BEML has outlined a capital expenditure of Rs 900 crore till FY25. It has also re-entered the construction equipment market after nearly five years.
As part of this restructuring, it has re-entered the construction equipment business to tap into the massive Rs 45,000 crore market, as announced by the company on the sidelines of the 17th Global Mining Summit organised by the CII. However, the company is now targeting higher-capacity equipment, such as 20-30 tonne excavators and dumpers.
The capex over the next two financial years will be deployed to modernise its facilities, invest in new technologies, and expand its manufacturing capacity. This investment will focus on futuristic technologies in defence and infrastructure sectors, advancements in artificial intelligence (AI) and automation.
The company recently underwent a significant business restructuring, establishing 11 strategic business units (SBUs) and two micro business units. BEML's growth plan also includes raising its R&D spend from the current two percent to percent in the near future, and seven percent of its topline.