BEML targets Rs 900 cr capex till FY25 with re-joining construction equipment space

New Delhi: Defense PSU BEML has planned a capital expenditure of Rs 900 crore till FY'25 and re-entered the construction equipment market after a long period of five years, aiming to capitalize on the Rs 45,000 crore market opportunity.

The company, formerly Bharat Earth Movers Limited, recently underwent a significant business restructuring, establishing 11 strategic business units (SBUs) and two micro business units to drive sustainable long-term growth.

As part of this restructuring, we have re-entered the construction equipment business, focusing on higher-capacity products to tap into the massive Rs 45,000 crore market, Shantanu Roy, Chairman, and Managing Director of BEML, said on the sidelines of the 17th Global Mining Summit organized by the CII. BEML's earlier exit from the construction equipment space was due to intense competition from imported products.

BEML has allocated Rs 900 crore in capex over the next two fiscal years to modernize its facilities, invest in new technologies, and expand its manufacturing capacity. This investment will focus on futuristic technologies in defense and infrastructure sectors and advancements in artificial intelligence (AI), the Internet of Things (IoT), and automation.

The company is also set to roll out Blue Sky research, a type of scientific exploration driven by curiosity aimed at advancing scientific knowledge without immediate commercial application.

BEML's growth plan also includes increasing its R&D spend from the current 2 percent to 5 percent shortly, to reach 7 percent of its topline. This strategic restructuring aims to streamline decision-making, accelerate R&D, and bolster revenue generation, positioning BEML for significant growth in the coming years.