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Success Mantra - 'Glocalisation'
Samsung Engineering India (SEI) is one of the leading overseas players in the EPC sector, which has made many strides in the Indian space. As Francis Im takes up the role of Managing Director, SEI, he shares his inputs on various Engineering, Procurement and Construction (EPC) models, in addition to business strategies, adopted by SEI in India.

Since 2006 how has the business of SEI grown in India and which are the key projects organisation has executed so far?
Samsung EngineeringÊs presence in India is since 1997. Before establishment of SEI, we had already completed five landmark projects here. The establishment of SEI was in accordance with our goal of globalisation with localisation. We term it as 'glocalisation'.

Thus, setting up of SEI was an affirmation of our commitment to the Indian market, which has since proved to be a significant step towards transforming Samsung Engineering into a global company.

Since SEIÊs inception in 2006, we have executed Diesel Hydrodesuphurization Unit (DHU) Project of Nagarjuna Oil Corporation Ltd (NOCL), Cuddalore on EPC Lump Sum Turn Key (EPCLSTK) basis and Monoethylene Glycol (MEG) project forIndian Oil Corporation Ltd (IOCL) and are currently working on two projects named Dual Feed Cracker Unit (DFCU) & High-Density Polyethylene (HDPE) at Dahej (Gujarat) for ONGC.

Both the projects are progressing as per schedule. It is worth mentioning that Linear Alkyl Benzene (LAB) Project for IOCL  Gujarat refinery was carried out in world record time. The experience gained by the parent company in India for more than a decade helped us in overcoming entry barriers.

SEI too carries the genealogy of its parent company and has the potential and competence to deliver the same excellence surmounting all barriers. Considering the workload and our strategic plans, manpower in SEI has grown at a fast pace, not only in terms of numbers but also in terms of contributing qualify work to our projects being executed globally.

We are considered as Samsung EngineeringÊs ÂCentre of ExcellenceÊ outside of Korea for Engineering, Procurement and Construction (EPC) capabilities.

What are the projects that you are currently undertaking and planned for next five years?
Despite two projects in hand, as I mentioned above, we are actively involved in many global projects in which we provide our support to Head Office.

SEIÊs added value to the parent company is its human resources capable of handling complex projects worldwide and it is being appreciated by all the stakeholders. As a matter of fact, SEIÊs people are not only tuned to execute projects in India, but they have proved competence on a global platform.

As per our growth strategy, we shall be more focused on projects in India as well as global projects in the field of refinery, petrochemical, power and water.

What is your current contracting model for project execution in India and how do you compare this vis-à-vis other countries?
Being a large integrated EPC service provider, Samsung Engineering possesses capabilities to carry out the complete range of services, right from conceptualisation till commissioning of the projects and beyond.

We are extremely flexible to adapt to needs of our clients and mould contracting models as per their preferences. Having a large and competent manpower pool in India makes it even easier for us to adopt any contracting model or scope of services at a competing price as per client requirements.

Thus, compared to other countries, where our price competency lies with large sized EPC projects, India market offers an opportunity to take up any range of services as per any contracting model, i.e., EPC-LSTK, EPC Management (EPCM), Project Management Contractor (PMC), revamp projects, feasibility, Front-End Engineering Design (FEED), detailed engineering, procurement services, Operations and Maintenance (O&M), etc.

Going forward, how do you see this model evolving and what changes is the model likely to see?
While the essential element of our model in India, that is, flexibility to meet client needs would remain same, we see SEI to execute EPC projects of midsised for India market as well as overseas market as well depending upon business decision. We will continue to realign and reshape ourselves as per Business needs and requirements of our clients.

How do you compare the bidding pattern in India and what are the bottlenecks for the international players who wish to enter the EPC space?
Bidding pattern in India is extremely competitive. Very often, the gap between the lowest and second lowest bidders is incredibly low. In the recent past, we have observed many new international players attempting for EPC Projects in India. They need to analyse and assess their competitiveness vis-à-vis local EPC companies or other established players. In our view, there needs to be level playing competition by introducing norms for pre qualification of companies based on their track record and performance for the project schedule to ultimately benefit clients in India.

Which parts of the project are typically done in-house and what part is outsourced?
From the beginning, SEI has timely executed some quality projects in association with Head Office. The portion of project that needs to be outsourced solely depends on availability of in-house resources at that point of time. However, we ensure that outsourcing, if any, does not hamper quality or schedule requirements in any way. Definitely, construction work is outsourced while SEI takes the responsibility of Construction Management.