Burial service industry brimming with life

This is no dead business for sure! The burial service industry in the city is vibrant and thriving, with keenly competing players offering more value-added services.

While some of the industry's key players have gone to the extent of engaging marketing agents to augment target sales figures, others have resorted to slashing of prices or offering package deals to woo more customers. Earlier, the burial service sector was largely perceived as a family-owned business.

"The market is witnessing keen competition," says Joseph, who heads a family-owned undertaker firm, which has been in the business for the past three generations. He rues that entry of more competing firms has affected old timers like him, whose business is in a nosedive.

Nagarajan, head of marketing operations for Kumar Co and International, agrees: "Yes, there is stiff competition, and we are offering value-added services." Nagarajan's company has forayed into this business in a big way, adopting many of the management principles and practices.

The profit margin in this business is around 20-25 per cent, admits one of the new players while old players like Joseph says that their profits have dipped below the 25 per cent margin mark.

Traditional players like the Snaize Brothers, which have been in the field for decades, have stuck to their traditional products and services, including no-frills caskets, but the new players have begun offering value-added services, like giving discounts and package deals, including transporting the dead anywhere in the country.

It is not surprising to see a huge tussle between agents of several firms when a death occurs, Nagarajan says, revealing a murkier side of the business than meets the eye. There were instances where players dabbled in cut-throat prices or free services when it came to burying eminent personalities. In most cases, the firm which provides a better service over its rival gets an edge in bagging the burial order.

"Burial services for a mid-segment sector could range from Rs 15,000 to Rs 20,000 and could go to the lower or higher end of the scale depending on the services provided," Nagarajan says. With prices of wood and other material surging, the burial service cost is steadily rising, Joseph says.

"If the service includes transporting a body to any place in the country, it could cost around Rs 26,000 to Rs 28,000," Nagarajan says. He admits that firms like his which are familiar with the formalities and procedures, are often sought by kin of the deceased to ensure a hassle-free burial.

"We work 24ô7 and 365 days a year," he says. "Personal needs and festivities often have to take a backseat in emergencies. Once a call comes, we move in immediately.

The response time varies according to the need of the customer," says Nagarajan, "but at the end of the day, it is ensuring quality service and burying the dead that matters."

As burial service providers vie with each other to woo more customers, a leading undertaking firm tries to make itself visible with a witty tag line "drop in when you drop dead."