BEML LAUNCHES ALL-OUT EF­FORT TO TURN TIDE IN DE­FENCE BIZ

SP's LandForces - - SP’S EXCLUSIVES / NEWS IN BRIEF -

With its de­fence business se­verely af­fected by the ‘ex­tra­or­di­nary’ sit­u­a­tion sur­round­ing the Ta­tra trucks con­tro­versy, the Bharat Earth Movers Ltd (BEML) has launched a vig­or­ous ef­fort to breathe life into it. “All­out ef­forts are un­der way to reach higher level of in­di­geni­sa­tion in de­fence prod­ucts,” the company re­cently said in an in­ter­nal com­mu­ni­ca­tion. Recog­nis­ing that it has no as­sured de­fence business un­like almost all other DPSUs, the company has evolved a mul­ti­pronged strat­egy to re­vive its for­tunes in this lu­cra­tive sec­tor. One, it plans to gen­er­ate more business from OFB and other DPSUs. Two, de­velop it­self as a sup­plier to the aero­space sec­tor as a new rev­enue stream in the de­fence di­vi­sion. Three, pre­pare to re­vive its for­tunes even in the medium and heavy ve­hi­cles ar­eas as due process is fol­lowed at the gov­ern- ment and CBI level. The sit­u­a­tion is dire for BEML: The de­fence business recorded net sales with 148 crore against 347 crore in 2012-13. BEML sub­sidiary Vignyan In­dus­tries Ltd (VIL) is also plan­ning to ex­plore new av­enues in de­fence man­u­fac­ture – var­i­ous types of steel cast­ings used in track shoes for T-72 main bat­tle tanks, ARVs and BMP. The pre­vail­ing im­passe over the Ta­tra truck pro­duc­tion and sup­ply line has also af­fected ex­ist­ing in­fra­struc­ture of the DPSU. One of the ma­jor tasks ahead will be to re­al­lo­cate re­sources to other ver­ti­cals and de­part­ments for op­ti­mum util­i­sa­tion.

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