India’s BEML to Produce OTR Tyres With Apollo & JK Tyres

India’s Bharat Earth Movers Ltd (BEML) has announced its intention to diversify into the manufacture of OE and replacement market OTR tyres for mining applications. Along with its major customer, Coal India, BEML will work on this venture jointly with Apollo Tyres and JK Tyres. The OTR section is seen as a highly attractive market segment in India due to the larger profit margins offered compared with passenger car and truck tyres. Furthermore, at present 80 per cent of the OTR tyres sold in India are imported.

BEML ended the 2006-07 with a turnover of £305 million and a profit before tax of £37 million, a growth of 18 per cent over the previous fiscal year. The company’s total dividend for 2006-07 is likely to be 100 per cent, including the 40 per cent interim already declared. The profit after tax is expected to be around £24 million. BEML’s target for 2007-08 is to reach a turnover of £375 million.