COMPANY PROFILE

History of the Company

Bharat Earth Movers limited (BEML) is a premiere public sector undertaking under the ministry of Defence production, was incorporated on 11th May 1964 with its corporate office at Bangalore. It commenced its commercial operations from 1st January 1965.

Bharat Earth Movers limited is a certified ISO 9000, ISO 9001 and ISO 9002 company in India and the second largest manufacturer of earth moving equipment in Asia and is considered a front line leader engaged in building machines that build the nation. A three-decade-old multi-location and multi product company, BEML has vital applications in diverse sectors of economy such as mining, steel, cement, power, irrigation construction road building and railways besides the national defence. It has expanded its product range to cover high-quality hydraulics, heavy-duty diesel engines welding robots and undertaking of heavy jobs tailor made to customer needs.

As a public sector undertaking BEML commands a giant 70% market share in domestic earthmover industry in India. Nearly 40% of its equity has been divested to financial institutions and public.

BEML has its corporate headquarters and central marketing division in Bangalore. The company has staff strength of around 12,000 employees with at least 4,000 engaged in marketing division, which caters to sales, service and other related activities

The production units of the company are located at Bangalore, Kolar Gold Fields and Mysore in Karnataka. The company is engaged in the production of rail coaches, dozers, excavators rail bus OHE inspection cars and DC Emus for Indian railways, Heavy duty trucks variants, crash the tenders, heavy recovery vehicles, PMS bridges earth moving equipment and aggregates for defense other major customers of BEML are Coal India Limited, Neyvell lignite corporation, Associated Cement Companies, Steel Authority of India Limited, National Hydro Electric Thermal power corporation, City municipal corporations etc.

BEML manufactures a wide range of products to meet the needs of mining construction, power, irrigation, fertilizer, cement, and steel and rall sectors. The earthmoving equipment includes bulldozers, dump trucks, hydraulic excavators, wheel loaders, rope shovels walking draglines. Motor graders and scrapers BEML has recently introduced Road Headers and side discharge loaders for underground mining applications. Railway products include integral rail coaches, electric multiple units, rail buses, track laying equipment and overhead equipment inspection cars BEML manufactures Heavy Duty Trucks and trailers and hydraulic aggregates for transportation sector.

The company also manufactures high power diesel engines and heavy duty hydraulic aggregates to meet specific customer requirements. The company plans to diversity into varied activities including underground mining equipment underground storage for petro-products, leasing and financial services and joint ventures abroad.

During the financial year 2005-06 BEML achieved a sales turnover of Rs.2206 crores, value of production of 2180 crores. Pretax profit of Rs 285 crores and exports of Rs. 61 crores. BEML is now marching a head for a growth of Rs.5000 crores by 2013-14 coinciding with the Golden Jubilee of the company.

TYPE OF ORGANISATION
BEML is a premier public sector undertaking under the ministry of defense production. It is a certified ISO-9000, ISO-9001 and ISO-9002 Company in India and the second largest manufacturer of earth moving equipment in Asia and is considered a front line leader engaged in building machines that build the nation. BEML is a 3-decade-old multi location and multi product company. As a public sector

undertaking, BEML commands a grant 70% market share in domestic earth industry in India nearly 40% of its equity has been divested to financial institutions and public.

NATURE OF BUSINESS

MINING AND CONSTRUCTION BUSINESS BEML offers a comprehensive and diverse range of mining machinery for both opencast and underground mines. BEML produces machines such as Electric Shovels, Hydraulic Excavators, Bulldozers, Wheel Loaders, Wheel Dozers, Dump Trucks, Motor Graders, Pipe layers, Tyre Handlers, Water Sprinklers, and Backhoe Loaders. Besides, BEML manufactures mammoth walking Draglines for cost- effective operations in the opencast mines. BEML has ventured into

underground mining with Side Discharge Loader, Load Haul Dumper, Winches/ Winders, Granby Car etc. The boom in the mining industry has opened up new avenues for BEML in contract mining. It is forming a joint-venture company to take up contract mining initially within the country and shall expand to overseas markets.

DEFENCE BUSINES
Being Indias leading defence equipment manufacturer, BEML keeps the Indian Army and other defence forces updated with state-of the-art military equipment. The company is manufacturing variants of Tatra vehicle for all terrain operations including Bridge Layer, Field Artillery Tractor, Medium and Heavy Recovery Vehicle, Pontoon Mainstream Bridge Systems, Crash Fire Tenders, Mobile Mast Vehicle. BEML also supplies Engineering Mine Ploughs, Tank Transportation trailers, Weapon Loading equipment, Armored Recovery Vehicle, Milrail Coaches and Wagons apart from Aircraft Weapon Loading Trolley, Aircraft Towing Tractor.

