Dubai: EFS Facilities Services, a UAE-based integrated facilities management service provider, has acquired Dalkia India Pvt. Ltd for an undisclosed amount.
"It is a complete acquisition and with this, we are planning to spearhead our expansion in aouth Asia," Tareq Chauhan, group managing director of EFS Facilities Services, told Gulf News.
Dalkia India will be added to the EFS Group of companies, expanding the company's regional operational capabilities and strengthening its foothold in the Middle East, North Africa and South Asia (Menasa) region.
Headquartered in New Delhi, Dalkia India manages more than 70 projects across 15 cities with a 2,500 strong workforce, providing FM services to banks, hospitals, malls and multinational companies.
Besides building on core FM services, the EFS management plans to expand its operations and maintenance capabilities into the industrial sector by offering specialised integrated FM services.
"India is becoming a more prominent market for UAE firms seeking new green-field and expansion FDI projects," said Phil Gandier, managing partner for transaction advisory services at Ernst and Young Mena.
"According to Ernst and Young's 2012 India Attractiveness Survey, UAE companies made 23 investments in 2011 with a combined investment of $944 million [Dh3.5 billion].
"This was up from 2010 when 17 investments were made and made the UAE the ninth most significant investor in India in that year."
EFS India also plans to extend integrated FM services to their existing global clients looking for Indian FM service providers.
This acquisition not only gives EFS a significant competitive edge, but also builds the company's capability as a leading integrated facilities management regional service provider.
The facility management sector in India is a thriving $12.5 billion industry and growing at a rate of 25 per cent per annum, according to Indian Facilities Management Association (IFMA). However over 95 per cent of the Indian facility management industry is unregulated, requiring major reforms, recognition and organisation.
"The facility management industry needs recognition by the government and is an area which the association will take up," said an IFMA spokesperson. "There is an increasing demand for such services as emphasis on urban development and modernisation of office spaces is rising. Consistent economic growth has led to a booming real estate sector in India which will positively impact this market in the near future."
Along with other initiatives, the Indian business strategy includes building a strong technical work force that will not only support local business but will help sustain EFS's growing international business. Development of technical excellence and building FM intellectual capital among its Indian workforce will be two of the key drivers of the Indian strategy.
"The GOI allows investors full access to most infrastructure sectors, including: roads and highways; ports and harbours; power plants and airports," Gandier added.
"To increase infrastructure's attractiveness further, the Indian government has extended tax holiday periods, and facilitated the creation of public-private partnership (PPP) projects."
EFS has the vision to build a state-of-the-art FM training and development facility in the country. The trained employees will be inducted in its Indian projects as well as its international projects across the Menasa region.
"This landmark acquisition strengthens our position as one of the leaders in the Menasa region in the FM market, and will enable us to take advantage of the fast growing FM industry," said Chauhan.
"It significantly expands the scale and scope of EFS's existing FM operations and EFS will now be able to provide competitive FM services across a large part of the Menasa region."