The Hindu Business Line : Simplex plans to venture into SE, Central Asia

Simplex Infrastructures Ltd, whose overseas presence is mostly confined to West Asia, now eyes opportunities in North Africa, South East Asia and Central Asia, according to Mr A.D. Mundhra, Director, Simplex Infrastructures Ltd.

Mr Mundhra told Business Line that the company was currently working on projects in 106 locations in India and abroad, in countries such as Dubai, Qatar and Bahrain. "We are looking at countries in North Africa, South East Asia and Central Asia which are rich in oil reserves and where the focus is on infrastructure development," he said. The company is pursuing alliances and joint ventures in this regard.

According to Mr Mundhra, overseas operations currently account for 15 per cent of the company's order books and 10 per cent of its revenues. It expects overseas projects to account for 30-40 per cent of revenues by 2010. Overseas projects at hand include the 23-km Dubai Metro project and a project to construct roads and bridges in Sri Lanka. Simplex already has a permanent joint venture in Bahrain even as project-specific joint ventures were being pursued in Dubai and Oman.

In order to achieve scalability in "value turnover" as also hedging against risks in the economy, Simplex has decided to focus on seven verticals. "Our focus has been on de-risking ourselves. This is especially important in view of the fact that our company has recorded profits every year since its inception in 1924," he said.

Mr Mundhra said Simplex has decided to diversify into real estate development. The company proposes to form a joint venture with the West Bengal Housing Board for real estate development projects.

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