market research report :facilities management services market in india 2012
DESCRIPTION
For the complete report, get in touch with us at : [email protected] Facilities management services market in India was valued at INR 585 bn in 2011 and is slated to grow at a CAGR of 25%. There is an increasing demand for such services as emphasis on urban development and modernisation of office spaces is rising. Consistent economic growth has led to a booming real estate sector in India which will positively impact this market in the near future. The report begins with an introduction to facilities management services, including hard services and soft services. Facility management services imply the use of third-party service providers to maintain part of the building facility or outsourcing the management to an organization that executes this service professionally. This section also throws light on the various applications of facility management services such as retail and shopping malls, hotels, hospitals, banks, corporate houses, IT and ITES companies, manufacturing firms and others. This is followed by the market overview section that gives an insight into the facilities management services market in India, its market size and growth, along with the split between organized and unorganized market. Low organized penetration of facilities management services in India leaves huge potential for players to develop this market. Geographic distribution and region wise market split of facilities management services has been provided. Organised market is mostly concentrated in and around metros and big cities while the unorganized market covers the facilities management requirements in tier I and tier II cities. The section also includes the facility management services supply chain consisting of different types of suppliers with varied service offerings. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market. An analysis of the drivers and challenges explains the factors leading to the growth of the market including boom in real estate, rise in infrastructural development, growth in retail sector, growth of hospitality sector and improving healthcare scenario. The key challenges identified are shortage of manpower and large unorganized segment. Key trends in the market have also been analysed which includes evolving project management and general contracting services, development of facilities management training and education, and investments and M&A activity in the facilities management sector. The competition section provides an overview of the competitive landscape in the market and includes a detailed profile of the major players. A bubble chart for the private players, depicting their relative positions in the market with respect to their total income, net profit/loss and total assets is included. This section also includes list of products and services, key people, financial snapshot, key ratios and key recent developments for all companies,TRANSCRIPT
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Facilities Management Services Market IndiaFacilities Management Services Market – India
March 2012
Executive Summary
Introduction
Facility Management services imply the use of a third‐party service provider to maintain part of the building facility or outsourcing the management to an organization that executes this service professionally
It includes hard services and soft services and has application in retail and shopping malls, hotels, hospitals, banks, corporate houses, IT and ITES companies, manufacturing firms and others
Market
Facilities management services market in India was valued at INR c bn in 20‐‐ and is slated to grow to INR a bn in 20‐‐, at a CAGR of b%
It is a highly fragmented industry with few organized players and mostly unorganized small operators
Consistent economic growth has led to a booming real estate sector in India, which will strongly drive the growth of this market in the near future
Drivers & Challenges
Drivers– Boom in real estate– Rise in infrastructural development– Growth in retail sector
Challenges– Shortage of manpower– Large unorganized segment
g
g– Growth of hospitality sector– Improving healthcare scenario
Trends Evolving project management and general contracting services Development of facilities management training and education
Competition
Major Players
Player 1 Player 2 Player 3
Trends Development of facilities management training and education Investments and M&A activity in facilities management sector
2FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
Co pet t oPlayer 4 Player 5 Player 6
•Introductiont oduct o
•Market Overview
•Drivers & Challenges•Drivers & Challenges
•Trends
•Competition
•Strategic Recommendations
•Appendix
3FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
Facilities management covers a wide spectrum of essential support services
