BEML to invest Rs 100 cr in Brazil unit
Bangalore, Apr 2: The public sector BEML will invest over Rs 100 crore in Mining and Construction Business Group Assembly Unit coming up in Vitoria State of Brazil, BEML Chairman and Managing Director V R S Natarajan said today.
Speaking to newspersons after announcing company's annual results for 2007-08, he said the company had bagged export orders from Brazil to supply mining and construction equipment to various local companies. Mr Natarajan, however, said there were no plans to set up manufacturing unit in Brazil. The BEML-Brazil Participacoes Ltd, which was registered in May last year, had already started operations.
During the year, BEML also launched BEML (Malaysia) Sdn Bhd to have a global warehouse and to promote company's products in the South East Asian market.
The company will soon set up its China outsourcing office which would commence its operations this year.
Mr Natarajan said BEML had made a foray into Oils and Lubricants Business with packaged 'BEML Oil' to the users of BEML equipment to ensure maximum availability and performance.
During the year, BEML entered into and MoU with J K Tyres and Apollo Tyres for manufacture of OTR tyres with investment in the project. The tyres will be available in 18 months.
BEML will provide a loan assistance of Rs 200 crore to both the premier tyre manufacturing companies, he added.
Mr Natarajan said as a modest contribution towards a cleaner environment and a tax saving measure, BEML had set up a five MW Wind Power generation unit in Gadag District at an investment of Rs 27 crore.
BEML also signed a power purchase agreement with the State Government which was expected to earn Rs 4.5 crore per annum and achieve payback in five years, including IT benefits.