CHAPTER-3

(STUDY REPORT ON BEML LIMITED)

Baharat earth mover Limited(BEML) incorporation in May 1964 with its corporate officers at Bangalore
and commenced operations from 1st January 1965, the production units of the company are located at
Bangalore ,Kolar gold field, and Mysore in Karnataka. The company is engaged in the production of rail
coaches, rail bus, and Direct current electrical Multipurpose unit for India railways, heavy duty trucks/its
Variants, crash fire tenders, heavy recover vehicles, PMS bridges, and earth moving equipment and
aggregates for Defense. Other major customer of BEML are coal India Limited. Natively Lignite
Corporation Associated cement company, steel Authority of India limited and the national Hydro Electric
Thermal power corporation.

Baharat Earth Movers Limited is a premier ISO 9000 company in India and the second largest
manufacture of earth moving equipment in Asia. A three-decade-old multi-location and multi-product
company, BEML has vital applications in diverse sector of economy such as coal, mining, steel, cement,
powder, irrigation, construction, and road building, and railway. It has expanded its product range to
cover high quality hydraulics, heavy duty diesel engines, welding robots and undertaking of heavy
fabrication jobs.

A public sector undertaking, BEML commands 70% market share in domestic earth mover industry
.Nearly 40% of its quality has divided to financially Institutions and public.BEML has its corporate
headquarters and central marketing division at Bangalore.

BEML manufactures wide range of products to meet the needs of mining, construction, power,
irrigation, fertilizers, cement, steel, and rail sectors. The earth moving equipment includes bulldozers,
dump trucks, hydraulic, excavators, wheel loaders, rope shovels, walking draglines, motor graders, and
scarpers.

BEML has recently introduced road headers and slide discharge loaders for underground mining
applications. Railway products include integral rail coaches, electrical multiple units, rail buses, truck
laying equipment’s, overhead equipment inspection cars.

BEML manufacture heavy duty trucks and trailers and hydraulic aggregates for transportation sector.
The company also manufactures high power diesel engines and heavy duty hydraulic aggregates to meet
specific customer requirements. The company plans to diversify into varied activities including
underground mining equipment, underground for petro-products, leasing, financial services, and joint
ventures abroad.

BEML is rated as the first amongst the fastest growing construction equipment in India (construction
world-NICMAR SURVEY-2005). It is today leading the infrastructure revolution in the country with
successful foray in to hi-tech metro trains. Being a multi-technology, multi-unit, and multi-location
company, BEML offers high quality products for diverse sector of the economy such as coal, mining,
construction, power, irrigation, fertilizers, cement, steel, road building, Defense, metro and railways. It
has come to forefront of heavy engineering industry with a truck record of growth and profit in the last
for decades.

With increased focus on quality, safety and productivity, BEML is evolving new technologies and aiming
at value- addition in all its process and products.

The company’s manufacturing facilities are certified under ISO 9001-2000 series. Its strategic alliances
with global partners have ensured a continuous flow of state of art technologies and gain international
competence. With impetus on market driven R&D, BEML has ruled out several innovative products. The
company has established R&D center of excellence for metro technology to match world class standards
with grant received from planning commission, Government of India BEML ‘s nationwide network of
sales offices enables buyer with ready access to its wide range of products and services.

Its service center, repair shops and part depots provide total equipment care and availability of machine
through prompt after sales – service. Today band of products are popular in over 30 countries across the
world in Asia, Europe, Middle-East and Lain America. The company is in the process of opening overseas
offices at Singapore and China.

BACK GROUND AND INCEPTION OF COMPANY

BEML is a PSU under the effective administration of Ministry of Defense (department of Defense
supply). The organization was setup in the late 40’s as part of HAL now known as “HINDUSTAN
AERONATICS LIMITED” to manufacture rail coaches. It gradually diversified earth moving equipment in
1964 the company was incorporated in the first year plan when India was very weak economically, the
main objectives of setting up the organization was to manufacture heavy earth moving equipment. Rail
coaches heavy duty trucks, tracks-lying equipment
NATURE OF BUSINESS CARRIED;

BEML is equipped in production equipment for the industries such as construction and mining Defense
aviation and the METRO and Railways.

