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The Industrial Cleaning in India
Profile 2009
Market Research on
Industrial Cleaning Sector in India




              Prepared for




                    By



         ACE GLOBAL PRIVATE LIMITED
              NEW DELHI, INDIA
Copyright Ownership


The report/market research submitted by Ace Global Private Limited
is the exclusive proprietary right of Italian Trade Commission (ICE)
and will be for exclusive utilization by ICE office. This report shall not
be shared with any other clients in the form of part/sections of the
report without ICE’s prior approval.
Table of Contents


1.             Introduction ............................................................................. 1
     1.1    Objectives .................................................................................................................. 1
     1.2    Coverage of the study................................................................................................ 1
     1.3    Methodology ............................................................................................................. 1
       1.3.1     Secondary research ........................................................................................... 1
       1.3.2     Primary survey................................................................................................... 2
     1.4    Draft Report............................................................................................................... 3


2.             India – A Brief Profile and Economic Overview ......................... 4
     2.1    Geography ................................................................................................................. 4
     2.2    Demographics............................................................................................................ 5
     2.3    Economic Demographics: .......................................................................................... 5
     2.4    Macro-Economic Scenario......................................................................................... 5
       2.4.1     Recent Economic performance and future outlook.........................................6
     2.5    Business Environment and Policy Framework........................................................... 7
     2.6    Currency .................................................................................................................... 7


3.             Overview of Industrial Cleaning Sector in India ........................ 9
     3.1       Equipment ............................................................................................................... 10
     3.2       Consumables ........................................................................................................... 18
     3.3       Tools & Accessories ................................................................................................. 20
     3.4       Industry Growth Trends .......................................................................................... 22


4.             Product Range........................................................................ 26

5.             Production Overview ............................................................. 31
     5.1       Equipment ............................................................................................................... 31
     5.2       Consumables ........................................................................................................... 32
     5.3       Tools and Accessories.............................................................................................. 33


6.             External Trade........................................................................ 35
     6.1       Imports .................................................................................................................... 35
     6.1.1       Italy’s Share in Indian Imports ............................................................................. 37
     6.2       Imports information compiled from primary survey .............................................. 38
     6.3       Import Tariff ............................................................................................................ 42
     6.4       Exports..................................................................................................................... 43


7.             Channels for Marketing.......................................................... 44
     7.1       Structure.................................................................................................................. 44
     7.2       Distribution Network............................................................................................... 45
     7.3       Market Segments .................................................................................................... 54
8.             Employment in the Sector ...................................................... 57

9.             Growth Trends ....................................................................... 59

10.            Growth Drivers....................................................................... 61
     10.1      Real Estate boom in India........................................................................................ 61
     10.2      Facility Management Services ................................................................................. 62
     10.3      Growth in end-use segments .................................................................................. 63
     10.3.1       Health care segment............................................................................................ 63
     10.3.2       Organised Retail .................................................................................................. 65
     10.3.3       HORECA segment ................................................................................................ 66
     10.3.4       IT and ITES sector................................................................................................. 67
     10.3.5       Railways ............................................................................................................... 67
     10.3.6       Urban Transportation .......................................................................................... 67
     10.3.7       Municipal Authorities .......................................................................................... 68
     10.4      Efforts by industry ................................................................................................... 68


11.            Experiences/Perceptions about Italian equipment/ companies
               70
     11.1      Product range .......................................................................................................... 70
     11.2      Quality ..................................................................................................................... 70
     11.3      Price ......................................................................................................................... 70
     11.4      Relationship with customers ................................................................................... 71


12.            Interest in Tie-ups with Italian companies.............................. 72

13.            Conclusions & Recommendations .......................................... 73
     13.1 Conclusions.............................................................................................................. 73
     13.1.1 Products with Potential ....................................................................................... 74
     13.2 Recommendations - Strategy for Italian companies ............................................... 74
     13.2.1 Business Structure Options ................................................................................. 74
     13.2.2 Practical aspects of doing Business in India ........................................................ 76
     13.2.3 Pathways for Market Entry.................................................................................. 76
     •    Business Development and Promotion ....................................................................... 76
     •    Business Models .......................................................................................................... 77
     •    Aggressive marketing for brand building .................................................................... 78
     •    Two pronged approach to sales and distribution: ...................................................... 78
     •    Value added services ................................................................................................... 78
Market Research on Cleaning Industry in India




1. Introduction

This report pertains to the market research on Industrial Cleaning Industry in India. The survey has
been sponsored by Italian Trade Commission, New Delhi, on behalf of AFIDAMP - the Italian
Association.


1.1     Objectives


The main objective of this study is to prepare an updated version of the Report on
Market Survey on Industrial Cleaning Machines / Equipment and Products in India,
which was originally prepared in 2006.

Accordingly, this updated report covers the following:
• The current state of the Industrial Cleaning Industry in India
• Principal factors driving the growth of the market, including trends in technology
   and products being currently used in India
• Availability of equipment and products (Indian and Imported)
• External trade trends

1.2     Coverage of the study


This study covers cleaning equipment and related products used for professional
applications only. The following categories are covered in this study:
-        equipment
-        consumables
-        tools & accessories

1.3     Methodology


1.3.1    Secondary research

The main sources of secondary information have been
      - Economic Survey of India 2009
      - Websites of companies
      - Journals and publications of various industry bodies (current and past
          issues)


Ace Global Private Limited, New Delhi, India                                                      1
Market Research on Cleaning Industry in India




                   Clean & Hygiene Review (a bi-monthly publication of Hammer
                   Publisher Pvt. Ltd., Delhi)
                   Clean India Journal (a monthly publication of Virtual Info Systems
                   Pvt. Ltd., Mumbai)
                   Facility Management (quarterly publication of International
                   Facility Management Institute – India chapter)
        -   Imports and exports statistics from DGCIS, Govt. of India
        -   Catalogues of Indian manufacturing and marketing companies

1.3.2   Primary survey

A primary survey was carried out to assess the market size, growth trends in the
industrial cleaning sector in India. The primary survey also obtained feedback on
experience, awareness levels and perceptions with regard to foreign (especially
Italian) equipment and products for industrial cleaning.

The primary survey was carried out through personal interviews in all the important
locations for the Industrial cleaning sector, as summarized below:

Table 1.: Primary survey contacts
                                                                      Number
Indian companies manufacturing and/or marketing industrial              25
cleaning equipment / consumables / tools & accessories
End users of industrial cleaning equipment/products,                     12
including Service providers (Facilities Management
companies)
Industry bodies (including publishers of journals)                       2
Total                                                                    39

A full list of names, addresses and contact numbers of companies/organizations met
during the primary survey, is enclosed as Annex 1.

It is pertinent to highlight here that although most of the respondents were
cooperative, some companies did not agree to meet the consultants while some
shared only part of the information. In such cases, effort has been made to compile
as much information as possible from secondary sources.




Ace Global Private Limited, New Delhi, India                                       2
Market Research on Cleaning Industry in India




A larger database of industry players and other related organizations in the Industrial
cleaning sector in India is enclosed as Annex 2.

1.4   Draft Report

This Draft Report has been prepared based on the compilation and analysis of all information/data
collected through secondary and primary research.




Ace Global Private Limited, New Delhi, India                                                   3
Market Research on Cleaning Industry in India




2. India – A Brief Profile and Economic Overview


2.1       Geography


      -   Total area: 3.28 million sq km (of which land area is approx. 2.97 million sq.km.)
      -   Land boundaries: 14,103 km
              o Border countries:
                           West: Pakistan 2,912 km
                           North: China 3,380 km, Nepal 1,690 km, Bhutan 605 km
                           East: Bangladesh 4,053 km, Myanmar (Burma) 1,463 km
      -   Coastline: 7,000 km, bordering the Indian Ocean (South), Arabian Sea (South West)
          and Bay of Bengal (South East)
      -   29 states and 6 union territories. Many of the states are larger than some of the
          European countries, both in terms of area as well as population




Ace Global Private Limited, New Delhi, India                                                   4
Market Research on Cleaning Industry in India




2.2       Demographics


      -   Total Population: 1.17 billion, with overall growth rate of 1.548% per annum
      -   31.5% of India’s people are under the age of 15
      -   63.3% are between the ages of 15 and 64
      -   Major religions: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%
      -   Literacy: overall 59.5%; male: 70.2%; female: 48.3%
      -   National language – Hindi (spoken by about one-third of the population)
      -   14 officially recognized regional languages - Bengali, Telugu, Marathi, Tamil, Urdu,
          Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and
          Sanskrit.
      -   English has associate level status in India and is widely used in business, as well as
          everyday life

2.3       Economic Demographics:


      -   According to India’s premier economics research agency NCAER, the top of India’s
          income pyramid has around 1.8 million homes with an annual income of Rs 1 million
          and above. The second layer is 2.9 million homes, with an annual income of ranging
          from Rs 0.5 million to 1 million.
      -   Most of these high income households are in urban areas. The total urban
          population in India is close to 28%.
      -   The size of Indian middle class having sizeable household income is estimated to be
          around 30 million.
      -   Top 6 most populated cities in India are Mumbai, New Delhi, Bangalore, Kolkata,
          Chennai, and Hyderabad.
      -   Besides Delhi, the political capital of India, Mumbai is the commercial capital of
          India; Chennai is one of most industrialized city of South India. Bangalore is
          Information Technology hub of India.

2.4       Macro-Economic Scenario


      -   Indian Institute of Finance has projected the India’s Gross Domestic Product for
          2009-10 to be US$ 1217.6 billion (at current prices).




Ace Global Private Limited, New Delhi, India                                                       5
Market Research on Cleaning Industry in India




    -   Share of Industry and Services in GDP is 25.8% and 57.3% respectively, as per 2008-
        09 figures.
    -   Gross fiscal deficit has been on a declining trend since 2003 and reached a low of 2.7
        % of GDP in 2007-08, but it is estimated to be 6% in 2008-09, largely due to liberal
        government spending during the economic recession.
    -   Exports in 2007-08 were US $163.1 billion with growth rate of 29.2% over the
        previous year. In 2008-09 exports stood at US $ 168.7 billion pegging a growth rate
        of 3.4% on the back of global economic recession. Imports in 2007-08 were US $
        251.7 billion with growth rate of 29.2% over previous year. In 2008-09 total imports
        stood at US$ 287.8 billion with a growth rate of 14.3 %. Thus India is a net importer
        with trade balance of US$ (-)119.1 billion in 2008-09.
    -   Principal imports are petroleum and oil goods, capital goods/machinery, gold &
        silver, precious and semiprecious stones, electronic goods and chemicals
    -   Principal merchandise exports are textiles/clothing, gems & jewellery,
        engineering goods, chemicals/ pharmaceuticals, agriculture products, and
        leather goods.
    -   India had forex reserve of about US$ 309.7 billion in March 2008 and US$ 252.0
        billion in April 2009. The total foreign investment inflows were US$ 63.8 billion in
        2007-08, out of which FDI was US$ 34.4 billion. Inspite of the global economic
        meltdown during the current fiscal, the total estimated FDI inflow in the country is
        US$ 33.6 billion.

