For the complete report, get in touch with us at : info@netscribes.com 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,

1. Insert Cover Image using Slide Master View
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Facilities Management Services Market –
Facilities Management Services Market India
March 2012

2. Executive Summary
 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
Introduction  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
 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%
Market  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
g
growth of this market in the near future
Drivers Challenges
– Boom in real estate – Shortage of manpower
Drivers & – Rise in infrastructural development – Large unorganized segment
Challenges
g – Growth in retail sector
– Growth of hospitality sector
– Improving healthcare scenario
 Evolving project management and general contracting services
Trends  Development of facilities management training and education
Development of facilities management training and education
 Investments and M&A activity in facilities management sector
Major Players
Co pet t o
Competition Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 2

3. •Introduction
t oduct o
•Market Overview
•Drivers & Challenges
•Drivers & Challenges
•Trends
•Competition
•Strategic Recommendations
•Appendix
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 3

4. Facilities management covers a wide spectrum of essential
support services
Facilities Management Services – Introduction
Facility Management (FM) services imply the use of a third‐party service provider to maintain part of the building facility
or outsourcing the management of entire facilities to an organization that executes this service professionally
Facilities Management Services
Hard Services Soft Services
Electrical services Housekeeping and cleaning
Mechanical services Safety and security services
Cooling and HVAC services Horticulture and landscaping services
Water management and plumbing Pantry and catering services
Energy Management
Energy Management Office support services
Office support services
Source:
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 4

5. 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 INR bn
witness rapid growth over the next five years
i id h h fi
• It is a highly fragmented industry with few organized x%
players and mostly unorganized small operators
• Facilities management business is largely
unorganized in India and operates on low margins
d d d l
• Consolidation in this segment is slowly gaining
0
momentum as players are growing their business by 2011 2012e 2013e 2014e 2015e
acquiring smaller firms
• Facilities management services are primarily
l l
concentrated in and around metros with low
y%
penetration in tier I and tier II cities
Segment 1
• There is an increasing demand for such services as
Segment 2
emphasis on urban development and modernisation
emphasis on urban development and modernisation
of office spaces are growing
• Consistent economic growth has led to a booming
z%
real estate sector in India, which will strongly drive
the growth of this market in the near future
the growth of this market in the near future
Source:
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 5

6. Drivers & Challenges – Summary
Drivers
Boom in real estate
Challenges
Rise in infrastructural development Shortage of manpower
Growth in retail sector Large unorganized segment
Growth of hospitality sector
Improving healthcare scenario
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 6

7. Demand for facilities management services will be
augmented by the growing retail industry and malls
Growth in retail sector Impact
• Indian retail industry has been growing strongly over the last few years with rapid expansion of
organised retailing formats like malls and supermarkets
• 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
Growth of Retail Sector Companies Expansion Plans
• Plans to invest INR b bn to open b Reliance Footprint stores in
INR tr Reliance Retail tier II and tier III cities in India by 20‐‐
x% • Reliance Lifestyle plans to open d new stores by 20‐‐
20 • Plans to invest nearly INR e bn during 20 to expand its various
Plans to invest nearly INR e bn during 20‐‐ to expand its various
Pantaloon Retail India
0 retail formats
2010 2014e • It plans to aggressively expand retail outlets across various
Shopper’s Stop
Growth of Malls formats in new cities and add f mn sq ft by 20‐‐
Retail space addition
Retail space addition • Plans to invest around INR g bn and add about h mn sq ft of
g q
Bharti Retail
Bh i R il
retail space by 20‐‐
Number of malls
No. mn sq ft • It plans to open h more stores across India by 20‐‐, which will
Lifestyle International include i lifestyle retail stores, as well as around j Home Centres
stores
0 0 • Plans to invest INR k bn to add l stores across various retail
Gitanjali Gems
2010‐11 2011‐12 formats by Mar 20‐‐
Source:
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 7

8. Trends – Summary
Evolving project management
and general contracting services
g g
Key
Trends
T d
Development of facilities
Investments and M&A activity
management training and
g g
in facilities management sector
i f iliti t t
education
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 8

