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Mar, 04 2015

Swacch Bharat Abhiyaan offers business galore

Prime Minister Narendra Modi's 'Swacch Bharat Abhiyaan' has definitely given a boost to the Indian cleaning industry. Be it car clean, tank clean, laundry, waste management or any other segment related to cleaning, the brands are on a high wave. Now, clea

The cleaning industry in India is still highly unorganised. This industry is a potential employer for a large number of unskilled people. So, it deserves more focus and recognition. Cleaning not just includes household but much more than that. Starting from laundry, carpet cleaning, textile cleaning, tank cleaning, pest cleaning, vehicle cleaning and much more is a part of the thriving industry. Few entrepreneurs might think twice before investing in the industry because of many reasons like non availability of skilled labour, non acceptance of the concept and many more reasons, but the cleaning sector is a money spinning opportunity if starting with right knowledge and proper market research.

Why invest in car cleaning:

Today mechanised car cleaning system is already a $5.97 billion business in the US with more than 14,414 successful outlets and in India it is just at the threshold of picking up. The car wash industry has grown from as simple as hand wash to sophisticated high impact pressure jet wash technology. Owning and running a car wash these days, is not mere business but, it's one of the most lucrative and profitable businesses. Speed Car Wash started its journey in May 2011 with pilot project in Ludhiana. Now, the brand has 60 outlets out of which 58 are franchisee run with more than ten lakh cars being pampered pan India. Jasmeet Singh, VP, Channel Expansion, Speed Car Wash says: “As a franchisor we always do R&D and try develop further more services and products for customers, consequently increasing the revenues of the franchisees.”

Owned by Manmachine Works Pvt Ltd, Noida based Exppress Car Wash started franchising in 2010 and now has ten company owned and 32 franchise outlets. It's Director, Karan Sethi says: “Car cleaning industry as of now is at a very nascent stage and is growing rapidly with more awareness being spread day by day. Car cleaning industry in the US is a 62 billion dollar industry and we have only achieved one per cent of that in India. With better equipments and more attention to cleanliness, this industry will grow at a very fast rate and will soon be the most preferable franchise opportunity in the service industry. For investors, car washing and detailing, franchise is becoming a preferred choice because of its fast RoI model and high profits because of very low running costs. You can expect a profit up to 70 per cent of your revenue generation which build customers expectation and challenges the word 'gestation period' in a business.”

Another brand, Superwash has 13 outlets pan-India out of which 12 are franchisee run. It took franchise route in 2011. Ramesh Naidu, Managing Director - Superwash Services Pvt. Ltd says: “The industry is largely served by unprofessional and unorganised players and there is a demand for professional services not only in metro cities but also in tier- II cities and towns.”

Tank Cleaning: The guesstimated water storage tank cleaning industry in India is more than Rs 3000 crore and increasing everyday with the growing population and infrastructure. There is a huge potentiality for budding investors in this service category as there are very few players. Established in 2006, Raipur-based tank cleaning brand Fastclean is an example to those who still hesitate in investing in such sector. Many still believe it's a low profile job without considering the rewards and revenue it generates with small investment. Lack of awareness about the importance of cleaning has also played the role. However, things are changing now. The brand has 46 outlets and 44 out of all are franchisee-run. Other players include Chennai Tank Clean, MS Tank Clean.

Laundry and dry-cleaning:  TechNavio's analysts forecast the Global Laundry Care market to grow at a CAGR of 5.03 percent over the period 2013-2018. Globally, the dry cleaning and laundry industry is a much bigger and evolved industry as compared to India. Here, the market is still to a large extent covered by local and neighbourhood players. Technology and customer service is still an issue. International brand, The Swiss Laundry currently has seven outlets in India and it started franchising two years ago.  Fernando Arroyo, MD, The Swiss Laundry comments: “Indians are buying more and more expensive garments and need a place that uses modern machinery and advanced chemicals to wash those garments in a hygienic and efficient way. That is why the opportunity is huge and the time to be in this business is right now.” French brand, Textile expert, 5àsec opened its first branch in 1968, based on a genuinely innovative concept: to provide dry cleaning and laundry services, with not only a good quality/price ratio, in order to be affordable and accessible to everyone, but also clear-cut rates applying only five different prices (hence the 5 in 5àsec) not to mention quick delivery. Another brand, launched by the laundry project- Wassup Laundry is headquartered in Chennai and reaches out to consumers by providing professional laundry and dry cleaning services. The brand is currently present pan-India.

Future

= Increasing office spaces surely shows the success of cleaning sector.

= Eco-friendly products and procedures are a trend to watch out for in the future.

= Use of topmost technology by the companies is already rising up.

= For dry cleaners, increasing trend to wear casuals to office can be a sigh of relief as less formal clothes will require comparatively less cleaning and maintenance. 

= The cleaning industry is one of the fastest growing service industries in the United States. It is predicted that cleaning services will experience a five percent growth rate between 2008 and 2018.

=Today mechanised car cleaning system is already a $5.97 billion business in US with more than 14,414 successful outlets & in India it is just at the threshold of picking up.

=TechNavio's analysts forecast the Global Laundry Care market to grow at a CAGR of 5.03% over the period 2013-2018. Globally the dry cleaning & laundry industry is a much bigger &evolved industry as compared to India.

=The guesstimated water storage tank cleaning industry in India is more than Rs 3,000 crore and increasing everyday with the growing population and infrastructure.

 

 

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