BEML a public sector manufacturing heavyweight is actively working to increase its export contribution beyond the current 8 per cent, with a strong focus on mining equipment, metro rolling stock, and defence-related products. In an interaction, CMD Shantanu Roy shared insights into the company’s export strategy, key markets, and the expected impact of global reconstruction efforts.
What does your order book look like and what are your expectation for the coming months?
This year, I expect a strong order inflow. In the rail and metro sector, within the next 50 days or so, if all goes well, we should secure orders worth ₹2,500–3,000 crore. The broader objective is to build an order book of at least ₹40,000 crore by the end of FY26. Achieving this target will be crucial for us to scale operations and transition to the next phase of growth.
Could you elaborate on your export volume?
At present, we do not export platforms directly. However, our products like the ‘BrahMos’ and ‘Pinaka’, have been successfully exported by companies like BEL and BDL.
One of our key achievements is that we have been successful in indigenising the high-mobility vehicle, which initially had an import content of over 80-90 per cent. Currently, the indigenised content stands at 90-95 per cent, significantly reducing dependency on imports.
What are your key export markets, and what international expansion opportunities are you looking at?
Our major exports are currently in the mining vertical, with key markets like the CIS region (Commonwealth of Independent States). We are also exploring new opportunities in West Asia, Africa, and ASEAN countries.
Given the ongoing geopolitical situation, West Asia is expected to witness large-scale rebuilding efforts, whether in Gaza, Syria, or even Ukraine once a ceasefire is in place. We anticipate these markets will present significant export opportunities for our products.
How have different verticals performed? Could you throw light on the challenges you have faced in rail and metro segments?
While mining and defence have performed exceptionally well, the rail and metro segments have taken a hit, declining by over 50 per cent. There are a few key reasons behind this – First, metro projects come with a long gestation period, so there is an inevitable delay before we see results. In addition, we lost four consecutive orders nearly three years ago, which has affected our revenues.
Another major factor is the Vande Bharat sleeper project. We have successfully developed the first prototype and while it has completed trials, we cannot start bulk production until we get the approvals from CCRS (Commissioner of Railway Safety).
If the rail and metro vertical had matched last year’s performance, our numbers would have been significantly stronger. That said, we are staying optimistic and working hard to overcome these hurdles. After all, the match isn’t lost until the last ball is bowled.
In addition to mining, we are looking at exporting metro rolling stock on a large scale. However, rolling stock exports typically involve longer project cycles, whereas mining exports have a shorter turnaround time. Once we secure large-scale project exports, we expect our global footprint to expand significantly.
Published on February 12, 2025