2.4.1   Recent Economic performance and future outlook


    -   The average growth rate of GDP of Indian economy has been 8.8% in the past five
        years from 2003-04 to 2007-08. Under unprecedented global economic conditions in
        2008-09 where many countries have registered negative growth rate Indian
        economy is among the fastest growing, with growth rate for 2008-09 estimated
        around 6.7%.
    -   Despite the slowdown, the investments have been buoyant growing at an
        impressive rate. The ratio of fixed investment to GDP increased to 32.2% of GDP in
        2008-09 from 31.6% in 2007-08.
    -   The per capita income in 2008-09 measured at constant prices of 1999-2000 was Rs
        31,278. In 2007-08 this was Rs 29,901. The per capita consumption in 2008-09 was
        Rs. 17,334 as against a level of Rs. 17,097 in 2007-08. There has been a decline in the
        growth rate of per capita consumption from 6.9% in 2007-08 to 1.4% in 2008-09
        largely due to the impact of economic recession.
    -   The importance of trade and external capital inflows are increasing in India. The
        share of merchandise trade to GDP increased to over 35% in 2007-08 from 23.7% in
        2003-04. If the trade in services is included, the trade ratio is 47% of GDP in 2007-08.



Ace Global Private Limited, New Delhi, India                                                  6
Market Research on Cleaning Industry in India




      -   The 11th plan targets 8-10% growth for Indian economy.

2.5       Business Environment and Policy Framework


      -   Since the economic liberalization in 1991, Indian economy has been fairly open and
          has attracted business from all over the world. According to latest World Bank
          report – ‘Doing Business with India 2009’, it is easier to do business in India now,
          than it was three years ago.
      -   Ludhiana, a textile and export hub, is ranked as number one city according to ease of
          doing business.
      -   Tax structure in India is increasingly becoming fair and liberal. The general rate of
          basic excise duty, central states tax and VAT are being progressively reduced and
          rationalized. All quantitative restrictions on the imports have been removed since
          2001, barring few highly sensitive items.
      -   Through various multilateral and bilateral agreements India is reducing its import
          tariffs to facilitate trade.
      -   The number of clearances before starting a business in India sometimes proves
          deterrent to new players. Apart from the process is time taking and the bureaucratic
          corruption is main hassle. The Global Enabling Trade Report 2008 by WEF ranked
          India at a position of 71. China, India’s main competitor was at 48.
      -   Competition Commission of India and Investment Commission of India along with
          various industrial associations like Federation of Indian Chambers of Commerce and
          Industry (FICCI) and Confederation of Indian Industry (CII) have been instrumental in
          educating and encouraging foreign players to start investing in Indian market.

2.6       Currency


The monetary unit of India is Indian Rupee (1 Indian Rupee = 100 paise). The
fluctuation in the exchange rate of Indian Rupee vis-a-vis US Dollar and Euro has
been summarized in the table below.

Table 2.: Exchange Rate trends
Year                        Exchange Rate*
2005 1US$ = Rs. 43.27              1 Euro = Rs. 58.44
2006 1US$ = Rs. 44.95              1 Euro = Rs. 54.50
2007 1US$ = Rs. 44.11              1 Euro = Rs. 59.10
2008 1US$ = Rs. 39.41              1 Euro = Rs. 57.85
2009 1US$ = Rs. 48.58                      1 Euro = Rs. 67.12



Ace Global Private Limited, New Delhi, India                                                 7
Market Research on Cleaning Industry in India




Source: Assorted; * Exchange rates are based on the values in the first week of the
year




 Ace Global Private Limited, New Delhi, India                                         8
Market Research on Cleaning Industry in India




3. Overview of Industrial Cleaning Sector in India

Mechanised cleaning was introduced in India in late 1990’s, but is still in early stages of development,
considering the size and potential of the Indian market. Traditionally cleaning was not considered a
dignified profession and, till recently it was considered a menial job to be done by persons of lower
social echelons using their bare hands or rudimentary brooms. Majority of users still rely on the
traditional manual cleaning methods. Of late, however, the customers have begun to realize that
cleaning requires professional skills and mechanized equipment, besides more efficient, hygienic and
environment friendly products.

On the whole, the cleaning industry seems to be transforming from a labour-led industry to a
technology-led industry. Entry of multi-national companies into India, as well as globalisation of
Indian companies has been a major factor in this transformation. The standards are therefore bound
to get better. The facility owners have also realized the importance of good cleaning processes
employed in their premises. It is being increasingly recognised that a clean healthy work place does
increase the employee productivity and customer satisfaction, and any additional investment in
housekeeping will lead to higher dividends, in the long run.

The significant developments in the sector during the last three years are summarised below:
•            The market in the last 3 years has seen high paced growth, with
         mechanised cleaning being inducted in a variety of new applications.
•        A large part of this growth has come from government / semi-government
         entities like municipal corporations, railways, hospitals etc.
•        A lot of new infrastructure like Metros Rail Stations, shopping malls /
         multiplexes, upgraded and new airports, new IT / ITES / Residential
         Complexes have come in the market in the last 3 years leading to increased
         use of mechanized cleaning equipment and tools.
•        The industrial sector, which includes companies in infrastructure, steel,
         cement, ports etc., have also contributed significantly towards the growth of
         the market.
•        Many new international players have entered the market which includes
         companies like Comac, Nilfisk (direct presence), Tennant, and Dulevo. Many
         manufacturers from China have appointed distributors in India.
•        Along with the equipment suppliers, the number and reach of service
         providers has also grown significantly. Many housekeeping / facility
         management companies have achieved more than 100% growth over the last
         3 – 4 years.




Ace Global Private Limited, New Delhi, India                                                          9
Market Research on Cleaning Industry in India




The overall industrial cleaning sector has been subdivided into the following three categories:

      -   Equipment
          o   Sweepers (with/without aspirator).
          o   Vacuum cleaners (dry and wet & dry).
          o   Carpet cleaners (upright machines and injection extractors)
          o   High pressure washers (hot & cold)
          o   Steam cleaners
          o   Single disc machines
          o   Scrubber driers

      -   Consumables
          o    Cleaning chemicals (for wash rooms, Kitchen hygiene, Floor cleaning,
            Carpet cleaning, Odour control, window cleaning, etc.)
          o    Tissues

      -   Tools and Accessories
          o      Mops and mops holders, including Multi-purpose Trolleys (including
             wringer buckets)
          o      Window cleaning tools & accessories
          o      Other Floor cleaning tools (brushes, pads, discs, wipers etc.)

3.1       Equipment


3.1.1 Overall Market Size

The size of the market for industrial cleaning equipment in India is estimated to be about Rs. 2.55
billion to 2.70 billion in 2008-09, as per details below. This does not include the market for high value
vehicle mounted equipment (vacuum cleaners and sweepers), which is estimated at Rs. 1 billion in
2008-09.

Table 3.: Market for Industrial Cleaning Equipment (company wise value of sales)
                                                         Sales Turnover in           Sales Turnover
                                                                2005                   in 2008-09
                                                            (Rs. million)             (Rs. million)
 Tier I companies
          Roots Multiclean                                                 240                    700
          Eureka Forbes                                                    240                    280
          Johnson Diversey                                             150-160                250-300


Ace Global Private Limited, New Delhi, India                                                         10
Market Research on Cleaning Industry in India




                                                Sales Turnover in      Sales Turnover
                                                       2005              in 2008-09
                                                   (Rs. million)        (Rs. million)
          Man Machine Karcher                                 90-100               550
          Dulevo                               Commenced Indian                    205
                                               operations in 2008
                                 Sub-total                780 – 800      1,985 - 2,035
 Tier II companies
          IPC Western Floors                                  60-70                73
          Technoclean Equipments                                 **             60-70
          Inventa Cleantec (earlier known                     30-40             60-70
          as Industrial Spares)
          Charnock                                               10             40-50
          Nilfisk                              Commenced Indian                    30
                                               operations in 2007-
                                                       08
          Soma Specialities                                      25                15
          Innovative                                             20                30
          Delstar                                                15                30
          R V Industries                                         12                25
          Dynavac                                                10                20
          Hafi Elektra                                           10                17
          Aman Cleaning Equipments                               **                20
          Jags Impex                                             **                15
          Bosch                                                  **                30
                               Sub-total                   140-150            450-500
 Others
          20-25 companies                                   30 – 50           125-150
           Santoni, Godrej & Boyce
           (Tennant), Rodak Swiss
           Trademark, Magna Cleaning,
           Continental Hygiene Concepts
           etc. + imports from China
 Total                                                  950 – 1,000      2,550 - 2,700
** in 2005, these companies were included in Tier III




Ace Global Private Limited, New Delhi, India                                       11
Market Research on Cleaning Industry in India




In the absence of any authentic industry data, the above estimate of market size has been arrived at
based on domestic sales figures reported by the leading players during the discussions. However,
there is a large variance in industry size estimates provided by each company, ranging from Rs. 2
billion to Rs. 3 billion. Further, there were also major differences in the sales figures claimed by
individual companies and those reported by other industry players, e.g. while Roots Multiclean
claimed sales of Rs. 700 million, their competitors place their sales at Rs. 400-500 million.

The industry is dominated by five Tier I companies with each having an estimated turnover of above
Rs. 200 million and which together account for about 75% of the market. The second tier companies,
about 15 in number, each having an estimated turnover of above Rs. 10 million, account for 18% of
the market, while the rest is shared between 20-25 small companies – tier III. Many of these tier III
companies are marketing low cost Chinese equipment as well as locally made machines. In the last
few years, companies like Aman Cleaning, Jags Impex and Bosch have reported higher sales and are
now listed under Tier II.

The above market size estimate for industrial cleaning equipment includes spares and consumable
parts, which are an integral part of the equipment, such as motors, brushes, discs/abrasives,
squeegees, filters, gaskets, hoses etc. These spares and consumable parts are generally marketed by
the same companies that market the equipment, and account for about 10-12% of the annual sales.


During the last few years, there have been a few significant new entrants in the industrial cleaning
equipment market like Nilfisk Advance and Dulevo.
•   Nilfisk-Advance has recently set up their base in Mumbai, India. While, earlier the
    entire Nilfisk range of equipment was marketed in India by Eureka Forbes, now
    Nilfisk Advance India has directly entered the market, with Eureka Forbes
    continuing to market a part of the range.
•   Dulevo India started operations in India in 2008 as a subsidiary of Dulevo
    International SpA, Italy, a renowned name since 1976 in the field of industrial
    and road sweeping & cleaning equipments. Dulevo International already has a
    presence in over 60 countries.
•   RGS Impianti, Italy has started marketing their products in India through RGS
    Vacuum Systems based in Bangalore. The company has launched their range of 3
    phase industrial vacuum cleaners and single phase industrial vacuum cleaners.
    The company is also studying the Indian market and may start manufacture in
    India.

