BEML to separate rail business

Bangalore-based BEML, manufacturer of heavy equipment for the transport, mining and earth-moving sectors, has decided to split its rail business into a separate entity to better manage, and take advantage of, the high demand for rail rolling stock in the country. Of the company’s revenue of about `5000 crore for the 2010 fiscal year, `1300 crore was earned from its rail business. BEML is the only manufacturer of metro rail cars in the country. It will supply rolling stocks to the Bangalore and Delhi Metros and the upcoming Jaipur Metro as well. For Bangalore Metro, the company expects to complete its first order of 150 cars by December 2012. The `1,000 crore order from Delhi Metro is for additional intermediate coaches. Other rail equipment manufactured by the public sector company include EMUs, overhead electric inspection cars, integral rail coaches, utility track vehicles, track laying equipment and track postal vans. With its trial effort to build a 70 tonne aluminium wagon for NALCO being a success, the company now plans a 100 tonne side discharge aluminium wagon.