For the complete report, get in touch with us at : firstname.lastname@example.org Indiawoke up to facilities management services when companies started outsourcing their non-core activities to different vendors. Non-core services would refer to activities in the likes of cleaning, maintenance, house keeping, electrical and plumbing and other multifarious issues. Biggies would generally outsource these activities to vendors as an initiative for cost cutting move. Facilities management comprises a wide range of services that are common to all organizations. Presently, facilities management has widened its reach to every infrastructural facility that requires maintenance including shopping malls, airports, hospitals, hotels, metro rail and others. With the passage of time facilities management is expected to experience robust growth riding on the infrastructural developments in the country. The report begins with a snapshot of macro-economic indicators inIndia. It proceeds towards giving a brief introduction to the term facilities management and its definition. It also provides with the categorization of the broad types of services in facilities management along with a break-up of the same inIndia. The introduction section ends with an overview of the diverse applications of facilities management services. This section gets followed with an overview section which throws light on both the global as well as the Indian market for facilities management services. The Indian market is overview is tagged with a brief description of the market along with its market size and its growth rate. This is followed with a geographic distribution and a supply chain that makes up the sector. The cost break-up helps to analyze the different heads that are counted when end product (service in this case) is finally rendered.
Insert Cover Image using Slide Master View Do not distort Facilities Management Services Market – Facilities Management Services Market India April 2013 Executive Summary SAMPLE Global market for Facilities Management Services is slated to reach ~‐ bn by the end of 2017 Market Facility management services can be broadly classified into e1 and e2 It is a highly fragmented industry with unorganized segment covering majority of the sector It is a highly fragmented industry with unorganized segment covering majority of the sector Drivers Challenges – Boom in real estate g p – Shortage of manpower Drivers & – Rise in infrastructural development – Large unorganized segment Challenges – Growth in retail sector – Growth of hospitality sector – Improving healthcare scenario Standardization of procedures Project management and general Facilities management as a stream of contracting services continuing to evolve Trends Investments and M&A Activity in Facilities study Mechanization of services M S Management Sector Major Players Competitive Company A Company B Company C Landscape Company D Company E Company F FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 2 •Macro‐Economic Indicators I t d ti •Introduction •Market Overview T fC t t •Types of Contracts •Drivers & Challenges T d •Trends •Industry Association C ii L d •Competitive Landscape •Strategic Recommendations d •Appendix FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 3 Facilities management primarily ramifies into 2 major segments SAMPLE Facilities Management Services Hard Services s11 Services Hard s11 Soft Services s12 s12 Soft Services s1 s6 s2 s7 s3 s8 x m s4 s9 s5 s10 n y FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 4 •Macro‐Economic Indicators I t d ti •Introduction •Market Overview T fC t t •Types of Contracts •Drivers & Challenges T d •Trends •Industry Association C ii L d •Competitive Landscape •Strategic Recommendations d •Appendix FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 5 As companies delve into modernizing their business environment, facilities management services get a boost Facilities Management Services Market – Global Overview • Though sub‐prime crisis affected the sector badly, yet facilities management services continue to emerge as global economy looks to rise and corporate spending infrastructure becomes healthy global economy looks to rise and corporate spending infrastructure becomes healthy • f1and f2 account for a major share of the global facilities management services market, while countries including f3, f4, f5, f6 hold the key to future growth • Technical services in the likes of mechanical engineering and energy management emerge as the most popular segment in this market segment in this market • Private equity investments have been looming large in the sector owing to its ability to generate high recurring revenues Facilities Management Market – Growth a3 a4 xxxxxxxx a1 xxxxxxxxx 2 a2 FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 6 Facilities management services market is poised for strong growth in the ensuing years Facilities Management Services Market Market Size and Growth • Facilities management services market in India has INR bn been growing steadily over the years and is set to witness rapid growth over the next five years i id h h fi b6 b7 • It is a highly fragmented industry with few organized b5 players and mostly unorganized small