EXECUTIVE SUMMARY The organization study at Bharath Earth Movers Ltd(BEML) is a study aimed at learning the application of theoretical

knowledge in real business and industries. This study helps to learn the working of the organization, relating theoretical concepts to organizational functioning andreal life application of management.BEML Limited (BEML) conferred with Mini-Ratna Category-1 Status and under theadministrative control of Ministry of Defence, is a multi-technology company offering high-quality products for diverse sectors of economy such as coal, mining, steel, limestone, power,irrigation, construction, road building, aviation, defence, metro and railways. BEML is ranked as"The Largest and Most Profitable Construction Equipment Company" by Construction World - NICMAR, 2007. It has emerged in the forefront of heavy engineering industry with a track record of growth and revenues for over four decades. The Company has partially disinvested and presently Government of India owns 54 percent of total equity and rest 46 percent is held byPublic, Financial Institutions, Foreign Institutional Investors, Banks and Employees.During thefinancial year 2008-09, BEML achieved a sales turnover of INR 3013 crores and a pre tax profitof INR 387 crores. The export earnings touched INR 304 crores.

2.COMPANY PROFILE 2.1.Background and Inception of the company: BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 asa Public Sector Undertaking for manufacture of Rail Coaches & Spare Parts and MiningEquipment at its Bangalore Complex. The Company has partially disinvested and presentlyGovernment of India owns 54 percent of total equity and rest 46 percent is held by Public,Financial Institutions, Foreign Institutional Investors, Banks and Employees.During the financialyear 2008-09, BEML achieved a sales turnover of INR 3013 crores and a pre tax profit of INR 387 crores. The export earnings touched INR 304 crores.BEML Limited (BEML) conferred with Mini-Ratna Category-1 Status and under theadministrative control of Ministry of Defence, is a multi-technology company offering high-quality products for diverse sectors of economy such as coal, mining, steel, limestone, power,irrigation, construction, road building, aviation, defence, metro and railways. BEML is ranked as"The Largest and Most Profitable Construction Equipment Company" by Construction World - NICMAR, 2007. It has emerged in the forefront of heavy engineering industry with a track record of growth and revenues for over four decades. For its innovative management practicesthe company has been awarded the "Golden Peacock Innovation Management Award". BEMLhas also been rated as "The Fourth Largest Wealth Creator in the Country" by Dalal StreetMagazine. In keeping with the global technology trends, the company is setting up R&D Centreof Excellence for Research in Metro Rail System in Bangalore. 2.2. Nature of the Business: In past three decades, BEML has been expressed as leading corporate giant inmanufacturing sophisticated earth moving equipments for vital applications in diverse sectors of economy. BEML operates on three major business verticals for associated equipmentmanufacturing:

2.2.1.Mining and Construction Business: BEML Limited offers a comprehensive and diverse range of mining machinery for both opencastand underground mines. BEML produces machines such as Electric Rope Shovels, HydraulicExcavators, Bulldozers, Wheel Loaders, Wheel Dozers, Dump Trucks, Motor Graders, PipeLayers, Tyre Handlers, Water Sprinklers and Backhoe Loaders. Besides, BEML alsomanufactures mammoth Walking Draglines for cost-effective operations in the opencast mines.BEML has ventured into underground mining with products such as Side Discharge Loader,Load Haul Dumper, Winch, Winder, Granby Car, Skip etc. The boom in the mining industry hasopened up new avenues for BEML in contract mining.BEML has formed a joint venture company with its partners, Midwest Granite Limited and Pt.Sumber Mitra Jaya, Indonesia to take up contract mining within the country and overseas. The joint venture company is called BEMLMidwest Limited and the company will bid for coal andother mining contracts in India and abroad. 2.2.2.Rail and Metro Business: In recent years, BEML Limited has forayed into high-tech Metro Trains deployed for intracitycommuting. BEML is expanding its infrastructure to meet the greater needs of metro projectscoming up in the country. Also, BEML supplies equipment to Indian Railways which includeIntegral Rail Coaches, Overhead Electric Inspection Cars, Postal Vans, AC/DC Electric MultipleUnits, D-EMUs, Utility Track Vehicles, Track Laying Equipment, Broad-Gauge Railbus,Treasury Vans, Spoil Disposal Units etc.

