INTRODUCTION

Bharat Earth Movers Limited is a premier ISO 9001-2000 Company in India and the second largest manufacturer of earthmoving equipment in Asia. A four- decade-old multi-locational and multi-product company, BEML has vital applications in diverse sectors of economy such as coal, mining, steel, cement, power, irrigation, construction, road building and railway. It has expanded its product range to cover high-quality hydraulics, heavy-duty diesel engines, Welding robots and undertaking of heavy fabrication jobs. A public sector undertaking, BEML commands 70% market share in domestic earthmover industry. Nearly 40% of its equity has been divested to financial institutions and public. BEML has its corporate headquarters and central marketing division in Bangalore.

VISION
To be a global IT solution provider over a broad spectrum of engineering disciplines to achieve customer delight.

MISSION
To achieve and retain dominant position in the areas of IT & Engineering services / solutions. To pursue state-of-the-art and environment friendly technologies as well as to develop cost effective and value added products. To become a global player and to build effective partnerships and collaborations in the field of IT & Engineering services / solutions. To be a competitive, responsive and qualityconscious service provider for total customer satisfaction. To conserve resources and eliminate waste through optimum utilisation of skill, knowledge and infrastructure.

THE TECHNOLOGY
BEML Technology Division is an strategic business unit of Bharat Earth Movers Limited, a pioneer and the leading manufacturer of heavy engineering equipment catering to the needs of construction & mining, earth moving, rail & Metro and defence sectors. (www.bemlindia.com) BEML Technology Division draws upon the extensive expertise and knowledge gained through technology transfer from global giants and also through captive development of a wide range of world class machines deployed for rail transportation including metro coaches, earthmoving, construction & mining and defence. Design & Development experience in an ISO 9001-2000 certified environment and strategic alliances with global partners have ensured a competence comparable with the best in the world. The company has a reputation for innovative products, robust designs and excellent customer satisfaction. The strength of BEML Technology Division is its skill sets. It has more than a hundred dedicated and experienced Project Managers, Project Leaders and Engineers empowered by a knowledge bank derived from four and a half decades of experience in cutting-edge technologies for development and manufacture of automotive, defence and rolling stock applications defence trucks of power and speeds upto 324 kW and 90 kmph for off highway terrain and metro trains with the most modern features, to name a few. Development of related aggregates like engines, transmissions, axles, hydraulic pumps, cylinders, control valves, rail bogies and car bodies is part of our experience. Offshore engineering services in conformance with strict quality and data security standards are provided at the three Development Centers of Excellence, equipped with state-of-the-art IT and communication infrastructure. In addition, onsite and offsite services are also offered as required by our customers.

PRODUCTS
BEML manufactures a wide range of products to meet the needs of Mining, Construction, Power, Irrigation, Fertiliser, Cement, Steel and Rail Sectors. The Earthmoving Equipment include Bulldozers, Dump Trucks, Hydraulic Excavators, Wheel Loaders, Wheel Dozers , Tyre Handlers, Pipe Layers, Rope Shovels, Walking Draglines, Motor Graders , Scrapers, Water Sprinklers, Aircraft Towing Tractors and Backhoe loaders. BEML has recently introduced Road Headers and Side Discharge Loaders for underground mining applications. Railway products include Integral Rail coaches, Electric Multiple Units, Rail Buses, Track Laying Equipment and Overhead Equipment Inspection Cars. BEML manufactures Heavy Duty Trucks and Trailers and hydraulic aggregates for transportation sector. The company also manufactures high power Diesel Engines and heavy duty Hydraulic Aggregates to meet specific customer requirements. The company plans to diversify into varied activities including underground mining equipment, underground storage for petro-products, leasing and financial services and joint ventures abroad.

QUALITY
Quality is the hallmark of excellence. At BEML, a Corporate Quality policy emphasising total quality management ensures that quality system adopted companywide to meet stringent standards and requisite performance criteria. A separate Quality Division spearheads the thrust towards total quality. All the manufacturing units in the company are under ISO 9001-2000 certification. BEML equipment work in inhospitable terrain under gruelling operating conditions. In order to ensure optimum performance of equipment each product is tested in working conditions in the company's own tracks and fields.

