BEML forms JV with Brazil Co
Bharat Earth Movers Ltd (BEML) on Monday said it has signed a Memorandum of Understanding with Brazil-based CCC for setting up a Joint Venture (JV) company to manufacture and supply of rail wagons.
By PTI |
MUMBAI: Bharat Earth Movers Ltd (BEML) on Monday said it has signed a Memorandum of Understanding with Brazil-based CCC for setting up a Joint Venture (JV) company to manufacture and supply of rail wagons and construction equipments and will invest Rs 100 crore in this.
The company today informed the Bombay Stock Exchange that it signed the MoU for establishing a JV company on September 12, for manufacture and supply of rail wagons, mining and construction equipment and spares.
The joint venture would be formed with 60 per cent share of BEML and 40 per cent share of CCC Brazil, the earth moving equipment manufacturer added.
For this new venture, BEML would invest Rs 100 crore by taking over a factory on the outskirts of Rio-de-Janeiro, Brazil. The factory has facilities and adequate infrastructure to take up manufacturing equipment in the near future with a capacity of rolling out 500 wagons and over 200 earthmoving equipments and spares annually, it said.
Given the growing demand in the Brazilian market and other South American countries in terms of expansion of mines and offtake of wagons, this joint venture would help BEML penetrate into new market overseas, it added.
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