AGENDA
- Introduction
- Business Segment
- Geographic’s and Customers
- Management Structures
- Industry Analysis
- Competitive Analysis
- Financial Analysis
- Technical Analysis
- Risk Analysis
- Some Q & A and Concall
- Summary
Introduction
Business Segments
Integrated Facility Management
Soft Services
- Housekeeping / Cleaning / Janitorial
- Disinfection & Sanitation
- Landscaping & Gardening
Hard Services
- Pest Control Services
- Mechanical Maintenance Services
- Electrical Maintenance Services
- Plumbing Maintenance Services
- Heating, Ventilation & Air-conditioning (HVAC) Services
- Façade Cleaning
- City Maintenance Services
- Municipal Sewage Treatment
- Solid Waste Management
Other Services
- Catering
- Production Support Services
- Warehouse Management
- Airport Management
- Multi-level Parking
- Airport Traffic
Staffing and Payroll Management
Private Security and Manned guarding
Access control: We ensure that only authorized personnel are allowed to enter the facility and control the movement of people within the facility.
Surveillance: We monitor the facility using CCTV and other surveillance systems and respond to any security breaches or incidents.
Patrols: We regularly patrol the facility to detect and deter any suspicious activity or potential security threats.
Emergency response: We provide services in case Of emergencies including fire, medical emergencies, or criminal activity.
License: To engage in the business of a private security agency under PSARA in 12 states and one union territory .
Catering
-
Foods Customised by the customer, including breakfast, lunch and dinners for employees. We also provide traditional snack items.
-
Our central kitchen located in Kalina.
-
In Fiscal 2021, 2022 and 2023 and six months ended September 30.2023 , we offered catering services to 13, 47, 67 and 52 customers, across 17, 60, 72 and 63 customer locations in India .
-
Our major customers for these services (provided through Krystal Gourmet ) include Tema Speciality Hospital & Research Centre .
Geographic’s & Customers
Management Structure
Management
Industry Analysis - IFMS
GLOBAL INTEGRATED FACILITY MANAGEMENT MARKET
Outsourced Facility Management Market: Historic Revenue Trend and Forecast. Global. CY2018 — CY2027
Total integrated Facility Management Market: In-house versus Outsource, India FY2023
Integrated Facility Management Market by Services
Total Integrated Facility Management Market: Outsourcing Trends- India- FY2013- FY2018- FY2023 and FY2028
Outsourced IFMS: Breakdown End-user Sent India FY2023
Outsourced IFMS Breakdown Gov vs Private FY2023
Soft Services
Hard Services
Other Services
CATERING SERVICES MARKET
The Catering Services market is highly fragmented with close to 60-70% of the total market dominated by unorganized companies and the remaining 30-40% of the market with organized companies .
STAFFING AND PAYROLL
Segmentation by Services, FY2023, India
PRIVATE SECURITY/ MANNED GUARDING SERVICES MARKET
Competitive Analysis - IFMS
- The top four companies IFMS Market are Sodexo, BVG, Quess Corp, and SIS Limited.
- They have a combined market share of 6-8% of the total market in FY2023.
Competitive Analysis - IFMS
Financial Information of Major Companies. India FY2022
Financial Information of Major Companies. India, FY2023
Segmentation by Services
Soft Services
- Soft Services is extremely fragmented in India with the market leader BVG having a share of 4.4% of the total market in FY 2023.
- The top five companies in this segment are BVG, SIS Limited, Quess Corp, UDS, and Sodexo.
- These five companies account for a combined share of 19.8% of the total market in FY2023.
- Krystal is the sixth largest Soft Services company with a market share of 2.6% in FY2023.
Hard Services
The competitive structure is very similar to the Soft Services segment.
- For example, The top two companies in this segment
Re Sustainability (Ramky Enviro) and Anthony Waste are predominantly into waste management services and water and wastewater treatment solutions and services business .
- Major Integrated Facility Management Services companies present in Hard Services are BVG, SIS Limited, Sodexo, Quess Corp, ISS, UDS, Compass, Krystal among others .
Other Services
-
Sodexo is the market leader with a share of 2.8% of the total market in FY2023.
-
Other major companies in this segment are Quess Corp, SIS Limited, Compass, UDS, BVG, CRCL, ISS, Krystal among others.
CATERING SERVICES
- The Catering Services market is highly fragmented with close to 60-70% of the total market dominated by unorganized companies and the remaining 30-40% of the market with organized companies .
- Within the organized segment, Sodexo, ISS, CRCL, Krystal, Proodle Hospitality, Comprehensive Support Services (CSS), ISG Hospitality Service, Compass, and Quess Corp are some of the major players. Catering companies are promoting.
WAREHOUSE MANAGEMENT SERVICES MARKET
-
Based on the above analysis, the Warehouse Management Services Market is forecast to grow at a CAGR of 12.0% from FY2023 – FY2028 to reach INR 211,761.25 million.
-
The market is highly fragmented in India and the organized sector accounts for around 40% of the market while the remaining 60% is accounted for by the un-organized sector companies.
-
Both Multi-National Companies (MNC) and local companies . MNC companies mostly operate in Tier 1 and Tier 2 cities while Tier 3 cities are mostly catered to by the local companies. The major companies present in the organised sector are D V Shankar, Mahindra Logistics, Blue Dart, Toll logistics, DHL, Kuehne Nagel and Ceva Logistics.
