BEML Limited, the state-owned heavy equipment manufacturer, is gearing up to expand its footprint in the global market by exporting Vande Bharat and metro trains.
With a strategic focus on the rail and metro segment, alongside defence, the company expects these sectors to become the largest contributors to its revenue in the coming years.
Currently, BEML is working on manufacturing the first prototype of the Vande Bharat sleeper train, which is expected to be unveiled in the coming months. As part of its broader strategy, the company is actively exploring export opportunities in regions such as the Middle East, South America, and the ASEAN countries.
This move aligns with BEML’s goal of increasing its export contribution from the current 4 per cent to around 10 per cent of its total revenue, bolstering the Make in India initiative.
In a interview with The Economic Times, BEML chairman Shantanu Roy emphasised that the immediate priority is to roll out the indigenous Vande Bharat trains for Indian Railways. However, he hinted at potential export opportunities on the horizon, stating, “The priority is to roll out the indigenous Vande Bharat trains first. But next year, we will try and should expect something on the export front.”
To drive growth and streamline operations, BEML has restructured its organisation this fiscal year, focusing on three core segments: mining and construction, defence, and rail and metro.
The company has established 11 strategic business units (SBUs) within these segments, each led by a CEO with enhanced decision-making authority and operational control.
Financially, BEML has shown signs of improvement. For the quarter ending 30 June 2024, the company’s consolidated net loss narrowed to Rs 70 crore, and it achieved a 10 per cent growth in its top line.
Roy noted that last year’s performance marked a significant improvement over previous years, and the company has set ambitious targets for the future. “This year, we have given a guidance of 100 basis points for EBITDA growth at 13 per cent. We aim to reach 16-17 per cent in the near future,” Roy added.
With a clear focus on the rail, metro, and defence sectors, BEML is optimistic about its future prospects and is committed to expanding its presence both domestically and internationally.