BEML plans new ventures

Bangalore, Jan 26 (UNI) The engineering major Bharat Earth Movers Limited (BEML) will soon launch 'BEML Oil' for lubrication of hydraulics, transmissions, axles, engines in their equipment.

A Memorandum of Understanding to this effect was signed by BEML Trading Division with Mumbai-based Nandan Petrochem Limited which owns an oil packaging plant at Silvassa and has locational tax advantage.

'BEML Oil' shall be supplied to the Institutional and Contractor Segment and ensure continuous machine-run and to achieve guaranteed availability of machine. This was besides an MoU signed recently with State Trading Corporation for trading mineral ores and other products through imports and exports.

Another development relates to the formation of Joint Venture to foray into Contract Mining and in the proposed venture, BEML will comprise 45 percent and balance 55 percent will be held together by Midwest Granite Ltd., Hyderabad and SMJ Indonesia. The authorized capital will be at Rs 100 crores and paid-up initially will be Rs 30 crores. With the opening up of Coal, Non-coal and Metals for private sector multinational corporations, BEML sees Contract Mining growing substantially offering a great opportunity to achieve quantum jump in this business through sale of equipment, spares and allied services.

A new venture being finalised soon is the proposal of BEML to work closely with Coal India Limited and to collaborate with a leading tyre manufacturer in the country to expand the current capacity to produce off-the road tyres required for big mining equipment and trucks. This is to tide over the acute shortage of tyres in the country and lead time for procurement of these tyres is over 18 months. This will enable BEML to improve its Mining and Construction business and also help Coal India Limited and its subsidiaries to keep their fleet of equipment in running condition and continuous operation of their mines.

The BEML Board which met here has approved the above new ventures.

UNI