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Construction : Viewpoint | October 2016 | Source : CW-India

Indigenous Thrust

Initiatives like ´Make in India´ in various infrastructure sectors have created tremendous opportunities for domestic players, says DK HOTA.

The various initiatives taken by the Government of India for development of the infrastructure sector and the fast growth of the Indian economy in recent years, has placed increasing demand on physical infrastructure for electricity, railways, roads, ports, airports, irrigation, etc.

In the mining and construction sectors, the focus on coal production, to increase output from the current level of 0.5 billion tonne to 1.5 billion tonne by 2020, will result in requirement of high-capacity mining equipment such as dumpers and excavators. The increasing shift towards underground mining due to environmental reasons would certainly add to BEML´s prospects for expanding its existing business, and also help the company to explore new technologies and take its business to the next level.

BEML is engaged in design, development, manufacturing and after-sales service of a wide range of products for the core sectors of the economy - coal, mining, steel, cement, power, irrigation, construction, road building, defence, railway and metro transportation systems and aerospace.

The company operates in three distinct businesses - mining and construction, defence and aerospace, and railways and metro. The international division exports products manufactured by all three verticals.

Healthy demand
With infrastructure investment set to go up in airport and road projects, demand for construction equipment will rise further. BEML will go all out to grab this opportunity and increase its share of business in this sector.

In railways and metro transport, the government initiatives to modernise the railway infrastructure to bring it on par with developed countries include high-speed trains on dedicated, newly laid tracks, semi high-speed trains for running on existing tracks, magnetic levitation-based rail transport and dedicated corridors for freight transport. The Indian Railways´ medium-term capital investment plan of over Rs 100,000 crore for rolling stock will result in huge requirement of coaches, EMUs and maintenance vehicles. BEML is poised to benefit and is geared up to meet this surging demand, and be a major player in the rail transportation segment of the country. BEML also intends to cash in on every opportunity that would emerge in this sector.

Further, the government has taken keen interest in development of sustainable urban transport, not only in major metropolitan cities, but also in upcoming Tier-II and Tier-III cities. With these steps aimed at addressing the rapid urbanisation in the country, it is expected that the urban landscape of India will be rapidly transformed. BEML had already established a dedicated state-of-the-art manufacturing plant for manufacture of metro cars and has supplied over 1,000 metro cars to various Indian corporations. The metro rolling stock market is going to witness tremendous growth. BEML, with its proven experience and track record in this segment, is ready to grab this opportunity.

In the defence sector, the ´Make in India´ initiative to promote and encourage domestic defence manufacturing is crucial, because it will not only save precious foreign exchange, but also address the growth of domestic technology. ´Make in India´ in the defence sector is mainly driven by the Defence Procurement Policy-2016, with more flexibility for the formation of JVs and collaborations with more and more indigenous content. The indications on the long-term acquisition programmes of the defence forces and identification of ´Make in India´ projects encourages PSUs in the defence sector to focus on identified projects, based on their core competencies. If we look at the profile of Acceptance of Necessity (AONs) granted by the Defence Acquisition Council (DAC), proposals worth more than Rs 65,000 crore have been categorised under ´Buy Indian´ and ´Buy and Make Indian´. This augurs well for BEML to exercise greater leverage to bring - in new technology and products, and upgrade the existing product ranges.

To conclude, with all these strategies and action plans for infrastructure investments of the Indian Government, BEML is bound to gain substantially in the years ahead, and will ride on a wave of resurgence along with the Indian economy.

About the author:
Deepak Kumar Hota, Chairman & Managing Director, BEML, joined the company as Director-HR in 2013. Prior to joining BEML, he was CEO of HPCL-Bio Fuels. In BEML, he has taken various HR initiatives in L&D, competency, academia interface, leadership pipeline, etc.

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