Financial Daily from THE HINDU group of publications
Tuesday, Jun 13, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jun 13, 2006 |
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Corporate
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Diversification Simplex Infrastructures to foray into mining Our Bureau
MR B.D. MUNDHRA (left), Chairman and Managing Director, Simplex Infrastructures Ltd, and Mr Amitabh Mundhra, Director, at a press conference in Mumbai on Monday. — Paul Noronha
Mumbai , June 12 Simplex Infrastructure plans to expand its business portfolio in the infrastructure-related space by getting into the mining sector. It plans to forge a tie-up with an international mining company to jointly bid for mining projects, especially in the coal and metals mining segment, in India. "We are in talks with two or three foreign mining companies. We are looking at both the options of having a technical tie-up or form a joint venture entity with a suitable companies," Mr B.D. Mundhra, Chairman and Managing Director of the company, said. Simplex sees significant opportunities for it in the mining sector. "We are not into actually mining, but mining operations involve huge earth-moving and material handling, which are our core competencies. Tying up with a reputed mining company, will give us the synergy to taking up mining projects in India," according to Mr Amitabh Mundhra, the company's Director.
Acquisitions
Simplex will also look for acquisitions in the other infrastructure sectors, which it is present in, including power transmission, ports, hydro, railways and water supply. The company is gearing up to make fresh investments to handle the increase in orders. It proposes to raise fresh equity of $200 million during the course of the financial year. "We have not decided on the instrument yet, but it will be a combination of debt and equity," Mr Mundhra said.
Eyeing realty
Simplex is also eying the real estate sector, as strong infrastructure opportunities are emerging in this space, including in the residential as well as commercial property development. "We are also bullish about overseas markets and are targeting 50 per cent of the turnover from projects exports. Another of our focus area will be BOT/annuity projects," Mr Mundhra said. The company, which has an order book of over Rs 4,500 crore, aims to achieve a turnover of Rs 5,000 crore in the next four to five years.
Net profit rises
The company registered a 65.4 per cent jump in net profit in 2005-06 to touch Rs 42 crore, against Rs 25 crore in the previous fiscal. During the year, its sales touched the Rs 1,345-crore mark, as against Rs 999 crore in the previous fiscal, representing a 34.6 per cent increase.
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