BEML plays a stellar role in the countrys integrated Guided Missile Development Project by supplying ground support vehicles.

METRO AND RAIL BUSINESS

In recent years, BEML has forayed into hi-tech Metro Trains deployed for intra-city commuting. BEML is expanding its infrastructure to meet the greater needs of metro projects coming up in the country. Other products supplied for Indian Railways as its trusted partner include Integral Rail Coaches, Overhead Inspection Cars, AC/ DC Electric Multiple Units, Stainless-steel EMU, Utility Track Vehicles, Track Laying Equipment, broad-gauge Rail bus, Treasury vans, Spoil Disposal Units.

The company also manufactures Heavy Duty Diesel Engines, Diesel Generator Sets, Hydraulic Aggregates like BMP Transmission, Ejector and Air Cleaner Assembly and Hydropnuematic Suspensions. BEML also manufactures Disaster Management equipment.

INTERNATIONAL DEFENCE BUSINESS

BEML has an international presence in more than 32 countries spread worldwide. An Export House with Star Exporter status, BEML has proven strengths in handling large-scale trading and counter-trade and has pushed the export of engineering goods as well as other equipment. Plans are in offing to set up assembly operations at Morocco, Suriname and Indonesia in partnership with local players. Besides, BEML has opened international procurement offices in Singapore and Shanghai to ensure sourcing of high-quality parts and components at competitive costs.

BOARD OF DIRECTORS
Bharat Earth Movers Limited Shri.V.R.S. Natarajan, Chairman and Managing Director

Functional Directors Shri.R.C. Suthar, Director (Mining and Construction) Shri.NK Sreenivasan, Director (Metro and Rail) Shri.R.K. Rustagi, Director (HR) Shri.B.L.Bajaj, Director (Finance)

Official Directors
Dr.Smt.Kiran Chadha, Jt Secretary (Exports), Ministry Of Defence Shri.Mohd Haleem Khan, Jt Secretary and Addl Financial Advisor, Ministry Of Defence Independent Directors Shri.A.Prasad Prof Prakash G Apte Shri Birendra Kumar Shri.K.V.K.Seshavataram Dr.Arabinda Tripathy Prof. S.N.Chary Shri N.R. Mohanty

ORGANIZATION CHART
Share Holders

Minister of Defence

Director Marketing

Director Productio n

Directo r Financ
Chief General Manager General Manager Asst. General Manager Manager Asst. Managers Engineers Supervisors Joint Supervisors Deputy Supervisors Employees

Directo r R &D

Direct or HR

Group A

Group B

Group C

Group

Group

The BEML follows the vertical type ofIII. Organizational Chart Fig: organization hierarchy. Line type of organization is the oldest

type of organization. This type is also known as scalar organization. The share holder's are the first authority holder's and next comes the minister of defence under him. The chairman and managing Director comes. CMD has full authority. Under him there are 5 directors for each

function under each director there are executive Director for concern department. This is toplevel management.

BUSINESS OPERATIONS
1. BANGALORE COMPLEX
Started as a part of M/s Hindustan Aeronautics limited, Bangalore, BEML was declared an independent company in the year 1964. Presently the unit is engaged in manufacture of a wide variety of Rall-Coaches, OHE inspection cars, trallers, heavy duty trucks, wheel loaders etc.

2. MYSORE COMPLEX
Youngest of all the production divisions, the unit consists of engine division and truck division. This complex is engaged in manufacture of heavy duty engines, rear dump trucks, transmission hydraulic system and other defence aggregates.

3. K.G.F.COMPLEX
Being the biggest of all units K.G.F complex comprises of Earthmover Division, Hydraulic and power division, rall products division and R and D division, besides a centralised spare parts store to cater to the needs of its customers, the former three division are purely production oriented and work towards fulfilling the organization requirements of in-house produced spares and equipment. The Rs.300 million strong R and D division houses sophisticated laboratories in fluid powers, CAD facilities, material science, power line testing and structural engineering of sorts. A part of the R and D division is funded by United Nations Development Programme (UNDP).

Several other research organizations like DRDO, BRDE, DSI, Railway board, central ordnance board etc. have joined hands for effective innovative research. This division has successfully achieved a record of 87% indigenization in all its collaborated ventures.

4. MARKETING DIVISION
Marketing division mainly caters to the sales and service requirements of its customers. It operates with a network of offices spread over length and breath of the country as well as at some foreign spots, depending on the concentration of its products and customers. This network is designed in two varying levels viz, larger regional offices and smaller district offices under each regional office. These locations are furnished in detail in table 2. The company has adopted latest technological facilities available in the market. Accordingly, BEML has established its own satcom network named BEMLNET" for dynamic and successful customer services. The company serves its customers through many departments like marketing production, finance, human resource department, service design research and development. Under marketing discipline the following are the functional departments 1. Sales 2. Service 3. Stores 4. Procurement 5. Finance 6. Technical documentation

7. Technical support etc. Every regional office is manned by well- trained service, stores and finance personnel who serve to the satisfaction of customers in their jurisdictional area.

