Hexaware Technologies to offer Enterprise Risk Management solutions through a Joint Venture with Pemprad Intl

Hexaware has formed a JV with Pemtrad International to form Risk Technology Intl, which will offer ERM Solutions. The Hexaware JV is expected to add 6 clients in the next 6 months. Addressable market of risk technology is seen at $ 5.5 billion in 2007. The revenue from JV is seen at $ 20 million in the third year of operations.

The new entity will focus exclusively on offering a comprehensive suite of technology-intensive solutions in the domain of enterprise risk and compliance management, primarily for financial institutions worldwide. RiskTech will have offices in UK, USA and India.

Hexaware is a leading software service provider in the Banking Financial Services and Insurance (BFSI) vertical, with over 30 customer relationships and over 40% of revenues coming from this space. The Company has gained market leadership in niche areas like Asset Management and Wealth Management. With an investment of 85% in the Joint Venture, the Company will be able to strengthen and leverage its scope of operations by offering diversified solutions in the field of enterprise risk and treasury risk management applications.

The global market for risk technology is estimated to be worth $ 5.5bn (external expenditure only) in 2007. It is growing rapidly than the growth rates witnessed in the IT spends globally.

"After Asset Management and Wealth Management, we have now entered the Risk management space through this venture. With this, Hexaware will strengthen its BFSI practice by adding a third sub-vertical of ERM. We expect to achieve revenue of mn+ in the third year in RiskTech coupled with a high downstream revenue potential for Hexaware," stated Atul Nishar, Executive Chairman of the Company.

RiskTech will be able to leverage Hexaware's International reach especially in USA, Europe and Asia-Pacific. RiskTech will benefit from the Company's Business intelligence & Analytics group which comprises of more than 300 professionals.

"RiskTech will provide a new line of business and also new customer relationship for the entire Hexaware organization. We expect RiskTech to add at least half a dozen new clients in the next six months. Peyman's rich industry knowledge and business network in this space would be invaluable in giving RiskTech the business momentum." said Rusi Brij, Vice Chairman and CEO of Hexaware Technologies Ltd.

The Company will offer a suite of technology-focused solutions for implementation and support in the areas of Value-based Enterprise Risk Management (ERM) including Basel II and Pillar III based services, Regulatory Compliance, and Treasury Risk Management. In addition to the above offerings, RiskTech will also provide MIFID related services.

Risktech will leverage several existing Company's capabilities including partnerships with leading risk technology vendors, offshore delivery capabilities, and the growing number of client relationships in the larger BFSI space.



Bajaj Auto: Exploring idea of launching a cheap car; June 3-wheeler sales seen flat-to-lower

Rajiv Bajaj of Bajaj Auto says that the company is exploring the idea of launching a cheap car. Speaking on the sales numbers, he says that the June numbers are expected to be flat-to-lower. The FY 08 exports are seen at 6 lakh units. On the newly launched 220 cc Pulsar, Rajiv says that they expect to sell almost 2000 units per month of the vehicle. The 220 cc bike is priced at Rs 81,280 ex-Delhi.

Rajiv mentioned that the 100 cc bikes are not seen profitable in near-term. The inventory levels are under control for the bigger bikes, while for the 100 cc bikes, it is still high. He added the company will support dealers via Bajaj Auto Finance. The new platform slated to be launched in September is also on track.

Bajaj Auto will set up a 50,000-unit plant in Aurangabad for new bike. The company will launch a new bike for around Rs 40,000 in September.




Kalyani Steels continues to gains momentum; Co ties up with Gerdau S.A., Brazil, Both Gerdau and KSL to hold an equity of 45% each, in SJK Steel Plant

Kalyani Steels has touched an intra day high of Rs 433.90 and an intra day low of Rs 403.50. Currently, the share is quoting at Rs 427.00, up Rs 16.80, or 4.10%. It is trading with volumes of 80,313 shares, compared to its 5-day average of 21,760 shares, an increase of 269.09%. Friday, the share closed up 4.51% or Rs 17.70 at Rs 410.20.

Kalyani Steels, a Kalyani Group company and one of the leading manufacturers of special carbon and alloy steel, today signed a Joint Venture Agreement with Gerdau S.A., Brazil. As per this agreement, both companies will have an equity partnership of 45% each in SJK Steel Plant Ltd and the remaining 10% will be owned by other investors.

