BEML to launch public issue to raise Rs 400 cr

Kolkata, Nov 23 (UNI) Bharat Earth Movers Limited (BEML) would float a public issue of 49 lakh shares to raise around Rs 400 crore to meet its expansion and diversification plans.

The proposal would be sent for cabinet approval, which is expected in two months, BEML chairman and managing director V R S Natarajan told reporters on the sidelines of CII sponsored India Mining Summit IMME 2006 here today.

BEML's paid up capital stands at Rs 38 crore currently. Following the issue government's share in the company would stand at 55.56 per cent.

The company has signed an agreement with USA based Terex to manufacture state-of-the-art high end technology to manufacture dump trucks of 150-360 ton capacity required in coal mining.

The company is expanding capacity at our Mysore plant with Rs 15 crore investment to produce 150-360 ton dump trucks, he said.

Northern Coalfields Ltd and South Eastern Coalfields has already placed tender for dump trucks to increase coal production.

The company has committed and invested around Rs 250 crore for metro and rail projects.

BEML has also signed a joint venture with Brazilian company CCC to produce mining equipment, rail wagons and bogies in demand in Latin America.

Around Rs 100 crore would be invested in the JV, which would boost export earnings, the CMD said.

BEML along with Coal India Ltd (CIL) is exploring a JV with Apollo Tyres and J K Tyres to produce high end tyres for mining industry.

Around Rs 150-200 crore would be invested in the project, which would meet the crisis of mining tyres, Mr Natarajan said.

BEML is also looking at Indonesia, Australia, West and North Africa and Brazil for increasing its export earnings.

BEML is targetting around Rs 2,500 crore turnover this year as against Rs 2,200 crore last year.

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