2.2.3. Defense Business: Being India s leading defense equipment manufacturer, BEML Limited keeps the Indian Armyand other defense forces abreast with state-of-the-art military equipment. The companymanufacture variants of Tatra vehicle for all terrain operations including Bridge Layer, FieldArtillery Tractor, Medium & Heavy Recovery Vehicle, Pontoon Mainstream Bridge Systems,Crash Fire Tenders, Mobile Mast Vehicle, etc. BEML also supplies Engineering Mine Ploughs,Tank Transportation Trailers, Weapon Loading equipment, Armoured Recovery Vehicle, MilrailCoaches and Wagons apart from Aircraft Weapon Loading Trolley and Aircraft Towing Tractor.BEML plays a stellar role in the country s Integrated Guided Missile Development Project bysupplying ground support vehicles. The company has also created a world class test track at itsKGF Complex to test defence equipment and vehicles

2.3.Vision,Mission and Quality Policy:2.3.1.Vision To become a market leader, as a diversified company supplying products and services to Mining& Construction, Railway & Metro and Defence Services and emerge as an International Player. 2.3.2.Mission

1.Improve competitiveness through organizational transformation and collaboration /strategic alliances / joint ventures in technology.2.Grow profitably by aggressively pursuing opportunities in national and internationalmarkets.3.Attract and build people in a rewarding and inspiring environment by fostering creativityand innovation. 2.3.3.Objectives 1.To maintain a dominant position in design, development, manufacture and marketing of Defence, Earthmoving & Construction and Rail & Metro equipment.2.To diversify and grow.3.To provide total engineering solutions to its customers.4.To internationalise operations by enhancing exports.5.To improve profitability.6.To maintain State-of-the-Art technology for all products.7.Re-orientation of the business operations to match present scenario.8.Continuous building of skills and competencies to bring about Executive Effectivenessfor Management Succession.

2.3.4.Quality Policy BEML Limited views Quality improvement as a business strategy and hence remains proactivein the areas of product and service quality. At BEML, a Corporate Quality Policy emphasizingTotal Quality Management ensures that quality system adopted results in products, services and processes that meet stringent standards and requisite performance criteria. A separate QualityDepartment spearheads the thrust towards Total Quality Management.All the manufacturing units of the company have been certified for ISO 9001-2000 QualityManagement System Standards. The facilities include custom made test tracks to evaluate performance of the equipment. Also, the manufacturing divisions are augmented with testfacilities available at its R&D / Technology Division. Well established vendor base is a keystrength of BEML. Vendor assessment and development is a key component of the company'sstrategy for achieving Total Quality.Quality Improvement initiatives required for both evolutionary and revolutionary improvementsare in place. Concept of 5S, Kaizen and Quality Circles are practiced at grass root level. BEMLis actively pursuing 'Six Sigma' methodologies to achieve break through in process / productimprovements. In 2006, it has launched company-wide 'Six Sigma' movement and the initiativehas gained momentum with many on-going projects progressing well and completed projects being implemented successfully.'Quality Function Deployment' is actively pursued in the organization. Cross-functional teamsroutinely visit customer sites to capture 'Voice of Customer'. Such actions have resulted inincorporating a number of product improvements to fine tune product features on both in-housedeveloped as well as collaborated products to suit specific customer requirements and operatingconditions.BEML actively promotes small group activities to encourage and enhance 'Quality Culture' at alllevels. The small group activity teams regularly participate in regional / national / internationallevel competition and have achieved recognition as meritorious performers. BEML s QC teamshave raised the BEML flag high in the international arena by winning. Silver Medal in the recently concluded ICQCC-2009 international competition held at Sebu,Philippines. Gold Medal in the ICQCC-2008 international competition held at Dhaka, Bangladesh