High Value Vehicle-mounted Sweepers and Vacuum Cleaners

In addition to the conventional cleaning equipment, there is also a significant and
growing market in India for high value vehicle-mounted Sweepers and Vacuum
Cleaners for various applications such as road cleaning, airports, etc.


Ace Global Private Limited, New Delhi, India                                                      12
Market Research on Cleaning Industry in India




The market size for high value mounted Sweepers and Vacuum Cleaners is estimated to be about Rs.
1 billion. Delhi based TPS Infrastructure Ltd. is the leading supplier of these types of equipment,
claiming 80% share of the market with a turnover of about Rs. 800 million.


A small company Guru Nanak Engineering Works in Ludhiana has also started
manufacture of mounted sweepers, mostly for Government departments and
expects to sell 35-40 machines per year.

3.1.2 Market for different types of industrial cleaning equipment

    By value
The overall market composition for industrial cleaning equipment is summarised
below. Vacuum Cleaners (dry and wet & dry types) are the most widely used
industrial cleaning equipment in India, followed by Sweepers and Scrubber Driers,
together constituting almost two-thirds of the market by value. As can be seen in the
table, there is no major change in the composition of the market since 2005.

Table 4.: Composition of market for Industrial Cleaning equipment - by value
                                            Share in 2005            Share in 2008-09
 Sweepers                                      15-20%                      17%
 Vacuum cleaners (dry and wet &                 35%                        35%
 dry)
 High pressure washers                         10-12%                      10%
 Single disc machines                           10%                         7%
 Scrubber Driers                               15-20%                      22%
 Carpet cleaners                                 5%                Included in Vacuum
                                                                         cleaners
 Steam cleaners                                  1-2%                       2%
 Others                                          3-5%                       7%
Source: Primary survey by Ace Global

The sales composition of the leading companies is provided in the table below. Vacuum cleaners form
an important category for all companies, though to a varying degree. However, scrubber driers are
most important for Roots Multiclean, while vacuum cleaners and sweepers are important for Eureka
Forbes. Some companies which are marketing only one type of equipment are not included in the
Table (e.g. Nilfisk Advance - road sweepers, Hafi Industrial vacuum cleaners and Bosch Cold washer
high pressure cleaners)




Ace Global Private Limited, New Delhi, India                                                    13
Market Research on Cleaning Industry in India




Table5.: Company-wise Sales break-up (% by value)
    A) Tier I companies
Equipment                 Roots      Eureka Johnson Man      Dulevo TPS
                          Multiclean Forbes Diversey Machine
                                                     Karcher
Vacuum       Commercial      11%      19%       28%    21%     6%
cleaners     Industrial      3%       12%       0%     2%      2%
             Industrial       0         0         0     0       0    47%
             Fixed      /
             Vehicle
             Mounted
             Sub Total       14%      31%       28%    23%     8%    47%
Single disc machines         0%        4%       13%    0%      3%      0
Sweepers Manual              13%        0         0     0       0
             Ride On         10%      16%       22%     0      18%    5%
             Road            32%        0         0    23%     59%   48%
             sweepers
             Sub Total       65%      16%       22%    23%     77%   53%
Scrubber Walk                20%      22%       22%    14%     6%      0
Driers       behind
             Ride on         6%       11%       13%    10%     4%      0
             Sub Total       26%      33%       35%    34%     10%     0
High         Hot water        0         0         0     0       0      0
Pressure Cold water          3%        9%       4%     8%      1%      0
Cleaners Sub Total           3%        9%       4%     8%      1%      0
                            100%      100%     100%   100%    100% 100%

    B) Tier II & III companies (selected)
Equipment                      IPC      Inventa   Charnoc   Aman    Jags   Godrej &
                            Western Cleantec         k             Impex     Boyce
                             Floors                                        (Tennant)
Vacuum        Commercia       39%         14%      50%      14%    84%         0
cleaners      l
              Industrial      12%           0        0        0     0         0
              Sub Total       51%         14%      50%      14%    84%        0
Single disc machines           5%          4%       4%       4%    16%        0



Ace Global Private Limited, New Delhi, India                                 14
Market Research on Cleaning Industry in India




Equipment                         IPC       Inventa       Charnoc      Aman       Jags       Godrej &
                               Western      Cleantec         k                   Impex         Boyce
                                Floors                                                       (Tennant)
Sweepers    Manual                 0           38%            0         38%         0            0
            Ride On                0           13%            0         13%         0           69%
            Sub Total              0           51%            0         51%         0           69%
Scrubber    Mechanise              0            0             0          0          0            0
Driers      d
            Walk                 24%           10%          24%         10%         0           12%
            Behind
            Ride on              10%            6%          6%           6%         0           19%
            Sub Total            34%           16%          30%         16%        0%           31%
            HOT                   0              0           0                      0            0
High        WATER
Pressure    Cold water            10%         16%           8%           0          0            0
Cleaners    Sub Total             10%         16%           8%         16%         0%           0%
         Total                   100%         100%         100%        100%       100%         100%

    By volume

The market size for different types of industrial cleaning equipment, in terms of
volume of sales, is difficult to estimate due to the wide range of models within each
type of equipment, suited for different applications. For example, Man Machine
offers several models of vacuum cleaners (including shoulder mounted model), with
air flow ranging from 44 litres/sec to 112 litres/sec. Similarly the company sells 9-10
different models of Scrubbers and Scrubber Driers, including walk-behind and ride-
on models.

However, based on feedback of equipment marketing companies as well as end users, the broad
market size by volume, is as in the table below, for the leading companies in each equipment
category. The wide variation in prices in some cases is due to availability of low-cost Chinese and
locally manufactured equipment.

Vacuum cleaners are by far the most commonly used equipment, in volume terms.


Table 6.: Composition of market for Industrial Cleaning equipment - by volume
 Equipment                      Type                 Market size      Price range
                                                        (Nos.)         (per unit)


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 Sweepers                Manual sweepers                       9000              Rs. 6000 –
 (with/without                                                                   10,000
 aspirator)              Industrial sweepers
                                walk behind type               200               Rs 100,000
                                ride on type                   190               Rs. 0.7 – 1.5
                                                                                 million
 Vacuum cleaners         Commercial and Professional 39,500                      Rs.7,000 -25,000
 (dry and                Industrial Vacuum Cleaners  420                         Rs. 70,000 -
 wet&dry)                                                                        125,000
 High pressure           Cold                                  8,450             Rs.5,000 –
 washers                                                                         40,000
                         Hot                                   1,500             Rs. 100,000 -
                                                                                 125,000
 Single disc                                                   3,000             Rs. 30,000 -
 machines                                                                        70,000
 Scrubber Driers         Walk behind Scrubber Drier            2,665             Rs. 80,000 –
                                                                                 150,000
                         Ride on Scrubber Drier                200               Rs.550,000 -
                                                                                 700,000
 High       Value Large industrial vacuum 75 – 100                               Rs. 4 million
 Vehicle-mounted cleaners 7.5 KW to 200 KW                                       (excluding the
 Sweepers    and                                                                 price of vehicle)
 Vacuum Cleaners Sweepers 200 litres to 6500 ~ 200                               Rs. 1 to 5 million
                  litres                                                         (excluding the
                                                                                 price of vehicle)

Recent new product introductions:
In the recent years, several foreign companies (including Italian) have entered the Indian market,
either by setting up Indian subsidiaries or through marketing tie-ups with importers and distributors.
Some of these as well as Indian companies have launched new products. An indicative list of
companies and their products launched in India, is given below:
    •   Roots Multiclean – EZE Clean and dry mops, RM series floor stripper, sealer
        and floor finish, Dry Foam carpet cleaning system, Minuteman MPV31 wide
        area vacuum cleaner
    •   Cimel s.r.l Italy - automatic scrubber drier Turbolava 35 Facile
    •   Im.Ex.Serve Italy – IMEX Air Water high pressure Washer, IMEX-CxW
        microfiber cloth wipe , IM.EX.SV13 Nebraska, a diesel steam car wash.



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   •   Soma Specialty – Cyclotron Mini compact scrubbing machine, Desiderio Plus
       steam cleaner from Capitani of Italy, Cyclon Max-75 special purpose machine
       for restoration of stone floors, cyclone FP 240 flame proof floor cleaning
       machine
   •   Dulevo India – 1300 Star sweeping machine, model S20/E Industrial Vacuum
       Cleaner from Dulevo Italy,
   •   Inventa - Italian RCM S.p.A road sweeper for cement industry, Compact
       scrubber/drier, smokeless Hot Water High Pressure Jet cleaning machine,
   •   Cilmas s.r.l Italy – Mirage Spinning 490 floor washer drier-Rainbow Cleaning
       System manufactured by Rexair LLC, USA which can purify, deodorizer,
       medicate and aromatize air in a room
   •   Lavorwash sps Italy – High pressure vacuum cleaners and auto scrubber drier
       through Aman
   •   Lavorwash S.p.A FA-SA , Italy – Kappa & Kaiman range s of hot water high
       pressure systems
   •   Hako & Roots Multiclean – Hakomatic B45 compact scrubber-drier, Hako
       Citymaster 1200 street sweepers (about 50 supplied0, Hakomatic B 30
       compact scrubber drier,
   •   Super Tech Equipment, Thane – SEW Series Vacuum Cleaners in 5 models
   •   Glutton of Lange Christian, Belgium – Self Propelled street sweeper
   •   Surie Polex – high speed floor polishers
   •   Taski - Swingo 1650 for floor cleaning, JFfit onboard dilution control system
       that automatically feeds right amount of chemicals and Swingo 150 new ultra
       compact scrubber, which is like a vacuum cleaner for entry into restricted
       areas.
   •   Man Machine – Karcher CV 66/2 brush type vacuum cleaner, Karcher BR
       30/4C, BD 60/95 RS Model step on scrubber drier
   •   Hefter Cleantech, Germany – Convert 82 convertible cleaning system for
       scrubbing, grinding, burnishing and crystallizing.
   •   Nilfisk Advance – Alto Scrubtec 233 compact scrubber driers
   •   Johnson Diversey India – Trooper SD Plus scrubber with attached foam
       generator, Alpha HP (a green seal certified multi-surface cleaner), New range
       of industrial vacuum cleaners for industrial waste and soil
   •   Kam Avida – VT 650 Dual Sweep mounted sweepers from Johnston Sweepers,
       UK.
   •   Tennant, USA – Green Machines through Godrej & Boyce



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      •   Annovi Roberberi India – High pressure cleaners and pumps from Annovi
          Roberberi Spa
      •   Bitimec International, US have launched its simple compact inexpensive and
          cost effective power-brush Speedy Wash line for buses and trucks.
      •   Charnock – Ride on scrubber drier Vario from Numatic

3.2       Consumables


The market size for consumables used for industrial cleaning in 2008-09 is estimated at about Rs. 6.50
– 7.00 billion, representing an increase of about 140% over the 2005 level. Among the two
constituents of the segment, namely Cleaning Chemicals and Tissues, the share of cleaning chemicals
has increased from 66% in 2005 to 78% in 2008-09, which is in line with the trend of increasing use of
mechanised cleaning equipment for various applications.