-
A few of the Facility Management companies providing Warehouse Management Services in India are UDS, Krystal, Impressions, and OCS Group.
Competitive Analysis – Staffing and Payroll
-
The competitive landscape is highly fragmented in India . Is it estimated that more than 1,000 companies are operating in this space in India. The organised market consists of 20-30 companies and is dominated by international and national companies.
-
Major players in this segment include Quess Corp, Teamlease, First Meridian, Randstad, Manpower Group, Adecco, Datamatics Staffing Services Limited, Collabera, Artech Infosystems Pvt. Ltd., Kelly Services etc .
-
General Staffing and IT Staffing are the major segments in Staffing and Payroll Management Services Market in India with a combined market share of 65.2% of the total market in FY2023 .
-
General Staffing Segment in India is a nascent industry when compared to developed markets like the USA, Japan,and Italy.
-
General Staffing segment witnessed a strong growth of 15.3% in new jobs added in FY2023 at around 1.47 lakh jobs across the segment, as per the Indian Staffing Federation.
-
This is expected to increase the industry share from the present 5.0% to 20.0% in the next five years.
-
The market is extremely fragmented in India , with more than 20,000 companies operating in this market.
-
The organised segment comprised of about 40-45% of the total market in FY2023.
-
SIS Limited is the market leader in this highly fragmented market with a share of 2.0% in FY2023 .
-
SIS Limited, G4S, Checkmate, Peregrine, ISS, Sentinels, Securitas, Global Security Services, Krystal etc . are some of the major companies operating in this market in India.
Competitive Analysis – Financial Benchmarking
EBITDA margin Trend (Source: Nuvama)
Revenue growth Trend (Source: Nuvama)
ROE profile of key players growth Trend
Financial Analysis
Revenue Segments wise
Revenue Geography wise
Revenue Model
- Government – B2G
- Private - B2B
Revenue Sector Wise
KPI Analysis
Risk Analysis & Key Trackers
- Revenue Concentration top 5, 10, 15.
- Government Contracts plays a major role – Contracts for 3 years.
- Bids and Wins
- Geographics Concentration
- Major revenue is derived from only one segment.
- For the six months ended September 30, 2023 and Fiscals 2023, 2022 and 2021, our revenue fromintegrated facility management services has contributed to 56.62%, 60.38%, 58.46% and 71.04%
- Manpower intensive business – High Attrition Rate
- Attrition rate for Fiscals 2021, 2022 and 2023 and the six months ended September 30, 2023 was 22.00%, 35.88%, 31.38% and 12.98%
-
Contract Renewal and Extension
- In 2021, 2022 and 2023 & six months ended 30, 2023, we were able to successfully extend or renew Nil, 40.00% and 42.86% and Nil of our government contracts that were expiring in the respective years.
- Government Contracts plays a major role – Contracts for 3 years.
-
Expense – Biggest is from Employee Benefits
- Employee benefit constituted the largest component of total expense representing 84.12%, 88%, 89.31% and 86.01% of our total expenses for six months.
-
No Background Verification for employee
-
Trade receivables
- Trade receivables constitute a significant portion of total assets, and were representing 48.35%, 43.56%, 59.64% and 59.16% of our total assets as on September 30, 2023, March 31, 2023, 2022 and 2021 , respectively.
- Our trade receivables outstanding for over six months were representing 11.67%, 19.76%, 13.02% and 15.51% our total trade receivables as on September 30, 2023, March 31, 2023, 2022 and 2021.
- Our balance write offs from trade receivables were Nil, 0.04 mn, 0.03 mn and 0.76 mn as on September 30, 2023, March 31, 2023, 2022 and 2021.
-
Complaints Against the Company
- September 30, 2023 and Fiscals 2023, 2022 and 2021 , the number of physical and written complaints received by our Company from our customers were 41, SO, 5S and 77, respectively.
-
Contingent Liabilities
- RPT
Subsidiaries & JV
- Flame Facilities Private Limited (“FFPL”)
FFPL is authorized to carry on the business of providing facilities such as House keeping, security management, financial consultant, consultancy in commercial, financial, taxation, arrangement of management personnel, training and placement of security guards, developing human resource etc. as authorized under the objects clause of its memorandum of association.
- Krystal Gourmet Private Limited (“KGPL”)
KGPL is authorized to came on in India Of abroad the business of Importers, exporters, manufacturers, buyers, sellers, suppliers, traders, producer, merchants, hire purchase dealers, brokers, stockiest, distributors Of otherwise dealing in natural food extracts, food products, fast foods including instant food mixes, processed foods, dehydrated foods, health foods, farm products, fruits, vegetables, pulses, juices, jellies, ice creams, jams, tea, coffee, cocoa, chocolate, spices and condiments, cookeries, bakery, confectionery, groceries, poultry, eggs, vegetable oils, vegetable ghee, sausages, prawns, potted meat, table delicacies and masalas, vinegar acetic acid, glucose, wines, spirits, beers, porters, yeast, pickles, ciders preserved food and of such other related ingredients.
BVG & Krystal Joint Venture (“BKJV”')
BKJV was set up for providing all types of security solutions, including supply of security personnel, protection of property, house-keeping and all other relevant and incidental work.
Krystal Nangia JV
In case the bid for the proposed project is not awarded to the Nangia JV, the JV Agreement will stand terminated.
