The New FM Mandate: Value Creation Beyond L1 Procurement

Once viewed as a back-end support function, facility management has evolved into a strategic pillar of modern organizations. From ensuring business continuity during crises to influencing boardroom decisions on sustainability, cost optimization and infrastructure planning, FM today plays a defining role in shaping enterprise value. Clean India Journal captures what industry leaders highlight on how integration, technology adoption and structured processes are transforming FM from a reactive service into a core business differentiator.

For decades, facility management (FM) operated in the shadows of corporate India — visible only when something went wrong. A midnight phone call about a breakdown, a complaint about cleanliness, or a last-minute scramble before a VIP visit defined its existence. Recognition was rare; expectation was constant.

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Today, that narrative is changing.

At a recent industry discussion featuring senior FM leaders, the conversation revolved around one powerful theme: facility management has moved from being a reactive service function to becoming a strategic differentiator — one that can make or break business decisions.

Strategic Leadership

Reflecting on a 30-year journey in the industry, Nikhil Navalkar, Head of Operations, Horizon Industrial Parks Pvt. Ltd, described how FM was once seen as an internal service department called upon only during crises.

“FM has evolved from a crisis-response function to a strategic decision-making role. Now part of the managing committee, he sees facility management as a value creator influencing design, sustainability and customer decisions.” — Nikhil Navalkar

“It was largely a department which was probably looked at as the service provider within the organization,” he said. “The department was thought of only when problems arose rather than at any other time.”

That perception, he explained, has undergone a fundamental shift. Today, he sits on his organization’s managing committee, contributing to strategic decisions, construction inputs and design planning.

“I am one of the decision makers who is looked upon to resolve issues before they arise,” he said. “Companies are now looking upon FM as the differentiator — the ones who really make or break the decision for a customer to opt for business.”

The evolution has been driven by measurable value — cost optimization, sustainability initiatives and customer-centric infrastructure planning. In many organizations, FM is no longer a cost centre. It is a value creator.

Thankless Job?

The entry of CEO of Dusters Total Solutions Services Pvt. Ltd’s Sanjeev Kumar NGS into facility management came after a long stint in construction. During his transition, a CEO offered him a stark warning.

“He said, ‘You are stepping into a field which is a kind of a thankless job,’” Sanjeev recalled. “In construction you are at the power centre. Here you are only required to keep servicing, servicing, servicing.” But what appeared thankless turned out to be transformational.

“Once called a “thankless job,” FM has become a strategic business driver. He emphasizes resilience, ESG alignment and ownership — reinforced by COVID-19, which proved FM is an essential service.” — Sanjeev Kumar NGS

“In facility management, people have to be resilient, calm and receptive,” Sanjeev said. “You may think an area is clean, but the end user may not. You have to align constantly.”

He also admitted that during his 15-16 years in construction, he never interacted with FM professionals. “We thought they were unimportant people who just came after project handover.”

That siloed thinking, he believes, defined the past. Today’s FM professional speaks the language of ESG, KPIs, CFO expectations and productivity metrics. “You see a facility manager talking about ESG, about being responsible for the environment, about meeting KPIs — and finding a position for strategy in running a company.”

Breaking Away

Historically, FM and administration functions reported to HR in many organizations. That structure has steadily evolved.

“What I see is that admin and FM have become a very important independent vertical,” noted moderator Ralph Sunil, who has spent over two decades in large campus management. He is also the Senior Vice President-Administration at JSW Steel.

Senthil Kumar, Sr Director & Head Facility at Arcolab Private Limited, echoed this shift. “Earlier, facility management worked in a silo. Now it is integrated facility management. Earlier it was reactive maintenance. Now it is proactive maintenance. Earlier it was paper-based. Now we have e-log books.”

In sectors like pharmaceuticals, digitization is not optional. “We are not supposed to use paper. So, e-log books have come in,” he explained.

“From reactive maintenance to data-driven excellence, FM now speaks the language of KPIs and CFO approvals. He champions value-based procurement over L1 and the power of digitization.” — Senthil Kumar

Most significantly, the mindset has shifted from cost control to business excellence. “Earlier we were a cost centre. Now we are business excellence. We know what answer to give to the CFO and what to give to the CEO to get approvals.”

Invisible Backbone

The true test of FM often appears during high-stakes moments — an investor visit, an international delegation, or a major corporate event.

“If an important delegation is coming, whose eyes is the entire organization on?” Sunil asked. “Please keep the place spick and span — that is the first instruction.”

In his experience, investors often judge an organization by its peripheral systems — safety, security, housekeeping — before even reviewing core operations. “They never used to see the main production. They used to see the peripherals — safety, security, cleaning — and then judge whether to invest,” said Sunil.

In integrated facility management (IFM), the scope is vast. “In large campus management, you can handle up to 42 verticals,” Sunil pointed out. From housekeeping and catering to infrastructure and employee welfare, FM is the connective tissue of enterprise operations.

“Integrated FM today spans over 40 verticals and shapes investor confidence. He highlights how safety, hygiene and infrastructure standards often influence business decisions more than core operations.” — Ralph Sunil

The Defining Moment

If one event cemented FM’s essential status, it was the COVID-19 pandemic.

