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Construction : Cover Story | August 2018 | Source : CW-India

We achieved the highest ever sales turnover, registering 30 per cent growth over the previous year

Incorporated in 1964, BEML is a Mini-Ratna (Category-1) PSU under the Ministry of Defence engaged in the design, development, manufacturing and after-sales service of a wide range of products for sectors such as coal mining, steel, cement, power, irrigation, construction, road building, defence, railway and metro systems and aerospace.

The company operates in three business segments: Mining and construction, defence and aerospace, and rail and metro.

It has manufacturing complexes in Bengaluru, Kolar Gold Fields, Mysuru and Palakkad. Deepak Kumar Hota, Chairman & Managing Director, BEML, shares more...

Highlight one major challenge faced in FY2017-18.
BEML's well-over 80 per cent of sales value being achieved from orders obtained through competition mode is indicative of the stiff competition it faces in all business verticals. For 2017-18, the major challenge for the company was to sustain and increase market share, which in turn had a positive impact on the topline and bottomline.

The company stretched the boundaries by a few notches and achieved its highest turnover of Rs 32.46 billion. With its major market share, well-developed indigenous facilities and proficient and skilled manpower, BEML is poised to achieve its envisaged growth targets in the current year.

What decision do you consider the biggest contributor to the company's growth in FY17-18?
The company achieved the highest ever sales turnover, registering a growth of 30 per cent over the previous year. Our rail and metro business achieved record production or sales of 244 metro cars, registering a growth of 114 per cent over the previous year, while the mining and construction and defence businesses registered a growth of 11 per cent and 10 per cent, respectively. Such a commendable performance has helped the company register a three-figure profit after a gap of four years.

Can you share a decision you avoided, which could have otherwise impacted the company's top-line and bottom-line?
BEML is on its journey to become a system integrator by outsourcing a substantial part of manufacturing activities to Indian vendors, enabling us to enhance our capacity, attain cost-effectiveness and improve competitiveness in the global market. To facilitate outsourcing, we have well-established policies, procedures and guidelines.

Particulars Net
FY2018 (Rs billion) 32.98 1.87 1.29
Growth over
FY 2017 (in%)
16.58 123.75 77.6

What are your plans for the company's growth in FY18-19?
For FY2018-19, with a healthy order-book position of over Rs 67 billion, we have set ourselves a challenging target. There are encouraging business prospects also in the near horizon, which bring great hope and optimism to surpass laid-down targets, demonstrating the true potential of our company.

In the rail and metro business vertical, with the government's Make in India vision, BEML is confident of addressing all future metro orders. In addition, we are looking forward to locally manufacturing bullet trains for the MAHSR project, leasing model to metro corporations and diversification to other allied activities. Further, plans are in place to supply in-house designed and developed dump trucks of 150 tonne and 190 tonne capacity, India's biggest.
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