Casagrand PropCare, a unit of Casagrand Builder Pvt. Ltd., will be acquiring two firms in the facilities management services space to foster growth, according to a top executive.
“Talks are in final stages and would be concluded soon,” said Arun Mn, chairman and managing director, Casagrand Group. “We have set aside ₹30 crore for the acquisition. The cash outflow will be 20% and rest will be met through stock offer.”
Currently, Casagrand PropCare provides comprehensive solutions for facilities management services to its corporate clients, right from housekeeping and security services, technical maintenance, waste management, business support, production support for industrial requirements, horticulture and to landscaping. services. It also offers specialised cleaning services in its service portfolio which includes façade cleaning and high level cleaning at multi-storey buildings and Industrial zones and marble polishing, granite polishing and carpet shampooing.
“The Indian market size for facilities management services is valued at $6-8 million and the share of South India is 35%,” said N. Siva Sankar Reddy, director, Casagrand PropCare.
“We are offering the services in Chennai, Bengaluru, Hyderabad, Coimbatore, Tada, Puducherry and Vishakhapatnam,” he said.
PE investment
“Facilities management industry is one of the most sought after industries for private equity (PE) players. With the backup of parent company Casagrand Builder with a turnover of ₹1,000 crore in real estate, Casagrand PropCare has become more attractive to PE players. We are already in talks with leading PE firms to raise $5-6 million by the year end,” Mr. Arun said.
