| KLG Systel Ltd, the leading knowledge-based IT-centric Business Life Cycle Solutions Company, has taken a majority stake in Atlantis Lab Pvt Ltd, a dedicated engineering solutions company. With this acquisition, Atlantis will now be a subsidiary of the Company.
KLG is already strong player in the Power, Process, Petroleum, Ports & Airports, Roads & Highways. Home Building, Ship Building, Automotive and Metal industries. The Company, has extensive experience and expertise in the Plant Life Cycle Solutions (Plant Design Solutions) business, which has been its stronghold since the inception of the Company, providing solutions to major oil refinery, power plants and engineering construction projects. Over the past two years, KLG Systel has also been making successful inroads into the Product Life Cycle Business (Computer Aided Mechanical / Electrical Design solutions) and is now in a position to offer art-to-part solutions to the design and manufacturing segment in India. Worldwide the Engineering Services market is making great strides. The recent NASSCOM BOOZ Allen Hamilton study of international trends in Engineering Services Outsourcing markets, predicts that by 2020, 25 to 30 percent of the projected $225 billion global offshore engineering services market could belong to India. Seeing the high global demand for design and engineering services, Company has initiated work in this area by setting up an infrastructure for 1000, state of the art design and an stations at its headquarters in Gurgaon (Haryana), India. With this new acquisition, Company will be geared up to cater to the strong domestic markets, as well as Engineering Outsourcing opportunities from developed countries such as North America and Europe. Atlantis Lab's current service offerings include product design, design automation, design simulation tool design, design data migration, and PDM/PLM solutions for the massively grow automobile, aerospace, Industrial machinery and Heavy Engineering markets. KLG plans to grow the newly acquired Subsidiary to an estimated 1000 design & analysis seats by the year 2008. The new subsidiary plans to focus on Automotive, Aerospace, Industrial Machinery. Heavy Engineering, Ship Building, Power and Process verticals where there is a strong demand for Product Design and Product Life Cycle solutions and services. The new subsidiary plans to offer a state of the art design solution and services like FEA (finite element analysis) / FEM in static, vibration, crash, impact, CFD (computational fluid dynamics), NVH (noise vibration harshness), BIW weld fixtures, Mold Flow analysis, Reverse Engineering, Electronics & Navigation systems, Technical Documentation, NC path generation, Plant Design, Plant stress analysis etc. This design centre will have an ultra modern RPD (rapid prototyping) and testing facilities for the industry, providing Company's clients to carry out live prototyping and testing of the designs being delivered. Currently there are very few design centers in the world, which offer a complete solution from design to prototyping and testing. The coming years will see the subsidiary setting up ODC (Offshore Design centers) for its Global and Indian clients. These will be capable of designing and developing complete products from India giving competitive edge to its clients in terms of productivity and value. The relationship will provide KLG Systel an opportunity to go to the ESO markets faster and widen its reach to the 3 design hubs of the country which are Chennai, Pune and Bangalore. Atlantis Lab already has a strong base in these cities. |
| Source: Equity Bulls |