Vendor assessment and development is a key component of the company's strategy for achieving total quality. Experienced professionals work with vendors to improve direction to the quality improvement activities

QUALITY POLICY
To offer products and services to the satisfaction of customers and strive to upgrade quality continuously

QUALITY OBJECTIVES
Manufacture and supply equipment to meet customers' technical needs and guarantee satisfactory performance of products over their life-time. Have an effective & documented system to ensure that every input to the product is designed, procured, manufactured and controlled for optimum efficiency and service. Strive continuously for a better product quality through technological improvements. Achieve operational excellence through waste elimination and value engineering efforts.

BOARD OF DIRECTORS

NAME Shri V. RS. NATARAJAN

DESIGNATION Chairman & Managing Director

FUNCTIONAL DIRECTORS Shri R C SUTHAR Shri N K SREENIVASAN Shri R K RUSTAGI Shri B L BAJAJ Director (Mining & Construction) Director (Metro & Railways) Director (HR) Director (Finance) GOVERNMENT DIRECTORS Dr. (Smt.) KIRAN CHADHA, IAS Jt. Secretary (Exports) Dr. Mohd. HALEEM KHAN, IAS Additional Financial Advisor & Jt. Secretary INDEPENDENT DIRECTORS Shri A PRASAD Prof. PRAKASH G. APTE Shri BIRENDRA KUMAR Shri KVK SESHAVATARAM Dr. ARABINDA TRIPATHY Prof. SN CHARY Shri NR MOHANTY Dr. JAYANTA BAGCHI Former Member (Finance) Telecom Commission Director, IIM, Bangalore Advisor, Price Waterhouse Coopers (P) Ltd. Former CMD, Hindustan Zinc Limited Institute of Petroleum Management Professor, IIM, Bangalore Former Chairman, HAL Former Secretary to GOI

MANUFACTURING

The companys units at Kolar Gold Fields, Mysore and Bangalore incorporate hi-tech manufacturing facilities with sophisticated CNC machines, arc-welding robots & FMS. A multi-million rupee heavy equipment shop turns out critical structures for industry. The company owns a captive foundry. Bangalore
BEML started in 1964 with the railway equipment division at Bangalore. The first railcoach factory in the Indian subcontinent.This unit has consolidated its status as a major supplier of integral rail coaches, meeting about 25% of the country's demand. It has a production capacity of over 800 coaches per annum. To meet the growing requirements of rail sector, BEML has diversified in manufacture of Overhead Equipment Inspection Cars and Track Laying Equipment. These have been developed in-house and supplied to Indian Railways. Recently this unit has taken up production of Electric Multiple Units and Rail Bus. Development of specialised equipment like Treasury Vans and Spoil Disposal wagons has been successfully completed

Mysore The biggest dump truck factory in India is located here. Apart from the popular 35 ton and 50 ton rear Dumpers, BEML also manufactures 60 ton, 70 ton, 85 ton, 100 ton, 120 ton and 160 ton dumpers here. Plans are afoot to take up manufacture of giant 170 ton dumpers on the production line. In this plant, 28,000 liter and 35,000 liter Water Sprinklers, 165 and 325 HP Motor Graders, and Bheema Loading Equipment are manufactured. BEML also manufactures 10Ton capacity Aircraft Towing Tractors.

BEML has installed an arc welding robotic system for fabrication of giant structures with consistent quality. The integration of robotised manufacture on the shop floor has accelerated the pace of activity and provided a flexible and powerful facility.

Engine division has been established to manufacture diesel engines of 100-1000 HP rating at Mysore. These are used not only for captive consumption but also for applications Diesel Generators and Compressors. The company has installed flexible manufacturing Systems for component manufacturing. Kolar Gold Fields At Kolar Gold Fields, located about 100 kms from Bangalore, BEML has established an extensive manufacturing base. Skilled workforce of over 6000 turns out state-of-the-art Bulldozers, Hydraulic Excavators, Wheel Dozers, Rope Shovels and Walking Draglines for the Mining and Construction industry. Sophisticated CNC machines and latest technology welding equipment are installed Multi-million rupee heavy equipment shop has been set up for major fabrication with a capacity of 5000 MT. This shop turns out heavy structures. The exclusive Hydraulics and Powerline Division, manufactures precision assemblies and aggregates, not only for captive consumption but also for meeting customer requirements. State-of-the-art Gear Pumps, Control Valves, Suspension Cylinders, heavy duty Planetary Axles and Automatic Transmissions are productionised here.

