The Hindu Business Line : ISS Facility Services earmarks Rs 200 cr for acquisitions

ISS Facility Services India, a subsidiary of ISS Denmark that provides cleaning, office and property support, catering and security services, has acquired Chennai-based Shivas Hoteliers and Caterers Pvt Ltd for an undisclosed amount.

Shivas has centralised and in-house kitchens capable of serving 1 lakh meals a day and a staff of about 1,800 employees. The company’s current revenues are about Rs 36 crore, Mr C. Sivagnanam Shiva, Managing Director, Shivas Hoteliers and Caterers said. Mr Sivagnanam would be joining ISS as Managing Director of the catering business in Chennai and Bangalore.

More acquisitions

This is the first of several acquisitions ISS has planned for the current and next financial year. It is looking to acquire at least five companies operating in the areas of catering, pest control, security and facility management, and has earmarked about Rs 200 crore towards this, said Mr K.J. Jolly, Country Manager, ISS Facility Services India.

“We have plans of expanding catering operations to Hyderabad and Kochi,” he said, at a press conference. ISS is currently present in 18 locations in India and employs over 10,000 people.

The company also plans to set up a Catering Excellence Centre and a training institute at Bangalore next year. It already runs a training institute at Lonavla, near Mumbai.

It recently introduced home care solutions in Mumbai, where a mobile home cleaning service would visit homes in periodic intervals depending on the nature of the contract signed between the customer and the company.

“We plan to introduce these solutions in Chennai and Bangalore in the second half of next year,” Mr Jolly said. The company also plans to enter the security services space through an acquisition in the near future.

ISS Facility Services India recorded revenues of Rs 150 crore last year (Jan- Dec 2006) and expects a 60 per cent growth in revenues this year.

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