Facility Management (FM) services imply the use of a third‐party service provider to maintain part of the building facility
Facilities Management Services – Introduction
or outsourcing the management of entire facilities to an organization that executes this service professionally
Facilities Management Services
Hard Services Soft Services Hard Services Soft Services
Electrical services
Mechanical services
Housekeeping and cleaning
Safety and security services
Cooling and HVAC services
Water management and plumbing
Energy Management
Horticulture and landscaping services
Pantry and catering services
Office support services
4FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
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Energy Management Office support services
Facilities management services market is poised for strong growth owing to the booming real estate sector in India
Facilities Management Services Market Market Size and Growth• Facilities management services market in India has been growing steadily over the years and is set to i id h h fi
INR bn
witness rapid growth over the next five years
• It is a highly fragmented industry with few organized players and mostly unorganized small operators
• Facilities management business is largely d d d l
x%
unorganized in India and operates on low margins
• Consolidation in this segment is slowly gaining momentum as players are growing their business by acquiring smaller firms
l l
02015e2014e2013e2012e2011
• Facilities management services are primarily concentrated in and around metros with low penetration in tier I and tier II cities
• There is an increasing demand for such services as emphasis on urban development and modernisation
y%
Segment 2
Segment 1
emphasis on urban development and modernisation of office spaces are growing
• Consistent economic growth has led to a booming real estate sector in India, which will strongly drive the growth of this market in the near future
z%
5FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
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the growth of this market in the near future
Drivers & Challenges – Summary
Drivers
Boom in real estate
Rise in infrastructural development
Challenges
Shortage of manpower
Growth in retail sector
Growth of hospitality sector
Large unorganized segment
Improving healthcare scenario
6FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
Demand for facilities management services will be augmented by the growing retail industry and malls
Growth in retail sector• Indian retail industry has been growing strongly over the last few years with rapid expansion of organised retailing formats like malls and supermarkets
Impact
•Number of malls in India grew by a% over the last one year, supporting the prevailing mall boom culture in the country
• Facilities management services market will benefit as the retail sector continues growing strongly as it constitutes a major portion of the costs of such in‐built environments
• Plans to invest INR b bn to open b Reliance Footprint stores in tier II and tier III cities in India by 20‐‐
• Reliance Lifestyle plans to open d new stores by 20‐‐Reliance Retail
Companies Expansion Plans
• Plans to invest nearly INR e bn during 20 to expand its various
Growth of Retail Sector
INR tr
20x%
Pantaloon Retail India• Plans to invest nearly INR e bn during 20‐‐ to expand its various retail formats
Shopper’s Stop• It plans to aggressively expand retail outlets across various formats in new cities and add f mn sq ft by 20‐‐
Bh i R il• Plans to invest around INR g bn and add about h mn sq ft of
Growth of Malls2014e2010
20
0
Retail space addition Bharti Retailg q
retail space by 20‐‐
Lifestyle International• It plans to open h more stores across India by 20‐‐, which will include i lifestyle retail stores, as well as around j Home Centres stores
mn sq ftNo.
Retail space addition
Number of malls
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Gitanjali Gems• Plans to invest INR k bn to add l stores across various retail formats by Mar 20‐‐
002011‐122010‐11
Trends – Summary
Evolving project management and general contracting servicesg g
KeyT dTrends
Investments and M&A activity i f iliti t t
Development of facilities management training and
in facilities management sectorg geducation
8FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
Public: Foreign Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Products and Services
Stock Exchange
Other Offices
Head Office
Key People
Products and Services
Category Products/Services
Category 1 Product 1, Product 2N D i ti
Category 2 Product 1, Product 2
Name Designation
A
B
C
9FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
Source:
i i l S h K i
Public: Foreign Company – Player (2/3)
Financial Snapshot Key Ratios
Particulars y‐o‐y change
(20‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability RatiosOperating Margin
Net Profit/LossTotal IncomeINR mnINR mn