CONSTRUCTION AND MINING

For development in surface mining projects, BEML produces machines such as electric shovels,
hydraulic, excavator, bulldozer, wheel loaders, wheel dozer, dump truck, motor grades, pipelines, and
tire handlers. Beside giants walking draglines for cost effective operations in the open cost mines are
manufactured. BEML has diversified into underground mining with products such as side discharge
loader, lad haul dumper, winch winder, randy car, and skip, etc. BEML has an active fleet of machines to
take up works related to rod construction., infrastructure, development, port handling, tuning boring,
and petroleum projects.

The company is floating a joint venture soon to tae upon contract mining and maintenance of mining
equipment.

DEFENSE AND CIVIL AVIATION:

BEML’s multi-role vehicle and transport trailer have found total acceptance with arms forces.

The company has started manufacturing the entire range of value added TATRA vehicles. Which are
robust and suitable for all terrain operation including bridge layer field artillery, tractor, medium/heavy
recovery vehicles and pontoon mainstream bridge system, BEML also supplies engineering mine
ploughs, amored recovery vehicles, and weapons loading equipment. For the civil aviliation sector, BEML
offers passenger Aerobridges, crash fine tender and aircraft towing tractor.
BEML is today geared up for manufactured and supply of hi-tech stainless steel metro to upcoming
urban infrastructure urban infrastructure projects in various cities.

Other products supplied for Indian railways include integral rail coaches, overhead inspection cars, truck
lying, equipment broad gauge rail bus, treasury vanes and spoil disposal vans. It also offers electric
multiple units for development in suburban services.

The company also manufacture heavy duty diesel engines, diesel generator set, and hydraulic
aggregates. BEML has entered into alliance with international partner for several new products with
include multiutility armed vehicles, mine laying vehicles, long wall mining system tunneling equipment,
mine protected vehicles, surface, miners, etc.

COMPANY VISION

The vision is to achieve turn over of $ 1.15 billion (Rs, 5000 crores) by 2013-14, which translates into a
component growth rate of 12 % . The management as infused this vision into 10000 employees and will
grow across all three divisions. Mining and construction segment, we see a 15 - 12 % growth rate will be
between 8% and 1000%. At that moment two –third of our top line and bottom line is contributed by
mining and construction.

BEML as earned a mode rest profit of 100 million in the rail business : they have now achieved a critical
mass and hence likely to enhance contribution to the bottom line.

 Build total self –reliance in earth mover and related technology.

 Adopt technology should national requirement particularly in vital se tor such as construction
mining irrigation, railways, transportation, and automatic an .
 Update current products for higher performance and reliability.
 Generate now –why through applied research.
 Design and development products in identifying technology areas.
 Set p test facilities of evaluation of performance and reliability of vehicle and system.
 COMPANY MISSION

 To achieve and retain a dominate position in the manufacture and supply of earthmoving,
mining, construction, railway, and Defense equipment by establishing high stander of quality,
capability, and reliability.
 To pursue state – of – the – art environment friendly technologies as well as develop cost
effective and value-added products.
 To be commutative, responsive, and continually emprise services so as to ensure total costumer
citification.
 To grow into global company guided by a keen sense of vision and a business ethics as well as to
maximized he earnings.
 To conserve energy element vest though optimum utilization of man, money, materials, and
machinery.

COMPANY OBJECTIVES

 To maintain a dominate position in design, development, manufacture, and marketing of

defines, earthmoving, and construction and rail and metro equipment.
 To diversified and grow.
 To provide total engineering solution to its customer.
 To internationalize operations by enhancing exports.
 To maintain state-of-art technology for all products.
 Re-orientation of the business operating to match the present scenario.
 Continues building of skills and competencies of to bring about executive effectiveness for
management succession.

