BEML ventures into lubrication oil business

Bangalore, Jan 23 (UNI) Engineering giant Bharath Earth Movers Limited has signed a Memorandum of Understanding with Mumbai-based Nandan Petroleum Limited to venture into lubrication oil business.

BEML would soon launch 'BEML Oil', to be be supplied to institutional and contractor's segment to ensure continous machine run and achieve guaranteed availablity of machine oil for lubrication through their own oil, a company release here said today.

The Mumbai firm would have oil packaging plant at Silvassa with locational tax advantage, it added.

The release said BEML Board had also approved the formation of a joint venture to foray into contract mining. In the proposed JV, BEML would have a stake of 45 per cent and the balance would be held by M/s. Midwest Granite Ltd, Hyderabad, and M/s SMJ Indonesia. The authorised capital would be Rs 100 crore and the paid up capital initially would be Rs 30 crore.

Meanwhile, BEML posted higher sales of Rs 589.82 crore for the quarter ended December 31, 2006, as against Rs 555.12 crore for the corresponding period last year. For the nine months period, BEML registered sales turnover of Rs 1,603.38 crore as against Rs 1,341.51 crore for the same period previous year, the release said.

A Profit After Tax of Rs 104.55 crore was recorded, compared to Rs 97.27 crore the last year. During the third quarter, PAT was Rs 52.97 crore as against Rs 55.78 crore during the same period last year, the release said.

UNI