Rajiv Bhatia, Country Manager & Director, Nilfisk India Pvt Ltd
Rajiv Bhatia, Country Manager & Director, Nilfisk India Pvt Ltd lets us in on who is buying more and why, what needs to change and what will change of its own accord.
In terms of percentages, what are the proportions of sales to service providers vs facility owners/FM heads of organisations?
For the floor care business, the ratio of sales to FM service providers vis-a-vis facility owners is approximately 70:30.
How has this mix evolved in the past year? According to you, what is the reason for this trend?
The FM share grew faster (at approximately double the rate) as large sites got refreshed or initiated post a bad market in the past two years.
As a solutions provider, you will naturally have differing relationships with these two categories of clients. Please tell us about what differs in the purchasing process.
FM service providers are still price driven, be it for products or their services, with low regard for the quality of cleaning and ability to improve. However, this trend seems to be changing slowly, as their customers move towards sustainable cleaning, which cannot be provided by entry level cleaning equipment.
All things considered, which of these two types of clients is easier to do business with, and why?
Of the two, the direct buyers are definitely easier as they perceive the value proposition of lifecycle services, sustainability and consultative sales approach. Direct buyers appreciate the research that Nilfisk brings to the table. Now, we can impact them on Total Cost of Ownership and their carbon footprint over the lifecycle of their equipment, not just at the point of sale.
What are the advantages and disadvantages of selling to each type?
Consultative sales to direct buyers gives us an opportunity to be a partner rather than a vendor. At the same time, FM companies contribute to a large slice of the market pie and as they look at adding value to their customers with IFM and other services, the solutions approach shall bear fruit for FM companies too.
FM companies are people and process experts. With the right advice on equipment and chemicals, they can transform into powerful solutions for all types of cleaning needs of organisations. This transformation is happening at an accelerated pace.
In the coming years, how do you feel this balance of clients will evolve, and why?
In my opinion, the FM services portfolio shall grow in all directions as organisations focus on their core strengths and leave hygiene and cleaning activities to the right FM service providers.
What is the future of the Indian cleaning market?
India’s cleaning equipment market is ~1% of the global professional cleaning market – too small for a country with the 5th largest GDP. Post pandemic, as organisations give more importance to hygiene and safety of their employees returning to work, our industry and FM services are poised to grow multifold and become a recognised industry.