BEML has outlined a capital expenditure of Rs 900 crore till FY’25 and re-entered the construction equipment market after a hiatus of nearly five years, aiming to capitalise on the Rs 45,000 crore market opportunity.

The company, formerly Bharat Earth Movers Limited, recently underwent a significant business restructuring, establishing 11 strategic business units (SBUs) and two micro business units to drive sustainable long-term growth.

“As part of this restructuring, we have re-entered the construction equipment business, focusing on higher capacity products to tap into the massive Rs 45,000 crore market,” Shantanu Roy, Chairman and Managing Director of BEML, told reporters on the sidelines of the 17th Global Mining Summit organised by the CII.

BEML’s earlier exit from the construction equipment space was due to intense competition from imported products.

Roy, however, explained that the company is now targeting higher-capacity equipment, such as 20-30 tonne excavators and dumpers, where competition from imported products is less intense, unlike the sub-10-tonne segment.

The restructuring is expected to generate a compound annual growth rate (CAGR) of 20 per cent and improve the company’s EBITDA to 17-20 per cent.

“We expect each SBU to contribute at least Rs 1,000 crore, and micro SBUs to generate Rs 500 crore each,” Roy added.