To cater to the future demands of the Mining Industry BEML is already equipped with higher capacity equipment in the segments of Rope Shovels, Dump Trucks, Hydraulic Excavators and Dozers. With its dedicated R&D, BEML is upgrading its product line to cope up with the market trends and use technology to increase production, productivity and safety in the mines
Q. BEML has introduced a range of various products in the market. Can you elaborate on your recent product launches and business expansions?
Keeping in view of the current market demand in Indian mining equipment industry, BEML has developed high-end equipment to increase production, productivity and safety in the mines. The high-capacity equipment indigenously developed and manufactured by BEML with latest technologies are:
• BH150E Electric Dump Truck with 136 MT (150T) payload • BH205E Electric Dump Truck with 186 MT (205T) payload BH150E and BH205E are the two new Hybrid Rear dumpers launched by BEML suitable for the Mining Industry.
• Environmentally friendly BE1800E Electric Hydraulic Excavator (180 T class) BE1800E is a complete electric Motor driven Hydraulic Face Shovel designed and developed for the Mining market. The product is fitted with 10 cum bottom Dump Bucket suitable for 100 t Dumper loading.
• BE1800D Hydraulic Excavator (180 T class) BE1800D is a Diesel Engine Driven hydraulic excavator launched for the regions where the customer is not having the high voltage line required for the electrical version and if the mobility is the main requirement, then the Diesel equipment scores over the electrical equipment.
• BD475-2 Bulldozer (850 HP class) BD475 with EG engine producing 850HP power fitted with 26 cum heavy duty blade is the new addition to the dominant Bull dozer product line. The equipment is supplied against trial cum sale basis and the performance of the same is meeting with the customers’ requirement. This higher capacity mining equipment are deployed in the field under trial / regular orders and are working satisfactorily. These products are competing with the global MNC’s and proven in the tough competition in both technological fronts as well as in the cost competitiveness. Further in pipeline we are Indigenously developing electrically driven mining Rope Shovel (21 cum bucket) and will be supplied under trial order. Efforts are on to indigenously develop and manufacture 460 HP Wheel Dozer, 8T Tyre Handler and 550 HP Motor Grader and add to our Mining & Construction equipment product range.
Q. How do you envision the global mining & construction industry in the next decade?
• Due to recent Geopolitical situation, Mining industry is expected to receive a boost. The mining market is segmented by type into mining support activities, general minerals, stones, copper, nickel, lead, and zinc, metal ore, and coal, lignite and anthracite. The coal, lignite and anthracite market is the largest segment of the mining market by type, accounting for 62.4% of the total market in 2021.
• Asia Pacific has the largest mining market share, accounting for 70.5% of the global market in 2021. It was followed by North America, Western Europe and the other regions.
• Recent trend in Coal Mining sector is the use of larger capacity equipment. Due to expected increase in Stripping ratio, reduces the risk of accident as a fewer number of equipment are on haul roads and lessen the traffic.
• With private players entering into mining and emerging trend of MDOs, the focus on productivity has increased. Further, larger equipment help reduce fuel cost (~50% of the total TCO) drastically and also equipped with tech features such as electrical drives, which enhance the productivity and reliability of the equipment.
• Introduction of disruptive technologies in equipment across autonomy, operator comfort, connectivity and customer productivity involving advanced systems like AI/IoT enabled systems for predictive maintenance, fuel consumption reduction, collision prevention and Automation & Robotics for autonomous fleet, unmanned operation.
• The global construction market is expected to grow 5-6 % yearly in next 5-10 years and expected to reach US$15.2 trillion with US$8.9 trillion in emerging markets in 2030.
• The demand is mainly attributed to factors such as rapid urbanization, growing number of infrastructure projects, increase in infrastructure investments post-COVID-19 pandemic government investment in construction activities and technological advancements in electric & autonomous equipment to curb emission levels.
• Regional construction growth is expected to be highest in Sub-Saharan Africa followed by emerging Asia.
• Asia is estimated to dominate the construction equipment market. The market growth in Asia can be attributed to the rising investment in infrastructure projects and mitigation to urban cities.
• Four countries – China, India, US, and Indonesia – to account for 58.3% of global growth in construction.
