BHARAT EARTH MOVERS LIMITED

NEW FROTIERS,NEW IDEAS

Company Profile

BEML Limited was established in May 1964 as a Public Sector Undertaking.

Government of India owns 54 percent of total equity.

BEML conferred with Mini-Ratna Status and under the administrative control of Ministry of Defence.

Competition

Competition is expected in the defence sector.

Constrution and minning - Volvo, Terex Vectra, Liebherr, Ashok Leyland, Daewoo, Voltas.

Railway coaches - Integral Coach Factory, the Rail Coach Factory and jessop and company.

Metro coach manufacturers - Bombardier (Canada),Alstom (France), Siemens (Germany), CAF (Spain) and Kawasaki (Japan

Business strength Diverse product portfolio Significant presence in mining and

construction equipment Major manufacturer of Metro coaches in the

country Strong and experienced management team Research and development capabilities Increasing global alliances and operations High-quality product offering with value-

added services Stringent quality norms

Weakness

Opportunities

The increased focus on sectoral reforms and infrastructure development (metro, flyovers, Roads etc.) by Government of India.

The GoI is actively engaged in raising funds from multilateral financial development institutions to promote various infrastructure projects across India

Real estate development across the country

Threat

Buisness sectors

Mining & Construction

Defence

Rail & Metro

New buisness

Technology Division

Trading Division

International Business Division

Sales and Marketing

An extensive sales and marketing network across India.

Provide intensive training to customer personnel in the operation and maintenance of equipment.

To improve awareness of products among potential customers

aggressively promoting our brand image with

Participation in major exhibitions like International Mining & Machinery Exhibition

Manufacturing units

BEML has eight manufacturing units spread over four locations

Kolar Gold Fields Mysore Complex Bangalore Complex Vignyan Industries

Business Strategy Increased focus towards supply of Metro

Coaches for projects across the entire country Offshore expansion in the Latin American

market Introduction of high-capacity mining equipment Tie-up with global industry players Improve our distribution and marketing network Joint Venture to take up Contract Mining Investment in production facilities of Indian tyre

companies for the production of OTR Tyres Ramp up of production capacities and

introduction of new products to cater to the Railway Business

Objective of the public Issue

Expansion of Metro Coach Manufacturing Facility at Bangalore

Capital Expenditure including upgradation of current facilities

Voluntary Retirement Scheme (“VRS”) for Employees

Setting up of 5MW Wind Mill for captive consumption

Contribution for setting up R&D Centre of Excellence for Metro Coaches

Issue Expenses General Corporate Purposes

Market

The Construction and Mining Equipment business contributed 63% of the total revenues.

Defence Business contributed 32%.

The Railway and Metro Business contributed 5%.

Corporate Social Responsibility

Provides free medical assistance, subsidised food, electricity and safe drinking water to all our employees.

Helps to improve the quality of life for people in the peripheral villages around our units

Helps govt. in Natural calamities

Regulation and policies

Environmental

Foreign Ownership

Government company

Financial Performance

Total Income 2,486.6 1,885.2 1,310.3 Profit (Loss) after Tax 65.9 42.0 1.2 Equity Share Capital 279.0 279.0 279.0 Reserves (excluding revaluation reserves) 172.3 106.4 64.3 Earnings per share (Rs.) 23.62 150.7 4.3 Book Value per share (Rs.) 161.76 138.14

123.05

Factors affecting Results of the Operations

General economic and business conditions

Dependence on government policy and regulation towards Infrastructure

Input cost and availability of the specialised raw materials

Competition Dependence on few major customers and

their plans for future

Thank you