QUALITY POLICY:
“Quality Is the hallmark of excellence”

At BEML, corporate quality policy emphasizing total quality management ensures the quality system
adopted companywide to meet stringent standers and requisite performance criteria. A separate quality
spearheads the thrust toward total quality. All the manufacturing units in the company are under ISO
9001 – 2000 certification.

BEML equipment works in hospitable terrain under grueling operating, conditions. In order to ensure
optimum performance of equipment each product is tested in working conditions. In order to ensure
optimum performances equipment each products are tested in working condition in the company’s own
for achieving quality.

Experience professional work with vendors to improve directions to the quality improvements activities.

“To offer products and services to the satisfaction of customer and strive to upgrade quality
continuously” is the quality adopted in BEML.

PRODUCT PROFILE:

BEML Product that is “Machine that build the nation “finds their application in core sector of economy in
the country viz., mining, agriculture, energy, irrigation, cement, steel, construction, rail and road
transport apart from defense.

The company has three ranges like earth moving equipment defense product and railway products.

The earth moving equipment include bulldozers, dump trucks ,hydraulic ex aviator wheel ladders , tire
handlers, five players rope shovels draglines, motor traders, scalpers water spankers, air craft throwing
truckers and back hoe loader. BEML as recently introduced road headers and side discharge loaders of
underground mining application track lying equipment inspections cars BEML manufacture heavy duty
trucks and trailers and hydraulic aggregates for transportation sector. Apart from this BEML also radio
controls disaster management in equipment in case of emergency.

BEML PRODUCTS:

 Mining machines
 Electric shovels
 Bulldozers
 Wheel dozers
 Dump trucks
 Motors graders
 Pipe layer and pipe handler
 Joint walking drag line for cost item
DEFENSE EQUIPMENT

 BEML-Tetra T815vnc8*8 vehicle

 BEML-Tetra T815vvl8*8 vehicle
 BEML-Tetra t815vt18*8 tank transportation
 BEML-Tetra t815VVNC6*6 HIGH MOBILITY Vehicle
 BEML-Tetra t815VVNC6*6Field artillery trucker
 BEML-Tetra t815V1 4*4high mobility vehicle
 PRATHVI missile launcher.
 OXIDISER carrier.
 WARHEAD carrier.
 FUEL carrier vehicle.
 MISSILE Transporter.
 10T mobile crane.
 Ammunition Loader.
 Pontoon Bridge se.
 Pontoon Truck.
 Truck mounted crane.
 Pavement laying truck.
 DOLLY.
 Light recovery vehicle.
 Armed recovery vehicles.
 Backhoe loader transporter.

RAILWAYS

 Passengers coaches.
 Dc electrical multiple units ( DC-EMUS)
 Ac electrical multiple units (AC-EMUS)
 Truck laying equipment.
 Rail bus.
 Spoil disposal units (SDU)
 Treasury vans.
 Mail rail coaches.
 DIESEL ENGINES

 100-1000hp engines for contribution and mining equipment.

 Irrigation pumps.
 Marine vessel engines.
 Compressors.

ROAD CONSTRUCTION EQUIPMENT

 Batching and mining plans.

 Vibrating compactors.
 Pneumatic-tired rollers.

DISASTER MANAGEMENT EQUIPMENT

 Radio-controls dozers.
 Hydraulic excavators with demolition attachments

ENERGY
 Diesel genets-230,360,550KVP.

INDUSTRIAL AND AUTOMATION

 Industrial welding robots.

 Machine tending robots.
AREA OF OPERATION

BEML being public sector undertaking operates well in the global market also. The company’s
international division are involved in large trading as well as counter trade in countries worldwide
covering Asia and Middle East besides entering into European through UK, Italy, and Greece. The
company commenced it overseas operation in 1990-00 and has exposed earth moving equipment’s rail
coaches and sapper parts valued at several million US $ to countries all over the world.