• Infrastructure development globally is heavily dependent on public spending. This means investment relies on the ability of governments to finance spending although long-term stable and index-linked returns from infrastructure are generally well-matched to the needs of large superannuation funds.
Q. What kind of digital and new-age technologies is gaining traction in mining & construction?
With the rising market demand advanced machinery and enhancement in technologies is the mandate in the present day.
Some of the technologies which are driving the Mining & Construction industry are:
• Artificial intelligence, machine learning and autonomous technologies: Some of the AI technologies introduced by BEML in its equipment are, - Sleep/Fatigued operator alert system on Dump Trucks - Predictive Maintenance of Mining equipment through Data Analytics and Telematics enabled systems - AI Powered Mobile Health and Diagnostic Station - Design & Development of AI based 3600 surrounding view monitoring system - AI based automation of water sprinkling system - AI based Lighting system (Head Lamps / Fog Lamps) on HEMM. And further many new AI projects are under development.
For e.g.
• Electric, Hybrid and Diesel products in the mining market, BEML have launched complete electric Motor driven and Diesel Engine Driven Hydraulic Face Shovel, High-end Excavators models and Dump Trucks models like ‘BH150E’ and ‘BH205E’ the two new Hybrid Rear dumpers suitable for the Mining Industry.
• The present mandate is to adapt to newer emission norms: BEML has developed construction equipment in the segment of Loaders and Motor Graders equipped CEV stage IV engines to match the emission norms and the products are ready for deployment.
Q. What is your outlook on Aerospace and Defense Industry? What could be the major trends to look for in future?
1. BEML is aggressively marketing its capabilities and biding for the projects with existing capabilities and partnerships to enter Defence & Aerospace business in a big-way.
2. Ensuring efficient resource allocation across manufacturing complexes to successfully deliver Defence & Aerospace production orders for the current FY.
3. BEML is strategizing to become a leading Aero-Structures manufacturer in India, with special focus on UAVs by accelerating strategic partnership with OEMs by focusing orders from domestic and global customers.
4. Also, BEML is partnering with Start-ups to bring a deeper engagement from Start-up ecosystem for DISC 7 and iDEX PRIME (SPRINT), who are providing cutting edge solutions in Defence sector under the innovation category in developing Unmanned Ground Vehicle (UGV) and Autonomous Combat Vehicle (ACV).
5. There is a continuous surge in the demand for spares for High Mobility Vehicles & Armoured Recovery Vehicles and BEML is gearing up to meet the requirements. This spares supply is a substantial portion of the revenue generation in the defence segment.
6. Major overhaul programmes of Defence Services are being pursued which will propel our growth further.
7. BEML is developing the following Defence equipment to induct in next 4-5 years to include in Positive indigenisation list.
• Aerial Vehicle: Tactical Unmanned Aerial Vehicle (UAV), Unmanned Ground Vehicle (UGV) and Autonomous Combat Vehicle.
• Wheeled equipment: Mine Protected Vehicle, Armoured Troop Carrier, Heavy Recovery Vehicle, Light Autonomous Dozer, HMV 12X12, Truck mounted crane & Excavator, Articulated All-terrain Vehicle, Wheeled Infantry Combat Vehicle (WICV), Bar Mine Layer Vehicle, Mine Field Marking Equipment (MFME) Mark-II, Self-Propelled Mine Burrier on 8x8 Chassis and Trailers.
• Aggregates: Tank engines 1000 HP & 1500 HP.
• Tracked equipment: Armoured Dozer, Arjun Armoured Repair and Recovery Vehicle, Armoured Engineering Vehicle, Trawl Roller with Mine plough for T-72/T90 tanks etc.
