With a firm belief in quality delivery, SMS uses brands like Diversey, Karcher and Schevaran products for cleaning. “Our association with Diversey is more than 20 years old.”
Handling more than 400 clients pan India SMS offers services at even small sites. “Today, 60% of our revenue comes from the Banking industry which also includes small premises.”
Issues in FM segment
While the FM has become one of the core activities to organisations today, “there is an imminent threat of lack of skilled workforce to deliver professional services.” There is a definite change in the mindset for professional services, the corresponding change in the pay scales of the workforce is largely overdue. “Cut throat competition and better opportunities are driving the workforce to other industries leading to acute shortage.
“Another grave concern is diminishing financials due to shrinking margins. During the 70s and 80s, we were working on 20 plus margins and today even to get profits in two digits is a hassle. Further, the working capital crunch is hampering operations, over delayed payments from the clients. The trend of dues getting released on the first of every month has faded and today clients are demanding credit of 45 or 60 or even 90 days. The impact of delayed payments is hitting the working capital of the service provider.”
All said and done, the facility service segment has a huge potential but there are many issues which have to be tackled for which there is a need for a forum or association, says Sanjay. “Right from contract manipulation, wage structure or service tax we need to address at the government level and that is possible only through a strong central body. If these issues continue, in the long run, the customer will have an upper hand without any regulations in place.”