As a recognized export house,BEML has expanded operation to include experts of engineering goods,
defense items commodities, and undertaking of project management and turnkey contracts. Despite the
pressure of highly competitive market for heavy construction and mining equipment, BEML’s export is
attributed to good quality equipment and very efficient after sales services. Fully satisfied with the
BEML’s services, customer in several countries have been placing repeat orders for the company
equipment’s. the company is looking at global market for future growth several countries have been
identified for making a foray. In keeping with this, the export target for the year 2009-2010 has been
fixed at over Rs. 500 crores, which are stiff considering the strong foothold of competition in the world
market. Exports were made to countries like Syria, Tunisia, south Africa, Afganisthan, Bhutan, Abu,
Dhabi, Jordan, Bangladesh, and suriname in Latin America.

COMPETITORS OF BEML:

COMPETITORS OF BEML

Railways Integral coach factory permbur, RCF at

Karputhala

Bulldozers caterpillars (Hindustan Motors)

Excavators L&T, Escort, TATA

Dumpers Hindustan Motors, Volvo, TATA, TELCO,

Ashok Leyland
PRODUCTS OF THEIR COLLABORATION:

PRODUCT OF COLLABORATION

Product collaboration

210M Dump Truck KOMATSU mining system,USA

445E Electric Dump Truck KOMATSU Mining system, USA

Walking Draglines BUCYRUS International, USA

182m 10cu.m.Rope shovel BUCYRUS International, USA

Heavy Duty Truck for defense TETRA SIPOX

METRO RAILWAY ROTEM,SOUTH KOREA

Diesel Engine KOMATSU,JAPAN

BANKERS
 SBI
 Canara bank
 SBM (State Bank of Mysore)
 Punjab National Bank
 Bank of India
 State Bank of Bikaner & Jaipur.
 Central Bank of India.

INFRASTRUCTURAL FACILITIES
BHARAT EARTYH MOVERS LIMITED

Name of the company : BEML Limited

Registered office : BEML Soudha (Bangalore)

Corporate office No-23/14th Main

S.R. Nagar Bangalore-560027

Group : Public sector undertaking.

Activity of : Manufacturing of Earth Moving Equipment,

BEML rail couches, and defense automotive vehicle.

Date of establishment : January, 1965.

THEIR COMPLEX

KGF COMPLEX (KOLAR GOLD FIELD)

Kolar Gold Field, located 100 km from Bangalore, spread over an area of 1850 acres; BEML has
established an extensive manufacturing base. A skilled work force of over 7400 turnout state of the art
bulldozers,hydraulic excavator, wheel force of over 7500 turnout state of the art bulldozers, hydraulic
excavator, wheel loaders, rope shoves, and walking draglines for mining and construction industry
sophisticated CNC machines and latest technology welding equipment have been installed.

MYSORE COMPLEX

The biggest dump truck factory in India is located at BEML Mysore complex. This units is located about
180kms from Bangalore and occupies about 178 acres of land, having a work force about 2500
employees.

AREA OF OPERATION

BEML has 3 international officers, 10 regional officers and 15 districts officers and it also have 4 activity
center.

INTERNATIONAL OFFICERS”

CHINA- BEML Ltd shanghai representatives office, shanghai PC 2000336

MALASIYA – BEML (MALASIYA) SNDBHD, Johar Bharu, Malaysia.

BRAZIL- BEML Brazil, state of expirito Santo Brazil.

