Update 2:
As per my scuttlebutt with the Industry people, Mold Tek majorly into detailing and not into Engineering (low margin as explained earlier). They do only connection design as part of Engineering activity (but done using software SDS/2 without much manual intervention required). Like I’ve explained in earlier post, detailing for US projects is high margin business, as you can hire just diploma holders (average starting salary is 10k per month and 10 years experienced is not getting even 60k per month) to get the job done. For client coordination and project management they have US office with PE licensee Engineers, which is smart move and definitely a moat when compared to the small companies. Clients would definitely prefer to deal with the employees sitting in US for saving communication and project management time. Also, they can offset the disadvantage of time difference between Ind and US.
So, as of now, I reckon that, the moat they have is getting projects from US due to established Business development and project management offices at offshore and getting the actual chunk of job done by cheaper resources from India. Also, they have smartly put the resource offices in tier 2 cities like Vijayawada and Nashik, where the wages are too low for the detailers.
Shall keep on update my findings as when I get something.
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