SALES AND SERVICES

Personnel belonging to these departments engage themselves in obtaining orders from customers as well as attend to day to day problems that are faced by the customers on BEML products. Hence technical support is also furnished to ensure customer satisfaction. After sales services are also included in these jobs.

STORES
A centralized spare parts stores in available in K.G.F complex and supplementary stores exist in all regional offices, stores department undertakes the responsibility of ensuring availability of needy spare items to customers at minimum notice time. They also plan, procure, safeguard and account the material held by them for sales.

FINANCE
All activities related to maintenance of sales account, sundry debtors, sundry creditors, collection of amounts receivables payables etc., are dealt by finance department.

TECHNIXAL DOCUMENTATION AND SUPPORT

The personnel in these areas provide technical details that may be required by customers. A basic study of the actual requirements of the customers is made from time to time.

Suggestions are made to customers on the BEML products which suit exactly to their requirements.

PRODUCT RANGE
MINING AND CONSTRUCTION CRAWLER EQUIPMENT
Hydraulic Excavators Loading Shovel Backhoe Bulldozers Pipe layers Electric Rope Shovels Walking Dragline 3.1 - 13 cum 0.3 - 11.2 cum 66, 90, 165, 180, 230, 324, 416 41, 70, 100 tons 10 - 42 cum 24 - 30.6 cum

WHEELED EQUIPMENT
Wheel Loaders Backhoe Loaders 0.8 - 6.3 cum Loader 1 cum Backhoe 0.24 / 0.3 cum Motor Graders 135, 145, 173, 280 hp

Rear Dumpers Water Sprinklers

35,40,50,60,70,85,90,100,120,130,150,170,190,240,360 tons 28,000 ltrs, 35,000 ltrs, 70,000 ltrs 126, 300, 460 hp 3500 Kgs (Lifting Capacity) 0.45 cum 20 Tones

Wheel Dozers Tyre Handler Hydraulic Excavator Hydraulic C-Crane

UNDERGROUND MINING EQUIPMENT

Load Haul Dumper (Electric) Side Discharge Loader Winders/ Winches Battery Operated Mine Electric Locos Granby Car/ Skip/ Cages Man/ Material Winding System

DEFENCE
BEML Tatra Heavy Duty Trucks 4*4, 6*6, 8*8, 10*10, 12*12 for Ground Support and Missile Project Heavy Duty Trailers Pontoon Mainstream Bridge System Armoured Recovery Vehicle Bridge Layer Ammunition Loader 20, 50 tons

Radar Carrier Vehicle Field Artillery Tractor Mobile Mast Vehicle Medium/ Heavy Recovery Vehicle Weapon Loading Equipment Crash Fire Tender Aircraft Towing Tractor Engineering Mine Plough Transmission, Ejectors, Air cleaners and Final Drivers for Combat Vehicles Mine Scattering Equipment and Mine Clearance Systems Milrail Coaches and Wagons

METRO AND RAILWAY

Stainless- Steel Metro Coaches Integral Rail Coaches of various models Overhead Electrical Inspection Cars/ Tower Wagons Track Laying Equipment Electrical Multiple Units (AC/DC) Broad-gauge Rail bus Spoil Disposal Unit Treasury Van Utility Track Vehicle

DISASTER MANAGEMENT
Radio- Controlled Dozer Hydraulic Excavator with demolition attachments (Combi-Cutter, Grappler and Rock Breaker)

ENERGY
Diesel Engine 84 hp to 740 hp Diesel Generator Sets 62.5 KVA 550 KVA

HYDRAULIC AGGREGATES
Gear Pumps Axles Cylinders/ Suspensions Control Valves Power Take-Offs

MARKET SHARE
BEML was the first company to enter the earth moving equipment market and is the market leader holding 70% of market share. It holds 66% market share in respect of dozers and dumpers and 33% in respect of excavators. Nearly 40% of its equity has been diverted to financial institutions and public.

