Facility management market set for growth

BVG India Ltd is the largest Integrated Facility Management Services organization in India which was formed in the year 1997. Chairman and Managing Director, H R Gaikwad, BVG India Ltd. give insights into this segment.   Globally FM segments have elaborated the process and procedures, defined the standards and MIS mechanism which are much ahead of Indian companies. FM is still considered a manpower driven rather than technology driven segment in India, On the contrary, the client can get maximum benefits from the latest technologies such as mechanized housekeeping services and building management system that reduce the operational costs.   Supply Chain Management (SCM) SCM in FM industry has undergone a vast improvement. From local shop vendors to the various established suppliers having pan India presence. They are not only manufacturing the required materials(chemicals, consumables, uniforms, machines etc.), but are also importing them from other countries. These organisations have an established SCM network to cater to the growing industry needs. There are still some gaps, especially on quality front which I believe will improve as customers’ expectations will continue to rise.   Contracting System The current contracting methodology is not at all structured and is largely dependent upon the whims and fancies of the principle customer. Most customers prefer single service contracts based on head counts, defined machines, material etc., to ensure that at least they should be provided with that much resource by the FM organisation. There are certain penalties for not providing the defined resource though these kinds of contracts are neither service level agreements (SLA) nor defined resource based contracts. As a matter of fact, the FM contracts should be purely SLAs that define the level of service expected from the service provider. SLAs are output-based in that their purpose is to specifically define what the customer will receive. I think FM organisations have to work more on building client’s trust towards their service adherence and deliverable.   Challenges & Potential of FM FM sector is fully buoyant and competitive having large number of region specific, market specific and segment specific players as well as multinational set-ups. FM as an industry in India has the potential of growing Rs. 50,000 Crores annually by 2020 with 55% for soft services and 45% for hard services. FM can be the largest employment generating sector in the county provided we connect the dots well which are needed for its performance and growth. With the government focus on the Swachch Bharat Abhiyan and the development of Infrastructure, the emerging requirements for skilled resources for facility management will grow exponentially.   BVG India Ltd growth plans BVG had a very moderate start but the successful experience in managing non-core activities in both technical and non-technical sectors have positioned the company as the largest service provider in the FM segment. With the strength of over 70000 across 22 states, we provide large bouquet of services including soft and hard mechanized housekeeping, landscaping & gardening, civil & electrical maintenance services, environmental services, manpower solutions, solid waste management services etc. Some of the major projects of BVG are Rashtrapati Bhavan, Indian Parliament, Prime Minister’s residence, and office, Supreme Court, six industrial plants of TATA and, airports in many cities, to name a few.