Facility Management Major SBricks Acquires HomeCues

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Hyderabad, India

SBricks (www.sbricks.com) is a facility management & home services start-up
HomeCues (www.homecues.com) is into aggregation and providing professional household services
The merger is an all-stock deal
Entire business of HomeCues merges with SBricks
The combined entity will be known as SBricks Castle Care Pvt Ltd

Hyderabad-based household services aggregation and facilitation company, HomeCues (www.homecues.com) , promoted by Homefix Technologies India Pvt Ltd, has merged with SBricks Castle Care Pvt Ltd (www.sbricks.com) , Hyderabad, a leading provider of facility management, home clean, laundry, repairs, and maintenance services.

Announcing the merger, D Nithin Reddy, CEO of SBricks Castle Care Pvt Ltd, has said that the similarity in businesses of the two companies has provided an opportunity for the merger. The combined entity, which will henceforth be called as SBricks Castle Care Pvt Ltd, foresees a growing business opportunity in the market for facilities management, laundry, home services like plumbing, electricity, cleaning, UV cleaning of mattresses and sofas, etc.

Mr Reddy said that HomeCues will henceforth be a 100 per cent subsidiary of SBricks Castle Care Pvt Ltd. The business opportunity to be added to SBricks, consequent upon the merger, would be a cleaning area of 2.5 mn to 3 mn sq feet.

“The urban lifestyles in the cities have undergone a sea change with household chores becoming essentially an extra burden on families. The business opportunity for services like home-cleaning, laundry, maid, plumber, electrician, AC maintenance, car cleaning and other services have increased enormously,” he said.

“We thought this would be a good synergy, bringing together our last-mile ownership and their aggregator model under one umbrella. We are aiming at standardizing these home services. Once we have created a perfect model in Hyderabad, replicating this to other cities is not going be a problem,” disclosed Nithin Reddy.

There is a huge employment potential in the market in facility management, laundry, repairs, maintenance and other services which has not been tapped so far to its fullest extent. SBricks has experience in handling such services in a very professional manner. The company, in its year and a half of existence, has provided its services to over 50,000 customers.

HomeCues, which has been aggregation of service providers, has been in existence for about two years and has handled over 25,000 clients so far.

While SBricks would continue its services in B2B and Corporate Entities, FMS (facility management services), small, medium and large format properties under its brand name, the B2C services will be offered under “HomeCues” brand, owned and operated by SBricks.

Market size

Rise in personal disposable income, changing lifestyle of the rural and urban population and the rising awareness have been contributing factors for reported CAGR 20% in 2015, according to Rural Marketing (www.ruralmarketing.in) report. The Cleaning industry is expected to grow by 30 per cent in India, following the Swach Bharat initiative by Government of India.

The toiletries and household cleansing market alone in India is expected to grow at a CAGR of 17.42% in FY’2014-FY’2019, according to Ken Research.

Neilson Survey put the CAGR of home cleaning over 15 per cent in India (Global Homecare Report). The developing markets reviewed showed the greatest growth, with sales increasing by 11.5% in the Philippines, 11.2% in Indonesia, 10.5% in Turkey and 5.1% in India. Even Laundry cleaner sales in India registered over 19 per cent YoY CAGR.

GLOBAL SCENARIO

Globally, according to a survey published by Franchisehelp, the cleaning industry can be roughly divided into residential cleaning, commercial janitorial services, specialty cleaning and laundry/dry cleaning services. In 2015 there were approximately 875,000 businesses employing about 3.5 million people.

In 2015, it generated $51 billion in revenue globally. This recent upward momentum can be attributed to both unemployment and office vacancy rates declining as well as a pickup in nonresidential construction activity. In other words – people have more money to spend and feel more secure spending it, and there are more offices that need cleaning.

Strong economic activity is forecast for the next 5 years as well, and the Bureau of Labor Statistics is predicting job growth of about 6% from 2014 levels to 2020, across the world.

About SBricks

SBricks, a boot-strapped start-up with focus on facility management, home cleaning and other allied services, with Hyderabad as its headquarters, is offering one-stop solutions for all home services and also corporate properties, movie theatres, shopping malls, restaurants, and convention centres. The company with over 250 employees on board offers 40 services with its list of pre-approved, carefully screened service providers. It clocks about 300 orders per day and expects to ramp up the numbers in the near future.