BVG India, the country's largest pureplay facility management company, which lists the Parliament House, Rashtrapati Bhawan, the 7 RCR, the Supreme Court, and the RBI headquarters among its clients, is targeting a Rs 2,000-crore revenue run rate this fiscal year as it shifts its focus to premium residential complexes and numerous defense installations.
To meet the growing demand for these premium services, the Pune-based business would nearly double its manpower to about 1 lakh from the existing 54,000. Since 2011, the company has been backed by British private equity firm 3i Group, which owns 26%. The company, which began as a social venture in Satara in 1991 as Bharat Vikas Pratisthan, expects to complete the Rs 1,300-crore public share sale process in early March, founder-chairman and managing director Hanmantrao Ramdas Gaikwad told PTI on Monday.
He stated that BVG has been growing at a rate of over 5% per quarter and expects to close this fiscal with over Rs 2,000 crore, up from slightly more than Rs 1,674 crore last fiscal, which was down from Rs 1,900 crore the previous year, and earns 14.5 %in net income, as it diversifies into key spiritual centers, museums, and numerous defense installations, in addition to premium residential complexes and major national highways for landscaping.
Gaikwad stated that the firm now employs 54,000 people and would nearly double to 1 lakh in the next three years due to the anticipated development. BVG serves 16 of India's busiest airports, including Mumbai, Bangalore, Chennai, Pune, Ahmedabad, Lucknow, and all four of Kerala's airports. It employs nearly 3,000 people at the Mumbai airport alone.
In all, it has over 600 clients spread throughout 1,100 sites. It has been servicing the Parliament Complex since 2003, the PMO/7RCR since 2004, and the sprawling Presidential Estate since 2005, according to Gaikwad, who added that among the key temples it already manages are Mumbai's iconic Siddhi Vinayak, Dwaraka's Somnath, Maharashtra's famed Shirdi temple, and Mathura's Vrindavan.
Following the share sale, BVG will join rivals such as Quess Corp, Team Lease Services, and SIS on the stock exchange, enabling the 3i Group to leave partially. Meanwhile, the business has initiated emergency medical services on behalf of Maharashtra with 950 ambulances equipped with professional physicians and nurses. Additionally, it operates 1,000 MP policies cars that they own for the purpose of providing emergency policy services and the MP police contact center. While the 3i Group will own 26% of the firm and will retain 30%, the remaining 30% will be invested by angel investors. There would be a primary issue of Rs 200 crore and an offer for the sale of the remaining Rs 1,300 crore, with Gaikwad selling 5% of his interest. The business now owns 7% of the organized facilities management industry, which is worth Rs 1.3 lakh crore, according to a recent Frost & Sullivan analysis, and plans to more than double that to 15% by FY25, according to Gaikwad. The market is cutting at a rate of 27% yearly.
