The Hindu Business Line : Ansal API forms joint venture with Malaysian firm

New Delhi, Sept. 28 Real estate firm Ansal Properties and Infrastructure Ltd (Ansal API) on Friday signed a Memorandum of Understanding to form a joint venture company with UEM Builders, a subsidiary of Malaysian conglomerate UEM Group, to undertake building, construction and engineering activities in India.

UEM Builders will hold 60 per cent stake in the joint venture company (UEM Builders-Ansal API Contracts Pvt Ltd) with Ansal API holding the rest.

The two firms will pump in Rs 80-100 crore of investment into the joint venture, in the form of direct cash or equipment and machinery.

The joint venture will initially execute Ansal API’s projects, and may later look at external projects also.

The first project to be undertaken by it will be Ansal API’s project Sushant Golf City Lucknow, a hi-tech city spread over 1,765 acres. It will also execute a Mohali township project ‘Sushant Golf City Mohali’ which is spread across 500 acres.

“Construction sector in India now has been passing through a boom. The joint venture will bring in modern technology and engineering acumen to Ansal API developments,” Mr Pranav Ansal, Director, Ansal API, said at a conference.

Asked about the expected revenue from this joint venture, he said: “We are looking at touching a revenue of Rs 400-500 crore in the next two-three years.”

Commenting on the joint venture, Mr Vinod Tiku, Chief Operating Officer-Projects, said: “The Indian contractors are currently overloaded, and therefore project delivery timelines become an issue. UEM has already been into construction of infrastructure projects in India for the last nine years, and brings tremendous advantage to our operations. Moreover, added benefits will accrue from technology transfer.”

Telecom licence

Even as its rivals DLF, Unitech and Parsvnath Developers make a beeline to apply for telecom licence ahead of the October 1 deadline, real estate firm Ansal API on Friday said it had decided to keep away from the ongoing telecom rush.

“We did study and consider it — and telecom is a growth sector — but we have decided not to get into it. There are already large and established players in the telecom market in India today, with significant established base of customers,” Mr Pranav Ansal, Director, Ansal API, said.