The Hindu Business Line : Simplex plans real estate foray

Real estate development is the new focus area for construction major Simplex Infrastructure, which is expected to launch its first venture in this segment within the next two months.

"We are evaluating various property development projects in cities like Kolkata, Hyderabad, Chennai and Bangalore. We will come out with some concrete plans within two months," Mr Amitabh Mundhra, company director, told Business Line.

The company will develop both commercial and residential properties either on its own or in tie-ups with other companies. "We have not allotted any fixed investment plan for our foray into real estate. Investment will vary from project to project," Mr Mundhra said.

Mining foray

The company also plans infrastructure-related ventures with its foray into the mining sector. It is in talks with international mining companies for a tie-up to bid for mining projects, especially in the coals and metals mining segment in India. "We are looking at a technical tie-up or a joint venture entity," he said.

Explaining the rationale behind the company's efforts to enter the mining sector, he said mining operations involved huge earthmoving and material handling operations, which form its core competencies. Tying up with a mining company is expected to provide the right synergy for it in India.

The company, which has bagged some major orders in the last two months, currently has an order book worth Rs 5,300 crore. Some recent orders include projects worth Rs 577.09 crore towards urban infrastructure development in Hyderabad and the Andaman and Nicobar islands — it will undertake construction work on the Elevated Expressway Corridor in Hyderabad on Engineering, Procurement and Construction (EPC) basis in association with Somdutt and the tsunami reconstruction project in the Andaman and Nicobar islands.

Airport infrastructure

The company also bagged two projects last month worth Rs 110.37 crore from Airports Authority of India for the construction of new airport terminal buildings at Jaipur International Airport (worth Rs 63.73 crore) and Maharana Pratap Airport, Udaipur (worth Rs 46.64 crore).

According to Mr Mundhra, "We are consolidating our diversification plans. We are looking at increasing our order book position not just quantitatively but qualitatively. These airport projects will provide us with valuable experience, which will further help us to secure other airport projects in future."

More Stories on : Diversification | Real Estate & Construction

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