GLOBAL OFFICE

 MOROCCO
 CHINA
 SNGAPORE
ASSEMBLY PLANT
Brazil

GLOBAL PARTS WAREHOUSE

 Bilaspur.
 Chennai
 Hyderabad
 Kolkata
 Mumbai
 Nagpur
 New Delhi
 Ranchi
 Jabalpur
 Singrauli

DISTRICT OFFICE
 Ahmadabad
 Asansol
 Bhilai
 Bhubaneswar
 Chandrapur
 Guwahati
 Jammu.
 Madurai
 Navely
 Pan Jim
 Udaipur

THE COMPANYS SHARES ARE LISTED ON THE

FOLLOWING STOCK EXCHANGE:

 The Bangalore Stock Exchange Limited, Bangalore BEML

  The Bombay Stock Exchange Limited, Mumbai 5006648
 The National Stock Exchange of India Limited, Mumbai BEML
 IT HAS BAHGGED “National Safety Awards” for many times.
 Corporate Excellence Awards for outstanding performance in 1987-88 among all PSU
 Best Production Awards for 1989-90 received from vice-resident of India.
 Armed Force Slag Awards for 2004-05 has been confessed on BEML by the Indian Institution of
Industrial Engineering, a pioneer body serving since 1957 for the cause of industrial growth in
India.
 BEML is among the five PSU’s gained entry for the nomination of “Best PSU Award-2006.”
 “Honorary Fellowship Award” for CMD of BEML for his exemplary contribution as CEO of BEML
 NIRYAT SHREE GOLD Trophy.

We at BEML manufactures of equipment for construction and mining and metro defense are dedicated
to protect and conserve the environment by minimizing eh adverse impact of the process, product and
service on the environment.

OBJECTIVE
As part EHS policy we shall continuously strive and are committed to:

 Provide health and safe environment to all employees and interested parties.
 Company with all applicable legal and regulatory requirements.
 Conserve natural resources and initiate and achieve energy savings.
 Minimize process waste, promote recovery, reuse, and recycling of material and develop eco
friendly waste disposal system.
 Improve to minimize environment health and safety hazards and hazardous process.
 Train and build awareness among all our employees of EHS issues on a continues basis.
 Communicate EHS policy to all employees, stake holder, investors, and other.

BOARD OF DIRECTORS

Chairman and Managing Director:

Sri V.RS. Natarajan.
Functional Directors
Sri V Mohan, Director (Defense)

Sri M. Poongavanam, Director (Mining & Construction)

Shri P Dwarakanth, Director (Metro & Rail)

Shri M Pitchiah, Director (Finanace)

Shri M Nellaiappan, Director (HR)

OFFICIAL DIRECTOR
Shri Satyajeet Ranjan, Jt. Secretary (Exports),Ministry of Defense

Shri P.K. Mishra., Addl, Financial Advisor & Jt. Secretary, Ministry of Defense (Finance)

Independent Directors

Shri J.P, Singh, IAS ( Retd)

Shri M.B.N. Roa

Shri J.P., Batra

STATUTORY WELFARE MEASURE OF BEML LIMITED

CANTEEN FACILITIES:

BEML Limited has got two canteens for its officers and employees. But the food prepared is same for all.
It is providing nutritious food. The employee’s canteen has a capacity of 3500 people and officer’s
canteen has the capacity of 350 people. Each weekend they will supply payasum and in the month end
they will prepare some special lunch. The employee has to pay only Rs. 4.80 per da. This includes
breakfast, lunch, morning tea and evening coffee. Besides for over time they are also providing free
food.
CRECHE:

It is compulsory as per Factories Act the management should provide with the crèche facility.

BEML does not run a crèche, instead they will reimburse the amount spend in the crèche up to Rs 100
p/m.

REST ROOM:
BEML is having rest rooms at different places for lady employees as well as for male employees.

TRANSPORTATION FACILITY:
BEML provides Transportation facility for employees in its own buses at a subsidized rate and it has
nearly 30 buses of its own.

UNIFORM FACILITY: BEML provides free clothing for its employees and offer for the
uniform for male 2 pants and 2 shirts and for women 2 salwars.

It also provides with safety shoes and safety masks for factory employees. This is compulsory as per the
Factories Act.

PROVIDENT FUND:

Employees will contribute 12% of Basic + DA, equal amount will be contributed by the employer also.

GRATUITY:
It is compulsory. It is decide on the services.

