We expect to cross Rs 100 crore within 4 years

How did BEML Tech originate, and what are its strategies?

Looking at the engineering design and services outsourcing market, BEML
established the technology division in 2006. We have drawn this division based
on our domain knowledge. There is a huge potential for design and automation of
new machines, product development, component development, and updation. There is
also a huge opportunity in high-end equipments and designs of bridges for
transportation of men and materials in defense. The offsets in defense are also
a huge opportunity, and it is applicable to both aerospace and non-aerospace.
Hence, we are looking at the emerging opportunities in the government and
Ministry of Defense.

Which major verticals is BEML Tech focusing on?

BEML Tech is mainly focusing on four verticals: rail and metro, defense, earth
moving, and auto and aerospace. We have hired engineers and designers from the
market for the new division. The expertise that we have acquired from the metro
will help us in designing for global MNCs. The domain knowledge in these
verticals will help us in designing components, update technologies, and through
the R&D division, develop new products.

Public sector companies are trying hard to attract talented professionals.
How is BEML Tech attracting talent?

BEML Tech has four development centersKGF, Mysore, and two offices in
Bangalore. The current employee strength is about 150 engineers and 30% of them
are hired from outside with design expertise and experience. Hundred employees
have been transferred from other divisions and are treated as IT employees. We
have also brought in the profit sharing concept and plan to provide them
additional benefits. Being a government organization, jobs are secured compared
to private companies. People prefer to work in companies that provide job
security, even though emoluments are relatively low. Our attrition rate was only
8% last year.

What are the future plans of BEML Tech?

We expect to cross a turnover of Rs 100 crore by the end of 2009-10. After
reaching this target, BEML Tech will function as an independent IT company.
Primarily, BEMLs technology division will take care of the engineering design
needs of BEML. We are spending 4% of our turnover on R&D. The company has also
opened a global warehouse in Malaysia and Brazil.

Pradeesh Chandran

pradeeshc@cybermedia.co.in