9. Public: Foreign Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Head Office
Other Offices
Products and Services
Products and Services
Category Products/Services
Key People
Category 1 Product 1, Product 2
Name
N Designation
D i ti
A
Category 2 Product 1, Product 2
B
C
Source:
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 9

10. Public: Foreign Company – Player (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Total Income Net Profit/Loss Particulars 20‐‐ 20‐‐ 20‐‐ 20‐‐
(20‐‐)
INR mn INR mn
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
0 Return on Equity
Return on Capital Employed
0 Return on Working Capital
20-- 20‐‐ 20‐‐ 20‐‐ Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company earned a net profit of INR a mn in FY 20‐‐, as Operating costs (% of Sales)
compared to net profit of INR b mn in FY 20‐‐ Administration costs (% of
• The company reported total income of INR c mn in FY 20‐‐, Sales)
registering an increase of d% over FY 20‐‐
registering an increase of d% over FY 20 Interest costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios
• The company earned an operating margin of e% in FY 20‐‐, an
Current Ratio
increase of f percentage points over FY 20‐‐
Cash Ratio
• In 20‐‐, the company’s debt to equity ratio showed a decrease of g% Leverage Ratios
as compared to FY 20‐‐ Debt to Equity Ratio
Debt to Capital Ratio
b i l i
Key Financial Performance Indicators
Interest Coverage Ratio
Indicators Value (dd/mm/yyyy) Efficiency Ratios
Market Capitalization (INR mn) Fixed Asset Turnover
Total Enterprise Value (INR mn) Asset Turnover
Current Asset Turnover
EPS (INR)
EPS (INR)
Working Capital Turnover
PE Ratio (Absolute) Capital Employed Turnover
Source: Improved Decline
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 10

11. Public: Foreign Company – Player (3/3)
Key Business Segments Key Geographic Segments
Segment 1 Segment 2 Segment 1
Segment 2
Segment 3
S t3
Segment 4
Segment 5
Segment 5
0% Segment 6
Segment 6
0%
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Segment 7
Business Highlights
Description News
• Player provides integrated real estate and investment management services to owner, occupier, and
Overview investor clients worldwide
• 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
• Its clientele in India includes Accenture, Bank of America, BMW, Citigroup, IBM, Intel, Microsoft, Philips,
Clientele RBS, Yahoo
• It bagged the Euromoney Real Estate Awards Top Global Real Estate Advisor and Consultant in 20‐‐
Awards and Recognition
Awards and Recognition
• It was also awarded the Fortune World’s Most Admired Companies in 20‐‐, 20‐‐ and 20‐‐
Source:
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 11

12. Private: Domestic Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
Other Offices
Products and Services
Products and Services
Category Products/Services
Key People
Category 1 Product 1, Product 2
Name Designation
Category 2 Product 1, Product 2
A
B
C
D
Source:
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 12

13. Private: Domestic Company – Player (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Total Income Net Profit/Loss Particulars
(20‐‐)
20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability Ratios
INR mn INR mn
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
0 0 Cost Ratios
20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales)
Administration costs (% of
Sales)
Financial Summary Interest costs (% of Sales)
Interest costs (% of Sales)
• The company earned a net profit of INR a mn in FY 20‐‐, as Liquidity Ratios
Current Ratio
compared to net profit of INR b mn in FY 20‐‐
Cash Ratio
• The company reported total income of INR c mn in FY 20‐‐, Leverage Ratios
registering an increase of d% over FY 20‐‐ Debt to Equity Ratio
Debt to Capital Ratio
b i l i
• The company earned an operating margin of e% in FY 20‐‐, an Interest Coverage Ratio
increase of f percentage points over FY 20‐‐ Efficiency Ratios
• In 20‐‐, the company’s debt to equity ratio showed a decrease Fixed Asset Turnover
of g% as compared to FY 20‐‐ Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Source: Improved Decline
FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2012.PPT 13

14. 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
Player is a subsidiary of company with pan India presence spanning all metros, tier‐2, tier‐3 and even tier‐
4 cities
Overview
• 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
• 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
Clientele 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
• As part of its expansion and consolidation drive, it has recently acquired a strategic stake in CNCS Facility
Alliances
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‐‐
Source:
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