Facility management services provider, Tenon Property Services, a subsidiary of Singapore-based Mortice group, is planning to expand its base in India.
The company, which started operations in India in January 2008, is already managing over five million sq ft of space. With eyes set on another 15 million sq ft by the end of this fiscal, the company hopes to command a major share in the facilities management services (FMS) market.
The organised FM sector in India today is around 150 million sq ft and the unorganised is estimated at 1 billion sq ft. Based on these figures, the market opportunity in India has been estimated at $6 billion over the next three years. Mortice group recorded a turnover of $22 million in financial year 2007-08 and recorded a growth of 30-40% in the fiscal.
In conversation with FE, Manjit Rajain, executive chairman, Tenon, said, ?Unlike other FMS companies that outsource their services, we manage the network on our own. This has helped us to increase our margins. Our model integrates and reduces service risk management through a single point for all property services requirements like engineering maintenance, security, housekeeping, concierge, landscaping, reprographics, emergency response programs, space planning etc. We raised $10 million to fund our acquisition plans in India. So far we have invested close to $4 million into the business.?
Having established a network of over 50 offices across India, the company is into advanced stages of tapping the business potential of South-East Asian countries with a focus on Vietnam and Philippines.
?We are scouting for partners in these countries to diversify into new territories,? said Rajain.
Talks are on with Indian companies as well for acquisitions. Rajain added, ?An acquisition deal with an engineering company will materialise shortly.
The company provides hard services for facility management and is based around Delhi. Talks are on with four other companies and we plan to acquire at least two more companies this year. These can belong to segments like house-keeping, catering, engineering or multi-tasking companies.