Ansals Plan Core Sector Diversification

The Delhi-based Ansal group has firmed up plans to diversify into the infrastructure and services sector, including airports management, hospital management, electricity distribution, water treatment and sewage disposal.

The group has set up a 50:50 joint venture company with the Singapore-based PWD Corporation. The new company is likely to be called Singa Facilities Management Pvt Ltd and would have an initial capital base of S$10 million.

"We have been weighing the option of diversifying in these areas but were unable to find the right kind of support. Through the new joint venture, we will now foray into the infrastructure and services sector as well," Ansal Properties and Industries Ltd executive president Pradeep Seth said.

Ernst and Young has been appointed to take all the necessary approvals from the authorities concerned, including the Reserve Bank of India. All the formalities for creating this new joint venture would be finalised within the next one month, Seth added.

PWD Corporation president and chief executive officer Khor Poh Hwa said: "India holds tremendous opportunity and potential in the infrastructure sector. We were looking at opportunities in the country and have identified Ansals as our partners because of our synergy in design, building and management activities." He added that the relationship would be long term and mutually beneficial.

The Singapore company specialises in designing and facilities management. It provides facilities management to over 1000 buildings in Singapore and around the region spanning more than eight million square metres. The company would also provide management services to some of the upcoming projects of the Ansal group.

"We are at present exploring various residential, commercial and township projects constructed by the Ansal group at Palam Vihar and Sushant Lok in Gurgaon," Hwa said. He, however, added that the projects to which PWD Corporation would provide its services have not been finalised as yet.

The company also plans to offer consulting engineering and architecture at a later date. It will then provide complete planning and design for bridges, roads and hospitals, Seth said.