Rentokil India Pvt Ltd, a subsidiary of UK-based Rentokil, is planning to invest $25-30 million (about Rs 105-126 crore) in its pest control business over the next three years.
The company, which began operations from the south six months ago, is now looking at a pan-India presence by end of next year. Gradually, it also plans to foray into new businesses like facilities services, interior plant landscaping, and cleaning and washroom hygiene services.
Speaking to Business Standard Gopi Pillay, regional director – Asia, Rentokil Initial (M) Sdn Bhd, and Sam Easaw, managing director, Rentokil India, said so far the company had invested over $5 million in India. In the next three years, it would invest another $25-30 million. Besides, it would increase the headcount to 3,000-4,000 during the period from the present 400.
Pillay said by 2012 the company’s turnover was expected to be $75 million with a customer base of around 7,000. Currently, the company has around 2,000 customers in the southern states.
The domestic pest control market is estimated at around $160 million with around 1,700 registered players. Though the industry is growing at 20 per cent year-on-year, it has the potential to grow at double the current rate with more multinational companies looking at the pest control market in India.
The entry of MNCs is also expected to see consolidation in the industry, which has till now been a family-run business, he felt.
The company plans to diversify into new areas by 2012-13 once the pest control business is established in India, said Pillay.
Rentokil entered the country in 2007 end by acquiring a local company. In the last six months, it acquired over six companies in the south and is planning to acquire 4 to 5 more companies, which are in the pest control business.