SJK Steel which has been recently acquired by Kalyani Steels, is an integrated alloy steel plant located at Tadipatri in Andhra Pradesh, with an installed capacity of 275,000 tons per annum. The plant started its production of pig iron in April 2005 and is today running at full plant capacity. The Kalyani Gerdau JV plans to enhance its capacity to 1.6 million TPA of finished steel in the next few years.

One of the highlights of this investment program is the installation of rolling mills, which will allow the production of steel with higher added-value and supply to both, the automotive and civil construction industry, covering a broad range of special bar quality (SBQ) and construction products.

The Gerdau Group is a Brazilian steel company that is currently the 15th largest international steel producer. In 2006 it reported production of 15.6 million metric tons and gross revenue of R$ 27.5 billion. It has 32,000 employees and is present in twelve countries: Argentina, Brazil, Canada, Chile, Colombia, the United States, Spain, Mexico, Peru, Dominican Republic, Uruguay and Venezuela.

Kalyani Steels Limited (KSL) was incorporated in 1973. Promoted by the Kalyani Group, the Pune-based company is one of the leading manufacturers of special carbon and alloy steels, engineering and alloy steel ingots, blooms and billets conforming to international standards.




BEML FPO price band at Rs 1020-1090/sh; Priced at discount of 8.5%-14.4% to Friday's closing

BEML FPO price band has been set at Rs 1020-1090/share. The IPO opens on June 27 and closes on July 3.

The FPO is priced at discount of 8.5%-14.4% to Friday's closing. The company will also pay Rs 8/sh as second interim dividend.




PSL lowest bidder for IOC's Dadri-Panipat gas pipeline contract of Rs 165 Cr

PSL has emerged successful as the lowest Bidder as Indian Oil Corporation opens the price bid for its First Gas Pipeline from Dadri to Panipat for Pips of 30" Diameter.

The Project cost (Bid) is approximately Rs 165 crore and receiving this order will be a step further with PSL's association with Indian Oil Corporation.

PSL's un-executed Order Book on receipt of this order will exceed Rs 2400 crore.




Ranbaxy launches Pravastatin Sodium 80 mg tablets in USA; Ranbaxy to benefit from 180 Day exclusivity

Ranbaxy Laboratories announced today that the company's wholly owned subsidiary, Ranbaxy Pharmaceuticals Inc. (RPI), has launched Pravastatin Sodium 80 mg Tablets in the U.S. healthcare system. Being the first-to-file, Ranbaxy will enjoy a 180 day exclusivity for Pravastatin 80mg and benefit from the commercial gains during this period. The annual sales for Pravastatin 80mg are $ 209 Mn

“We will make Pravastatin Sodium 80 mg Tablets available to all classes of trade immediately, and our Ranbaxy Sales and Distribution Teams will be doing everything to have product in the hands of our customers as quickly as possible. We are delighted to have this product formulation as an addition to our ever expanding product portfolio of affordable generic alternatives,” said Jim Meehan, Vice President of Sales and Marketing for RPI, USA.

Pravastatin is indicated in the treatment of primary prevention of coronary events such as in hypercholesterolemic patients without clinically evident coronary heart disease. Pravastatin is also indicated to reduce the risk of myocardial infarction, reduce the risk of undergoing myocardial revascularization procedures and reduce the risk of cardiovascular mortality with no increase in death from non-cardiovascular causes.

It is also indicated for treatment in the secondary prevention of cardiovascular events such as in patients with clinically evident coronary heart disease to reduce the risk of stroke and stroke/transient ischemic attack (TIA), and slow the progression of coronary atherosclerosis




Satyam Computer extends relationship with Nestle, signs 3-yr contract; Satyam to provide Software Development & Maintainance to Nestle Corp

Satyam Computer has extended its relationship with Nestle and signed a 3 year contract. Satyam will provide Software Development & Maintainance to Nestle Corp. Satyam employees working for Nestle to increase to 500 over the next year.

The contract is expected to generate revenues of $ 75 million over next 3 years from contract




Maruti extends rebate of Rs 5,000-35,000 till June 30; Maruti giving discount on 800, Ommi, Alto, Estilo, Esteem, Versa

Maruti has extended Rs 5,000-35,000 rebate by fortnight to June 30. Maruti is giving discount on 800, Ommi, Alto, Estilo, Esteem, Versa, however, there is no discounts on SX4, Swift Diesel, WagonR LPG cars.

Maruti plant has resumed operations after maintenance shutdown. Maruti car despatches have been normal during week-long shutdown.