Q. How is BEML preparing for the future infra development and market opportunities?
With regards to the market demand or opportunities in the Mining Industry of our country, BEML has already equipped to design and develop High-Capacity equipment in the segments of Rope Shovels, Dump Trucks, Hydraulic Excavators and Dozers. BEML has deployed equipment such as Dump Truck Models ‘BH150E & BH205E’, Excavator of 180T capacity models ‘BE1800E & BE1800D’, Dozer model ‘BD475’ powered with 860HP engine. Now, with the prestigious order from M/s CIL for Rope Shovel, BEML is in the process of manufacturing 20 Cum Rope Shovel model ‘BRS21’. All these products are Atmanirbar products of our country. Towards, Construction equipment market demand BEML is gearing up with production of equipment with newer emission norms and with advanced technologies matching the market demand embedded with latest safety features on the equipment. Also, BEML has launched new products viz., Dozers with Hydro Static Transmission and with Power Angle Tilt Blades, Motor Graders with advanced features and recently launched new loader model ‘BL30-1’ with advance technology to match the current requirement. Overall, BEML is geared up to match the demands arising due to the various infrastructure projects announced by the government and as well the increasing demand of high-capacity equipment from the mining industry.
Q. What are the latest trends in the mining & construction equipment and what are the challenges faced by the industry?
With respect to the Mining equipment, the mining industry including Coal, Iron Ore, Limestone, Bauxite and Manganese are increasing their production hence there is a growing demand for High-end Equipment, keeping in view of this, BEML has already indigenously developed High-Capacity Equipment in the segments of Dump Trucks, Dozers, Hydraulic Excavators and Rope Shovels. As far as Construction equipment is considered, the projects which are ongoing and expected in the areas of Infrastructure and construction is driving the demand for equipment especially for Loaders & Excavators. The challenges faced in both Mining & Construction equipment market are:
1. Increasing input cost – challenge in cost optimization - Increase in steel and other commodity prices - Increase in input components / spares cost - Increase in fuel cost
2. Demand for advanced technology on par with global players.
3. Competitive prices – Chinese equipment in the market.
4. Normalcy in supply chain system and logistics post covid 19 is a challenge.
5. Regular technology updation - Indigenous development and Implementation of latest Technology in limited period time.
6. Skill development in the latest technology
Q. How do you expect construction & infrastructure to evolve from there in terms of business?
As per the report, our country is targeting to be a $5 trillion economy by 2024-25 and the National Infrastructure Pipeline (NIP) aims at investing over Rs.111 trillion into several infrastructure projects within 2025 and further with many infrastructures development plans. With Government’s huge infrastructure development plans there would be a major growth in the construction and infrastructure business. However, with regards to the equipment for this sector is concerned the future demands are for the following: - Use of more Digital Technology, Artificial Intelligence and Automation - Technology updation towards increasing productivity, safety of men and material, & reduced cost of operations. - Ease of operations and maintenance - Use of fuel efficient engines - Use of environmental friendly equipment – Emissions norms compliant engines, Electric motor driven equipment. - Modular design of equipment
Q. How do you envision growth for your company for the next five years and what are the future investments plans of your company?
BEML Limited achieving the milestone of highest ever sales during 2021-22 is geared up achieve minimum Rs.10,000 Crore by 2026-27 including minimum 20% sales through exports from all the three business verticals, i.e. Defence & Aerospace, Mining & Construction and Rail & Metro. Keeping in view of the market demand, we have built the infrastructure to manufacture High-Capacity equipment, introduce AI technology on our equipment apart from other advanced features on par with global standards. Also, in order to meet customer requirements and critical manufacturing we have implemented industry 4.0 process in our one of the divisions. However, since the company is under the process of disinvestment we have made a strategic plan towards the Capex of the company for the current FY.
Q. What are BEML's highlights in 2021 & 2022? What are the company’s hopes in 2023?
Company has set a new benchmark by recording an all-time high sale of ?4,143 Crs. during 2021-22 with a growth of 16% over previous year. Mining & Construction Business achieved highest ever sales and registered a growth of 7.91% over the previous year. Defence Business has registered an impressive double-digit growth over the previous year. Also, Rail & Metro Business registered a growth of 9.78% over the previous year. With a healthy order book of over Rs 9000 crs it is expected that, during the current FY an overall growth of around 15%. On export front, your Company has bagged major order from Cameroon for supply of construction equipment consisting of Bulldozers, Excavators, Wheel Loaders, Motor graders and Compactors. The supplies will be executed during current year. In the overall, we are confident that there will be growth during the current Financial Year 2022-23
