Facilities Management Services market - India

September 2009
Executive Summary

Facilities management services market in India is valued at USD XX bn for 20- -

Market
The market is expected to grow at 22% annual rate and reach USD YY bn by 20- -

Organized market is U mn square feet while unorganized about ZZ bn

Drivers &

Drivers:

PLE
– Growing real estate and property

Challenges:
– Availability of manpower

M
management market – Large unorganized segment
Challenges – Growth in BPO, IT and ITeS sectors

SA
– Boom in retail sector

Evolving project management and General Contracting Services: a growing sub-segment

Huge variation in pricing and mark up from region to region and firm to firm
Trends
Growth in facilities management market increasing the demand for training and certification
courses specific to this sector

With entry of international property consultants one can expect acquisitions and joint ventures
Foreign Players Domestic players
Competition • Company 1 • Company 4 • Company 7 • Company 10
• Company 2 • Company 5 • Company 8 • Company 11
• Company 3 • Company 6 • Company 9 • Company 12

FACILITIES MANAGEMENT MARKET – INDIA.PPT 2

Various sectors outsource facilities management activities to
focus on their core business

IT and ITES International

Retail and
Shopping Schools
Malls

Target
Real Estate Banking and
Audience for
Companies Finance
Facility
Management
Services

Corporate
Manufacturing
Houses
Firms

• Facility Management firms provide its clients with a dedicated team to solve the day to day problems associated with
property/facility management and provide a single point of reference and contact
• 0utsourcing facility management requirement provide the following benefits:
– Healthy, comfortable, safe and secure work environment
– On going transactional cost efficiencies
– Consistent and standardized management systems
– Overall quality improvements
– Extended asset life and reduced maintenance costs

FACILITIES MANAGEMENT MARKET – INDIA.PPT 3

Facilities management services market in India has immense
potential and creates an opportunity of USD XX bn by 20--
Market overview Market size & growth
• The facilities management services market in India
was valued at USD XX bn in 2007 USD bn
z
• The market is expected to reach USD YY bn by 20-- 6

E
a% y

L
growing at a a% annual rate x
4 w

P
• The organized market is about T mn square feet and v
the unorganized is estimated at ZZ bn square feet u

M
2
• With the growing IT/ITES and retail sectors in India,

positive

Sector wise market share (2007) SA

the market for facilities management services looks 0
2007 2008 2009 2010e 2011e 2012e

Organized vs. unorganized split (2009)

T mn square feet ZZ bn square feet
Sector 2
e% g%

Sector 3 d% b% Sector 1

Organized
c% f% Unorganized
Others

FACILITIES MANAGEMENT MARKET – INDIA.PPT 4

Drivers & Challenges

Challenges
Drivers
Availability of manpower
Growing real estate and property
management market Large unorganized segment

Growth in BPO, IT and ITeS sectors

Boom in retail sector

FACILITIES MANAGEMENT MARKET – INDIA.PPT 5

Trends - Summary

Evolving project
management and general
contracting services

Trends

Training and certification

Variations in pricing and
courses specific to facilities
mark up
management sector

FACILITIES MANAGEMENT MARKET – INDIA.PPT 6

Foreign players in India (1/3)

Company Business Description

Company 1 • Indian subsidiary of X, a global real estate services firm

• Provides services like managing office, industrial, technical, manufacturing, critical

E
environments etc.

L
• Had presence in Y cities in India and covers around Z mn square feet area

P
• The total strength is over U employees

Company 2

SAM
• The first independent real estate consultancy to enter India in 19- -
• Provides services in Strategic Consulting, Valuations/Appraisals, Agency Services, Asset
Services and Project Management and Facilities Management
• Headquartered in Delhi an d offices in Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and
Pune, presence in T cities across India
• They employ around U professionals in India
• Has a portfolio of about V mn square feet of space under facilities management
Company 3 • Privately held real estate services global firm
• Started operations in India in 19- -
• Provides various real estate services including facilities and property management services
like maintenance, construction, procurement, regulatory compliance etc.
• Total employees strength is over W with offices in New Delhi, Mumbai, Bangalore, Chennai,
Hyderabad, Kolkata and Pune

FACILITIES MANAGEMENT MARKET – INDIA.PPT 7