Gujarat NRE Coke Australian arm raises $ 12.7 Mn, to list on July 4 in Australia

Initial Public Offer of India NRE Minerals (arm of Gujarat NRE Coke) of 30 million shares at Aus $ 0.50 each aggregating to AUs $ 15 million has closed on the stipulated date having been over subscribed.

India NRE Minerals owns and operates the NRE No 1 colliery with proven resources of more than 300 million tonnes, in the southern coalfields of New South Wales. This landmark colliery has produced significant amount of high quality Coking coal and have catered to both the domestic and export markets.

The mine re commenced production in September 2005 since when it has produced over 600,000 tonnes of Coking coal, exported to India. The current issue is being floated to raise funds for the commencement of long wall mining which is supported by external technical consultants with a view towards ramping up of production from the mine from the current level of 1 MTPA to over 4 million tonnes per annum.

Gujarat NRE Coke would continue to hold more than 90% stake in India NRE Minerals even after the present Public offer. Gujarat NRE is the largest merchant producer of Low Ash Metallurgical Coke in India and has strategic interests in various resource plays in Australia. It was the first company to have acquired a coal mine outside India and today owns 3 Hard coking coal mines in Australia. The Company's other major interests in Australia include petroleum prospecting in the Canning basin and prospecting for gold, iron ore, coal, magnetite and other base metals in Tasmania.

India NRE Minerals has negotiated an off-take agreement with the parent company for upto 1 million tones per annum which will give it an unique buffer and put a cap on marketing expenses. The proximity to the un-congested coal export port of Kembla, the tried and tested management expertise of the Indian parent, the historically accepted quality of the coal and the parentage that will offer virtually unhindered access to the significantly growing Indian steel market will all go to add to the Company’s free run to prosperity. Add to it the continuous infusion of capital by the Indian parents, who have already invested over $ 90 million in the mine and the prospects seen even better.

China has imposed a fresh export duty on coke which is expected to further strengthen the global pricing adding value to the Company’s prospects. Coupled with the surge in demand from India which is all set to take its steel making capacities to beyond a hundred million metric tones by the year 2020, Australian coal mines are suddenly the preferred investment destinations of the world, things that augur well for Gujarat NRE Coke.



Man Industries bags order worth Rs 220 Cr

Man Industries India has informed that the company has received some more export orders aggregating to Rs 220 crores including order from fortune 500 Oil and Gas Major Petronas, Malaysia. These orders are for LSAW pipes.
Adding further, Mr. K G Mantri, Sr. Vice President-Corporate Affairs said "With these new orders the order book position stands at Rs 2400 crores. In addition to this the Company has bid for several large projects globally for approx. value of USD one Billion and expects to improve the order book position substantially in the coming months as most of these bids are at an advanced stage of evaluation."

After the commissioning of a state-of-the-art line pipe and coating complex at Anjar (Gujarat) in the year 2005, which is the Company's second facility in the country, the company has emerged out as a prominent manufacturer of line pipes and coating system on a global level with a total installed capacity to manufacture over 2500 KM of Line Pipe and over 5.00 Million Sq. Meters of Coating Systems every year.

The Company is already in advanced stage of adding two more production lines at its Anjar complex and one of which will be commissioned in the next month and other in the second half of the current year.

The Company is executing various major contracts for manufacture and supply of line pipes and coating systems to various clients in India and abroad.

Man Industries is involved in manufacturing and supply of steel line pipes for high and medium pressure applications such as oil, gas, petrochemicals and water transportation. The company is one of the leading manufacturers and exporters of saw pipes and aluminium extrudates.

Prabhudas Liladher had recently come out with a report on the company giving it a price target of Rs 300.




Reliance Petroleum seeing good buying; HSBC upgrades RPL to Overweight, Raises target to Rs 144

Reliance Petro has touched an intra day high of Rs 98.15 and an intra day low of Rs 96.80. Currently, the share is quoting at Rs 98.00, up Rs 1.70, or 1.77%. It is trading with volumes of 454,529 shares, compared to its 5-day average of 1,883,722 shares. Friday, the share closed down 0.72% or Rs 0.70 at Rs 96.30

HSBC has upgraded its regional refining margin forecasts to US $ 9/bbl (FY08), US $ 9.3/bbl (FY09) & US $ 6.5/bbl long term. RPL with its high complexity and superior product slate could gain the most from expected robustness in margins, the report by HSBC states. They have raised their target price to Rs 144/share from Rs 87/share earlier and upgraded the stock to Overweight.