PENSION SCHEME:
Management will pay some amount of money as pension.

NON STATUTORY WELFARE SCHEMES OF BEML

HOUSING FACILITY:
BEML provides water and electricity to their quarters at a much subsidized rate.

TRANSPORT FACILITY FOR SCHOOL/COLLEGE:

BEML provides transportation facility for children of the employees to go to school or college at a very
minimal rate.

SCHOOL FEES:
BEML reimburse Rs 85 for 2 children of the employees.

LEGAL ASISTANCE FOR DRIVERS:

BEML provides legal assistance for the drivers who are involved in some accidents. If the accidents are
caused because of the negligence of the driver then the company will not give any legal assistance.

AMBULANCE SERVICE:
Death of any employees or his/her family BEML will provide free ambulance service.

DEATH RELIEF FUND:

In death relief fund there will be having Rs 50,000 for each employee. After his death it will go to the
nominees, If there is any dispute then it will go to the court of law and amount will be distributed as the
court directs.

IMMEDIATE DEATH RELIEF FUND:

In the event of an employee the company provides the family with Rs 3000 as immediate death relief
fund.
GROUP SAVINGS LINKED INSURANCE:
There is one group insurance in BEML Limited, it is called as Group Savings Limited Insurance. For this
employees have to pay Rs 100 monthly. In this amount Rs 38 is premium and Rs 62 is savings. The
insurance is for the recovery of RS 1,00,000

FLIGHT INSURANCE:
For marketing executives who travel Abroad, they are provided with flight insurance.

SCHOLARSHIP:
The company provides scholarship for the talented children of the employees and officers for higher
studies like MBA, B-tech, M-tech and other recognized courses.

TRANSIT ACCOMADATION:
If any employee is transformed to some other places then the family of the employee can stay in the
quarters till the end of the academic year.

SPORTS CLUB:
Sports club has started functioning in order to take out the talents in the employees. Earlier there had a
number of sports activities but now they have only hockey.

FINE ART SOCIETY:

Fine Art Society is created in order to nurture the artistic talents of the employees but now it has also
been stopped functioning.

KALAMANDIRA:
Kalamandira is a community hall run by BEML. It has a capacity of 1000 people, it allows the local
people also to conduct event like marriages, birthday and other functions at a cost of Rs 40,000 for one
day and Rs 20,000 for half day. It gives the employees this half the rate that is 20,000 for one day and Rs
10,000 for half day.
 YOGA CLASSES:
Now BEML has started yoga classes for all the employees and officers. The company is conducting yoga
classes in every morning.

CO-OPERATIVE HOUSING SCHEME:

Under Co-operative Housing Scheme each employee put some money and with the money altogether
they bought some plots in Bangalore. Now the money for the plot has gone very high and the employee
are reaping the benefits of that. Almost all the employees have put their money in this scheme.

THE MAJOR CUSTOMER OF BEML LIMITED ARE:

 Coal India Limited
 Natively Lignite Corporation
 Associated Cement Company
 Steel Authority of India Limited
 National Hydro Electric Power Corporation

BEML HIGHLIGHTS:
 One among Asia’s largest manufacturer of construction and mining equipments.
 Supplying equipments to core sector of the company that binds the nation.
 High technology organization having sophisticated manufacturing facilities.
 Widest range of Earth equipment in India.
 Second largest manufacturer

Chairman of BEML Limited:

Shri V.R.S Natarajan jointed BEML Board with effect from December 1, 2002 as chairman and Managing
Director. He holds the post graduate degree in social science and has been trained in corporate
Management in AOTS Japan. Prior to joining BEML Board as the chairman and Managing Director, he
has varied corporate experience in both the public and private sector. Mr. Natarajan has been awarded
the individual fellowish of Indian Institute of production engineers for outstanding contribution of
production and productivity in June 2006

PRODUCTS OF BEML LIMITED

MINING AND CONSTRUCTION
RAIL AND METRO
DEFENCE