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Rising Confidence in Cleaning

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However, for the past two three years, Indian companies have been consistently criticised and some of their plants have been banned by EU owing to their poor GMPs. Recently, the US Food and Drug Administration issued a warning letter to Sun Pharma highlighting serious concerns of sterility assurance in medicines, possibility of microbial contamination and ceiling leaks, as part of the manufacturing lapses at its Halol facility.

[box type=”shadow” ]According to the Passport database access, India had 174 billion washing and cleaning industry in 2012, more than doubling in value since 2007. Nearly 767,000 washing and cleaning companies in India in 2012.[/box]

Hence Cleaning & Maintenance, an essential and inevitable part of GMP at pharmaceutical can’t be side-lined. Ashok G. Deshpande, Manager-Corporate Communications & Administration- Glaxo SmithKline says, “In my opinion a pharmaceutical company of Rs1 billion revenue spends approx. 2% on housekeeping.

Other Sectors

Railway-CleaningIt is hard to present the potential-figures of all the sectors in a single article. Each one has its own story to tell. Indian Railways with a revenue of over $24 billion is a big consumer for cleaning & maintenance in itself. The domestic textile and apparel industry is estimated to reach US$141 billion by 2021 from US$67 billion in 2014. Among others, banking industry that consists of 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks; IT & ITeS, world’s largest sourcing destination, accounting for approximately 55% of the US$146 billion market and Defence & Aerospace getting a huge FDI inflows are the other prime consuming target sectors for cleaning & maintenances.

Cleaning Market Potential

Taking all the figures into account, the emerging markets, existing and new investments being made, the cleaning & maintenances market potential stands tall at $150 billion, harnessing which the cleaning industry can actually contribute to 0.5% of country’s GDP.

Industry Snapshots

When it comes to the cleaning segment, it is comparatively difficult to consolidate the figures. It has neither been sketched nor been framed as an Industry. The areas are washing & cleaning / linen cleaning; building cleaning services; other contract cleaning; cleaning equipment, tools and consumables; critical cleaning; home cleaning; roads & street, rivers, lakes and other water resources and heritage area cleaning. For e.g, while outsourcing, cleaning services comes under soft services which has to be separated from the hard one. At the operations level, “the cleaning & maintenance is a part of O&M Expenses, the norms set by CERC, regulatory commission, for power stations as Tariff Regulations,” comments Vivek Kumar, Manager- NHPC Ltd.

[box type=”shadow” ]Banking Industry that consists of 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks, IT & ITeS, world’s largest sourcing destination, accounting for approximately 55% of the US$146 billion market and Defence & Aerospace, getting a huge FDI inflows are the other prime consuming target sectors for C&M.[/box]

According to the Passport database access, India had Rs174 billion washing and cleaning industry in 2012, more than doubling in value since 2007. Nearly 767,000 washing and cleaning companies in India in 2012. Industry lacks automation, is very labour-intensive throughout 2007-2012. Industry turnover set to see 19% CAGR over 2013-2018, to reach $7.4 billion at end of forecast period.

The Indian building cleaning services market has grown by 78% over 2007-2012, reaching Rs63.8 billion in the latter year. While value of building cleaning services provided to Indians abroad climbed by 127% over 2007-2012 to Rs7.6 billion, the value of local building cleaning services segment has increased by 74% over the same period to Rs57.3 billion in 2012. Industry turnover is expected to increase by 123% over forecast period, reaching Rs127.7 billion in 2018.

Late entrant to the Indian cleaning market is services. Contract cleaning has recorded an impressive CAGR of 18% in the period 2011-2014, whilst total sales reached USD3.1 billion in 2014. The services are now being outsourced in a variety of institutional channels, including private hospitals, private education (higher education), factories (especially in the power, energy, steel and cement sectors), public administration, banks, multinational corporations (especially in IT and the telecommunications industry), retail, manufacturing and lodging, among st others.

With inputs from IBEF,

PIB Moody’s Analytics and KPMG

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