operators b4 b3 • Facilities management business is largely b2 b1 d d d l unorganized in India and operates on low margins • Consolidation in this segment is slowly gaining 0 momentum as players are growing their business by 2012 2013e 2014e 2015e 2016e 2017e acquiring smaller firms l l • Facilities management services are primarily concentrated in and around metros with low 10 penetration in tier II and tier III cities • There is an increasing demand for such services as b8 emphasis on urban development and modernisation emphasis on urban development and modernisation of office spaces are growing b11 • Consistent economic growth has led to a booming real estate sector in India, which will drive the growth b12 b13 of this market in the near future of this market in the near future b9 FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 7 A cost break‐up analysis reflects which input carries how much weightage in this sector SAMPLE Facilities Management Services – Cost Break‐up I N • Every facility management service provider needs three basic components to render services which make up the costs involved P j q g g g p y g y • Since it is a job requiring high‐end amalgamation of manpower and machinery, rendering service deem it necessary to have U proper training as well T S • These basic units are required in different proportions for fulfilling various operational objectives •XXxxx e1 • Xxxx • xxxx c4 c6 c5 • Xxx c3 • Xxx e2 • Xxx c2 • Xxx c1 e3 • Xxx • Xxx • Xxx FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 8 A closer look reveals which type of contracts garner maximum takers SAMPLE Facilities Management Services – Contract Segmentation • In majority of cases, facility management service providers need to battle it out with other players for the contracts of different building or infrastructure • These contracts are either doled out as a complete package of the entire services or broken down to small sub‐ parts and given to service providers • Each type has its own set of advantages and disadvantages which answers the query of why a particular has a greater adoption rate than the other • Xxx d3 e4 • Xxx d4 • xxx d2 d1 • Xxx • Xxx e5 • Xxx FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 9 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 2013.PPT 10 Development of infrastructural facilities across India… Rise in infrastructural development (1/4) Impact • Backed by strong economic growth, the infrastructure development in India has been growing consistently over the last few years • Government has been increasingly focusing on investing in infrastructural facilities such as roads, railways, ports, airports and metro rail • Development of infrastructural facilities such as metro rail and airports have increased the demand for facilities management services, as these projects require consistent maintenance f di h df i h d l d d i i f i • Government of India has started focusing on the development and modernization of airport infrastructure and plans to invest INR 2 tr in metro rail system in the next 10 years • Development of airport and metro rail infrastructure will translate into substantial business for facilities management market in India Investments in Infrastructure in the 12th Plan (2012‐17) INR tr k2 xxxxxxxxx k1 0 2007‐12 2012‐17e FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 11 SAMPLE … in areas of metro rail development plan or … Rise in infrastructural development (2/4) Government Allocation in Metro Rail (2013‐14) Union Budget Grant for Delhi Metro INR bn INR bn i1 i5 i4 i2 i3 0 0.0 Delhi Chennai Bangalore 2012‐13 2013‐14 • Delhi Metro Rail Corporation has been allocated a major share of the Budget 2012‐13 allocations to • Delhi Metro was allocated INR i7 bn in the Union the Urban Development Ministry for investments in the Urban Development Ministry for investments in Budget 2013‐14 Metro corporations across India • This amount is slated to be spent on construction of • The ministry has got a substantial hike of INR i6 bn Phase – III in order to lay another i8 km of tracks in for construction and extension of the Metro the national capital network in Delhi, Bangalore, Kolkata, Chennai, , p Mumbai, Jaipur and Kochi FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 12 … airport infrastructural development plan … SAMPLE Rise in infrastructural development (3/4) Investments in Airport in 11th Plan Cargo in India – Growth (2012‐17) INR bn % h6 h7 h4 h5 h8 h3 h1 h2 0 Metro Non‐ Greenfield NE CNS‐ATM Total 0 Airports Metro Airports Airports and Investment Domestic International Airports Equipment Passenger Traffic in Airports – Growth • This growth in cargo traffic will necessitate mn investments in specialized terminals and equipment h10 which will further capitalize into opportunities for which will further capitalize into opportunities for facilities management services providers h9 • Moreover, policies are drafted to facilitate the process of infrastructural development in the likes of allowing 100% foreign direct investment for green field airports via automatic route g p 0 2012 2017e FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 13 Trends – Summary Standardization of procedures Facilities management as a stream of