Central Parking Services, a parking management company, is targeting revenues of ₹250 crore during the next financial year, an increase of 257%, as metropolitan cities in India expand and people owning cars grow, a top official said on Wednesday.
The Bengaluru-based firm is also planning to raise $50 million from private equity investors within the next six months to fund its growth.
‘Healthy order book’
“We are on course to clock revenues of ₹70 crore this year,” N. Sathyanarayanan, managing director of the company, said in an interview. “The following year, as our order book is healthy, we will reach revenues of ₹250 crore and then [for] the next year the target is ₹480 crore.” The company, formed in 2005 with a capital of ₹10,000, is banking on getting orders from Smart Cities project announced by the government. As per the estimates of the company, it takes an average of 21 minutes for a vehicle owner to find a parking space in the central business districts of major metros.
“CPS [Central Parking Services] is currently implementing parking management in Bengaluru, Raipur, Thane, Indore, and Lucknow. We are in negotiations with four other cities,” Mr. Sathyanarayanan said.
Central Parking Services is currently managing the parking at Bangalore International Airport and is present in more than 30 cities across India. One can pay for parking using barcodes or book parking slots in cities using a mobile phone app.
The firm has set up a command centre to monitor vacant slots in the city and using the app the driver can find a slot. It employs sensors and global positioning system to track the empty parking slots.
CPS plans to bid for 65 parking management solutions in the Smart Cities project. “Ninety-seven percent of the parking business is in the unorganised sector,” Mr. Sathyanarayanan said. “Now, the State government recognises that they can earn revenue out of it. Parking is the first and last point of experience for a traveller. We are looking at 65 Smart Cities. Maybe we may get at least 35-38 of them.”
The company also plans to make a foray into other airports, railway stations, religious and tourist spots, and conferences and events to manage parking.
“Air traffic is growing at about 26% every year in all the major metros. That is an indication of the parking facilities the airports require,” he said.
Bengaluru city has 9,000 spaces, or spots where one can park his or her car, he said. Bhopal has 9,800 spaces. “If these spaces are better utilised then commercial activity within the city will take off. Not only that there will be a better customer experience,” Mr. Sathyanarayanan said.