RPL is the best play on refining margins with its superior product slate and complexity. This should enable it to produce higher-margin lighter and medium distillates which would conform to stringent fuel specifications in its targeted export markets, the report states.

RPL is in the process of constructing a 580kbpd refinery near the existing 660kbpd refinery of its parent Reliance Industries (RIL) at Jamnagar. The new refinery is designed to have a lower throughput capacity than RIL’s, but is expected to process heavier crude oil; its complexity will be about 14 on the Nelson index compared to 11.3 at the current refinery



Iron ore price may rise 10% in 2008

Iron ore exporters such as BHP Billiton Ltd and Cia Vale do Rio Doce may win a 10% increase in prices from steel mills next year as China drives global demand, according to Daiwa Securities SMBC. Annual contracts prices for benchmark Newman fines ore may rise to $ 89.89/t from $ 81.72, Daiwa's Melbourne-based Mark Pervan said in a report June 18. The bank had previously forecast a 5% gain in the steelmaking raw material.

Iron ore proces have risen for the past five years to a record because of surging demand from China, the biggest buyer of iron ore. The nation`s iron ore imports may exceed expectations in 2007 as rising steel output boosts demand, Brazil`s CVRD said last month.

"China is clearly the key market for iron ore demand," Pervan said in the report. "The spot market also points to higher contract prices in 2008." The Indian iron ore spot price into China is trading at a record $ 105, the report added. Global iron ore prices climber 24% in the first five months of this year according to the Federation of Indian Mineral Insdustries.

Export iron ore supplies may rise 8.3% in 2007, mainly form the three biggest producers, BHP, CVRD and Rio Tinto, who have about three-quarters of the global market between then, Daiwa said.



Infosys may review its dividend policy

Infosys Technologies Ltd chief mentor, NR Narayana Murthy has hinted that the company’s board may look into the dividend policy, if the circumstances change.

“I think the board will have to obviously decide about the dividend every year. If the circumstances change, we will certainly look into it,” Murthy said on the sidelines of the company’s 26th annual general meeting.

Murthy’s reply was in response to a Mumbai shareholder seeking a review of the company’s policy, which limits dividend up to 20 per cent of the net income.

“As a growth company, as a high-tech company, we have taken a decision that we will distribute dividend up to 20 per cent of the net income in a year. So we have stuck to that,” said Murthy.

“In the USA, high-tech and growth companies don’t give anything (read dividend) because they want to plough back all that into the business. As there is a tradition of giving out dividend in India, we have decided to have a policy of 20 per cent,” Murthy pointed out.

Earlier, Murthy told the shareholders that the dividend policy dictated that the company would limit any dividend to 20 per cent of the net income generated during the year.



Jaiprakash group bids for Malvika Steel

Financial institutions seem to have finally found a taker for Malvika Steel with the New Delhi-based Jaiprakash group bidding for the company.

The Debt Recovery Tribunal (DRT) has put the Vinay Rai-promoted Malvika Steel under the hammer to clear off the over Rs 1,200 crore outstandings due to institutions led by IFCI.

Jaiprakash Industries’ managing director Manoj Gaur confirmed that his group has bid for the assets of Malvika. Although the size of his bid could not be ascertained, industry experts said Rai could not be contacted.

DRT could receive nearly Rs 600 crore from the unit, which has a sprawling plant with 740 acres in northern India.

It was not confirmed whether there is any second bid for Malvika. The country’s largest steel company, Steel Authority of India had previously expressed interest in acquiring the Amethi-based company. But its consultant Mecon advised against acquiring the entire assets of the company.

Gaur said the foray into steel industry gels well with the group’s existing businesses of cement, power and real estate. “We are in all core businesses, except steel. An entry in steel will bring better synergy between the areas we operate in,” he added.

The Rs 3,000 crore project was left unfinished in 1998, within just 10 months of getting off the ground. Malvika Steel’s plant was initially planned to have a capacity of 8 lakh tonne of sponge iron and 1.2 million tonne of iron pellets, but it was converted into a 6.35-lakh-tonne integrated steel plant for manufacture of long products that are used extensively in the infrastructure and construction business.



TCS, Infy profits hit by rising rupee

Tata Consultancy Services Ltd and Infosys Technologies Ltd are among Indian computer-services providers whose earnings will be less than expected because of the Indian currency`s appreciation, Morgan Stanley said on Friday.

The rising rupee is hitting software and BPO companies so much so that most companies might not be able to stick to their earnings guidance.

The issue stands crucial because 70 per cent of overall IT exports are earned in dollars. That means a 7-8 per cent rise will eat half a billion dollars of the industry`s earnings.