study Key Trends ` Mechanization of services Project management and general contracting services continuing to evolve Project management and general contracting services continuing to evolve Investments and M&A Activity in Facilities Management Sector FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 14 As an effort to overcome manual shortcomings, players are focusing on mechanization of servicesSAMPLE Mechanization of services • Facilities management services have witnessed the rise of mechanization in its offerings Increasing number of companies have now started to include mechanized services in their services portfolio • Increasing number of companies have now started to include mechanized services in their services portfolio • One of the main reasons why mechanization has taken this sector by a storm is because of the fact that manual services were loaded with more faults and defects • Overcoming them and devising a full proof solution led to the emergence of high adoption of mechanized versions of services by the majors • xxx • xxx • xxx • xxx • Xxx • xxx FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 15 … in the facilities management services sector reflecting its potential to grow even furtherSAMPLE Investments and M&A Activity in Facilities Management Sector (2/2) M&A activity in Facilities Management Services Year Buyer Target Deal Size (INR mn) 2013 yy zz ‐ 2013 yy zz ‐ 2012 yy zz ‐ 2012 yy zz ‐ 2010 yy zz ‐ 2009 yy zz ‐ 2009 yy zz ‐ 2009 yy zz ‐ FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 16 Trade Association – Indian Facility Management Association Overview IFMA Benefits e be s p Membership FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 17 SAMPLE … sector, yet presence of industry body defines ... Indian Facility Management Association (2/3) Overview • Its list of Board of directors include leading names • Leading players have already registered form the facility management fraternity in the likes itself under this association in the likes of of u1, u2, u3 u4, u5, u6 Membership • Membership to this national association results in • Different categories in this segment are Corporate Member – Annual membership fee is Corporate Member Annual membership fee is i f i i hi fi ld b h f opening up of various avenues in this field both for INR ‐ amateurs as well as for experienced professionals Professional Member – Annual membership fee • There are different types of memberships provided is INR ‐ that professionals and organizations can choose Associate Member – Annual membership fee is from depending on qualifications, experience and p g q , p INR ‐ Student Member – Annual membership fee is expertise INR ‐ FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 18 Public: Foreign Company – Company A (1/4) Company Information SAMPLE Offices and Centres – India Corporate Address Tel No. Fax No. Website Gurgaon Year of Incorporation Ticker Symbol Stock Exchange Head Office Products and Services Products and Services Category Products/Services Key People Soft Services P1,p2 Name N Designation D i ti xx MD (Facility Management ‐Americas) Hard Services P3,p4 MD (Integrated Facilities Management ‐ xx Asia Pacific) Others P5,p6 Senior Business Development Director ‐ xx Facilities Management FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 19 Public: Foreign Company – Company A (2/4) Financial Snapshot i i lS h SAMPLE K i Key Ratios y‐o‐y change Total Income Net Profit/Loss Particulars 2012 2011 2010 2009 (2012‐11) INR mn INR mn Profitability Ratios p Operating Margin ‐0.10 8.46% 8.56% 9.13% 6.60% o n Net Margin 0.68 5.26% 4.58% 5.26% ‐0.14% m Profit Before Tax Margin 0.85 7.03% 6.18% 6.96% 0.10% 0 Return on Equity 0.47 6.94% 6.47% 6.74% ‐0.18% Return on Capital Employed 0.56 12.45% 11.89% 13.00% 8.18% 0 Return on Working Capital 415.22 ‐228.64% ‐643.86% ‐263.17% ‐105.57% 2009 2010 2011 2012 Return on Assets ‐0.12 7.69% 7.81% 7.97% 5.29% Financial Summary Return on Fixed Assets ‐2.99 124.31% 127.30% 134.41% 76.66% Cost Ratios • The company incurred a net profit of INR ‐ mn in FY 2012, as Operating costs (% of Sales) 0.06 91.49% 91.43% 90.87% 93.40% compared to net profit of INR ‐ mn in FY 2011 Administration costs (% of ‐0.25 64.76% 65.02% 64.92% 65.46% • The company reported total income of INR ‐ mn in FY 2012, Sales) registering an increase of r1% over FY 2011 registering an increase of r1% over FY 2011 Interest costs (% of Sales) Interest costs (% of Sales) 0.10 ‐0.10 0.89% 0.99% 1.57% 2.22% Liquidity Ratios • The company earned an operating margin of r2% in FY 2012, a Current Ratio ‐5.47% 0.91 0.96 0.92 0.86 decrease of r3 percentage points over FY 2011 Cash Ratio ‐16.68% 0.25 0.30 0.33 0.22 • The company reported debt to equity ratio of ‐ in FY 2012, a Leverage Ratios decrease of r4% over FY 2011 Debt to Equity Ratio 4.86% 0.21 0.20 0.10 0.10 b i l i Debt to Capital Ratio 4.03% 0.17 0.16 0.09 0.09 Key Financial Performance Indicators Interest Coverage Ratio 10.24% 9.52 8.64 5.83 2.98 Indicators Value (dd/mm/yyyy) Efficiency Ratios Market Capitalization (INR mn) Fixed Asset Turnover ‐1.66% 14.60 14.85 14.72 11.61 Total Enterprise Value (INR mn) Asset Turnover ‐0.84% 0.90 0.91 0.87 0.80 Current Asset Turnover ‐5.82% 2.60 2.76 2.45 