Shantanu Roy
Chairman & Managing Director
BEML Limited
BEML Limited, India’s leading heavy defence equipment manufacturer, is the nodal Defence Public Sector Undertaking (DPSU) for the establishment of the India pavilion at the ADAS 2024. Internationally, BEML has exported over 1,300 units of mining and construction equipment to 71 countries across multiple continents, establishing a significant presence in Africa and the Middle East. “Currently, BEML has achieved over 90% indigenization in mining, construction, and defence equipment, particularly in High Mobility Vehicles (HMVs). In the metro segment, we have reached around 65% indigenization, with efforts underway to further increase this,” said Shantanu Roy, CMD, BEML Limited. In an interview with Aeromag, he talks about the company’s latest operations and plans.
What new products and technologies will BEML present at ADAS 2024, and what are your key priorities and expectations for the event?
BEML has been designated as the nodal Defence Public Sector Undertaking (DPSU) by the Department of Defence Production, Ministry of Defence, for the establishment of the INDIA PAVILION at the ADAS 2024 exhibition in Manila, Philippines. INDIA PAVILION aims to highlight the design and manufacturing prowess of the Indian Defence Industry on a global stage. Key participants in the INDIA PAVILION include BEML, Mazagon Dock Shipbuilders Limited (MDL), Bharat Dynamics Limited (BDL), Indian Ordnance Factories (IOL), Defence Research and Development Organisation (DRDO), and Hindustan Aeronautics Limited (HAL). BEML will highlight its unique products, including Sarvatra Bridging solutions, HMVs, Transportation & Radar systems, Arjun ARRVs, GHE/GSE Aerospace, Open cast & Underground casting, UAVs, and future capabilities in Maritime engineering.
BEML’s product portfolio, renowned for its durability and cutting-edge technology, includes a range of mining equipment such as excavators, dump trucks, and loaders, as well as defence products like artillery, missile launchers, and armoured vehicles. The company’s commitment to excellence and continuous innovation has earned it numerous accolades and a loyal customer base.
We are set to expand its footprint in the Philippines and other South Asia markets. This strategic move aligns with BEML’s ongoing efforts to strengthen its global presence and meet the growing demand for advanced and reliable machinery in the mining and defence sectors.
How is BEML advancing the goals of the ‘Make in India’ initiative through the use of indigenous resources and technologies in its heavy equipment manufacturing?
BEML has fully embraced the ‘Make in India’ initiative by focusing on manufacturing heavy equipment using indigenous resources and technologies across its key sectors. Initially reliant on technology transfers, BEML has transformed itself through significant innovation and investments in research and development (R&D), leading to the systematic indigenization of its machinery.
This internal expertise has not only upgraded existing products but also driven the creation of cutting-edge solutions, positioning BEML as a leader in industries traditionally dominated by global players. Our commitment to developing breakthrough technologies reflects our goal of fostering innovation and self-reliance.
Currently, BEML has achieved over 90% indigenization in mining, construction, and defence equipment, particularly in High Mobility Vehicles (HMVs). In the metro segment, we have reached around 65% indigenization, with efforts underway to further increase this. With 77% of our business in competitive markets and 87% of our products developed through in-house R&D, BEML is a strong contributor to India’s self-reliance goals.
BEML has embarked on a transformative journey, focused on manufacturing indigenous products across its diverse industry segments. While we have historically benefited from technology transfers, BEML has undergone significant shifts to enhance competitiveness and growth. Our advanced research, design, and development capabilities are key drivers of this evolution.
Through a systematic approach, BEML has steadily indigenized its heavy machinery, enabling us not only to upgrade existing products but also to create innovative solutions. This strategic direction has strengthened BEML’s position as a leader in sectors traditionally dominated by global corporations.
What is the significance of BEML’s strategic MoU with the Directorate of Marine Engineering, Indian Navy, and how does it align with and strengthen the Aatmanirbhar Bharat initiative?