The industry players have also pointed out that in the last few years, the share of organised players
has increased from 25% to about one-third of the market, as more end users now prefer to use high
quality consumables which are not only more efficient but also more suitable for use with cleaning
equipment, and therefore work out to be more cost effective.


3.2.1 Chemicals
As per discussions with some of the leading players, the market size for industrial cleaning chemicals
has grown from Rs. 1.8-1.9 billion in 2005 to about Rs. 5.0-5.5 billion, an increase of about three
times. The use of professional grade cleaning chemicals has increased substantially, although
according to the industry the use is still limited mainly to high end users in various segments like
HORECA, healthcare and commercial segments. Therefore, the demand is expected to increase
manifolds in the coming years, due to several factors, such as increasing demand for the industrial
cleaning equipment, increasing trend of cleaning services being outsourced to professional facilities
management companies, and increasing awareness for using more effective, efficient and
environment friendly products for cleaning applications.


3.2.2 Tissues
Tissues market (washroom tissue papers, facial tissues, paper towels/napkins etc.) is
estimated to be about Rs. 1.50 to 1.60 billion (up from Rs. 0.90-1.00 billion in 2005.
Kimberley Clark, the market leader holds about 30% share of the market by value.
Another leading company in the organised sector Pudumjee’s imports bulk rolls and
converts the same into retail packs at their works in Pune.

Table 7.: Composition of market for Industrial Cleaning Consumables - by value
                               2005              2008-09             %
                            Rs. Million         Rs. Million


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 Cleaning             1800 – 1900 5,000 – 5,500 ~78%
 chemicals
 Tissues            900 – 1000       1,500 – 1,600 ~22%
 Total               2,700 – 2,900 6,500 – 7,000
The company-wise sales of the organised sector players, are summarised below:

Table 8.: Company-wise sales of Chemicals and other cleaning products (organised
sector)
                                    Total Sales Turnover Total Sales Turnover
                                      2005 (Rs. Million)    2008-09 (Rs. Million)
 Pudumjee                                             120                     700
 Kimberly Clark                                     50-60                     600
 Johnson Diversey                               100 – 120                250-300
 Schevaran Laboratories                                80                     160
 Eureka Forbes (Ecolab)                                40                      75
 Jade                                               30-40                    N.A.
 Origami                                               50                      75
 Haylide Chemicals                                  10-20                  40-50
 Rancher                                            10-15                    N.A.
 Hygiene Products of India                             10                    N.A.
 Altret Performance Chemicals                            5                   N.A.
 Gujarat
 Naveen Polycon                                                              > 10
 Others                                         125 – 150                250-300
 Total (organised sector)                       650 – 750          2,200 - 2,300

For Kimberley Clark, about 80% of the turnover comes from Tissue paper, while 20%
is contributed by other products like Wipers, Apparels & garments, Gloves, Eye
protection, soap/hand sanitizers, dispensers, air neutralizers, Paper napkins (locally
procured).

Some of the companies met during the research felt that the economic recession has
not impacted their sales much as they have maintained the quality and competitive
pricing of their products.

Recent new product introductions:



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      •   Bio-Productions Ltd. / Stapro, UK - environment friendly cleaning products
          and formulations through Charnock, Bangalore.
      •   Haylide Chemicals, Jabalpur – Sterix-A, advanced biodegradable cleaning
          solution
      •   Henkel India – Pril degreasers, Renuzit brand car & air fresheners, super
          odour neutralizers
      •   Jade – Auto Foam soap dispensers
      •   Mecserflex UK – Sagewash Sanitizer through Orange Care Solution Pvt. Ltd.
          Bangalore
      •   Cole-Palmer India – IS formulated cleaning concentrate
      •   A R Enterprises, Delhi – Valorem Aerosol Dispensers
      •   Pudumji, Mumbai – Greenlime range of fragrances
      •   Hokwang , Taiwan – HK-RSD Auto Soap Dispenser
      •   DAGA Finmark India, Ahmedabad – Electroclean for electronic items like
          computers, fax machines, photocopiers etc.
      •   Vinci Chem, Andhra Pradesh – Vinci Biomex, a European technology cleaning
          solution.
      •   Quartz Home Care, New Delhi – Wizard floor cleaners

3.3       Tools & Accessories


The tools and accessories comprise of non-mechanised equipment used for manual
cleaning, categorised broadly as follows:
       o       Mops and mops holders
       o       Multi-purpose Trolleys (including wringer buckets)
       o       Window cleaning tools & accessories
       o       Floor cleaning tools
       o       Others (brushes, pads, discs, wipers etc.)

The total market for tools and accessories is estimated to be between Rs. 1.30 to 1.50 billion, of
which the share of unorganised sector is estimated to be around 65%, including sundry imports from
China, Hong Kong and Korea.


Table 9.: Composition of market for Industrial Cleaning Tools & Accessories - by value
                                                        Value 2005            Value 2008-09
                                                       (Rs. million)            (Rs. million)
 Mops and mops holders                                     200-225                  350-375


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 Trolleys                                                      25-30                   50-100
 Window cleaning tools and                                     70-80                  200-225
 accessories
 Floor cleaning tools                                       250-275                   450-500
 Others (brushes, pads, discs, wipers,                      100-150                   250-300
 etc.)
 Total                                                      650-750              1,300-1,500

Almost all the organised sector players are marketing imported tools and accessories, except Roots
Multiclean, which manufactures some mops and wringer buckets/trolleys.


Table 10.: Company-wise sales of Tools & Accessories (organised sector)
                                  Value 2005 (Rs.       Value 2008-09 (Rs. million)
                                      million)
 Continental Hygiene                           80-100                      150-200
 Concepts
 Cradle Runways                                 35-40                           100
 Roots Multiclean                               30-35                        30-35
 Unger                                             35                        50-75
 Johnson Diversey                               20-25                        40-50
 Poona Brush                                       20                            25
 Man Machine Karcher                            10-15                        20-25
 Bangalore Brushware                               10                            15
 IPC Western Floor                                  5                            6.5
 J&B                                                 -                          N.A.
 Inventa Cleantec                                    -                           2.5
 Others                                          5-10                        20-25
 Total                                       200-250                       450-550
Note: Aerial work platforms used for cleaning of windows and building facades, are multi-purpose
equipment also used for construction, repair & maintenance, painting etc. The leading company,
Cradle Runways Pvt. Ltd. reported sales of about R.s 35-40 million during 2005-06. In 2008-09, the
company received orders to the tune of 200-220 million and executed about half of the orders. It
expects to reach a target of Rs. 150 million during 2009-10.

Recent new product introductions:
    •   Brush Tech India – Welcome brand brushes for road and floor sweepers
    •   Corazzi Fibre S.r.l, Italy – Non woven abrasives through Ethos Corp, Mumbai




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      •   Superclean Scandinavia AB, Sweden – Qleeno Quiet, a combi scrubber for
          noise sensitive areas.

3.4       Industry Growth Trends

The industrial cleaning industry in India has seen accelerated growth in the last few years, registering
a CAGR of 34% per year, with the equipment segment growing at the fastest rate of 39% per year.


                               Market size in 2005           Market size in             Growth
                                  (Rs. million)                 2008-09
                                                                                   Overal       CAGR
                                                              (Rs. million)
                                                                                        l
 Equipment                                950 – 1,000          2,550 - 2,700        170%         39%
 Consumables                            2,700 – 2,900          6,500 – 7,000        141%         37%
 Tools and                                   650-750             1,300-1,500        100%         26%
 Accessories
 Total                                  4,300 – 4,650       10,350 – 11,200         141%         34%

Consumables continue to account for a major share of the industrial cleaning market (63% by value)
as their use extends to applications where mechanised cleaning, using equipment and/or tools, has
not yet become common.




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            Market Composition, 2005                          Market Composition, 2008-09


                                                                      Tools
                      Tools
                                                                        and
                       and
                                                                      Access              Equipm
                      Access           Equip                           ories                ent
                       ories           ment                            13%                 24%
                       16%              22%




       Consu                                                        Consu
       mables                                                       mables
        62%                                                          63%




                                               Market Size Growth

                      7000
                      6000
                      5000
        Rs. million




                      4000
                      3000
                      2000
                      1000
                         0
                                Equipment             Consumables            Tools and Accessories

                                                     2005       2008-09



The above computed industry growth rates are also corroborated by the key industry players met
during the research. Most companies claim to have grown at a healthy rate of 20 to 40% per year
during the last three years. The overall industry has grown at an average of around 30% per year.
Further, there is near unanimity among industry players that the industrial cleaning sector is poised
for an even higher growth of 30%-40% in the coming years, given the healthy growth in most of the
end-use sectors.



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The table below summarises the responses relating to past growth trends and the expected future
growth of the industry.


Table 11.: Rate of expansion/ growth of the sector in the last few years
                                         Annual Growth rate (%)
                               Past (3-year             Projected Growth
                               average)
                               Company Industry
 Equipment
 Roots Multiclean               15-20%      30-40%              45%
 Eureka Forbes                    20%        15%              35-40%
 Johnson Diversey               50-60%      10-11%              15%
 Man Machine                      25%        25%              40-45%
 IPC Western Floors             25-30%      25040%              30%
 Inventa Cleantec                 25%        40%                50%
 Soma Specialities              30-40%                        30-40%
 Innovative                                  30%               100%
 R V Industries                                                 30%
 Santoni                        10-15%       20%               >25%
 Rodak Swiss                     200%       20-30%              30%
 Technoclean Equipments                      40%                40%
 Aman Cleaning Equipments          0        40-50%            50-60%
 Magna Cleaning                 30-40%                          50%
 Godrej                                                         25%
 TPS Infrastructure              100%        40%                40%
 Guru Nanak engineering         15-20%       15 –            20 – 25%
 works                                       20%
 Consumables
 Pudumjee                                   18-20%            18-20%
 Schevaran Laboratories                      20%                30%
 Eureka Forbes                    20%        15%              35-40%
 Jade                           15-20%                          20%
 Kimberly Clark                             10-15%           10-15%%
 Poona Brush                      10%        20%               >20%
 Hygiene Products of India                  40-50%            50-60%
 Haylide Chemicals               200%       10-15%           >15-20%



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 Naveen Polycon                10-15%          10%         20%
 Tools & Accessories
 Continental Hygiene                           25%         50%
 Products
 Unger India                     40%           40%         40%
 J & B Industries                20%           20%        30-40%




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4. Product Range

Most of the companies tend to carry all types of equipment, though the range in terms of number of models varies from company to company. The following
table summarises the product range offered by various companies, both imported as well as indigenous.

