UK-based Rentokil partners with PCI to tap Indian pest control market

Two companies to form JV, in which Rentokil will acquire 57 percent stake

Last Updated : Mar 03 2017 | 11:59 AM IST

The UK-based global pest control company Rentokil Initial Plc has entered into an agreement to form a joint venture with Pest Control India (PCI) by merging its Indian business into the JV. The combined entity, in which Rentokil will own 57 percent stake, will be the largest provider of pest control services and products in India with combined annual revenues of Rs 450 crores, operate from 250 locations and employ about 6,900 people.

The joint venture will bring together two highly recognised forces in the professional pest control services market – the global leader and India’s leader.

Andy Ransom, chief executive of Rentokil Initial Plc, commented, “PCI is an outstanding business and by combining its national scale in India with our global expertise, we will create a market leader that is strongly positioned to take advantage of the increasing demand for commercial and residential pest control services over the coming years. Both companies operate similar business models with a strong commitment to colleagues and delivering outstanding customer service.”

The professional pest control services market in India is worth approximately Rs 1,800 crores and growing at 15 percent annually.

Anil Rao, chief executive, PCI and chairman of the JV, said, “The joint venture is the most strategic combination of the acknowledged managerial and technical skills represented by Rentokil Initial and PCI’s premier position, broad-spectrum customer base and vast experience operating on the Indian subcontinent. It is perfectly suited and timed to capitalise on the surging demand for high quality, world-class pest management services. PCI is the only company in this service industry with in-house manufacturing capabilities and the unique ability to create sustainable products, better suited to a business driven increasingly by a global search for ecologically sensible solutions. This would certainly provide a great opportunity to accelerate growth and performance in India and across the region.”

Rentokil, which has a strong presence in Southern India, is currently the third largest provider of pest control services in India. On the other hand, PCI, the largest provider of pest control services in the country, has significant scale in West, North and East India.

“The joint venture will combine our global expertise in areas such as innovation, digital technologies and international standards, with the national scale and heritage of PCI. Together, we will increase the standard of pest control and hygiene in India leading to enhanced standards for food and medicine safety, and more hygienic places to live and work. This is a great day for our colleagues and customers,” opined Sam Easaw, managing director of Rentokil Initial in India.