BEML targets Rs 100-cr orders from offset biz

BEML Limited, the Rs 2,713 crore defence ministry undertaking engaged in the manufacture of defence products and construction equipment, metro rail coaches, has forayed into the aerospace components manufacturing to make use of the opportunities available under the offset business. The company has set up a new business division, Aerospace Manufacturing Division, to manufacture a host of components and aggregates.

According to V Mohan, director (defence business), BEML, the company is looking at a business of around Rs 100 crore during the next two years from the offset business opportunities. “We are already in the business of making ground support equipment like aircraft towing tractors, automatic weapon loaders and crash fire tenders. We want to enlarge the product base in this sector by getting into the manufacture of aerospace components and aggregates as we have a necessary machine shop and equipment ready at KGF and Mysore units,” he said.

Speaking to Business Standard on the sidelines of Aero India 2009, here today, he said the company is presently in talks with several aerospace companies and is likely to sign a memorandum of understading with them shortly. “There is a big opportunity set to emerge as part of the offset business and we want to explore them as part of our diversification plans,” he said.

BEML wants to manufacture a wide range of ground support equipment, small structures, gear and transmission aggregates, among others. “The location for setting up a new manufacturing complex for aerospace components will be decided based on the type of components that will be awarded to us by the customers,” he said.

The company recently exported five aircraft towing tractors to Honduras worth Rs 1.5 crore and is expecting more export orders. As part of expansion of its product portfolio, BEML has developed two new aircraft towing tractors — BA18 and BA28 — which are capable of pulling 9,000 kg and 21,000 kg weight, Mohan said.

BEML’s current customers for this product include Indian Air Force, Hindustan Aeronautics Limited and Airports Authority of India and other airline companies.