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
0
020‐‐20‐‐20‐‐20--
Financial Summary
• The company earned a net profit of INR a mn in FY 20‐‐, as compared to net profit of INR b mn in FY 20‐‐
• The company reported total income of INR c mn in FY 20‐‐, registering an increase of d% over FY 20
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)registering an increase of d% over FY 20‐‐
• The company earned an operating margin of e% in FY 20‐‐, an increase of f percentage points over FY 20‐‐
• In 20‐‐, the company’s debt to equity ratio showed a decrease of g% as compared to FY 20‐‐
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l iKey Financial Performance Indicators
Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
10FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
EPS (INR)
PE Ratio (Absolute)Working Capital TurnoverCapital Employed Turnover
Source: Improved Decline
Public: Foreign Company – Player (3/3)
Key Business Segments Key Geographic Segments
Segment 1
Segment 2
S t 3
Segment 1 Segment 2
0%
Segment 3
Segment 6
Segment 5
Segment 5
Segment 4
Business Highlights
0%20‐‐20‐‐20‐‐20‐‐
0%20‐‐20‐‐ Segment 7
Segment 6
Description News
Overview • Player provides integrated real estate and investment management services to owner, occupier, and investor clients worldwide
Collaborations • It has recently merged with international property consultancy a for a consideration of ~INR b bn, with all Collaborations c offices and businesses across Europe operating under player
Clientele • Its clientele in India includes Accenture, Bank of America, BMW, Citigroup, IBM, Intel, Microsoft, Philips, RBS, Yahoo
Awards and Recognition• It bagged the Euromoney Real Estate Awards Top Global Real Estate Advisor and Consultant in 20‐‐
11FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
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Awards and Recognition• It was also awarded the Fortune World’s Most Admired Companies in 20‐‐, 20‐‐ and 20‐‐
Private: Domestic Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Products and Services
Website
Year of Incorporation
Other Offices
Head Office
Key People
Products and Services
Category Products/Services
Category 1 Product 1, Product 2Name Designation
Category 2 Product 1, Product 2Name Designation
A
B
C
12
Source:
D
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
i i l S h K i
Private: Domestic Company – Player (2/3)
Financial Snapshot Key Ratios
Particulars y‐o‐y change
(20‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability RatiosOperating Margin
Net Profit/LossTotal Income
INR mnINR mn
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on AssetsReturn on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)Financial Summary
0020‐‐20‐‐20‐‐20‐‐
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l i
• The company earned a net profit of INR a mn in FY 20‐‐, as compared to net profit of INR b mn in FY 20‐‐
• The company reported total income of INR c mn in FY 20‐‐, registering an increase of d% over FY 20‐‐
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
• The company earned an operating margin of e% in FY 20‐‐, an increase of f percentage points over FY 20‐‐
• In 20‐‐, the company’s debt to equity ratio showed a decrease of g% as compared to FY 20‐‐
13
Working Capital TurnoverCapital Employed Turnover
Source: Improved Decline
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
Private: Domestic Company –Player (3/3)
Business Highlights
Description News
• Player is a subsidiary of company with pan India presence spanning all metros tier 2 tier 3 and even tier
Overview
• Player is a subsidiary of company with pan India presence spanning all metros, tier‐2, tier‐3 and even tier‐
4 cities
• It has over a employees and is one of the top facility management service companies in India, servicing
sectors like BFSI, retail, corporate, airports, ITES, government, telecom and diplomatic missions
Clientele
• Its clientele includes Birla Sun Life, Aviva, Religare, Bank of Baroda, ICICI Prudential, Calyon Bank and McKinsey in the BFSI sector, Shoppers Stop, Crown Group, Spencer’s, Planet Retail, V3S in the retail
sector, Reliance Industries, HCC, DLF, Yamaha, USHA, Oriflame, IBM in the corporate sector, Tata
Teleservices, Aircel, Reliance Communications, MTS in the telecom sector
• Additionally, its clients also include government organizations like Indian Railways, BCCI, Delhi Metro and
diplomatic organizations like the Singapore High Commission
Alliances• As part of its expansion and consolidation drive, it has recently acquired a strategic stake in CNCS Facility
SAMPLEAlliances
Solutions, which will also help to expand its client base
Awards and Recognitions • It was the first FMS ISO 9001 certified company and has also achieved ESCO Certification in 20‐‐
14
SAMPLE FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT
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