BEML targets Latin American defence mart

Brazilian joint venture will feed exports

The state-owned Bharat Earth Movers Ltd (BEML), which recently announced a joint venture with a Brazilian firm, is looking at the Latin American defence and earth moving equipment market.

Making Brazil the centre, the company proposes to export various defence equipments, rail coaches and a host of earth moving equipment to Latin American countries, said V RS Natarajan, chairman and managing director.

BEML is setting up an assembly plant on the outskirts of Rio-de-Janeiro in Brazil as a 60:40 joint venture with its Brazilian partner Compagnie Comercio E Construcoes to manufacture mining and construction equipment, rail wagons, closed wagons for transport of goods and bogies. The plant, involving an investment of Rs 100 crore, will start commercial production within a year.

The BEML chairman also held discussions with defence officials in Brazil during his visit to supply various defence products.

"They have evinced interest in some of the products like weapon loading systems, ground support equipment, pontoon bridges (mobile bridge). We are exploring the possibility of export some of the components from India and assembling them in Brazil," Natarajan said.

BEML is engaging an international consultant in Brazil to do the due diligence and prepare detailed project report before setting up the assembly plant.

"We are setting up the plant in Brazil and opening marketing offices in all Latin American countries. Entire Latin America is a mining continent offering us a huge opportunity for export. Each country has got either iron ore, gold, diamond or copper mines. We want to arrive there," he said.

BEML has set a target of achieving Rs 5,000 crore turnover by 2013-14. The company, which reported a turnover of $490 million (Rs 2,252 crore) in 2005-06, is expecting a growth of over 20 per cent, to touch $600 million (Rs 2,758) during the current fiscal.