“For India, the defining moment was COVID,” Sanjeev said. “We realized we are essential services — not just an extended arm.”

As lockdowns halted movement, FM frontline workers ensured business continuity in hospitals, data centres and essential facilities.

“A janitor in a hospital had to work 36-hour shifts because you could not replace him easily,” he recounted. “Food was given there, accommodation was arranged. They worked relentlessly.”

The experience reframed FM as a frontline service critical to national functioning. “You limit yourself to a 9-to-6 job, or you bring ownership? That was the question.”

From L1 to Value Creation

Procurement practices have also matured.

“Earlier it used to be only L1 — lowest bidder,” Senthil Kumar said. “You could not intervene. Today, we have data. If someone says you are wrong, I have data to show I am right.”

He narrated a simple but telling example. A vendor arrived with bamboo scaffolding for a painting job in a corporate office. When asked about proper scaffolding safety systems, the vendor seemed unaware.

“I stopped the work,” Senthil said. “We had the power to take that decision.”

Sanjeev reinforced the shift: “It is no longer about L1. It is about value creation.”

Automation, robotics and digital visitor management systems illustrate the broader transition from manual, menial tasks to intelligent infrastructure solutions.

Recognition at the Last Mile

While strategy and systems matter, culture and recognition remain equally critical.

Nikhil shared an experience when his organization won IGBC Platinum certifications across multiple parks.

“The trophy was handed over to us in a huge auditorium,” he said. “But I said the trophy belongs to the people who ensured the last mile — the teams on the ground.”

Instead of displaying the awards in corporate offices, he personally carried them to each park to felicitate frontline staff and third-party partners.

“When you take people together and walk the last mile, that is when things change.”

Pride, Scale and Social Impact

FM’s scale is staggering. In large campuses and townships, operations impact tens of thousands daily.

“If I do not see the garbage management vehicle move around, I get scared,” Sunil admitted. “We generate close to 10 tons of waste every day. One day of non-collection and the relevance of our job becomes very high.”

The industry’s growth trajectory is equally significant. Housekeeping demand alone is projected to surge dramatically by 2030 as new facilities come online. Railways, hospitality, food services and commercial infrastructure have all elevated service standards — and FM sits at the heart of this transformation.

Sunil offered a lighter analogy: “There are two people in an organization who are like mummy and daddy. HR may be the daddy — policies and salaries. FM is the mummy — care, food, cleanliness, discipline.”

The message was clear: pride in purpose must define the profession.

The Talent Challenge

With growth comes a pressing challenge: manpower.

A member of the audience raised concerns about the shrinking availability of blue-collar workers amid rising gig opportunities and regional development.

Sanjeev acknowledged the reality. “Nobody would like to migrate to metro cities now. Rising costs are a problem. A janitor’s child wants to be 10th pass, 12th pass, engineer. They do not want to enter the same job.”

The solution lies in dignity, career progression and structured upskilling.

“We have people who started as bellboys and now handle P&L of Rs 400 crore,” he said. “If a blue-collar employee sees this as a career, not just an option, we can solve the problem.”

Education formalization is also underway. “We have started BBA in facility management. Universities are offering degrees. Short-term housekeeping certifications are coming,” Sunil noted.

Talent Pipelines

Nikhil shared a practical model implemented across industrial parks located on city outskirts.

“We have set up training centres in coordination with CII to train local communities as per tenant requirements,” he said. “These people get trained and immediately absorbed into jobs.”

The approach benefits businesses, tenants and surrounding communities — creating a sustainable ecosystem.

A member from the audience, summarized the larger imperative: “We must treat these people as an integral part of the business. Retention is key. If retention happens, outcomes will be what we dream of.”

He added that FM must be formally recognized by the government as a structured service industry, with standardized frameworks across states.

The Road Ahead

The conversation revealed a sector in transition — from reactive to proactive, from cost centre to strategic partner, from invisible support to visible leadership.

Facility management today is about business continuity, sustainability, risk mitigation, experience design and talent development. It is about enabling 40,000 employees to walk into work each day confident that power, air conditioning, safety and hygiene will function seamlessly.

As Sanjeev succinctly put it, “We are not just servicing. We are creating confidence.”

The journey from “jhadu pocha” to boardroom presence may have taken three decades — but the next phase promises even greater transformation.

Key Takeaways

  • FM has shifted from reactive problem-solving to proactive, strategy-driven leadership.
  • The function now contributes to ESG goals, cost optimization and operational excellence.
  • COVID-19 reinforced FM’s role as an essential service ensuring business continuity.
  • Procurement has moved beyond L1 (lowest bidder) to value-based decision-making.
  • Integrated Facility Management can span up to 40+ operational verticals.
  • Technology adoption — robotics, automation, e-log systems — is redefining service delivery.
  • Recognition and empowerment of frontline workers strengthen performance and retention.
  • Talent shortages require structured career paths, upskilling and formal education programs.
  • Community-based training models can build sustainable local talent pipelines.

Compiled by Keerthana Sundar of Clean India Journal

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