BEML aims at cashing in on defence projects
Phalguna Jandhyala
Link
Mini Ratna plans foray into coal mining
New Delhi June 23 Bharat Earth Movers Ltd, a market leader in earth moving and excavating machinery in India, is looking at cashing in on the various defence projects that are in the offing.
"The defence projects in the next four to five years that we are looking at would be anywhere between Rs 10,000 crore and Rs 12,000 crore. We have few projects in hand and are looking at developing a few more in the next couple of years," Mr V. Mohan, Director (Defence Business), BEML, told Business Line on the sidelines of a press conference here on Friday.
The public sector `Mini Ratna' company has recently developed an upgraded engine for the T72 tank and has sent it the concerned officials for evaluation.
"Instead of the existing 780 hp engine, we have developed a 1,000 hp engine for the tank which makes it more powerful. We have given the proposal and it is currently under evaluation. The total cost of the project (upgrading the entire fleet of tanks) could be anywhere between Rs 4,500 crore and Rs 5,000 crore spread over the next four to five years," he said.
Another project that the company has undertaken is developing around 280 wheels and track driven vehicles for the Army. According to Mr Mohan, the delivery is to commence from 2009.
Currently the defence business contributes around 30-32 per cent to the company's total turnover and the company expects the same contribution during the current fiscal also. For the financial year ended March 31, 2007 its turnover touched Rs 2,600 crore.
Topline growth
"We expect the topline to grow by around 12 per cent to around Rs 3,000 crore with a net profit between Rs 350 crore and Rs 380 crore," Mr Mohan said.
Last year, the export revenue of BEML was at Rs 110 crore and this year the company expects it to touch Rs 150 crore. The company, which makes equipment for mining and construction, is now planning to venture into coal mining and hopes to bag contracts for at least two coal blocks by the year-end.
Public issue
BEML is also tapping the capital markets with a follow-on public offer from which it expects to raise about Rs 450 crore. The proceeds will be utilised mainly to part-finance its Rs 900-crore capex programme over a period of three years. The issue, opening on June 27, would constitute 11.77 per cent of the fully diluted post-issue equity capital of the company
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Arjuns indigenous Engine is coming soon!!
Phalguna Jandhyala
Link
Mini Ratna plans foray into coal mining
New Delhi June 23 Bharat Earth Movers Ltd, a market leader in earth moving and excavating machinery in India, is looking at cashing in on the various defence projects that are in the offing.
"The defence projects in the next four to five years that we are looking at would be anywhere between Rs 10,000 crore and Rs 12,000 crore. We have few projects in hand and are looking at developing a few more in the next couple of years," Mr V. Mohan, Director (Defence Business), BEML, told Business Line on the sidelines of a press conference here on Friday.
The public sector `Mini Ratna' company has recently developed an upgraded engine for the T72 tank and has sent it the concerned officials for evaluation.
"Instead of the existing 780 hp engine, we have developed a 1,000 hp engine for the tank which makes it more powerful. We have given the proposal and it is currently under evaluation. The total cost of the project (upgrading the entire fleet of tanks) could be anywhere between Rs 4,500 crore and Rs 5,000 crore spread over the next four to five years," he said.
Another project that the company has undertaken is developing around 280 wheels and track driven vehicles for the Army. According to Mr Mohan, the delivery is to commence from 2009.
Currently the defence business contributes around 30-32 per cent to the company's total turnover and the company expects the same contribution during the current fiscal also. For the financial year ended March 31, 2007 its turnover touched Rs 2,600 crore.
Topline growth
"We expect the topline to grow by around 12 per cent to around Rs 3,000 crore with a net profit between Rs 350 crore and Rs 380 crore," Mr Mohan said.
Last year, the export revenue of BEML was at Rs 110 crore and this year the company expects it to touch Rs 150 crore. The company, which makes equipment for mining and construction, is now planning to venture into coal mining and hopes to bag contracts for at least two coal blocks by the year-end.
Public issue
BEML is also tapping the capital markets with a follow-on public offer from which it expects to raise about Rs 450 crore. The proceeds will be utilised mainly to part-finance its Rs 900-crore capex programme over a period of three years. The issue, opening on June 27, would constitute 11.77 per cent of the fully diluted post-issue equity capital of the company
-----------------------------------
Arjuns indigenous Engine is coming soon!!