COMPETATORS
As the new economic policy of 1991 opened its gates for foreign companies and investment to start their business in India. As a result of this may, MNCs came into existence to compete with the domestic industries in all sectors of the economy. As such BEML is facing competition from many MNC's and domestic industries. AUSA Komatsu Volvo Caterpillar Hitachi Escorts Terex Australia Japan SWISS Russia Japan Komatsu JCB USA

Larsen&turbo -

Hindustan motors - Tata Engineering & Locomotives company Ltd (TELCO)

COLLABORATIONS
M/s Komatsu Industries Omni pol Voest alpine IGM Burma Labedy Indersco The flow of state of the art technology from global partners has enabled BEML to achieve high standards in product engineering and gain international competence. Japan Burma Germany Australia Poland

BANKERS
BEML being a huge organization, should possess better banking facilities to meet the timely requirements of capital of the company and also to fulfill the financial obligations of suppliers, customers and other personnel having relationship with the company. The company bankers are as follow State Bank of India State Bank of Mysore Canara Bank Punjab National Bank State Bank of Maharastra State Bank of Patiala Bank of India State Bank of Bikaner and Jaipur Central Bank of India Bank of Baroda

AWARDS AND ACHIEVEMENT

VI International Award to Export Athens VII International Award to Export Greece 1984 BEML has born National award for import substitution for its R and D developed 50 tone tank transportation trailer and crawler mounted shovel of 2.3 cubic meter capacity Corporate Excellence award for outstanding performance in 1987-88 among all PSU, in the engineering sector in the country instituted by the department of public enterprises, Government of India. National safety award won by BEML for 13th time in the year 1988 for longer accident free period. EEPCs [ Engineering Export Promotion council] All India special shield for special performance during 88-89 Best productivity award for 1989-90 received from vice-president of India. Special award won by BEML for displaying the most popular working model at defence and science exhibition in New Delhi. Company was awarded a standardization commendation award in 1989-90 and 1990-91 instituted by the Institute of standards Engineers in recognition of commendable work done in the field of standardization improving quality and reducing costs. BEPC National Award for Export Excellence in 1995-96 amongst non-SSI Excellence.

MARKETING DEPARTMENT

Direct

ED Parts and Services

ED sales

GM Parts

GM Financ

GM Servic

AGM Parts

AGM Stores

AGM Financ

AG M

AG M

Fig: IV. FUNCTIONAL

CHART

This is line type of organization. The director is the head of marketing activities, under him there are two executives one is in charge for the sales of the manufacturing equipments and another for the purchase and sale of spare parts and service. Under Executive, there are 3 general manager's one for parts, another for finance and the third for service. Under GM there will be AGM.

FUTURE PROSPECTS AND GROWTH

Growth Prospects Bharat Earth Movers Limited, conferred with Mini-Ratna status, is a multi technology company offering high- quality products for diverse sectors of economy such as coal, mining, steel, power, irrigation, construction, road building, aviation, defence, metro and railways. Bharat Earth Movers Limited is rated as the first amongst fastest- growing construction equipment companies in India.( Construction World- NICMAR Survey 2006) with highest turnover and profit. BEMLs nationwide network of sales offices enables buyers with ready access to its wide range of products and services. BEMLs multi-role vehicles and transportation railers have found total acceptance with armed forces. BEML has entered into strategic alliances with international partners for several new products which include Multi-utility Armored Vehicles, Mine Laying Vehicle, Long wall Mining System. Tunneling Equipment, Mine Protected Vehicle, Surface Miner etc. BEML is today geared up for manufacture and supply of hi-tech stainless- steel metro coaches to upcoming urban infrastructure projects in various cities.

BEML has its 300 Million composite R& D Centre houses laboratories in fluid power, material science, structural engineering and prototype shop.

Today, BEML brand of products are popular in over 30 countries across the world in Asia, Africa, Europe, Middle East and Latin America.

BEML has opened international procurement offices in Singapore and Shanghai to ensure sourcing of high-quality parts and components at competitive costs.

During the Financial year 2005-06, BEML achieved a sales turnover of Rs. 2206 crores, value of production of Rs. 2180 crores, Pre-Tax profit of Rs. 285 crores and Exports of Rs. 61 crores.

FUTURE PROSPECTS
BEML is now matching ahead for the growth of Rs. 5000 crores by 2013- 14 coinciding with the golden jubilee of the company. BEML is in process of opening overseas offices at Singapore, China and Brazil. BEML is floating a joint-venture soon to take up contract mining and maintenance of mining equipment. BEML has taken a giant step towards becoming a truly global company by signing a MoU with CCC (Companhia Comercio construcoes), Brazil, for starting a joint-venture for manufacture of rail wagons, bogies, mining and construction equipment and spares. BEML is forming a joint-venture company to take up contract mining initially within the

country and shall expand to overseas markets.

Continuous modernization of shop floors with induction of state- of- the- art machinery

enables BEML to deliver World-class products. BEML aims to get substantial business in the IT- enabled services. With use of CAD/

CAE/ Cam, this Division will offer e-services encompassing product design, process engineering, plant automation, Enterprise management services and implementation of collaborative product

engineering. BEML is in plans to expand its infrastructure to meet the grater needs of metro projects

coming up in the country. BEML has plans in offing to set up assembly operations at Morocco, Suriname and

Indonesia in partnership with local players.