Earnings on a per-share basis will be Rs 52.30 ($1.28) for the year ending March 31 for Tata Consultancy, less than a Rs 53.90 previous estimate, Anantha Narayan and Ashish Jain, analysts at Morgan Stanley, said on Friday in a note to investors.

Mumbai-based Tata Consultancy is India`s largest software exporter.

Earnings for the full year will be Rs 81.10 per share for Infosys, India`s second-largest software-exporter, Morgan Stanley said on Friday.

The previous estimate was Rs 83.60. The analysts also reduced their earnings-per-share estimates for Wipro Ltd and Satyam Computer Services Ltd.

The new forecasts are based on the assumption that the Indian currency will be at Rs 41 to the dollar, the analysts said.



Housing Policy likely to be finalized within a month, realty sales on carpet area basis

Maharashtra`s draft housing policy, which has been kept for comments and reactions by the common man as also the industry, is all set to be finalized by the next month, said Mr. S. S. Kshatriya Principal Secretary - Housing Department Government of Maharashtra. Among the new issues it is likely to contain is the mandatory requirement of buying and selling of real estate on basis of carpet area, he added.

The Maharashtra Government has accepted its role as that of a facilitator and an enabler, said Mr Kshatriya, in his special address, `Vision of Real estate Growth`. He was speaking at `Realty 2007`, the Confederation of Indian Industry organised Real Estate Conference. "The Government of Maharashtra is positive in its thinking when it comes to real estate, and is making efforts to remove the constraints faced by real estate industry," he added.

He spoke of the proposal for reserving some portion of housing layouts and townships for LIG housing or homes for EWS, and said the government could not be a mute onlooker, given the rising price levels of residential real estate. He termed `affordable housing` as a goal which the government was striving towards.

Touching on Public-Private Partnerships, affordable housing, self approval and working towards a single window clearance, adopting new technologies, private sector sharing responsibility for infrastructure development, incentives for rental housing, credit rating and bringing about more transparency, Mr Kshatriya said these are the issues that the Government of Maharashtra is seized of. `Public-Private Partnerships`, he said, were a means of facilitating `the tremendous opportunity knocking at our doors`.

On the issue of having a regulator for real estate, Mr Kshatriya said, "When you liberalise a segment of industry, there is a corresponding need for regulation, and real estate will follow power and telecom, when we talk in terms of having a regulator." He added that the rising price aspect of real estate may need to be regulated as well, but `if the industry would do it by itself, there might not be the need for the state government to step into the regulation aspect as regards pricing levels`, he added.

He took up the issue of whether reservation for LIG and EWS was the best solution when it came to affordable housing, pointing out that the need was for `inclusive cities`. He said extended suburbs were a location where affordable housing seemed possible, but these locations were being neglected. "How do we make these attractive?" was the question he raised.

Another issue was, how to provide incentives for rental housing? Mr Kshatriya said that on issues like FSI and taxation, the state government could consider giving preferential treatment for initiatives that promoted rental housing. He also stressed on the need to adopt new technologies, which would bring about a revolution in mass housing. On the issue of need for infrastructure, he suggested the industry could share responsibility for infrastructure development by contributing to a fund, he added.

He also touched on Credit Rating and the need for Transparency in real estate.

Earlier, Mr. Banmali Agrawala Deputy Chairman, CII Western Region & Managing Director, Wartsila India Ltd in his welcome address raised the question whether the present real estate boom is `all pervasive`, or just for a small segment. Mentioning the role private sector has to play in the emerging scenario, he stressed on the need for infrastructure growth.

Mr. Anuj Puri Conference Chairman & Chairman and Country Head, Jones Lang LaSalle Meghraj pointed out the changes that real estate in India was witnessing, and said the conference deliberations would focus on current trends and future prospects in the Indian construction and real estate sector. He hoped that an analysis of contemporary trends would help understand the underlying market dynamics, while greater understanding via open, intelligent discussion among those who decisively influence the industry would help shape the sector`s future, he said.



Not worried by the slowdown in the auto sector?

The worrying news of the week was the first real sign of a slowdown in the Indian economy. Lower overall production numbers for automobiles on a y-o-y basis looks disturbing whichever way one looks at it. It may be explained as an effect of rising interest rates, or it may be brushed aside as a temporary blip before a revival in the next month`s figures. Or it could simply be the end of another market up cycle. Time will tell.

