BEML has announced a capital expenditure of Rs 900 crore until fiscal year 2025. The firm is also making a strategic comeback into the construction equipment market after an absence of nearly five years.
The company has re-entered the construction equipment industry as part of a restructuring process, aiming to tap into the Rs 45,000 crore market. The announcement came during the 17th Global Mining Summit organised by the Confederation of Indian Industry (CII). The firm is now focusing on the production of higher-capacity equipment, including 20-30 tonne excavators and dumpers.
Over the next two fiscal years, significant capital expenditure will be directed towards modernising facilities, investing in new technologies, and expanding manufacturing capacity. This investment will primarily target cutting-edge technologies in defence and infrastructure sectors, as well as advancements in artificial intelligence (AI) and automation. The move is aimed at aligning the company’s operations with future trends and boosting its production capabilities.
BEML has recently undergone a comprehensive business restructuring process to enhance its growth prospects. The restructuring effort resulted in the establishment of 11 strategic business units and two micro business units. As part of its growth strategy, BEML is planning to increase its current R&D expenditure from two percent to seven percent of its topline in the near future. This strategic move is set to bolster the company’s innovation efforts and fuel its growth trajectory.
