Indian Cleaning Industry optimistic amid setback

It is true that the outbreak of Coronavirus elsewhere in the world did spur some FM companies in India to step up operations, even before we had our first positive case. Angad Rajain, Global Head – IFM, Tenon FM revealed, “Considering the COVID-19 transmission rate and the role that frequently touched surfaces played in spreading the virus in China, Italy, and UK, the demand for deep-cleaning and sanitization services spiked in India overnight at an unprecedented rate from January-end itself.”    

He added that more and more clients were requesting for regular/more frequent cleaning, sanitization and disinfection of their facilities to avoid local transmission by contact. The shortages of cleaning chemicals in the market is indicative of the unpreparedness of the cleaning industry. Learning from this, the FM and cleaning companies will have to source and adequately stock cleaning products to control such situations in the future. Needless to say, manufacturers of these products will also have to ramp up production in a concerted effort, well in advance. 

Debtosh Chatterjee, MD & CEO of Mrinmoyee Supply Pvt. Ltd claims that Covid-19 has created new fortunes for some industry players, and destroyed those of others. Manufacturers/importers of face-masks, hand sanitizers and liquid soap, as well as pest control companies, benefited greatly. “On the other hand, said Chatterjee, “It has destroyed the ecosystem of import-based Indian businesses. Initially, Indian manufacturers got a big boost since they were asked to fill in the vacuum caused by the import shortfall. They could also take advantage of the lower cost of raw materials like plastic chips. But soon, they too found themselves at the receiving end since the liquidity in the market dried up”. 

While this is the story of the manufacturers, the tale FM companies have to tell is somewhat different. “Although business operations have stopped because of lockdown”, said Amit Salunkhe. Director of Sumeet Facilities Pvt. Ltd. “Most of our clients have granted paid leave for the lockdown period”. With the latter recently getting extended by at least two more weeks, how far this bonhomie will continue remains to be seen.  

In Sunil Chari’s experience, the awareness about cleaning, hygiene and disinfection is the highest ever now. The Director of Rossari Biotech Ltd /Buzil Rossari Pvt. Ltd said: “We are now becoming used to higher usage of sanitiser and disinfection products, but we need to create awareness about how to use them. Indiscriminate use can cause harm”. Overall, business in March has been good, and he expects to see excellent sales in the coming months too.   

Vinay Deshmukh, COO of Forbes Facility Services Pvt. Ltd agrees that immediately after the outbreak of Covid-19, there was sudden awareness and sensitivity towards surface sanitization. But there is a flip side; the cleaning industry is B2B, and with many businesses shut, resulting in a migrant workforce moving across geographies, resource availability during the post-lockdown phase will be affected.

Change in client demands

Perhaps never before have clients been as particular about the level, type and frequency of cleaning they desire, as well as the chemicals, tools and machines used to achieve the same. Everyone has been obsessively reading about how the virus is transmitted and what is effective against it. In response, Salunkhe’s company has changed its business strategy and added Disinfection & Sanitization services to its portfolio, which it believes will be in major demand in the coming years. Rajain’s experience has been that “Corporates have become sensitive to premises cleaning and are asking for frequent routine cleaning. They are reaching out to janitorial service providers, specifically requesting for antiviral cleaning. Pradeep Lala, MD & CEO of Embassy Services Pvt. Ltd revealed that companies have realised the importance of the effectiveness of cleaning rather than being concerned only with look and shine. Every client’s focus is directed towards the cleaning of high-contact surfaces like door knobs, lift buttons, hand rails, etc.   

What will happen after lockdown is over? 

These testing times will also allow the survival of only the fittest. Tanmay Khare, Infrastructure, Facilities and Assets of Mahindra Finance predicts that only big players with good financial and compliance backgrounds will survive, while small or part-time players will be washed out.

As the pandemic curve flattens and then a semblance of return to normalcy begins to set in, Tony Chazhoor, Managing Director of IP Cleaning India Pvt. Ltd believes that the demand for cleaning workers shall see a surge from the industries currently under lock down, like retailers, restaurants, hotels, airlines and other companies that cater to the public — which is presently not allowed to step out.  

