engineering solutions to its customers. • To internationalise operations by enhancing exports. • To improve profitability. • To maintain State-of-the-Art technology for all products. • Re-orientation of the business operations to match

present scenario. • Continuous building of skills and competencies to bring

about Executive Effectiveness for Management Succession.

Product Mix

Industry & Competitive Analysis

Construction and Mining Equipments Industry (CME)

Source: Construction & Material Handling Magazine – April 2007

Source: Construction & Material Handling Magazine – April 2007

Construction and Mining Equipments Industry (CME)

Source: Construction & Material Handling Magazine – April 2007

Construction and Mining Equipments Industry (CME)

Source: Construction & Material Handling Magazine – April 2007

Construction and Mining Equipments Industry (CME)

Construction and Mining Equipments Industry (CME)

Construction and Mining Equipments Industry (CME)

Construction and Mining Equipments Industry (CME)

Construction and Mining Equipments Industry (CME)

• Industry Competitiveness– Threat of New Entrants– Competitive Rivalry– Threat of Substitutes– Supplier Power– Customer Power

Construction and Mining Equipments Industry (CME)

• Key Success Factors– Post Sales Support– R&D Innovation– End to End Service

Construction and Mining Equipments Industry (CME)

• Competitors– JCB India– L&T Case and L&T Komatsu– Ingersoll-Rand India Ltd– TELCON– Voltas– Godrej & Boyce Mfg. Co. Ltd.– Escorts Construction Equipment Ltd.– Action Construction Equipment Ltd

Construction and Mining Equipments Industry (CME)

• BEML – first move advantage & leading player

• Achieved forward & backward integration

• Manufacturing Flexibility

• Joint Ventures in Mines

• Expanding distribution and marketing network

• Expansion in Latin American market

Construction and Mining Equipments Industry (CME)

Railway & Metro Products Industry

• Turn Around in Indian Railways

• Limited Production of Rail Coaches

• Cast Product Range

• High Demand for Metro Coaches & absence of domestic competition

• Decicated Production Facility and Expansion

• Order Backlog

Railway & Metro Products Industry

Defense Products Industry

• Capital Expenditure has increased by 27%

• BEML is Defense Public Sector Undertaking

• Technological Ties

• Volatile Segment for BEML

Defense Products Industry