Neilsoft forays into ship design, eyes Chinese mkt

Pune-based engineering services and solutions provider Neilsoft has entered into ship designing and marine equipment business. The company has bagged a $2,50,000-order from Naval Architectural Package (NAPA) of Finland.

"The order involves initial design of a new ship to be completed in one year," said Surendra Agarval, president and CEO, Neilsoft.

He said the ship building industry was booming and production for next three years has already been booked. "We are also in talks with a company each in Spain and the UK. The domain will be a $2 million practice for us by 2007, contributing to 10 per cent of our overall revenues," he added.

Neilsoft set up its China operations in January this year. The company plans to take the headcount in China to 50 in two years from six at present. "The China strategy is important for achieving cost competitiveness and also for foraying into new business domains such as ship design and marine equipment in which China is the market leader," said Agarval.

"IT engineering services will be a $60-70 billion market globally by 2008 and China will have over 40 per cent of this market, while India will get 10-15 per cent of this business," said Agarval.

Optimistic about doubling its revenues in the coming year, he said, "We grew at 45-50 per cent last year to become a Rs 40-crore company. We are now expecting to grow at 60-100 per cent in the coming year to become a Rs 65-80 crore company."

The company has also expanded its construction services practice to include architectural design services.

The other area on which the company is focusing is setting up of dedicated resource centres for its clients, "At present we have two dedicated resource centres contributing about 20 per cent of our revenues and by the end of the year we plan to have atleast two more, contributing to over 30 per cent of our revenues," said Agarval.