CSM Software, BEML Ltd MoU firms up strategic relationship
05 Mar 2009
Bangalore: CSM Software Pvt. Ltd., a leading engineering services company and Bharat Earth Movers Ltd (BEML), a mini-Ratna category-1 public sector undertaking under the ministry of defence, Govt. of India, have announced the signing of a strategic MoU during the AeroIndia 2009 show. The MoU intends to establish a framework for the execution of the engineering services orders likely to be received by BEML through CSM's sales and marketing efforts, under the defence offset clause.
Under the provisions of the defence offset policy, any contract worth Rs300 crore, or more, will carry an offset liability of between 30-50 per cent, as determined by the authorities on a case-to-case basis, of the order value.
It is estimated that given the projected Indian defence orders - $35 billion over the coming decade - the size of the offset market will be in the region of at least $12 billion.
BEML, as a defence PSU, is eligible for offset orders and this represents a huge market opportunity to the partnership now formed with CSM Software. The offshore services company, with its strong foothold in the global engineering services domain and its existing customer base in the aerospace market, will not only use the opportunity to help its customers fulfill their offset obligations.
''CSM was one of the earliest companies in India to recognize the potential of engineering services outsourcing in the offshore context. The MoU signed with BEML provides an excellent framework that allows our customers to fulfill their offset obligations by giving them technical excellence, scale and a track record of decades of technical leadership in the aerospace domain'' said Dr R Swami Narayanaswami, founder chairman and managing director, CSM Software.
VRS Natarajan, chairman and managing director, BEML Ltd, added:'' We are extremely pleased with our agreement with CSM Software and the compelling value we can deliver together to our customers including defence offset business. With BEML's status and scale, and the exciting prospects that CSM's background and relationships bring to the table, we are looking forward to the growth of this partnership and business rapidly''.
CSM Software is a leading offshore provider of engineering services and solutions and ISO 9001:2000 & AS9100B certified company catering to the aerospace, automotive & heavy engineering industries.
It has consistently delivered top-notch projects to demanding global customers over the last 16 years. CSM also has the distinction of being the sole offshore company based in India that has partnerships with Dassault Systemes, MSC Software, CD-adapco, Autodesk and PACE.
BEML Ltd is a leading manufacturer of mining and construction equipments, defence including aerospace, metro and railway products with excellent R&D base and is also engaged in providing end- to-end solutions in CAD, CAM, CAE, prototype manufacturing, assembly and testing and technical documentation.
