BEML expands overseas, sets up office in China; eyes Indonesian, Australian markets

07 May 2008

Bharat Earth-movers Ltd (BEML) has opened a full-fledged office in Shanghai, China to source components for its mining, metro rail and defence products. The company also plans to enter the Indonesian and Australian markets in a big way.

BEML, which sees railways as its main engine of growth, will also market its products in China through this office. ''With this office, BEML expects to earn a business turnover of Rs300 crore in 2-3 years,'' said BEML chairman and managing director V R S Natarajan.

"In addition to Brazil, Malaysia and Shanghai, we have plans to look at Indonesia and Australia," Natarajan told reporters in Shanghai. 

BEML proposes to open a marketing office and repair shop in Indonesia that "if everything goes well, could become an assembly shop," said Natarajan.

He said the company had sent a 100-tonne dumper to a customer in Australia on a trial basis and if it succeeds, "we will roll out equipment there also. Once the equipment population goes beyond 10, 20, 50...then naturally, we have to have our own set up to address the service needs as well as supply spare parts," he said.

BEML will be sourcing critical components and machinery parts required for the manufacturing of its mining and construction equipment as also for the manufacture of wagons and rail coaches.