CASE PRESENTATION

ON

Bharat earth movers limited(bEML)

SHAFIQ.M

PAVAN JORAPUR

SAYED SOYEB ALI

SASIDHARAN

PALLAVI BHUSHAN

SWETA CHANDAN

GROUP MEMBERS

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 India’s core sectors like Defence, Rail, Power, Mining and Infrastructure. BEML’s products are exported to more than 56 countries. As part of company’s globalization strategy, the company has expanded its global reach by opening local offices in Indonesia and Brazil recently in addition to Malaysia and China.

introduction

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, BEML’s 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 – JapanINDRESCO MARION – USAKOMATSU DRESSER – USAOMNIPOL – Czech RepublicVOEST 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 sectorsConstruction equipment sector

2)What should BEML do to increase its efficiency ?

PRODUCT DEVELOPMENTIMPLEMENTATION OF ERPTRAINING 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).Can you perform SWOT analysis to understand the business capabilities of BEML ?

STRENGTH

BEML STAND

Adequate manufacturing facilities with ISO 9001 certificationWide market network and wide product range.

Very strong R&D facilities.

Customer Satisfaction.

Huge skilled labour force at manufacturing centre

Increased government support for exports.

WEAKNESS

High cost of production.

Employees dissatisfaction

Outdated Technology adopted

Delay in decisions due to procedures and authorityFast changing market conditions.

Permitting private sector for manufacturing and supplying railway requirements.

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.

THREATSTo become globally standard.

To implement modern technologies.

Entry of Multinational Companies

Increased competition in mining segment due to the entry of MNC’S to Indian market.

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QUESTIONS