Table 12.: Product range of individual companies

a) Equipment
                        Sweepers        Vacuum               Carpet       High           Steam    Single  Scrubber              Remarks
                                        Cleaners             Cleaners     Pressure       Cleaners Disc    s / Driers
                                        Dry      Wet &                    Washers                 machine
                                                 Dry                                              s
Roots Multiclean                                                                                                                80% of machines
                                                                                                                                will be
                                                                                                                                manufactured in-
                                                                                                                                house by 2010-
                                                                                                                                2011
Eureka Forbes
Johnson Diversey
Man Machine
Karcher




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                     Sweepers     Vacuum           Carpet     High         Steam    Single  Scrubber     Remarks
                                  Cleaners         Cleaners   Pressure     Cleaners Disc    s / Driers
                                  Dry      Wet &              Washers               machine
                                           Dry                                      s
Dulevo
IPC Western Floors
Technoclean
Equipments
Inventa Cleantec

Charnock
Soma Specialities

Innovative

Aman Cleaning
Equipments
Santoni
Godrej & Boyce
Rodak Swiss
Trademark
Hafi Elektra




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                    Sweepers      Vacuum           Carpet      High        Steam    Single  Scrubber       Remarks
                                  Cleaners         Cleaners    Pressure    Cleaners Disc    s / Driers
                                  Dry      Wet &               Washers              machine
                                           Dry                                      s
Magna Cleaning
Systems
Poona Brush
Company
 Legend:
       Imported                Manufactured



b) Consumables
                       Wash        Kitchen          Floor          Carpet         Odour        Other          Tissue
                       room        hygiene          cleaning       cleaning       control      chemicals      paper
                       products    products         products       products       products
Pudumjee Hygiene                                                                               Photography
                                                                                                 & X-rays
Johnson Diversey
Kimberly Clark
                                                                                                              Imported in
                                                                                                              rolls and cut




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                         Wash       Kitchen         Floor          Carpet         Odour      Other         Tissue
                         room       hygiene         cleaning       cleaning       control    chemicals     paper
                         products   products        products       products       products
                                                                                                           to size
Schevaran
Eureka Forbes
(Ecolab)
Jade International
Origami
Altret Performance
Chemicals
Haylide Chemicals
                                                                                             Chemicals
                                                                                             for
                                                                                             photography
                                                                                             & X-rays
Rancher
Hygiene Products
Naveen Polycon
Roots Multiclean

c) Tools & Accessories




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                              Mops and         Trolleys   Window cleaning       Floor            Others (brushes,
                              Mop                         tools & accessories   cleaning tools   pads, discs,
                              holders                                                            scrubbers, wipers,
                                                                                                 hoses etc.)
Continental Hygiene
Concepts
Roots Multiclean
Unger India
Johnson Diversey
Eureka Forbes
Man Machine
IPC Western Floor
Charnock
Poona Brush
Bangalore Brushware
J & B Industries
Dulevo


Legend:
      Imported                 Manufactured




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5. Production Overview

5.1      Equipment

The industrial cleaning equipment market in India continues to be import driven. Only one of the five tier I
companies, Roots Multiclean has production facilities in India. On the other hand, many of the tier two
companies have production facilities, though with limited capacity and product range to supplement the
imported equipment marketed by them.

Roots Multiclean has a well-established manufacturing set up, with three factories in Coimbatore in Tamil
Nadu (south India). One of the factories is a 100% Export Oriented Unit, manufacturing a single model of
Floor Washer which is exported through Hako’s marketing network in Europe. Nearly 55-60% of the
company’s sales (by value) come from domestic production, while imported equipment account for 40-
45% of the sales. The company manufactures a range of equipment, based on technical know-how from
joint venture partner Hako, Germany. In 1999, the company also launched an indigenously designed Floor
Washing machine ‘Wizard’ which is also being exported through marketing tie-ups with world’s leading
companies such as Trovox, UK, Minutemen, USA, Nilfisk, and INB Hong Kong. In the recent years, the
company has added Single disc machines to their product range. In 2008, Roots Multiclean also signed a
collaboration agreement with Minuteman Power Bosch USA.


The indigenous production facilities for industrial cleaning equipment are summarised in the table below:


Table 13.: Producers of Industrial Cleaning Equipment
Name of         Production range          Production sites                           Foreign
company                                                                              collaboration, if
                                                                                     any
Roots              Scrubber Driers,               3 factories:                       Joint venture with
Multiclean         Manual Sweepers,               - Coimbatore (Tamil                Hako Werke,
Ltd.               Mini Floor Washer,             Nadu)                              Germany
                   Single disc machines                                              Minuteman Power
                                                                                     Bosch USA
                                                                                     (subsidiary of
                                                                                     Hako) since 2008
Inventa            High pressure washers          Noida (Uttar Pradesh)              Italy for exclusive
Cleantec           and steam cleaners,                                               marketing


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Name of           Production range             Production sites                 Foreign
company                                                                         collaboration, if
                                                                                any
                  Manual sweepers
Soma              Auto Scrubbers, back-        Mumbai (Maharashtra)
Specialities      pack vacuum cleaners,
                  carpet cleaners
Innovative        Vacuum cleaners              Mumbai (Maharashtra)
Magna             High pressure washers        Mumbai (Maharashtra)             Assembly of
                                                                                imported SKDs
Santoni        All                             Faridabad (Haryana)
Hafi Elektra   Vacuum cleaners for             Pune (Maharashtra)
               textile industry
Technoclean Single disc machines,              Noida (Uttar Pradesh)
Equipments     Scrubber driers
TPS            Mounted sweepers,               Bhiwadi (Rajasthan) &            Wieland
Infrastructure Large mounted                   Ghaziabad (UP)                   Lufftenchnik
               vacuum cleaners,                                                 Germany,
               Compactors                                                       Stummer
                                                                                Eurowaren,
                                                                                Austria

Several other small companies, such as Guru Nanak Engineering Works, Ludhiana (mounted sweeping
machines), Aman Cleaning, R V Industries, Delstar, Dynavac, etc., also manufacture industrial cleaning
equipment with indigenous know-how.


5.2     Consumables


Table 14.: Producers of Chemicals and other cleaning products
Name of        Production range        Production sites                         Foreign
company                                                                         collaboration, if
                                                                                any
Pudumjee         Tissue papers                Pune (Maharashtra)




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Name of           Production range               Production sites                   Foreign
company                                                                             collaboration, if
                                                                                    any
Johnson           Industrial cleaning            Two factories
Diversey          chemicals                      - Daman 85% of
                                                 production
                                                 - Nalagarh 15% of
                                                 production
Schevaran         Industrial cleaning            Mysore (Karnataka)                 Rochester
                  chemicals                                                         Midland, USA
                                                                                    (since 2006)
Kimberly –        Tissue papers                  Pune (Maharashtra)                 Kimberly-Clark
Clark                                                                               Worldwide
Altret            Industrial cleaning            Surat (Gujarat)
Performance       chemicals
Chemicals
Haylide           Industrial cleaning            Jabalpur (Madhya
Chemicals         chemicals                      Pradesh)
Poona Brush       Brushes                        Pune (Maharashtra)

Bangalore         Brushes                        Bangalore (Karnataka)
Brushware
Naveen            Chemicals &                    Okhla (Delhi)
Polymers          detergents

All leading companies claim to be using latest international technology where the emphasis is on low
toxicity and use of eco friendly & biodegradable raw materials, besides overall quality, and effectiveness.
Also products are multipurpose and user friendly.

Some companies also undertake contract manufacturing for equipment suppliers, such as Haylide
Chemicals for IPC Western Floors, which markets equipment from IPC Italy.


5.3     Tools and Accessories




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Roots Multiclean is the only leading player producing trolleys, mops, wringer buckets at
their Coimbatore (Tamil Nadu) facility.

Poona Brush and Bangalore Brushware manufacture a wide range of brushes used for
industrial cleaning applications, as attachments to equipment as well as for manual
cleaning. Poona Brush has installed a CNC machine for manufacturing technical brushes.
The company imports all critical raw materials (bristle, fibres etc.) from Germany, Italy,
USA etc.

Cradle Runways produces window cleaning systems, but the major part of their
production is the cradle/trolley, which are multi-purpose equipment, used for a variety
of applications besides window/façade cleaning.

J & B Industries started with a factory in Delhi, and have recently set up a new
automated facility near Lucknow in UP for manufacturing Cleaning Brushes, Cleaning
Pad, Cleaning Sheet, Dishwasher Scrubber, Galvanized Iron Scrubber, Mops, Pot
Scrubber, Scouring Pad, Scrub Sponge & Stainless Steel Scrubbers under the brand name
“Super Brite”.




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6. External Trade

6.1     Imports


Directorate General of Commercial Intelligence and Statistics (DGCIS), an organisation
under the Ministry of Commerce & Industry, Govt. of India, is the only official source of
import data in India. However, as reported earlier, in the Export-Import database
maintained by DGCIS, industrial cleaning equipment and products are not discernible as
distinct items, as most companies are importing cleaning equipment under a general HS
code 84798999, which refers to “Other machines and mechanical appliances having
individual functions not specified or included elsewhere in the Chapter 84” – please
refer table below. The import statistics under this code do not pertain only to
equipment for industrial cleaning applications, as they represent broad product
categories covering various applications. Further, all equipment and products used for
industrial cleaning are not necessarily included in these statistics as some importers use
other custom codes for similar products.

However, the import statistics reported in DGCIS data for some of the items of interest
is tabulated below. It is seen that China is emerging as a major supplier, mainly due to
more competitive prices. As an example in 2007-08, Italy exported 980 industrial
vacuum cleaners at US$ 3,980 each, while China supplied 14,640 machines under the
same category at an average price of US$ 1,230 each, which is less than one-tenth of the
average price of Italian equipment.