While trade around the world will be gradually restored and international travel curbs lifted, the firms which are into manufacturing sanitation and disinfection materials, and professional and industrial cleaning machinery are expected to double down on production to meet the pent-up demand. As the pandemic subsides when the lock down is relaxed, Sam Freeman, MD-India, Atalian Global Services knows that buildings and factories will need to be sterilized before people can return to them. This will mean that the industry will experience a bump in demand. He also believes that clients will move away from time-based cleaning schedules, and focus on delivered outcomes, which can be measured using technology such as ATP meters and swabs.

But what of the labour force who have been relegated to sit back and wait at home, waiting for this time to pass? Deshmukh is dreading the onerous task of reassembling them from wherever they have gone to tide over this misfortune, retrain them and settle them back into their jobs; this will require a tremendous amount of time and effort. The biggest change he expects to see in workers’ attitudes is more awareness about occupational health, and more insistent demand for PPE. This, along with many other factors, will necessitate a renegotiation in facility planning and service agreements.

Since most clients are expected to demand sanitisation as opposed to simple cleaning, the products used post-lockdown will be very different, at least in the near future. Neutralising products and use of steam will be more in demand; the boundaries between cleaning and sanitisation will become hazy. Rishikesh Dhodapkar, Business Head-Food Services of Forbes Facility Services Pvt. Ltd, expects two distinct phases of return to normalcy: 

Phase 1: Initial three months post-lockdown

  • Ensuring awareness and training are instituted by every organization about precautions and correct PPE usage.
  • Regulatory enforcements on periodically tracking health conditions of employees will have additional cost implications. 
  • Good opportunities for organizations to build up specialized cleaning verticals focusing on sanitisation frequency.

Phase 2: The first year

  • Only large professional cleaning organisations will continue to work, who would have adapted to a focused cleaning approach and which provide value-based solutions.
  • Regulatory enforcement of every organization declaring sanitisation frequency and tracking health records.
  • Cleaning Industry will be regulated as an essential service

Staff issues

There is a high level of uncertainty and concern in the minds of the ground-level/task-level cleaners about their income and their future. So far, the government has done very little in terms of providing relief for this group. Other countries like the UK have provided government furlough covering 80% of the salary of the minimum wage earner, and Singapore has provided SGD 100 per person per day for food, stay and other amenities. The Indian government needs to come up with and execute a comparable plan to support the families of the millions employed in the FM sector. 

Rajain hopes that the cleaning industry will demand more skilled manpower and technological advancements to manage the supply-demand disruptions. Presently, Tenon FM is bucking the trend by hiring professional and well-skilled cleaning specialists as demands continue to grow during the lockdown. Embassy Services is adhering to timely payments for every staff member, apart from additional payments for those working on the ground, over and above their salaries. 

Freeman made a very crucial point: “In addition to the FM industry receiving a greater profile, one outcome I hope will be realised is a greater value being placed on those in the cleaning profession; janitors, supervisors and the like. If this happens, we will be able to recognise their hard work with improved salaries and working conditions. A few weeks ago, people believed that those working in supermarkets, and cleaners were ‘low-skilled’; now, these are the people critical to managing the Covid-19 outbreak”.

Expected government support

Unfortunately, most authorities at every level have failed to identify professional cleaning as an essential service. This prohibits the free movement of workers in manufacturing facilities between home and equipment manufacturing facilities, as well as that of FM personnel between their residences and the facility itself. This is slowly changing, but needs to change more rapidly.   

A majority of India’s cleaning equipment and chemicals are imported. Importers have already paid customs duties and GST for these products, which are now lying unused in warehouses because of the suspension of transport. For these businesses to not just survive but also continue to function during this critical time, the government needs to give them leeway in tax payments, and allot a portion of the soon-to-be-restarted rail goods transport to them, to move critical cleaning supplies to where they are needed.    

While much of the government’s resources will be understandably devoted towards healthcare, the time is also ripe for the government to invest in mechanisation for cleaning for the purpose of public health. 

to be continued

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