BEML Looks At Metro Orders To Boost Growth
State-owned BEML Ltd. expects orders from metro transit systems in India to drive growth.
State-owned BEML Ltd. (formerly Bharat Earth Movers Ltd.) expects orders from metro transit systems in India to be its growth driver.
Orders from metro systems in Delhi, Mumbai, Kolkata and Bengaluru comprise the bulk of the company's order book. “Our order book is crossing Rs 10,000-crore [mark] and metro orders account for 40-50 percent of it,” Chairman and Managing Director Deepak Kumar Hota told BloombergQuint on the sidelines of the biennial Aero India Show in Bengaluru today.
Bengaluru-headquartered BEML has three divisions—earth moving, metro and defence. It also supplies equipment for two stages of the Akash missile and is its key integrator.
With a strong order book, the company hopes to achieve double-digit revenue growth. “We have seen some headwinds this year due to delays in defence orders,” said Hota. “The growth rate is not going to be aggressive, but we’ll grow at a steady rate.”
The government is in the process of divesting 26 percent in BEML to a strategic investor. Since we have three key divisions, we’re looking for a strategic investor with similar integrated divisions, said Hota.