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Kohinoor Mandal

Kolkata , May 23

SUBHASH Projects & Marketing Ltd (SPML), engaged in the construction sector, will soon make a foray into the power trading business through one of its group companies.

According to Mr S. C. Sethi, Vice-Chairman, the company has applied for a power trading licence some four months ago. "We expect to get the licence in the next four-five months," he told Business Line.

Subhash Kabini Power Corporation Ltd, a group company of SPML, has applied for the power trading licence. At present, the company operates a 20-MW hydel power project in Karnataka on a BOT (build, own transfer) basis.

SPML is active in the sectors of water management projects, hydel and wind power, and installation of power distribution systemsIn the infrastructure sector, SPML has built the Delhi-Noida highway. It is also eyeing the oil and gas pipeline business, modernisation of ports and airports and gauge conversion projects of the Railways.

The company is also set to enter the multi-level car-parking business. Recently, it bagged an order from the Delhi Government to set up three multi-storeyed car parking systems, which can park 7,500 cars at a time. The total cost of the project is Rs 500 crore.

"It would take us approximately two years to set up the parking systems, and thereafter we plan to run this business as a BOT partner for the Delhi Government," he said.

At present, SPML's order-book has projects worth Rs 1,200-crore. According to Mr Sethi, another Rs 1,000 crore worth of orders are likely to be added in the current financial year.

Though the annual results for 2004-05 are yet to be finalised, SPML is expecting a turnover of Rs 250 crore. Net profit, Mr Sethi said, could be around three to four per cent of the turnover.

"During 2005-06, we are targeting a turnover of Rs 500 crore and in the subsequent financial year, 2006-07, we are confident of making SPML a Rs 1,000-crore company", he said.

The promoters of SPML, according to Mr Sethi, hold 80 per cent and have no plans to divest any percentage of the holding. In November, the promoters had split the company's Rs 10 face value share into five shares of Rs 2. "This has helped to increase the number of floating shares in the market," he said.

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