2.4.Product Profile BEML Limited (formerly known as Bharat Earth Movers Limited) as a full-fledged corporationwas established in 1964 with Bangalore Complex as the mother unit. The Bangalore Complex(the then Rail Coach Factory) was in existence from 1947 as a part of Aircraft Factory (currentlyHindustan Aeronautics Limited). Initially, the division was manufacturing Rolling Stock producing various models of Broad Gauge Coaches. Subsequently, over the years, the metrocoaches and some of the defence products manufacture also has been added in this complex.The products manufactured at Bangalore Complex are: Rail & Metro Stainless Steel Metro Cars for DMRC Passenger Coaches DC Electric Multiple Units AC Electric Multiple Units Overhead Equipment Inspection Cars Rail Bus Treasury Vans Spoil Disposal Units Track Laying Equipment Sky Bus MIL Rail Coaches Utility Track Vehicle (UTV) Defence Variants on BEML-Tatra Trucks Prithvi Missile Launcher Field Artillery Tractor Crash Fire Tender Pontoon Bridge System Trailers- 50T, 20T

Railway Products for Defence Wagons Military Rail Coach

2.5.Area Of Operation BEML has nine manufacturing units spread over five locations:

Kolar Gold Fields (KGF) Complex (around 100 Km from Bangalore) o Earth Moving Division o Rail Coach Unit II o Heavy Fabrication Unit o Hydraulic & Powerline Division

Mysore Complex (around 130 Km from Bangalore) o Truck Division o Engine Division

Bangalore Complex - Rail & Metro Division

Vignyan Industries, a subsidiary located at Tarikere (around 300 km from Bangalore) -Steel Castings

Palakkad Complex-Defence & Rail DivisionBEML's nationwide network of sales offices enables buyers with ready access to its wide rangeof products. Also, the full-fledged service centers and parts depots offer total equipment care,maintenance contracts and rehabilitation services Leader in India and Going Global BEML Limited has an expanding international presence in more than 52 countries spreadworldwide including Syria, Tunisia, UAE, Jordan, Suriname, South Africa, UK, Sri Lanka,Bangladesh, Philippines, Indonesia, Oman, Nepal etc. An Export House with Star Exporter status, BEML has proven strengths in handling large-scale trading and counter-trade and has pushed the export of engineering goods as well as other equipment. Plans are in the offing to setup assembly operations at Morocco, Suriname and Indonesia in partnership with local players.Besides, BEML has an international office-cumwarehouse in Malaysia and an international procurement office in China. BEML has Dealers / Distributor operating from Syria, Tunisia, SriLanka & UAE and representatives in Morocco and Suriname. With an effective system of Extension Service Management, BEML has its marketing network in Middle East, Africa andFar East countries. BEML has secured repeat orders from countries like Syria and Tunisia for its products in view of their commendable performance.

Global Management of BEML BEML Malaysia Sdn Bhd, at Johor, an International Warehouse-cum-Office has been launchedrecently to cater to the after sales support for Far East Countries.BEML Brazil Ltd, at Espirito Santo, Brazil has been launched to have the manufacturingfacilities for catering to the requirements of the LATAM Region.Plans are in the offing for establishments in other potential territories. 2.6.Ownership Pattern Share Holding Pattern CATEGORY 2009-2010No. of Shares% toEquityPROMOTERS The President of India2250000054.03 INSTITUTIONALINVESTORS Mutual funds and UTI559786013.44Banks/Financial Institutions/Insurance companies(Central/State Govt. Institutions/Non Govt Institutions)40813339.80FIIs56185513.49 OTHERS

Private Corporate Bodies 11414492.74Indian Public24743805.94NRIs/OCBs2180520.53Others-Trusts & ClearingMembers155710.03 TOTAL 41644500100.00 2.7.Competitors Information