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Business services 2015-01-16

How to start your business in Pest Control

Pest control can be a complicated industry but pest control business can be a lucrative business with relatively low startup costs too. In India this industry is still unorganised but the opportunities in the sector are huge. Major names in the industry

The market in the past has always been flooded with either do-it-yourself products, such as insecticide sprays, or the unorganised local players. With only two national players, Pest Control India and Hicare in the market, two multinationals Rentokil and SIS-Terminix are also present. Since the industry is at a nascent stage, there remain a few challenges like implementation of standards in quality across industry and working styles. The awareness is also very low due to lack of enough advertising and campaigns. People in general do not research thoroughly before calling any pest control company and taking services.

What the Industry players say-  

Hicare - Incepted in year 2003, Hicare is a pest management service provider with annual turnover of Rs 70 crore. It started franchising nine years ago and currently has 28 franchise outlets. The brand boasts over 60 service centers in 40 cities across India. It offers complete pest management solution for commercial as well as residential premises. Over the years, the brand has acquired over a million customers across the country and takes pride in serving some of prestigious B2B clients in F&B, Hospitality, and Aviation etc.

Spy Fumizix Pest Control - Spy Fumizix Pest Control has come up with a franchise business model of pest control and management services. The brand has three outlets and all are franchisee run. Dr R. S. Tomar, Vice President- Operation, Spy Fumizix Pest Control says: “Our mission is to serve people by offering pest free and clean environment by using eco-friendly methods and materials to promote sound health, monitor safety of their property and create prosperity. Pest Control Industry needs skills, knowledge and awareness because this affects directly on health and reputation of customers.” The brand works under the guidance set by the Plant Protection Department, Govt. of India & Ministry of Health.

Pest O Stop - Mumbai based-brand, Pest O Stop provides pest control services which includes rodent pest control, bed bug, cockroach, termite, mosquito pest control for residential and commercial establishments. The brand has biggies in its clientele list like Pidilite Industries, Gemini Studio, Yes bank ATM’s, etc. Deepak Chauhan, Director, Pest O Stop says: “Pest control is a good business option as it involves low investment. Industry has a huge scope if we develop a better marketing system.”

Rentokil - Rentokil Initial India is part of Rentokil Initial, the world's largest providers of business services. Formed almost 80 years ago, Rentokil Pest Control is synonymous with the pest control in many of the world's market. Rentokil India management efforts were initiated 1st Jan 2008. Rentokil Initial is organised to deliver services by local people around the world. The local operations are organised into six operating divisions where the 'Rentokil' and 'Initial' brands have come to represent innovation, deep expertise and consistent quality of service. Services include hygiene, pest control and landscaping services.

Why franchising?

Joydeep Sarkar, Business Head, Hicare says: “We opted for franchising because, franchisee being a local person understands the customer’s requirement better thereby ensuring a better customer experience. Franchise model assists in a faster scale up of business and also helps in spreading out the reach across the country at a good pace. We look for partners who are directly involved in daily operation to ensure quality service delivery to customers. We do have an on boarding training program and we provide monthly training to technicians of franchisee.”

Another brand, Spy Fumizix Pest Control selects its franchisees with the help of experts depending on dedication and commitment for customer satisfaction. Site selection and field assistance are two of the other many benefits.  

Challenges

Most brands offer a low investment, high returns business model but few big challenges in the pest control sector are lack of awareness and availability of skilled workers. Chauhan of Pest O Stop says: “Because of lack of knowledge and misguiding in the field, the challenges are rising. Awareness is also very short and wrong in this subject.” Sarkar of Hicare opines: “Awareness level at present is on a lower side, but with various initiatives from companies, the awareness is going up. This industry fits in very well with overall increase in awareness for health and hygiene. The industry is at a nascent stage so; there are no challenges as such.”

Franchise facts:

Brand

Area

Investment

RoI

Breakeven

Current outlets

Spy Fumizix Pest Control

200-500 sq ft (office with store)

Rs 50,000- 1 lakh

40%

3 months- 1 year

Faridabad, Shri Ganganagar and  Fazilka

Hicare

300-350 sq ft

Rs 10-11 lakh

25%

18 months

60

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