Malaysian firm Sinar Jernih to up client base

Malaysian janitor services company Sinar Jernih is expanding its presence in India.

After foraying into the country's hospitality business, it is seeking more corporate and commercial clients.

From a base of 40 projects, it is targetting moving to the maintenance of 75 properties across the country in the next two years.

Jamal Surani, chief operating officer, Sinar Jernih Sdn Bhd, said, "We have identified India as one of the key markets as there is a good potential for growth and there are no professional players in this segment."

He pointed out that of the countries Sinar Jernih operates in, the Indian operations have registered the fastest growth.

"We will move into offering engineering services in the area of civil works in the next three-four months," said J S Shekar, executive director, Sinar Jernih India.

As part of this expansion strategy, the company will strengthen its existing workforce of 1,400 by another 1,500 by the end of 2005.

Sinar Jernih, which has already invested Rs 1.2 crore in the Indian market, will be pitching in another Rs 1 crore or more in the next two years.

Besides its entry into civil works, the next three-fours months will also see Sinar Jernih set up a training centre at Chennai.

With operations in Chennai, Bangalore, Delhi, Goa, Hyderabad, Kolkata, Mumbai and Udaipur, the company is eyeing marking a significant presence in the estimated Rs 200 crore market for janitor services in India.

The business margin varies between 14-18 per cent, depending on the work done and management skills, Shekar said.

Sinar Jernih's Indian operation saw a revenue of Rs 6.5 crore in the financial year ended March 31, 2004.

"By December-end, which is the year ending for our Malaysian parent, we will be reporting a revenue of Rs 7.5 crore. By March 2005, our topline is expected to rise to Rs 8.5 crore," he said.

The Indian company is currently in the cleaning business, but once its starts taking up civil work it estimates that the engineering services, including laundry, pest control, restoration work and lawn and garden maintenance will contribute 60-65 per cent of its revenue, while cleaning will bring in the remaining 40-35 per cent.

Sinar Jernih differentiates itself from other players in the organised sector by refusing to outsource its jobs to smaller players. "Our entire workforce is on our rolls," Shekar said.

The Indian operation, which was launched in 2001, broke even in 24 months. Despite the company's big business coming from hospitals in its home country, in India it has been unable to make the dent.

Of the 40 projects its has in hand, only two are outside the hospitality business - one hospital (Mumbai's Wockhardt) and a corporate house.

In the hospitality market, though, its client lists include the Taj, ITC, Oberoi and Park groups of hotels, among others.

The Malaysian company, which started out in 1995 managing government hospitals in southern Malaysia, today has a global turnover of MR 87.5 million, with presence in Brunei, Thailand, Singapore and Sri Lanka, besides Malaysia and India.

It manages over 288 properties across these countries with a staff strength of over 5,500.