• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Kohinoor Mandal

KOLKATA, Feb. 8

DESPITE winning a major highway project, construction major Simplex Concrete Piles (India) Ltd has dropped the idea of floating a joint venture limited company with Malaysian firm Ho Hup Construction Berhad. It says it is comfortable with its current working arrangement with the Malaysian company.

The consortium between Simplex Concrete Piles and Ho Hup Construction has already bagged a highway expansion project in Andhra Pradesh worth Rs 251 crore. The two are also competing in a few other projects. This is the first time that Simplex has joined hands with the Malaysian company for a road project.

"We have jointly bid in two or three other highway projects also. No decision has been taken yet on these projects, but we are competitively placed in the bidding rounds," company sources told Business Line.

The Kuala Lumpur-based Ho Hup Construction Company is active in foundation laying, civil engineering, building construction and hiring of plant and machinery. For the year ended December 2000, the company registered a turnover of around Rs 340 crore.

Simplex Concrete is a 77-year-old company originally floated as a wholly-owned subsidiary by the London-based Simplex Concrete Piles. In 1947, the city-based Mundhras acquired the British stake.

However, Simplex has no plans to float a joint venture company with the Malaysian firm. "At present, we do not feel the need to float a joint venture limited company as it will result in a lot of hassles. We will continue with the consortium format till the end of the project, and this arrangement will be followed in other projects too," the official said.

In Andhra Pradesh, Simplex and Ho Hup are widening the 70-km highway between Nellore and Ongole from two lanes to four lanes. Work, which started in September 2001, is scheduled to end by April 2004.

Mr P.R. Dhar, Director of Simplex, said the road sector held enormous potential for the company. "Right now, there is hardly any other sector as attractive as the road. We are bullish. We are engaged in a number of projects and hope to bag more," he said.

Simplex is the biggest player in the pile construction industry. It has worked in more than 100 power plants, 15 steel plants, 24 petrochemical and chemical plants and over 100 flyover and bridges in India. Currently, it is working in the Delhi Metro Railway Project, among others.

However, it could not enter the road sector in a major way because it lacked expertise. Ho Hup is helping with technological know-how. "The Malaysians are also bringing in a number of sophisticated machines which are needed for building these modern roads," the sources said.

For the year ended March 31, 2001, Simplex' total billing stood at Rs 394 crore as against Rs 321.91 crore in the previous year. According to tentative estimates, the billing for the current financial will cross Rs 400 crore.

Send this article to Friends by E-Mail

Stories in this Section
Breakdown in Indian Rayon unit

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line