We have signed an MoU with the Indian Navy on 20th August 2024, focused on the Indigenous Design, Development, Manufacture, Testing, and Product Support of Marine Equipment and Systems for Defence Applications. This strategic collaboration covers seven critical equipment categories, including Arresting Gears, Restraining Gears, Hydraulic Lifts, High-Speed Diesel Engines, Hydraulic Cylinders, Underwater Valves, and Remote Operated Valves. Additionally, four key areas of interest were identified: diesel engine testing, designing solutions for submarines, manufacturing critical system components, and propulsion system integration.
The MoU aims to streamline and expedite the program’s execution by leveraging the combined expertise of the Indian Navy and BEML to address both current and future naval requirements. Regular reviews will be conducted to ensure timely resolution of issues, with the agreement in place until August 2029. This partnership is expected to contribute significantly to BEML’s revenue.
How have BEML’s export plans evolved over the years, and which countries have been involved in this expansion?
BEML began actively exporting in 1984-85 and established a significant presence in both domestic and international markets. Domestically, BEML holds a substantial market share, with over 11,350 defence vehicles, 18,000 railway rolling stock, 1,650 metro coaches, and more than 30,000 units of mining and construction equipment in operation.
Internationally, BEML has exported over 1,300 units of mining and construction equipment to 71 countries across multiple continents, with a notable stronghold in Africa and the Middle East. Additionally, BEML has successfully exported various railway products to Sri Lanka and Bangladesh, as well as defence products to Bhutan, Suriname, Honduras, and Israel. With current geopolitical tensions, particularly in Russia, the demand for mining and defence equipment is expected to rise, further driving BEML’s expansion efforts in these key markets.
BEML Ltd has recently signed a MoU with Malaysia’s SMH Rail Sdn Bhd. What are the goals of this collaboration, and how does it strengthen the bilateral relationship between India and Malaysia?
In a significant move to broaden its global presence, we have signed a Memorandum of Understanding (MoU) with SMH Rail, Malaysia’s largest rolling stock manufacturer. The agreement was formalized in the presence of Tengku Zafrul B Tengku Abdul Aziz, Malaysia’s Minister of International Trade and Industry, during a ceremony in Delhi.
This landmark partnership represents a pivotal collaboration between India and Malaysia, aimed at strengthening bilateral ties and meeting the rising global demand for advanced rail and metro rolling stock. The alliance will concentrate on the marketing, supply, and servicing of rail and metro products, focusing on markets in Malaysia, Southeast Asia, and Africa.
The MoU outlines a joint effort to enhance capabilities in marketing, manufacturing, and maintenance, repair, and overhaul (MRO) services. It includes collaborative design, engineering, manufacturing, and integration of rolling stock to meet specific client needs. Additionally, BEML and SMH Rail will work together on sourcing rolling stock aggregates and subsystems, developing strategic initiatives, and exchanging technology to foster mutual growth.
What is the market potential for BEML in the rail and metro sector, both in India and globally? How does BEML plan to capture a larger market share?
The rail and metro sector offers substantial growth opportunities both within India and on a global scale. Domestically, numerous metro projects are underway in cities such as Chennai, Bangalore, Delhi, Bhubaneswar, Patna, Nagpur, Pune, Thane, Kochi, and Hyderabad. These projects signify significant future business potential. As a leading player in India’s rolling stock industry, BEML is well-positioned to address this burgeoning demand, bolstered by our robust infrastructure and a highly indigenized supply chain developed under the “Made in India” initiative.
To capitalize on market needs, BEML is enhancing its production capabilities to meet both domestic and international demand. Leveraging our extensive experience and proven expertise, we are poised to expand our market share in India in the coming years.
Globally, the urban rail transit market is experiencing steady growth, driven by increased interest in sustainable transport solutions. BEML aims to tap into these opportunities by forming strategic partnerships with Central Public Sector Enterprises (CPSEs) and international industry leaders. Our focus includes ASEAN countries, the Middle East, and South America, where we are actively pursuing new business prospects.
