BVG India sees topline at Rs 2k cr this fiscal, to double headcount by FY25

IPO-bound BVG India, the largest pureplay facility management player that lists the Parliament House, Rashtrapati Bhawan, the 7 RCR, Supreme Court, and the RBI headquarters among dozens of other key installations as its clients, hopes to cross the Rs 2,000-crore revenue mark this fiscal as it looks to focus more on premium residential complexes and many defence installations.

The Pune-based company will be nearly doubling the headcount to around 1 lakh from the current 54,000 to meet the rising demand from this premium services.

Backed by the British private equity major 3i Group since 2011 owning 26 per cent, the company, which began as a social venture as Bharat Vikas Pratisthan in 1991 from Satara, is expecting to close the Rs 1,300-crore public share sale process early March, founder-chairman and managing director Hanmantrao Ramdas Gaikwad told PTI on Monday.

He said BVG has been growing over 5 per cent per quarter and hopes to close this fiscal with over Rs 2,000 crore, up from a little over Rs 1,674 crore last fiscal, which was down from Rs 1,900 crore the previous year and earns 14.5 per cent in net income, as it is diversifying into key spiritual centres, museums, many defence installations along with premium residential complexes and the major national highways for landscaping.

Gaikwad said the company currently employs 54,000 and it will almost double to 1 lakh over the next three years, as the planned expansion will demand massive headcount.

BVG services 16 of the largest airports, including Mumbai, Bangalore, Chennai, Pune, Ahmedabad, Lucknow and all the four airports in Kerala. At the Mumbai airport alone it employs over 3,000.

Overall, its client-list runs into more than 600 across 1,100 locations. Since 2003, it has been servicing the Parliament Complex, the PMO/7RCR since 2004, and from 2005 the sprawling Presidential Estate, said Gaikwad, adding among the key temples already it manages include the Mumbai's iconic Siddhi Vinayak, Somanth in Dwaraka, the famed Shirdi temple in Maharashtra and Mathura's Vrindhavan among others.

After the share sale, BVG will join the listed peers like Quess Corp, Team Lease Services and SIS and the listing will facilitate a partial exit for the 3i Group.

Meanwhile, the company has launched emergency medical services with 950 ambulances on behalf of Maharashtra with trained doctors and nurses on every ambulance.

It also runs 1,000 MP policies vehicles owned by them for offering emergency policy services also the MP police call centre.

While the 3i Group 26 per cent in the company and will be existing and 30 per cent are with angel investors.

Of the Rs 1,300 crore issue, Rs 200 crore is primary issue and the rest will be offer for sale, and Gaikwad will be offloading 5 per cent of his stake.

The company controls 7 per cent of the organized facility management market which according to a recent Frost & Sullivan report, is worth Rs 1.3 lakh crore, and expects to more than double it to 15 per cent by FY25, Gaikwad. The market is clipping at annually 27 per cent.

BVG plans to undertake

facility management projects in landscaping and gardening to tap the opportunities as well as private sector and residential sectors and intends to expand the scope of services to BFSI clients to include power station maintenance, water management at canteens and washrooms.