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BEML targets Rs 100cr orders from offset business

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Mahesh Kulkarni Bangalore
Last Updated : Jan 25 2013 | 2:49 AM IST

BEML Ltd, 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 sector to make use of the opportunities available under the off-set 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 worth Rs 100 crore in 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 various aerospace components and aggregates as we have a necessary machine shop and equipment ready at KGF and Mysore units," he said.

Talking to Business Standard on the sidelines of Aero India 2009, here today, he said the company is currently in talks with several
aerospace companies and is likely to enter into memorandum of understanding with them shortly.

"There is a big opportunity available as part of the offset business and we want to explore them as part of our diversification plans," he said.

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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 what type of  components will be awarded to us by the customers," he said.

The company has recently exported 5 units of 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 -- capable of
pulling 9,000 kg and 21,000 kg weight. They are being launched at the Aero India 2009 later today, 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.

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First Published: Feb 12 2009 | 12:38 PM IST

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