RESEARCH AND DEVELOPMENT

BEML R&D achieved a record 85% average indigenization in the collaborated products. As many as 30 value added products have been developed in-house. Rs. 300 million

R&D centre with sophisticated laboratories in fluid power, material science, power line testing, structural engineering, Proto manufacturing shops , Proto Assembly shops and state of the art "CAD Centre" forms the nerve centre of BEML. The centre is partly funded under United Nations Development Program (UNDP) and has joined hands with several user organisations like DGBR, DRDO,DST and Railway board for development of new products.R&D AIMS. Some of the main objectives of R&D division are to: Build total self reliance in earthmover and related technology Adapt technology to suit national requirements particularly in vital sectors such as construction, mining, irrigation, railways, transportation and automation. Update current products for higher performance and reliability.

One of the most notable achievements to R&D's credit has been undoubtedly the highly sophisticated R&D centre established at KGF in 1984. This centre is indeed a vital contribution towards strengthening the earthmover and related industries in the country. Comprehensive facilities in highly specialized areas are available at the centre. Extensive computerization has led to highly advanced technology development in various areas of activities in BEML R&D division. State of the art CAD centre consists of high end work stations , high end modeling software like, IDEAS, PRO-Engineer, Inventor and analysis software like ANSYS. Which are used for design and analysis applications.

PERFORMANCE
BHARAT EARTH MOVERS LIMITED ( A Government of India Undertaking)

Registered Office : BEML SOUDHA - 23/1, 4th Main, S.R. Nagar, Bangalore - 560 027.

Operating Results
Particulars 2003-2004 2004-2005 (Rs. In lakhs) Sales Value of Production Profit (Before Depreciation Interest and Tax) Interest Depreciation Profit before tax Provision for Taxation Profit After tax Profit available for appropriations APPROPRIATIONS Interim Dividend including tax Proposed Dividend Tax on Dividend General Reserve Profit & Loss Account Net Worth 735 96 1,650 299 56,888 623 3123 438 12,000 1,643 69,439 1,257 2,572 361 12,000 4,146 85,390 1,76,575 1,74,016 6,995 148 1,829 5,018 2,601 2,417 2,780 1,85,601 1,88,595 29,757 179 2,299 27,279 9,751 17,528 17,827 2,20,584 2,17,957 30,416 461 1,412 28,542 9,849 18,692 20,336 2005-2006

SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT analysis stands for Strengths, Weakness, Opportunities and Threats and is a simple and powerful way to analyze a companys present marketing situation.

SWOT ANALYSIS

STRENGTHS OF BEML Indigenization efforts taken by R&D towards various products, components and attachments have enabled the company to save precious foreign exchange. BEML has recently diversified its product range with the introduction of high capacity, high value products. Owing to its innovative design and unique features, PATENT for Unified Electronic Controller has been granted to BEML and ER&DC on 2nd March 2006. This is the first patent obtained by BEML. R&D's relentless efforts over the years have led to the design, development and production of a number of products, components, systems and equipment attachments. BEML exports machines to over 25 countries in Europe, Africa and the Middle East. BEML is a recognised export house. WEAKNESS OF BEML PSU status is a big weakness for BEML as it is subject to their rules and regulations and is forced to carry a huge amount of labour force, which it is not able to retrench. The company is a vertically integrated, which could have been avoided by outsourcing its components for power generation and transmission. This could have reduced the cost.

OPPURTUNITIES FOR BEML Build total self reliance in earthmover and related technology Update current products for higher performance and reliability Generate know-why through applied research Design and develop products in identified technology areas

Set up test facilities for evaluation of performance and reliability of vehicles and systems. BEML plans to further strengthen its global presence by setting up overseas offices and joint ventures in diverse areas, and by executing turnkey projects in mining and allied fields.

A nationwide network of 33 marketing offices provides customers with immediate access to BEML's range of products and services.

THREATS TO BEML The global trend of consolidation has already resulted in a fall in turnover of the company and this will prove to be a major threat in the years to come as well. Recently, the government has permitted the import of second hand capital goods that are 10 years old without the need for a license. This move of the government will definitely increase competitive pressure for BEML. Great dependence on companys like HAL etc.

CONCLUSION
From the above SWOT analysis observation I conclude that the company should look into the threats especially the government regulation and plan its strategies accordingly and try to bank on its strengths. At the same time to make better use of the opportunities more to be more successful in years to come.