BEML Starts Malaysia Operations

Bangalore: BEML Limited, the Rs 2,600-crore public sector undertaking under the ministry of defence, on Oct 23, began its operations in Malaysia with the setting up of its second overseas subsidiary to expand its international presence in the mining and construction business. The company has registered its subsidiary as BEML (Malaysia) Sdn Bhd, at Johor Bharu in Malaysia. With this, the company targets to tap the growing demand for mining and construction equipment, and spares in South Asian region and Australian markets.

BEML (Malaysia) will act as a regional global distribution centre for stocking, selling of spares and servicing its clients. To start with, BEML expects to get a turnover of $35 million for 2007-08 via its Malaysian office-cum-international warehouse. The Malaysian subsidiary will also have a global warehouse for sourcing and supplying mining and construction equipment and spares to over 43 countries and also to India. In the domestic market, BEML secured a major contract worth Rs 648 crore from Northern Coalfields Ltd (NCL), Singrauli for supply and servicing of three electric rope shovels. The contract includes Rs 160 crore towards supply of equipment and Rs 488 crore towards servicing for a period of 17 years. These rope shovels will be serviced from their existing service centre at Singrauli, which will be expanded to carry out service contract for 17 years. All the rope shovels would be supplied during 2008-09 and service contract starts from 2009-10.