With the high-speed train system gathering speed in developing countries, including India, defence public sector undertaking BEML is in the process of tapping global opportunities in the high-speed train parts market.
The company is eyeing tie-ups with foreign high-speed train manufacturing firms, sources said. BEML currently manufactures cars for Indian metro projects.
Speaking to FE, BEML?s chairman and managing director VRS Natarajan said around 40% of the high-speed train system contains parts pertaining to side, lower and roof wall of the rail coach.
Most manufacturers source these components from outside vendors and assemble the high-speed train with their own in-house technology, Natarajan said, adding that BEML will utilise this opportunity and supply parts to global high-speed train companies.
He said, ?the high-speed train manufacturers will supply technology while we produce and supply the parts.?
While declining to share further details, he added, ?Currently, we are in talks. We will come out with an announcement by March.? He said that high-speed train parts will be produced at the company?s upcoming plant in Kerala.
In fact, Indian railways is focusing on high-speed inter-city trains that is the most profitable segment of passenger business. This mode of transport provides the highest safety to passengers, as there have been hardly any accidents on such exclusive corridors the world-over. Further, migration of traffic to rail will also boost the nation?s economy since it directly helps in energy conservation.
With the Indian Railways making efforts to establish several high-speed lines across the country, BEML sources said more international rolling stock manufacturers will bid to supply high-speed trains to India. Currently, their manufacturing presence in India is not significant.
At present, among other global players, Canada-based Bombardier has set up a rail coach factory in Gujarat in 2008 and the railway cars are expected to be rolled out in March 2009.
Apart from this, Germany?s Siemens is also learnt to be in the process of setting up a bogie manufacturing plant in Aurangabad.
However, these facilities will take some time to match the growing demand in metro and high-speed rail sectors in India, said an official attached to BEML, which has a full-fledged metro car production facility in Bangalore.
Moreover, even if global firms win Indian railways? bids to supply high-speed trains or metro cars, they will show interest in procuring parts from BEML, the official said.
BEML is already in the final stages of clinching a deal with Chinese high-speed train manufacturing firm, sources added.
The sources added that BEML will have tie up with foreign firms on a case-to-case basis for projects executed in the overseas market.