Table 15.: Imports of Cleaning Equipment
 Custom code and                  Value (US$ million)                  Quantity (Nos.)
 Description                2005    2006     2007- 2008-       2005    2006       2007    2008
                             -06     -07      08        09      -06     -07        -08     -09
                                                      (Apr-                               (Apr-
                                                      Dec)                                Dec)
 84642000 - Grinding /       7.38     8.70    14.3     12.37     300      550       420      430
 Polishing machines for
 working stone etc.
 84798950 - Car              0.18     0.22    0.26     0.95      120       50        60        -



Ace Global Private Limited, New Delhi, India                                              35
Market Research on Cleaning Industry in India




 Custom code and                 Value (US$ million)                                           Quantity (Nos.)
 Description                2005   2006     2007- 2008-                          2005          2006       2007     2008
                             -06    -07      08       09                          -06           -07        -08      -09
                                                     (Apr-                                                         (Apr-
                                                     Dec)                                                          Dec)
 Washing and related
 appliances
 84798991 - Industrial         5.96          7.13      1.57               0          9,180       9,730    18,100           0
 Vacuum Cleaners
 85081000 - Vacuum             2.34          3.14      6.90               0     157570         222200     287360           0
 Cleaners
 85092000 - Floor           22.07        11.78         0.07               0          1780          70        320           0
 polishers
 84798999 - Other s             307           410          559          424     70,000         106,000   127,000   90,000

Table 16.: Imports of Consumables
 Custom code and                            Value (US$ million)                                       Quantity
 Description                          2005    2006    2007-     2008-                  2005      2006     2007     2008
                                       -06     -07      08        09                    -06       -07      -08      -09
                                                                (Apr-                                              (Apr-
                                                                 Dec)                                              Dec)
 48025450 - Tissue                     2.66     3.18    3.78      2.37                  1266      1981      2217     1457
 Paper (Kg)

 33074900 - Other                      0.76         0.91         1.19         1.02       286       230       243     220
 Odoriferous preparations
 used for de-odorizing room
 (excluding agarbatti) (Kgs)

 34029011 - Washing and                3.22         3.73         3.63         3.74      1083      1104       953    1331
 cleaning preparations having
 basis of soap other organic
 surface active (synthetic
 detergents) (Kg.)

 34029019 - Other (synthetic)          4.91         5.49         6.26         4.05      1555      2578      2531    2021
 detergents (Kg)

 38084000 - Disinfectants              0.65         2.48         1.28           0        108       493       155           0
 (Kgs)


Table 17.: Imports of Tools and Accessories
 Custom code and                         Value (US$ million)                                     Quantity (Nos.)




Ace Global Private Limited, New Delhi, India                                                                        36
Market Research on Cleaning Industry in India




                               2005    2006    2007    2008      2005     2006      2007      2008
                                -06     -07     -08     -09       -06      -07       -08       -09
                                                       (Apr-                                  (Apr-
                                                       Dec)                                   Dec)
 96035000 - Other               2.25    2.37    2.99     2.81      282      505        549       699
 Brushes constituting parts
 of machines, vehicles etc.
 6805 - All types of           11.61   15.94    19.6   16.85    1606260   18434    248063    252622
 Natural/artificial abrasive                                                 60         0         0
 powder etc. of textile
 material or paper/ paper
 board w/n cut to shape

6.1.1   Italy’s Share in Indian Imports
Italy is among the leading suppliers of industrial cleaning equipment and tools to India in almost
all the categories. However, in consumables, Italy’s share is much lower. As can be seen from
the table below, China and other Asian countries such as Korea, Japan, Singapore and Thailand
are also emerging as significant contenders for a share in the Indian market.

Table 18.: Italy’s Share in Imports
                    Custom code and Description                 Top exporting countries in
                                                                2007-08 (US$ million)
 Equipment          84642000 - Grinding / Polishing machines    Italy 4.63; China 3.31 ; Germany
                    for working stone etc.                      3.19
                    84798950 - Car Washing and related          USA 0.09 ; Korea 0.03; China 0.02;
                    appliances                                  Italy0.01
                    84798991 - Industrial Vacuum                Italy 0.39 ; China 0.18 ; Sweden
                    Cleaners                                    0.38 ; Denmark 0.27
                    85081000 - Vacuum Cleaners                  China 3.15 ; Italy 0..81 ; Germany
                                                                1.40 ; Singapore 0.23
                    85092000 - Floor polishers                  China 0.02 ; Switzerland 0.04 ;
                                                                Italy Nil
                    84798999 - Others                           Germany 77.34 ; Italy 77.33 ;
                                                                Korea 65.79 ; China 65.59
 Consumable         48025450 - Tissue Paper                     China 0.92 ; Germany 0.55 ; Japan
 s                                                              0.55 ; Italy 0.01




Ace Global Private Limited, New Delhi, India                                                   37
Market Research on Cleaning Industry in India




                  Custom code and Description                 Top exporting countries in
                                                              2007-08 (US$ million)
                  33074900 - Other Odoriferous                China0.44 ; Thailand 0.09 ;
                  preparations used for de-odorizing          Vietnam 0.09 ; Italy 0.02
                  room (excluding agarbatti)
                  34029011 - Washing and cleaning             USA 0.51 ; Germany 0.96 ;
                  preparations having basis of soap           Singapore 0.70 ; Netherland 0.31 ;
                  other organic surface active (synthetic     Italy 0.17
                  detergents)
                  34029019 - Other (synthetic)                Switzerland 1.40 ; Germany 0.62 ;
                  detergents                                  Thailand 2.13 ; UK 0.64 ; Italy 0.15
                  38084000 - Disinfectants                    China 0.51 ; UK 0.33 ; Japan 0.18 ;
                                                              Italy 0.16 ; Singapore 0
 Tools &          96035000 - Other Brushes                    Germany 0.89 ; Italy 0.46 ; Japan
 Accessories      constituting parts of machines,             0.12 ; China 0.11
                  vehicles etc.

6.2 Imports information compiled from primary survey


As per information compiled from primary survey feedback, Italy and Germany are the main
sources of import of industrial cleaning equipment, tools & accessories. However, Italy is not an
important supply source for consumables, which are mainly being imported from USA, UK and
other European countries.

Table 19.: Company-wise Imports
a) Equipment
                Share of          Country        Name of         Remarks
                imported          of origin      foreign
                products in                      supplier
                total sales
Roots           40-45%            Germany        Hako Werke      Manufacture in India under
Multiclean                                       GmbH            license + marketing in India
                                                                 and SAARC countries
                                  USA            Minuteman
                                                 Power Bosch


Ace Global Private Limited, New Delhi, India                                                  38
Market Research on Cleaning Industry in India




                Share of       Country        Name of        Remarks
                imported       of origin      foreign
                products in                   supplier
                total sales
                               Italy          SOTECO         Wet and dry vacuum
                                                             cleaners
                               Italy          Interpump      Pumps
Eureka          100%           Denmark        Nilfisk
Forbes                                        Advance
Johnson         100%           Switzerland,   Taski
Diversey                       Italy, USA
                               and China
Man             100%           Germany        Karcher
Machine
Western         100%           Italy          IP Cleaning
Floors                                        S.P.A.
                                              (Interpump
                                              Group)
Charnock        100%           UK             Numatic
                                              International
Rodak           100%           Switzerland    Perlis         Assembly of CKD and
                                                             Marketing
Innovative      50%            Italy          Fiorentini srl
Godrej &        100%           USA            Tennant
Boyce Mfg.
Continental     75%            Italy          IPC Ready
Hygiene                                       System,
Concepts                                      Floor
Dulevo India    100%           Italy          Dulevo s.p.a
Nilfisk-        100%           World wide     Nilfisk
Advance India                                 advance
RGS Vacuum      100%           Italy          RGS Impianti
Systems




Ace Global Private Limited, New Delhi, India                                       39
Market Research on Cleaning Industry in India




                Share of       Country       Name of        Remarks
                imported       of origin     foreign
                products in                  supplier
                total sales
Inventa                        Italy         RCM S.p.A      Road sweeper for cement
                                                            industry, Compact
                                                            scrubber/drier, smokeless
                                                            Hot Water High Pressure Jet
                                                            cleaning machine
Aman                           Italy         Lavorwash
                                             S.p.A FA-SA

b) Consumables
              Share of         Country       Name of       Product range   Remarks
              imported         of origin     foreign
              products                       supplier
              in total
              sales
Pudumjee      100%             UK            Waterbury’s Wash room         Using
Hygiene                                      Vectair     and odour         dispensers
                                                         control           from Italy
                                                         products
Johnson         10-15%         Sweden        SCA         Tork brand of     Distribution
Diversey                                     Hygiene     tissues, hand     in India, Sri
                                             Products    wash and room     Lanka,
                                                         fresheners        Maldives,
                                                                           Bangladesh,
                                                                           Nepal and
                                                                           Bhutan
Schevaran       Neg.           USA and UK    Various       Dosing Pumps
Laboratories                                               and Diluters
Eureka          100%           Germany       Ecolab
Forbes
Jade            100%           USA, UK       Technical
International                                Concepts


Ace Global Private Limited, New Delhi, India                                         40
Market Research on Cleaning Industry in India




               Share of     Country       Name of         Product range    Remarks
               imported     of origin     foreign
               products                   supplier
               in total
               sales
Kimberly-      100%         USA           Kimberly-       Tissue jumbo     Conversion
Clark                                     Clark           rolls            into retail
                                          Worldwide                        packs done
                                                                           in India
Charnock                    UK            Bio-            cleaning
                                          Productions     products and
                                          Ltd. (part of   formulations
                                          Stapro, UK)

c) Tools & Accessories
               Share of     Country        Name of         Product range
               imported     of origin      foreign
               products                    supplier
               in total
               sales
Continental    75%          UK             TC
Hygiene                     The            Bentfield
Concepts                    Netherlands
Roots          40-45%       Italy          TTS             Compact Janitorial Trolleys
Multiclean
Man            100%         Italy          Euro Mop      Various tools & accessories
Machine                     China                        Trolleys, mops etc.
Unger India    100%         USA,           UNGER         Brushes, Mops/Wringers,
                            Germany,       Global        Trolleys & Carousels,
                            UK, France                   Washers & Squeegees,
Charnock       100%         UK             Numatic       Trolleys, mops/wringers,
                                           International carousals, glass cleaning
                                                         eqpt.
Western        100%         Italy          IP Cleaning   Trolleys, mops/wringers,
Floor                                                    glass cleaning eqpt.


Ace Global Private Limited, New Delhi, India                                         41
Market Research on Cleaning Industry in India




                   Share of         Country              Name of    Product range
                   imported         of origin            foreign
                   products                              supplier
                   in total
                   sales
Poona Brush        5%               USA                  Dupont     Bristles
                                    Germany              Hahl       Diamond Abrasive
                                                                    filaments
                                    Italy                           Hollow car washer fibre
                                    Mexico                          Natural fibre for tile floor
                                                                    cleaning

6.3      Import Tariff

Import tariffs in India consist of following elements:
      Basic Customs Duty - the border tariff as defined under WTO;
      Countervailing Duty (CVD) - being the equivalent of the excise duty on equivalent
      goods manufactured in India;
      Special CVD - being the equivalent of the VAT on equivalent goods manufactured in
      India;
      Education Cess (EC) - a surcharge on the duties, imposed for a public cause
      (education)

As per the present import policy, the total effective import tariffs applicable for 2008-
09, for the items of interest to this study, are summarised below.

