BEML is setting up a green field project for defence equipment and rail coaches at Kanjikode in Palakkad district of Kerala and Coimbatore is a potential area to supply components, mainly sheet metal fabrication, castings and forgings, according to the company’s Deputy General Manager for Corporate Purchase H.S. Ranganath.Mr. Ranganath said at a buyer-seller meeting organised here on Friday by the Confederation of Indian Industry that the company’s procurement target through outsourcing was over Rs. 1,080 crore for 2010-2011 and Rs. 900 crore for 2009-2010. Of the Rs. 580 crore outsourcing in 2008-2009, nearly 12 per cent was from Coimbatore region.
The need for an office here was felt to improve communication with the vendors.The office here currently has three engineers and the strength would be increased in the coming months.BEML certainly required more vendors and the units that would be able to the meet its requirements had opportunities, he said.H.S. Prakash, Chief General Manager – rail coach division, said that the site was getting ready at the Kanjikode facility and the unit would be commissioned by March next year.The unit would manufacture defence equipment and aggregates for rail and metro cars.
With Kanjikode only about 40 km away, Coimbatore could make use of the advantage of location and tap the opportunities in outsourcing.