2.64 EPS (INR) EPS (INR) ‐ Working Capital Turnover 64.24% ‐26.86 ‐75.10 ‐28.83 ‐15.99 PE Ratio (Absolute) ‐ Capital Employed Turnover ‐7.72% 1.09 1.18 1.17 1.16 Improved Decline FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 20 Public: Foreign Company – Company A (3/4) Key Business Segments SAMPLE Key Geographic Segments r6 r7 r8 r9 10 r10 r11 r12 r13 r14 0% 2009 2010 2011 2012 2011 r15 Business Highlights Description News • r16 provides integrated real estate and investment management services to owner, occupier, and investor Overview clients worldwide • It has recently merged with international property consultancy r17 for a consideration of ~r18, with all Collaborations r19 offices and businesses across Europe operating under r19 Clientele • Its clientele in India includes r20,r21,r22 • Bagged the Award 1 in 2011 Awards and Recognition It was also awarded the Award 2 in 2008, 2009 and 2011 • It was also awarded the Award 2 in 2008, 2009 and 2011 FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 21 Public: Foreign Company – Company A – SWOT Analysis (4/4) SAMPLE S W T O • Xxx • Xxx • Xxx • Xxx • xxx • Xxx • Xxx • Xxx • Xxx • Xxx • Xxx • Xxx FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 22 Private: Domestic Company – Company B (1/4) Company Information SAMPLE Offices and Centres – India Corporate Address Tel No. Gurgaon Fax No. Website Year of Incorporation Head Office Products and Services Products and Services Category Products/Services Engineering P1,p2 Key People Soft Services P3,p4 ,p Name N D i ti Designation Business Support P5,p6 xx MD xx Director xx Director xx Director FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 23 Company B – Shareholding Pattern Shareholders of the Company SAMPLE Ownership Structure r4 r5 r6 Name No. of Shares held xx a1 xx a2 r2 r3 xx a3 xx a4 xx a5 xx a6 xx a7 r1 xx a8 Total a9 24 Private: Domestic Company – Company B (2/4) Financial Snapshot i i lS h SAMPLE K i Key Ratios y‐o‐y change Total Income Net Profit/Loss Particulars (2011‐10) 2011 2010 2009 Profitability Ratios INR mn INR mn Operating Margin 1.50 8.81% 7.31% 6.17% P3 Net Margin 0.60 4.42% 3.82% 3.81% Profit Before Tax Margin 0.57 6.69% 6.11% 6.08% P2 Return on Equity ‐6.71 10.63% 17.34% 94.96% Return on Capital Employed ‐4.00 13.73% 17.73% 80.93% P1 Return on Working Capital 3.25 26.06% 22.81% 33.30% Return on Assets ‐3.89 13.84% 17.73% 19.38% Return on Fixed Assets 23.49 103.12% 79.63% 46.47% 0 0 Cost Ratios 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) ‐1.50 91.19% 92.69% 93.81% Administration costs (% of Sales) N.A. N.A. N.A. N.A. Financial Summary Interest costs (% of Sales) Interest costs (% of Sales) 0.92 2.12% 1.20% 0.37% • The company incurred a net profit of INR ‐ mn in FY 2011, as Liquidity Ratios Current Ratio ‐5.58% 2.96 3.14 1.78 compared to net profit of INR ‐ mn in FY 2010 Cash Ratio 2326.55% 1.25 0.05 0.07 • The company reported total income of INR ‐ mn in FY 2011, Leverage Ratios registering an increase of q1% over FY 2010 Debt to Equity Ratio ‐37.94% 0.54 0.87 0.90 b i l i Debt to Capital Ratio ‐24.61% 0.35 0.47 0.47 • The company earned an operating margin of q2% in FY 2011, Interest Coverage Ratio ‐31.97% 4.15 6.11 16.71 an increase of 1.50 percentage points over FY 2010 Efficiency Ratios • The company reported debt to equity ratio of ‐ in FY 2011, a Fixed Asset Turnover 7.48% 11.71 10.89 7.51 decrease of q3% over FY 2010 Asset Turnover ‐35.22% 1.57 2.43 3.13 Current Asset Turnover ‐7.80% 1.96 2.13 2.35 Working Capital Turnover ‐5.18% 2.96 3.12 5.38 Capital Employed Turnover ‐47.09% 2.40 4.54 24.87 Improved Decline FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 25 SAMPLE Private: Domestic Company – Company B (3/4) Business Highlights Description News • g1 is a subsidiary of g2 with pan India presence spanning across all metros tier 2 tier 3 and even tier 4 g1 is a subsidiary of g2 with pan India presence spanning across all metros, tier‐2, tier‐3 and even tier‐4 cities Overview • It has over g3employees 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 g4, g5, g6, g7 Clientele • 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 g8, which will Alliances 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 2010 FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 26 Private: Domestic Company – Company B – SWOT Analysis (4/4) SAMPLE • Xxxx • Xxx • Xxxx • Xxx • Xxxx • Xxx S W • Xxx • Xxx • Xxx O T • Xxx • Xxx • xxx • xxx FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 27 Thank you for the attention The Facilities Management Services Market – India 2013 report is a part of Netscribes, Inc.’s Business Services Industry Series. For more detailed information or customized research requirements please contact: Phone: 91 33 4064 6214 +91 33 4064 6214 E‐Mail: email@example.com Follow us on: About Netscribes, Inc. , g g f Netscribes, Inc. is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of g p y p p f investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes Inc. is a one‐stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. FACILITIES MANAGEMENT SERVICES MARKET IN INDIA 2013.PPT 28
Pages to are hidden for
"Facilities Management Market in India 2013"Please download to view full document