Table 20.: Import tariff applicable for 2007-08
                      Total import tariff
Equipment             31.011%            to
                      34.130%
Consumables           29.275%            to
                      34.130%
Tools            & 31.011%               to
Accessories           34.130%



Ace Global Private Limited, New Delhi, India                                                       42
Market Research on Cleaning Industry in India




6.4     Exports


Roots Multiclean is the only major exporter of industrial cleaning equipment, with exports accounting for
nearly 50% of their sales. The company exports floor cleaning machine and equipment to the leading
markets of the world including USA, Europe, Australia, Japan, Far East, South America and several other
advanced countries. RMCL’s joint venture partner Hako uses RMCL as a production hub for worldwide
sales of selected machines, such as Hakomatic Scrubber Drier E 350. Also RMCL’s indigenously designed
and manufactured machines (WIZARD floor washer) are marketed in Europe by Hako.


In high value cleaning equipment, TPS Infrastructure currently exports equipment
accounting for about 5-7 % of their sales. However, the company is targeting to increase
their exports to 30% of sales in the next 2-3 years.

Exports of consumables, tools and accessories from India are negligible. , except for cleaning brushes.
Johnson Diversey and Schevaran Laboratories are exporting a part of their production of cleaning
chemicals. Poona Brush Company indicated exports of industrial cleaning brushes, mostly to Indonesia,
China and Korea and is currently negotiating with a British importer.


J & B Industries indicated that their products are finding acceptance in the overseas
markets such as Saudi Arab, South Africa, Australia and Pakistan.




Ace Global Private Limited, New Delhi, India                                                          43
Summer Intern Report - SBD - Rahul Gupta - 11BM60055
Summer Intern Report - SBD - Rahul Gupta - 11BM60055
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Summer Intern Report - SBD - Rahul Gupta - 11BM60055

