CASE PRESENTATION

ON

Bharat earth movers limited (bEML)

GROUP MEMBERS
SHAFIQ.M

SWETA CHANDAN

PAVAN JORAPUR

PALLAVI BHUSHAN

SAYED SOYEB ALI

SASIDHARAN

introduction
BEML Ltd was established in May 1964 as a Public Sector Undertaking for manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore complex. The Government of India has partially disinvested and presently owns around 54% of total equity. BEML, a Miniratna-Category-1, plays a important role in serving Indias core sectors like Defence, Rail, Power, Mining and Infrastructure. BEMLs products are exported to more than 56 countries. As part of companys globalization strategy, the company has expanded its global reach by opening local offices in Indonesia and Brazil recently in addition to Malaysia and China.

CORPORATE STRUCTURE
It consist of a whole-time Chairman and Managing Director who is assisted by ten Directors, of whom five are whole time (Marketing, Finance, Production, R & D, and HRD).

COMPANY PROFILE
The Corporate headquarters is located in Bangalore. The Company has three manufacturing units located at Mysore, Kolar Gold fields (KGF), and Bangalore. It has a n R & D center at KGF. The company has a marketing network covering all parts of the country its subsidiary, Vigyan Industries, is located at Tarikere (Karnataka).

PRODUCTS

BULL DOZERS

HYDRAULIC EXCAVATORS

DUMP TRUCKS

WHEEL LOADERS

ROPE SHOVELS

MOTOR GRADER

RAILWAY PRODUCTS

RAIL COACHES

TRACK LAYING EQUIPMENTS

Manufacturing Units
i) BANGALORE COMPLEX:
BEML Limited (formerly known as Bharat Earth Movers Limited) as a full-fledged corporation was established in 1964 with Bangalore Complex as the mother unit. The Bangalore Complex (the then Rail Coach Factory) was in existence from 1947 as a part of Aircraft Factory (currently Hindustan Aeronautics Limited). Initially, the division was manufacturing Rolling Stock producing various models of Broad Gauge Coaches. Subsequently, over the years, the metro coaches and some of the defense products manufacture also has been added in this complex.

II) Kolar Gold Fields (KGF) Complex This is located at about 100 km from Bangalore. Here BEML has established an extensive manufacturing base it a skilled workforce of over 6000. This unit manufactures a state-of-the-art bulldozer, hydraulic excavators, wheel loaders, rope shovers and walking draglines for the mining and construction industry.

Marketing
BEML Limited has nationwide marketing network for sales and service of construction equipment spread across 22 States, the National Capital Region and 2 Union Territories. Apart from the domestic market penetration, BEMLs machines reach over 52 countries worldwide covering Asia, Africa, Europe, Latin America and the Middle East. With the plans to increase global presence, BEML has set up overseas office and entering strategic alliances. Shoring up its revenues in the International Business is an immediate priority to BEML. It has established its international offices in China and warehouse at Malaysia. BEML has already established marketing base in Brazil, which will be followed by an assembly plant.

COLLABORATORS
BEML has collaboration with world leaders such as :KOMATSU Japan INDRESCO MARION USA KOMATSU DRESSER USA OMNIPOL Czech Republic VOEST ALPINE - Australia

Question And Answers

1). What are the obstacles faced & opportunities available for BEML in liberalized market ?

OBSTACLES
Cutthroat competition Product up gradation Cost maximization Decline in efficiency of working capital

OPPORTUNITIES
Infrastructure sectors Construction equipment sector

2)What should BEML do to increase its efficiency ?

PRODUCT DEVELOPMENT IMPLEMENTATION OF ERP TRAINING FACILITIES

3).What marketing strategies should BEML adopt in the liberalised market ? Justify your answer. Implementation of an integrated ERP System across the entire organization.

Adoption of global best practices for optimization.

Standardisation of procedure and report. Strong support from Senior Management. Extensive Training. To achieve the goals of Paperless office, it enable in corporation of notes/text by users in the e-Procurement system

4.Attempt a business landscape analysis for BEML for the next 5 years ?

5).Can you perform SWOT analysis to understand the business capabilities of BEML ?
STRENGTH BEML STAND WEAKNESS High cost of production. Employees dissatisfaction Outdated Technology adopted Delay in decisions due to procedures and authority Fast changing market conditions. Permitting private sector for manufacturing and supplying railway requirements.

Adequate manufacturing facilities with ISO 9001 certification Wide market network and wide product range. Very strong R&D facilities. Customer Satisfaction. Huge skilled labour manufacturing centre force at

Increased government support for exports.

OPPURTUNITIES Demand for small and medium range equipments. Access for latest technology. Growth potential in core sectors like mining, construction, Infrastructure, defence and railways. BEML Limited has a very good opportunity in field of Material moving equipments.

THREATS To become globally standard. To implement modern technologies. Entry of Multinational Companies Increased competition in mining segment due to the entry of MNCS to Indian market.

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

186.75 -158.33 -161.75 -198.79

319.55 98.18 -28.06 233.52

387.47 -412.40 -37.94 192.75

348.01 -476.86 -56.93 707.04

316.04 44.50 -25.66 -51.01

-518.87

303.64

-257.59

173.26

-32.16

567.15

263.51

521.10

347.84

380.00

This data can be easily copy pasted BEML Flow Previous Years Cash ------------------- in Rs. Cr.521.10 ------------------48.28 567.15 263.51 347.84 into a Microsoft Excel sheet

Source : Dion Global Solutions Limite

Mar Mar Mar Mar Mar '11 '10 '09 '08 '07

12 12 12 12 12 mths mths mths mths mths

186. 75 BEML 158. 33 161. 75 198. 319. 387. 348. 316. 55 47 01 04 98.1 44.5 412. 476. 8 0 40 86 28.0 37.9 56.9 25.6 6 4 3 6 233. 192. 707. 51.0 52 75 04

Net Profit Before Tax

Net Cash From Operating Activities Net Cash (used in)/from Investing Activities
Net Cash (used in)/from Financing Activities