The Sensex ignored this negative input and actually rose about 2% during the week, though it will raise a question about this sector at a time of its choosing. Since the market ignored the bullish IIP numbers a fortnight ago also, it seems as if the real triggers may come from the quarterly results. If the trickle down effect is seen in company results, the market will deal with it at that time.

The week`s close at 14467, after hitting a high of 14560, suggests that the Sensex may still attempt to make a new high. From 14560, that is exactly 163 points away from the all time high of 14723 recorded in February this year. As long as the index stays above 14347, the possibility stays alive. The Nifty made its all time high on 4th June, surpassing its February peak of 4217 quite comfortably. So clearly the Sensex has some catching up to do.

The bulls will be enthused by the new 52 week highs and all time highs from the mid-cap and small-cap stocks this last week. There has been a surge here, which augurs well for the week ahead. Will the Sensex stocks do their bit for the market?



Karvy group decides to contest SEBI order

The Karvy group has decided to go for an appeal against the SEBI order that prohibited Karvy Stock Broking Ltd (KSBL) as Depository Participant from opening fresh demat accounts till the end of the calendar year.

The market regulator also suspended Karvy Stock Broking as a stockbroker for three months. The company has been penalised for involvement in the IPO share allotment scam in 2005.

The direction on demat accounts will come into effect immediately, while the order on the suspension of the certificate of registration will come into effect 21 days from the date of the order.

Reacting to the order, sources in Karvy said the company was in the process of preparing a legal brief to contest the orders with Securities Appellate Tribunal.

The Friday order came into force with immediate effect. "We will contest the order on the both the counts very soon," the sources said.

"We have replied to most of the observations earlier. We will do it afresh again," they said.

The SEBI probe threw light on bulk bidding of applications by the company as a broker. "KSBL as a broker of NSE and also as a sub-syndicate member had bid for the 10,900 applications forms pertaining to key operators financed by Karvy Consultants Ltd. "A sample data revealed that many applications had been entered by one or a few employees of Karvy. The time gap between entry of successive applications was only 2-3 seconds. Many of the applications had shared a few surnames," the 12.20 point in the order said.

Sharing surnames

When asked about this observation, the Karvy sources, while saying that they didn`t go through the order fully, said that it was not uncommon to bid for applications in bulk. Distributors procure applications in bulk.

On similar names and common addresses, the sources gave the analogy of an imaginary `Shaw`. If a Shaw, his wife, son and other kin applied, they all share the common surname that is Shaw. "There is nothing abnormal about it," they said.



BEML aims at cashing in on defence projects

Bharat Earth Movers Ltd, a market leader in earth moving and excavating machinery in India, is looking at cashing in on the various defence projects that are in the offing.

"The defence projects in the next four to five years that we are looking at would be anywhere between Rs 10,000 crore and Rs 12,000 crore. We have few projects in hand and are looking at developing a few more in the next couple of years," Mr V. Mohan, Director (Defence Business), BEML, told Business Line on the sidelines of a press conference here on Friday.

The public sector `Mini Ratna` company has recently developed an upgraded engine for the T72 tank and has sent it the concerned officials for evaluation.

"Instead of the existing 780 hp engine, we have developed a 1,000 hp engine for the tank which makes it more powerful. We have given the proposal and it is currently under evaluation. The total cost of the project (upgrading the entire fleet of tanks) could be anywhere between Rs 4,500 crore and Rs 5,000 crore spread over the next four to five years," he said.

Another project that the company has undertaken is developing around 280 wheels and track driven vehicles for the Army. According to Mr Mohan, the delivery is to commence from 2009.

Currently the defence business contributes around 30-32 per cent to the company`s total turnover and the company expects the same contribution during the current fiscal also. For the financial year ended March 31, 2007 its turnover touched Rs 2,600 crore.

Topline growth

"We expect the topline to grow by around 12 per cent to around Rs 3,000 crore with a net profit between Rs 350 crore and Rs 380 crore," Mr Mohan said.

Last year, the export revenue of BEML was at Rs 110 crore and this year the company expects it to touch Rs 150 crore. The company, which makes equipment for mining and construction, is now planning to venture into coal mining and hopes to bag contracts for at least two coal blocks by the year-end.

Public issue

BEML is also tapping the capital markets with a follow-on public offer from which it expects to raise about Rs 450 crore. The proceeds will be utilised mainly to part-finance its Rs 900-crore capex programme over a period of three years. The issue, opening on June 27, would constitute 11.77 per cent of the fully diluted post-issue equity capital of the company.