Won't compete with HAL, but will complement it: CMD
The PSU major Bharat Earth Movers Ltd. (BEML) on Thursday announced it would enter into the business of aircraft manufacture.
“Within the next 10 years, we are hopeful of starting assembling small aircraft, but it would take a quarter century to do what Hindustan Aeronautics Ltd. (HAL) has been doing,” Chairman and Managing Director V.R.S. Natarajan told presspersons at the eighth edition of Aero India show at Air Force Station, Yelahanka, here.
“We want to mature into product manufacturing from being an aggregate manufacturer. We will not compete with the leader (HAL) but will complement it.”
In its endeavour, BEML is also looking at acquiring smaller companies in the U.S. and Europe, in the range of $10 to $15 million. “These companies have the expertise. If we have to get expertise, we will have to spend 10 years,” he added.
BEML was foraying into aerospace business to widen the defence volumes and cash in on emerging opportunities globally, Mr. Natarajan said. “We are expecting a business of over Rs. 1,000 crore by 2016-2017 from about Rs. 100 crores now.”
Announcing an ambitious target of achieving an annual turnover of Rs. 10,000 crore, Mr. Natarajan also hinted of restructuring in the offing.
Though the company targeted an annual turnover of Rs. 5,000 crore by 2013-2014, he said it would be met next year itself. “We are hopeful of crossing Rs. 4,000 crore turnover in the current year and Rs. 5,000 crore next year,” he added.