Heavy equipment-maker BEML Ltd expects to finalise a tie-up with an overseas technical partner for its planned foray into the dredging equipment manufacturing business within the next six months.
"We are in the process of finalising a technical partner for dredging equipment. The company board has already approved for a foray into this segment looking at the opportunity...," BEML Chairman and Managing Director V R S Natarajan told PTI.
He declined to name the technical partner, which is likely to be an international player. The company was earlier looking at a tie-up with a Dutch company, but no concrete deal materialised.
"We will tie up with an Indian shipbulder to build the ship to complete the dredger," Natarajan said.
Asked about proposed investment in this new line of business, he said, "We will use our existing infrastructure and so no considerable investment would be required."
BEML will not create a new SPV or company to undertake the new business and instead a new division will be formed, he said.
Natarajan said the company will get business from companies involved in the dredging business, including Dredging Corporation of India.
BEML already manufactures mining, railways and defence equipment.
Asked about the status of a joint venture to revive the ailing Mining and Allied Machinery Corporation (MAMC) in West Bengal, Natarajan said they were waiting for 195 acres of land to be handed over and to begin with, the partners would infuse Rs 200 crore to produce certain mining tool components.
The company aims to register business worth Rs 4,000 crore in the 2010-11 fiscal.
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