CSM Software, BEML ink MoU during Aero show
Bangalore, Mar 4: CSM Software Pvt Ltd and BEML Limited announced the signing of a strategic MoU during the Aero India show 2009.
The objective of this MoU is to a establish a framework for the execution of the engineering services orders likely to be received by BEML through CSM's sales and marketing efforts, under the defence offset clause, and to ensure total customer satisfaction.
The Indian offset policy states that, for any Indian defense contract worth Rs 3000 million or more there will be an offset liability to the extent of 30 to 50 per cent of the order value.
The size of this offset market is estimated to be around USD 12 Billion over the next five to seven years.
BEML, as a Defence PSU, is eligible to receive these orders against this Offset Policy and this represents a huge market opportunity to this partnership.
CSM Software, with its strong foothold in the global engineering services domain and with its existing customer base in the aerospace market will use this framework to expand its current relationships to help its customers fulfill their offset obligations.
"CSM was one of the earliest companies in India to recognize the potential of Engineering Services outsourcing in the offshore context. The MoU signed with BEML provides an excellent framework that allows our customers to fulfill their offset obligations by giving them technical excellence, scale and a track record of decades of technical leadership in the Aerospace Domain" said Dr. R. Swami Narayanaswami, Founder Chairman and Managing Director, CSM Software.
V RS Natarajan, Chairman and Managing Director, BEML Limited, added, "We are extremely pleased with our agreement with CSM Software and the compelling value we can deliver together to our customers including defence offset business.With BEML's status and scale, and the exciting prospects that CSM's background and relationships bring to the table, we are looking forward to the growth of this partnership and business rapidly."