BEML forges strategic partnership with Malaysia’s SMH Rail to address global demand for rail & metro solutions

BEML Ltd and Malaysia’s SMH Rail Sdn Bhd have signed a Memorandum of Understanding (MoU). This strategic partnership was formalised during a ceremony that was attended by Tengku Zafrul B Tengku Abdul Aziz, Malaysia's Minister of International Trade and Industry.

The MoU signifies a major step in strengthening the bilateral relations between India and Malaysia while addressing the burgeoning global demand for advanced rail and metro rolling stock. The collaboration aims to expand the reach of both companies across Malaysia, Southeast Asia, and Africa, focusing on the marketing, supply, and servicing of rail and metro products.

Under the terms of the MoU, BEML and SMH Rail will leverage their combined resources to enhance capabilities in marketing, manufacturing, and maintenance, repair, and overhaul (MRO) services. The partnership will also encompass joint efforts in design, engineering, manufacturing, and the integration of rolling stock, tailored to meet specific client needs.

This collaboration is set to provide significant cost optimisation through joint research and development, particularly in sourcing rolling stock aggregates and subsystems. The companies will also work together to formulate effective market strategies and share technology on a mutual basis.

Shantanu Roy, Chairman and Managing Director of BEML, highlighted the importance of the partnership, stating, "This historic collaboration will play a crucial role in meeting the rising global demand for urban mobility solutions, particularly in Malaysia, Southeast Asia, and Africa. We are thrilled to join hands with SMH Rail, a company that shares our commitment to excellence and quality.”

Echoing this sentiment, Datuk PK Nara, Chairman and Managing Director of SMH Rail, remarked, “India is a very significant market for SMH Rail and Malaysia. Through this collaboration, both SMH and BEML can develop new innovative rolling stock solutions to cater to the growing public transport sector in India and Malaysia, providing cost optimization through joint research and development.”

This MoU is part of BEML's broader strategy to expand its global presence and meet the increasing demand for reliable and innovative rail and metro solutions. With a legacy spanning over six decades, BEML has established itself as a key player in the global market, exporting to over 72 countries. 

BEML is recognised as a leader in metro car manufacturing in India, with a history of pioneering achievements, including being the first company in the country to produce all-steel integral passenger rail coaches. The company's extensive manufacturing experience includes over 18,000 mainline passenger coaches and more than 900 Electrical Multiple Units (EMUs) for Indian Railways.