Simplex Infra: aims 15% growth in turn over

Simplex Infra: aims 15% growth in turn overIn an exclusive interview with ACE Update, R. L. Telang, President, Simplex Infrastructures, talks on the industry status, his company’s performance and future plansIn first quarter of current fiscal, the government has missed the target of constructing 20 km per day of road. Do you think it can be covered up in the coming quarters? No. The reasons attributed to the government missing the target are multiple. In most cases, there are no clear areas to work on the projects. The government’s apathetic attitude toward land acquisition has played a major role. Above all, the cost of bitumen has risen multifold —a detrimental factor leading to this mess with the government unrelenting to compensate for the additional cost.What measures can be taken to achieve the target?Give a clear area. There should be no hindrances due to the problems arising out of land acquisitions by the government. An effective way to avoid such a situation is for the government to acquire such land much before the contractor initiates work. Of utmost importance is availability of bitumen at reasonable cost or else allow procurement of bitumen at the tendered rate. Additionally, obtaining various clearances for projects a ‘single window clearance’ should be offered to speed up these projects.What policies are being implemented to boost the road projects?The government had introduced the ‘build-operate-transfer’ arrangements for road projects. It relied on the advice of consultants appointed to study the feasibility of projects under this scheme. In most cases, these feasibility reports were based on unrealistic parameters. The contractors could not even recover costs by collecting tolls in such road projects. The government has now gone in for a sea change in its policies. They are now looking for engineering, procurement, and construction (EPC), even for promising procurement and construction.Brief us about the road projects undertaken by your company.At present, Simplex has about 37 running sites for road projects across India as well as Bangladesh, Saudi Arabia and Oman. In the last 10 years or so, the company has completed about eight road projects, including one in Muscat, Oman.How has the company evolved over the years? Simplex started off as piling contractors under Simplex Concrete Piles, gradually diversifying into residential and commercial buildings and embarking upon construction of power plants. The company went public in 1993 and renamed Simplex Infrastructures Ltd. The company, steadily growing, ventured into roads, bridges, highways and marine structures with the construction of the Mundra jetty and the Paradip port as examples and refineries. Simplex forayed into the middle-eastern countries, bagging prestigious projects such as Dubai Metro and Doha Hilton, to name a few. The ongoing projects are located in Qatar, Bahrain, Oman and Saudi Arabia. Recently, the company has acquired coal mines and deep mining works are in progress at three locations in the country.Simplex Infra has done many projects in domestic and international market. What difference have you witnessed in the projects?The quality control measures are very stringent abroad as compared to the domestic market. When working on international projects, you also have to adhere to strict schedules.The projects done by Simplex Infra in foreign countries are in joint venture or by the company itself?The projects in foreign countries are done by the company itself.What is the USP of Simplex Infra? On time performance, quality, using innovative techniques and finding simple solutions for complex issues are our main USP.Brief us about your current order book, and what is your target for next few years? The current order book consists of diverse projects worth about Rs. 15,000 crore. The turnover for the last fiscal was Rs. 5,896 crore. The company is aiming at an increase of 15 per cent per annum in the coming years.

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