Strong metro rail order book, indigenisation initiatives bode well for BEML

New project wins and other segments will strengthen the already strong revenue visibility of 3.5 years.

BANGALORE: Shares of BEML are up a good 60 per cent from their March lows. While there are some near-term concerns on new order flows and project execution due to lockdowns, the existing order book of Rs 9,800 crore as on end-March 2020 provides good revenue visibility.

Primarily driven by metro rail coach orders, the share of mining and construction equipment is also decent in the order book. While BEML had won the order for supply of additional metro coaches for Mumbai worth Rs 834 crore, it also bagged orders worth Rs 730 crore from the Delhi Metro Rail Corporation Limited (DMRC) during FY20.  BEML Limited has bagged another large Rolling Stock deal worth Rs. 729 crore from DMRC. The order is for RS15 – design, manufacture, supply, testing and Commissioning of 80 numbers broad gauge intermediate cars compatible with existing RS1 type trains for the conversion of the 6-car train set to the 8-car train set which is running in Delhi Metro’s line 1, Line 2 and Line 3.

BEML operates in a highly competitive business environment. The competitive advantage of an organization is defined by how well it manages its People; how well Human Resources Management is incorporated into Business Strategy. The greater reliance on intellectual capabilities for success in business, therefore calls for dedicated, suitably skilled and prudently deployed workforce.

In 2002 BEML and Hyundai Rotem collaborated and signed the agreement for Delhi Metro Phase-1. BEML became the first to indigenously manufacture Metro Cars for RS1 contract of DMRC and developed 220 metro coaches. In September 2019, BEML Ltd has supplied the first mock coach of Mumbai Metro to the Mumbai Metropolitan Region Development Authority (MMRDA) which was inaugurated by the Prime Minister on September 7, 2019. Till date, BEML Ltd has supplied over 1100 Metro Coaches for various MRTS projects in India.

On 27 May 2020, the Board of BEML has approved for signing a Memorardum of Understanding with M/s MELCO to study and decide on the possbility of setting up a Joint Venture Company between BEML and MELCO, for manufacture of certain propulsion systems and other railway electrical equipment utilized for Electric Multiple Units for Indian Metro Rail Projects, Indian Railway Projects and other products as well. “We wish to inform that the Board of Directors in its 362nd meeting held on 27.05.2020 approved for signing a Memorandum of Understanding with M/s MELCO to study and decide on the possibility of setting up a Joint Venture Company between BEML and MELCO, for the manufacture of certain propulsion systems and other railways electrical equipment utilized for Electric Multiple Units for Indian Metro Rail Projects, Indian Railway Projects, and other products as well,” said BEML in a statutory ling to BSE.

It is pertinent to mention here that the BEML on 6th May 2020 has called the expression of interests (EoI) from reputed private manufactures for manufacturing and technology partnerships with reputed OEMs looking to establish and/or expand their supply chains/manufacturing base in India for the manufacture of various goods and/or service business in the areas of Defence & Aerospace, Rail & Metro, Mining & Construction, Engines and aggregates with the overarching objective of “Make in India” and enhancing self-reliance in line with the vision of the Prime Minister of India’s Make in India mission.

Apart from mining and defense business units, the company has sought EOIs for manufacturing partership for Metrolite/LRT/LRV, Medium Speed EMV rolling stock including Aluminium Car body technology, Maintenance of Rolling Stock with measurement and monitoring technologies (for track and OHE), Bogie Design and Manufacturing for various Rolling Stocks including Propulsion, Brake System, Interior Panels, PAPIS, Door Systems etc under its Rail & Metro Business. BEML Ltd. is engaged in the business of Integral Rail Coaches, Overhead Inspection Cars, AC/DC Electrical Multiple Units, Stainless steel EMUs, Utility vehicles, Track Laying Equipment, Broad-gauge Railbus, Treasury Vans, Spoil Disposal Units to the Indian and other Railways.

BEML Ltd has also successfully diversified into manufacturing state-of-the-art technology stainless steel Metro Cars for various urban Metro Corporations and enjoys a dominant market share in this segment.  According to data shared by BEML, the company has manufactured & supplied over 17,000+ mainline passenger coaches of various types for long-distance mainline routes of Indian Railways as on date. In addition, BEML has manufactured and supplied over 800 Nos. of Electrical Multiple Units (EMUs) to Indian Railways for use in its sub-urban and mainline routes.