Punj Lloyd sets up subsi for back-office engg activities

New Delhi, Dec 14 (UNI) Delhi-based engineering and construction service provider Punj Lloyd Ltd today announced it has set up a new company for carrying out back-office engineering activities for the Group in India.

Simon Carves India, the new wholly-owned subsidiary of Punj Lloyd, will integrate the engineering expertise of the company with its two recent acquisitions - Sembawang Engineers&Constructors and Simon Carves, UK.

Engineering Services Outsourcing (ESO) holds tremendous potential because of the robust growth across Europe, Asia and the United States, leading to significant development in the engineering services sector.

Reports indicate that India has the potential to garner around 25 per cent of the global ESO pie, worth around 50 billion dollars by 2020. At present, the ESO market is worth around 15 billion dollars with India garnering a healthy 12 per cent share.

With a vision to capitalise the benefits that ESO presents, ''the company has directed its steps in this direction by establishing this new company (subsidiary). The swell in the global spending on engineering services will make companies seek access to high quality talent pool in emerging markets, which the company already boasts of,'' Punj Lloyd said in a statement.

In the initial phase, the subsidiary will cater to the group's engineering requirements.

''To ensure that the company adopts best practices and remains competitive, specialised verticals will be gradually build up with domain specialists to provide offshored engineering services across other sectors as well outside the group,'' the statement added.

Mr Sanjay Goel has been appointed as the CEO of the Simon Carves India Ltd.

''The company foresees great prospects emerging for the group with the engineering services market expected to touch 1,100 billion dollars by 2020, of which outsourced component could be worth around 200 billion dollars,'' the statement added.

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