OCS Group invests Rs 200 cr, eyes more acquisitions in India

We have earmarked an $80 million war chest for further mergers and acquisitions in Asia, says OCS Group's CEO Chris Cracknell

OCS Group, the UK's largest facilities management company, has earmarked $80 million (Rs 480 crore) for further mergers and acquisitions in Asia, after recently investing Rs 200 crore to acquire four companies in India.

 

"We have invested Rs 200 crore for acquiring high quality service providers in India such as Absotherm Facilities Management (engineering), Radiant Hospitality Services (housekeeping), Cannon Hygiene India (hygiene and sanitation) and Central Investigation & Security Services Limited (security services) in the last 18 months period," OCS Group's CEO Chris Cracknell told PTI here.

 

"We are now consolidating our operations after recent acquisitions, but we are open to acquisitions, if we see right opportunity in India. We have earmarked an $80 million (Rs 480 crore) war chest for further mergers and acquisitions in Asia," Cracknell said.

 

The facilities management service business in India is expected to grow to Rs 1,049 crore in 2016 from Rs 400 crore in 2011, according to the Frost & Sullivan report.

 

Increasing need for healthy and safe environment for occupants contributes to growth. OCS Group can now directly deliver core facilities management services, such as engineering, cleaning, hygiene, security and other FM services to Indian clients without appointing multiple sub-contractors, Cracknell said.

 

OCS Group, which has a presence in India for the last 20 years has clocked a turnover of over Rs 300 crore in 2012 through all its Group companies in India, is hoping to double its turnover and number of personnel employed 22,000 in India as compared to 90,000 worldwide. 

 

"India will soon be a major contributor to our global turnover. The OCS Group family in India is already 22,000 people strong and we aim to double the size of our business and people employed over the next five years to deliver double-digit growth strategy during this period. By offering professional training and providing gainful work," he said.

 

The group is focusing on aviation sector considering that India presents investment opportunities of $120 billion, with approximately $30 billion dedicated to the development of airport infrastructure.

 

"From India's current 126 operational airports, by 2013 the number of airports is expected to increase phenomenally and OCS Group will leverage its experience in London's Heathrow airport, Australia's Sydney-Melbourne airports, New Zealand's Auckland airport and Singapore's Changi airport, he added.

 

"In India, we are already very well established in key sectors such as hotels, malls, manufacturing, commercial and residential and we intend to utilise our global and regional expertise to capitalise further on key markets including healthcare, aviation & education amongst others," OCS Group Chief Executive Officer, South Asia, South East Asia and Middle East Heather Suksem said.

 

Cracknell said, new markets for OCS in south-east Asia include the Philippines, Indonesia, India and Myanmar. By 2015, the Asian business will account for over half our global revenue.' South-east Asia now accounts for less than 14% of the group's total revenue.