- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
The Dubai-based facilities management company EFS is not done with acquisitions — it is currently weighing the options of doing another deal in India as well as in Turkey. This would be on top of the three it has effected in the last four years, of which two are quite recent.
“In Turkey, if the deal goes ahead, it would be the first step in establishing a presence there and taking EFS on course to being a regional player,” said Tariq Chauhan, Group CEO. “There’s so much of as yet untapped scope for integrated facilities management in both of those markets.”
EFS’s recent acquisitions have been weighing favourably on numbers. It was in 2012 that it secured a presence in India through a stake in what was then a “distressed asset”.
“The turnaround there has been effected and the Indian entity is profitable,” said Chauhan. “In Dubai, we completed the takeover of a manpower company a couple of weeks ago. Also, all processes related to our acquiring a UAE-based security firm SecurePlus — first announced in Q3-15 — have just been done.
“We are recording tangible benefits from all these deals — against the initial investment of $25 million [Dh91.82 million], the current market value is close to $75 million.”
While its core operations will remain the managing of facilities, diversifying into “non-blue-collar manpower outsourcing” could turn into a sizeable revenue stream for EFS going forward, the CEO adds. “It’s something that we are building towards. The on-demand sourcing of manpower for services related to accounting requirements at an office, other HR needs, etc can all fall within the purview of an integrated FM operator.”
And not being overly reliant on facilities maintenance will play well over the longer term. Basic FM services have turned into a battle for contracts built around wafer-thin margins.
Source: Manoj Nair, Associate Editor, gulfnews.com