Changing with Changing Times

[box type=”shadow” ]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.

-Sanjay khanvilkar[/box]

The broadening spectrum of facility maintenance has redefined the business of the service segment, taking it from a mere manpower supplier to housekeeping services and security supplier to a total facility management service provider. “It is time for a change to keep up with the changing trends,” says Sanjay Khanvilkar, Chairman & Managing Director of Sanjay Maintenance Services, which has evolved to become a leading FM company in India.

Looking back, Sanjay Maintenance Services has witnessed changing seasons of the service segment the late 60s until today – times from when housekeeping was more of a part-time or a sweep-and-swab service to the modern day professional and skilled service using machines and methods.

Transition

“We have seen the changing role of the service segment since inception in 1968, when we began as a labour supplier and housekeeping service provider. The shift to FM started in 2000, the year which saw the advent of MNCs stepping up standards of cleanliness and hygiene in their premises,” says Sanjay Khanvilkar. The whole concept of housekeeping department commenced with globalization. Earlier, the focus was on operations, but today it is more on presentations. The presentation of a well-groomed and well-mannered janitor symbolizes the professionalism of the service company. “It will be no surprise, in decades to come, we will be talking about robotic cleaning.

“Today, right from soft services, MEP, security to catering and other services, we provide everything that is required to maintain a facility. The overall transition from mere housekeeping into a software-driven total facility management called for a makeover. Hence, it was time to reposition SMS with a new look,” explains Sanjay.

Re-positioning

 SMS, while retaining its basics, is aptly pursuing its tagline “Rising Excellence Since 1968”. “In a complete revamping, we have redesigned our logo after over 30 years by adding more colour to the ‘eye’ for cleaning … in keeping with the new era. We have redone our entire operating systems which are software based and centralized.”

Headquartered at Mumbai, SMS has central processing systems driven by in-house software and controlled centrally by the corporate office. “The software developement based on my 24-year experience in this industry, enables monitoring staff right from entry to exit or client’s PO to contract completion; drawing MIS reports and integration of all activities, be it HR, uniforms, supplies, purchase and so on. Entirely system based, to the extent that every employee even those in remote places receives salary every month in his/ her bank account.”

Brand Conscious

Our 16,000 workforce has grown with the company over the years — housekeepers growing into a supervisors and managers and to general managers too. “The first thing I did from the very early days was to call housekeepers as housekeepers or housemen rather than a jamadar or mukadum and provide them with soothing uniforms that no one would want to treat or address them with names like jhadoowala or safaiwala other than housekeeper. The growth for each of them is tremendous at SMS. The houseman who was cleaning Express Towers in the early days, is part of the management today. We identify the workers’ shortfalls and uplift them. I am proud to say that my entire housemen are using laptops. They are my brand ambassadors.” With attrition rate as low as 3.5%, staff at SMS have stayed for over two decades.

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.”

 

About 12 years back, the cleanliness caught my attention at Tirupati Balaji Temple and my subsequent visit to Kolhapur Mahalakshmi Temple, which was highly unclean, I approached the trusties to take up the voluntary cleaning of the premises. From then on, every year we maintain the Kolhapur temple and since the last eight years, we are doing Lalbaug Ganpathy. Besides doing “seva”, the experience of managing the crowd who visit in lakhs and maintaining it clean, is a big achievement.FM-segment We also do specialized cleaning at Siddivinayak Temple and the Padmanabha temple in Kerala. On a voluntary basis we have done the cleaning of Dadar station and are doing annual cleaning at KEM hospital for the last three years. This experience has led us in successfully maintaining exhibitions like IIJS of the gems and jewellery industry.”

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