Corporate Development     

Published: November 15, 2024
Updated: November 15, 2024

BEML

Powering India’s hi-speed rail network

BEML Limited, a leading central PSE under the Ministry of Defence, has been awarded a contract for the design, manufacture and commissioning of two high-speed trainsets, each comprising 8 cars, by Integral Coach Factory (ICF), Chennai. The price of each car is Rs 27.86 crore and the total contract value is Rs 866.87 crore, which includes design cost, one-time development cost, non-recurring charges, and one-time cost towards jigs, fixtures, tooling and testing facilities which will be utilised for all future high-speed projects in India. This project marks a significant milestone in India’s highspeed rail journey and will see the first indigenously designed and manufactured trainsets with a test speed of 280 kmph.

The trainsets will be built at BEML’s Bengaluru rail coach complex and are scheduled for delivery by the end of 2026. Featuring a fully air-conditioned, chair car configuration, the trains will offer modern passenger amenities such as reclining and rotatable seats, special provisions for passengers with restricted mobility, and onboard infotainment systems. This contract further strengthens BEML’s position as a leader in rolling stock manufacture and reaffirms its commitment to India’s vision of a faster, more efficient rail network.

MALAYSIA TIE-UP

In another significant stride towards expanding its global footprint, the company has entered into an MoU with Malaysia’s largest rolling stock manufacturer, SMH Rail. This strategic partnership marks a historic collaboration between India and Malaysia aimed at strengthening bilateral relations and addressing the growing global demand for advanced rail and metro rolling stock. Both companies will jointly focus on marketing, supply and servicing of rail and metro rolling stock products, with a particular emphasis on markets in Malaysia, Southeast Asia and Africa. In addition, they will pool their resources to enhance capabilities in manufacturing as well as maintenance, repair and overhaul (MRO) services. This move is a part of BEML’s ongoing efforts to bolster its global presence. With a legacy spanning over six decades, the company has established itself as a trusted partner in the global market by exporting to over 72 countries.

NAVAL DEAL

In a major push towards the ‘Atmanirbhar Bharat’ initiative, the company has also signed a strategic MoU with the Directorate of Marine Engineering, the Indian Navy. This landmark agreement is a pivotal step in enhancing bilateral cooperation for the indigenous design, development, manufacture, testing and product support of critical marine equipment and systems.

BEML has robust expertise in the maritime domain and has successfully demonstrated its capability to adopt and produce various high-tech products through collaborations, technology tie-ups and MoUs with internationally reputed partners. Early this year, the Ministry of Defence signed a tripartite MoU with BEML, Bharat Electronics Ltd (BEL) and Mishra Dhatu Nigam Ltd (MIDHANI) for the indigenous development of advanced fuelling and control systems for engines for heavy-duty applications.

By harnessing the latest advancements in engine technology and control systems, the companies aim to extend their domain expertise for the development of engine systems, which will ensure self-reliance in the field of combat vehicles. BEML, a leading multi-technology ‘Schedule A’ company, operates in three high-potential verticals — Defence & Aerospace, Mining & Construction, and Rail & Metro. It has state-ofthe-art manufacturing facilities at Bengaluru, Kolar Gold Fields (KGF), Mysuru and Palakkad, with very strong R&D infrastructure and a nationwide network of sales and services.

MARKET CAP

The company’s current market price of its Rs 10 face value stock is Rs 3,700, translating into a market capitalisation of nearly Rs 15,409 crore, with a yearly high-low share price of Rs 5,489 and Rs 2,243 respectively. The government of India owns 54.03% in its equity capital of Rs 41.64 crore. It’s worth mentioning that in the public investor category, mutual funds hold 16.33%, followed by 5.66% among 118 foreign portfolio investors, and 1.16% spread between 8 insurance companies. BEML is a strong disinvestment candidate since the last several years, but nothing concrete has materialised as yet. However, the fact remains that whenever it fructifies, one shouldn’t be surprised if companies like Larsen & Toubro, Bharat Forge, Siemens and MEIL turn out to be strong contenders. Undoubtedly, BEML is one of the country’s ‘golden’ engineering PSEs.