  • 1. The Industrial Cleaning in India Profile 2009
  • 2. Market Research on Industrial Cleaning Sector in India Prepared for By ACE GLOBAL PRIVATE LIMITED NEW DELHI, INDIA
  • 3. Copyright Ownership The report/market research submitted by Ace Global Private Limited is the exclusive proprietary right of Italian Trade Commission (ICE) and will be for exclusive utilization by ICE office. This report shall not be shared with any other clients in the form of part/sections of the report without ICE’s prior approval.
  • 4. Table of Contents 1. Introduction ............................................................................. 1 1.1 Objectives .................................................................................................................. 1 1.2 Coverage of the study................................................................................................ 1 1.3 Methodology ............................................................................................................. 1 1.3.1 Secondary research ........................................................................................... 1 1.3.2 Primary survey................................................................................................... 2 1.4 Draft Report............................................................................................................... 3 2. India – A Brief Profile and Economic Overview ......................... 4 2.1 Geography ................................................................................................................. 4 2.2 Demographics............................................................................................................ 5 2.3 Economic Demographics: .......................................................................................... 5 2.4 Macro-Economic Scenario......................................................................................... 5 2.4.1 Recent Economic performance and future outlook.........................................6 2.5 Business Environment and Policy Framework........................................................... 7 2.6 Currency .................................................................................................................... 7 3. Overview of Industrial Cleaning Sector in India ........................ 9 3.1 Equipment ............................................................................................................... 10 3.2 Consumables ........................................................................................................... 18 3.3 Tools & Accessories ................................................................................................. 20 3.4 Industry Growth Trends .......................................................................................... 22 4. Product Range........................................................................ 26 5. Production Overview ............................................................. 31 5.1 Equipment ............................................................................................................... 31 5.2 Consumables ........................................................................................................... 32 5.3 Tools and Accessories.............................................................................................. 33 6. External Trade........................................................................ 35 6.1 Imports .................................................................................................................... 35 6.1.1 Italy’s Share in Indian Imports ............................................................................. 37 6.2 Imports information compiled from primary survey .............................................. 38 6.3 Import Tariff ............................................................................................................ 42 6.4 Exports..................................................................................................................... 43 7. Channels for Marketing.......................................................... 44 7.1 Structure.................................................................................................................. 44 7.2 Distribution Network............................................................................................... 45 7.3 Market Segments .................................................................................................... 54
  • 5. 8. Employment in the Sector ...................................................... 57 9. Growth Trends ....................................................................... 59 10. Growth Drivers....................................................................... 61 10.1 Real Estate boom in India........................................................................................ 61 10.2 Facility Management Services ................................................................................. 62 10.3 Growth in end-use segments .................................................................................. 63 10.3.1 Health care segment............................................................................................ 63 10.3.2 Organised Retail .................................................................................................. 65 10.3.3 HORECA segment ................................................................................................ 66 10.3.4 IT and ITES sector................................................................................................. 67 10.3.5 Railways ............................................................................................................... 67 10.3.6 Urban Transportation .......................................................................................... 67 10.3.7 Municipal Authorities .......................................................................................... 68 10.4 Efforts by industry ................................................................................................... 68 11. Experiences/Perceptions about Italian equipment/ companies 70 11.1 Product range .......................................................................................................... 70 11.2 Quality ..................................................................................................................... 70 11.3 Price ......................................................................................................................... 70 11.4 Relationship with customers ................................................................................... 71 12. Interest in Tie-ups with Italian companies.............................. 72 13. Conclusions & Recommendations .......................................... 73 13.1 Conclusions.............................................................................................................. 73 13.1.1 Products with Potential ....................................................................................... 74 13.2 Recommendations - Strategy for Italian companies ............................................... 74 13.2.1 Business Structure Options ................................................................................. 74 13.2.2 Practical aspects of doing Business in India ........................................................ 76 13.2.3 Pathways for Market Entry.................................................................................. 76 • Business Development and Promotion ....................................................................... 76 • Business Models .......................................................................................................... 77 • Aggressive marketing for brand building .................................................................... 78 • Two pronged approach to sales and distribution: ...................................................... 78 • Value added services ................................................................................................... 78
  • 6. Market Research on Cleaning Industry in India 1. Introduction This report pertains to the market research on Industrial Cleaning Industry in India. The survey has been sponsored by Italian Trade Commission, New Delhi, on behalf of AFIDAMP - the Italian Association. 1.1 Objectives The main objective of this study is to prepare an updated version of the Report on Market Survey on Industrial Cleaning Machines / Equipment and Products in India, which was originally prepared in 2006. Accordingly, this updated report covers the following: • The current state of the Industrial Cleaning Industry in India • Principal factors driving the growth of the market, including trends in technology and products being currently used in India • Availability of equipment and products (Indian and Imported) • External trade trends 1.2 Coverage of the study This study covers cleaning equipment and related products used for professional applications only. The following categories are covered in this study: - equipment - consumables - tools & accessories 1.3 Methodology 1.3.1 Secondary research The main sources of secondary information have been - Economic Survey of India 2009 - Websites of companies - Journals and publications of various industry bodies (current and past issues) Ace Global Private Limited, New Delhi, India 1
  • 7. Market Research on Cleaning Industry in India Clean & Hygiene Review (a bi-monthly publication of Hammer Publisher Pvt. Ltd., Delhi) Clean India Journal (a monthly publication of Virtual Info Systems Pvt. Ltd., Mumbai) Facility Management (quarterly publication of International Facility Management Institute – India chapter) - Imports and exports statistics from DGCIS, Govt. of India - Catalogues of Indian manufacturing and marketing companies 1.3.2 Primary survey A primary survey was carried out to assess the market size, growth trends in the industrial cleaning sector in India. The primary survey also obtained feedback on experience, awareness levels and perceptions with regard to foreign (especially Italian) equipment and products for industrial cleaning. The primary survey was carried out through personal interviews in all the important locations for the Industrial cleaning sector, as summarized below: Table 1.: Primary survey contacts Number Indian companies manufacturing and/or marketing industrial 25 cleaning equipment / consumables / tools & accessories End users of industrial cleaning equipment/products, 12 including Service providers (Facilities Management companies) Industry bodies (including publishers of journals) 2 Total 39 A full list of names, addresses and contact numbers of companies/organizations met during the primary survey, is enclosed as Annex 1. It is pertinent to highlight here that although most of the respondents were cooperative, some companies did not agree to meet the consultants while some shared only part of the information. In such cases, effort has been made to compile as much information as possible from secondary sources. Ace Global Private Limited, New Delhi, India 2
  • 8. Market Research on Cleaning Industry in India A larger database of industry players and other related organizations in the Industrial cleaning sector in India is enclosed as Annex 2. 1.4 Draft Report This Draft Report has been prepared based on the compilation and analysis of all information/data collected through secondary and primary research. Ace Global Private Limited, New Delhi, India 3
  • 9. Market Research on Cleaning Industry in India 2. India – A Brief Profile and Economic Overview 2.1 Geography - Total area: 3.28 million sq km (of which land area is approx. 2.97 million sq.km.) - Land boundaries: 14,103 km o Border countries: West: Pakistan 2,912 km North: China 3,380 km, Nepal 1,690 km, Bhutan 605 km East: Bangladesh 4,053 km, Myanmar (Burma) 1,463 km - Coastline: 7,000 km, bordering the Indian Ocean (South), Arabian Sea (South West) and Bay of Bengal (South East) - 29 states and 6 union territories. Many of the states are larger than some of the European countries, both in terms of area as well as population Ace Global Private Limited, New Delhi, India 4
  • 10. Market Research on Cleaning Industry in India 2.2 Demographics - Total Population: 1.17 billion, with overall growth rate of 1.548% per annum - 31.5% of India’s people are under the age of 15 - 63.3% are between the ages of 15 and 64 - Major religions: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9% - Literacy: overall 59.5%; male: 70.2%; female: 48.3% - National language – Hindi (spoken by about one-third of the population) - 14 officially recognized regional languages - Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit. - English has associate level status in India and is widely used in business, as well as everyday life 2.3 Economic Demographics: - According to India’s premier economics research agency NCAER, the top of India’s income pyramid has around 1.8 million homes with an annual income of Rs 1 million and above. The second layer is 2.9 million homes, with an annual income of ranging from Rs 0.5 million to 1 million. - Most of these high income households are in urban areas. The total urban population in India is close to 28%. - The size of Indian middle class having sizeable household income is estimated to be around 30 million. - Top 6 most populated cities in India are Mumbai, New Delhi, Bangalore, Kolkata, Chennai, and Hyderabad. - Besides Delhi, the political capital of India, Mumbai is the commercial capital of India; Chennai is one of most industrialized city of South India. Bangalore is Information Technology hub of India. 2.4 Macro-Economic Scenario - Indian Institute of Finance has projected the India’s Gross Domestic Product for 2009-10 to be US$ 1217.6 billion (at current prices). Ace Global Private Limited, New Delhi, India 5
  • 11. Market Research on Cleaning Industry in India - Share of Industry and Services in GDP is 25.8% and 57.3% respectively, as per 2008- 09 figures. - Gross fiscal deficit has been on a declining trend since 2003 and reached a low of 2.7 % of GDP in 2007-08, but it is estimated to be 6% in 2008-09, largely due to liberal government spending during the economic recession. - Exports in 2007-08 were US $163.1 billion with growth rate of 29.2% over the previous year. In 2008-09 exports stood at US $ 168.7 billion pegging a growth rate of 3.4% on the back of global economic recession. Imports in 2007-08 were US $ 251.7 billion with growth rate of 29.2% over previous year. In 2008-09 total imports stood at US$ 287.8 billion with a growth rate of 14.3 %. Thus India is a net importer with trade balance of US$ (-)119.1 billion in 2008-09. - Principal imports are petroleum and oil goods, capital goods/machinery, gold & silver, precious and semiprecious stones, electronic goods and chemicals - Principal merchandise exports are textiles/clothing, gems & jewellery, engineering goods, chemicals/ pharmaceuticals, agriculture products, and leather goods. - India had forex reserve of about US$ 309.7 billion in March 2008 and US$ 252.0 billion in April 2009. The total foreign investment inflows were US$ 63.8 billion in 2007-08, out of which FDI was US$ 34.4 billion. Inspite of the global economic meltdown during the current fiscal, the total estimated FDI inflow in the country is US$ 33.6 billion. 2.4.1 Recent Economic performance and future outlook - The average growth rate of GDP of Indian economy has been 8.8% in the past five years from 2003-04 to 2007-08. Under unprecedented global economic conditions in 2008-09 where many countries have registered negative growth rate Indian economy is among the fastest growing, with growth rate for 2008-09 estimated around 6.7%. - Despite the slowdown, the investments have been buoyant growing at an impressive rate. The ratio of fixed investment to GDP increased to 32.2% of GDP in 2008-09 from 31.6% in 2007-08. - The per capita income in 2008-09 measured at constant prices of 1999-2000 was Rs 31,278. In 2007-08 this was Rs 29,901. The per capita consumption in 2008-09 was Rs. 17,334 as against a level of Rs. 17,097 in 2007-08. There has been a decline in the growth rate of per capita consumption from 6.9% in 2007-08 to 1.4% in 2008-09 largely due to the impact of economic recession. - The importance of trade and external capital inflows are increasing in India. The share of merchandise trade to GDP increased to over 35% in 2007-08 from 23.7% in 2003-04. If the trade in services is included, the trade ratio is 47% of GDP in 2007-08. Ace Global Private Limited, New Delhi, India 6
  • 12. Market Research on Cleaning Industry in India - The 11th plan targets 8-10% growth for Indian economy. 2.5 Business Environment and Policy Framework - Since the economic liberalization in 1991, Indian economy has been fairly open and has attracted business from all over the world. According to latest World Bank report – ‘Doing Business with India 2009’, it is easier to do business in India now, than it was three years ago. - Ludhiana, a textile and export hub, is ranked as number one city according to ease of doing business. - Tax structure in India is increasingly becoming fair and liberal. The general rate of basic excise duty, central states tax and VAT are being progressively reduced and rationalized. All quantitative restrictions on the imports have been removed since 2001, barring few highly sensitive items. - Through various multilateral and bilateral agreements India is reducing its import tariffs to facilitate trade. - The number of clearances before starting a business in India sometimes proves deterrent to new players. Apart from the process is time taking and the bureaucratic corruption is main hassle. The Global Enabling Trade Report 2008 by WEF ranked India at a position of 71. China, India’s main competitor was at 48. - Competition Commission of India and Investment Commission of India along with various industrial associations like Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) have been instrumental in educating and encouraging foreign players to start investing in Indian market. 2.6 Currency The monetary unit of India is Indian Rupee (1 Indian Rupee = 100 paise). The fluctuation in the exchange rate of Indian Rupee vis-a-vis US Dollar and Euro has been summarized in the table below. Table 2.: Exchange Rate trends Year Exchange Rate* 2005 1US$ = Rs. 43.27 1 Euro = Rs. 58.44 2006 1US$ = Rs. 44.95 1 Euro = Rs. 54.50 2007 1US$ = Rs. 44.11 1 Euro = Rs. 59.10 2008 1US$ = Rs. 39.41 1 Euro = Rs. 57.85 2009 1US$ = Rs. 48.58 1 Euro = Rs. 67.12 Ace Global Private Limited, New Delhi, India 7
  • 13. Market Research on Cleaning Industry in India Source: Assorted; * Exchange rates are based on the values in the first week of the year Ace Global Private Limited, New Delhi, India 8
  • 14. Market Research on Cleaning Industry in India 3. Overview of Industrial Cleaning Sector in India Mechanised cleaning was introduced in India in late 1990’s, but is still in early stages of development, considering the size and potential of the Indian market. Traditionally cleaning was not considered a dignified profession and, till recently it was considered a menial job to be done by persons of lower social echelons using their bare hands or rudimentary brooms. Majority of users still rely on the traditional manual cleaning methods. Of late, however, the customers have begun to realize that cleaning requires professional skills and mechanized equipment, besides more efficient, hygienic and environment friendly products. On the whole, the cleaning industry seems to be transforming from a labour-led industry to a technology-led industry. Entry of multi-national companies into India, as well as globalisation of Indian companies has been a major factor in this transformation. The standards are therefore bound to get better. The facility owners have also realized the importance of good cleaning processes employed in their premises. It is being increasingly recognised that a clean healthy work place does increase the employee productivity and customer satisfaction, and any additional investment in housekeeping will lead to higher dividends, in the long run. The significant developments in the sector during the last three years are summarised below: • The market in the last 3 years has seen high paced growth, with mechanised cleaning being inducted in a variety of new applications. • A large part of this growth has come from government / semi-government entities like municipal corporations, railways, hospitals etc. • A lot of new infrastructure like Metros Rail Stations, shopping malls / multiplexes, upgraded and new airports, new IT / ITES / Residential Complexes have come in the market in the last 3 years leading to increased use of mechanized cleaning equipment and tools. • The industrial sector, which includes companies in infrastructure, steel, cement, ports etc., have also contributed significantly towards the growth of the market. • Many new international players have entered the market which includes companies like Comac, Nilfisk (direct presence), Tennant, and Dulevo. Many manufacturers from China have appointed distributors in India. • Along with the equipment suppliers, the number and reach of service providers has also grown significantly. Many housekeeping / facility management companies have achieved more than 100% growth over the last 3 – 4 years. Ace Global Private Limited, New Delhi, India 9
  • 15. Market Research on Cleaning Industry in India The overall industrial cleaning sector has been subdivided into the following three categories: - Equipment o Sweepers (with/without aspirator). o Vacuum cleaners (dry and wet & dry). o Carpet cleaners (upright machines and injection extractors) o High pressure washers (hot & cold) o Steam cleaners o Single disc machines o Scrubber driers - Consumables o Cleaning chemicals (for wash rooms, Kitchen hygiene, Floor cleaning, Carpet cleaning, Odour control, window cleaning, etc.) o Tissues - Tools and Accessories o Mops and mops holders, including Multi-purpose Trolleys (including wringer buckets) o Window cleaning tools & accessories o Other Floor cleaning tools (brushes, pads, discs, wipers etc.) 3.1 Equipment 3.1.1 Overall Market Size The size of the market for industrial cleaning equipment in India is estimated to be about Rs. 2.55 billion to 2.70 billion in 2008-09, as per details below. This does not include the market for high value vehicle mounted equipment (vacuum cleaners and sweepers), which is estimated at Rs. 1 billion in 2008-09. Table 3.: Market for Industrial Cleaning Equipment (company wise value of sales) Sales Turnover in Sales Turnover 2005 in 2008-09 (Rs. million) (Rs. million) Tier I companies Roots Multiclean 240 700 Eureka Forbes 240 280 Johnson Diversey 150-160 250-300 Ace Global Private Limited, New Delhi, India 10
  • 16. Market Research on Cleaning Industry in India Sales Turnover in Sales Turnover 2005 in 2008-09 (Rs. million) (Rs. million) Man Machine Karcher 90-100 550 Dulevo Commenced Indian 205 operations in 2008 Sub-total 780 – 800 1,985 - 2,035 Tier II companies IPC Western Floors 60-70 73 Technoclean Equipments ** 60-70 Inventa Cleantec (earlier known 30-40 60-70 as Industrial Spares) Charnock 10 40-50 Nilfisk Commenced Indian 30 operations in 2007- 08 Soma Specialities 25 15 Innovative 20 30 Delstar 15 30 R V Industries 12 25 Dynavac 10 20 Hafi Elektra 10 17 Aman Cleaning Equipments ** 20 Jags Impex ** 15 Bosch ** 30 Sub-total 140-150 450-500 Others 20-25 companies 30 – 50 125-150 Santoni, Godrej & Boyce (Tennant), Rodak Swiss Trademark, Magna Cleaning, Continental Hygiene Concepts etc. + imports from China Total 950 – 1,000 2,550 - 2,700 ** in 2005, these companies were included in Tier III Ace Global Private Limited, New Delhi, India 11
  • 17. Market Research on Cleaning Industry in India In the absence of any authentic industry data, the above estimate of market size has been arrived at based on domestic sales figures reported by the leading players during the discussions. However, there is a large variance in industry size estimates provided by each company, ranging from Rs. 2 billion to Rs. 3 billion. Further, there were also major differences in the sales figures claimed by individual companies and those reported by other industry players, e.g. while Roots Multiclean claimed sales of Rs. 700 million, their competitors place their sales at Rs. 400-500 million. The industry is dominated by five Tier I companies with each having an estimated turnover of above Rs. 200 million and which together account for about 75% of the market. The second tier companies, about 15 in number, each having an estimated turnover of above Rs. 10 million, account for 18% of the market, while the rest is shared between 20-25 small companies – tier III. Many of these tier III companies are marketing low cost Chinese equipment as well as locally made machines. In the last few years, companies like Aman Cleaning, Jags Impex and Bosch have reported higher sales and are now listed under Tier II. The above market size estimate for industrial cleaning equipment includes spares and consumable parts, which are an integral part of the equipment, such as motors, brushes, discs/abrasives, squeegees, filters, gaskets, hoses etc. These spares and consumable parts are generally marketed by the same companies that market the equipment, and account for about 10-12% of the annual sales. During the last few years, there have been a few significant new entrants in the industrial cleaning equipment market like Nilfisk Advance and Dulevo. • Nilfisk-Advance has recently set up their base in Mumbai, India. While, earlier the entire Nilfisk range of equipment was marketed in India by Eureka Forbes, now Nilfisk Advance India has directly entered the market, with Eureka Forbes continuing to market a part of the range. • Dulevo India started operations in India in 2008 as a subsidiary of Dulevo International SpA, Italy, a renowned name since 1976 in the field of industrial and road sweeping & cleaning equipments. Dulevo International already has a presence in over 60 countries. • RGS Impianti, Italy has started marketing their products in India through RGS Vacuum Systems based in Bangalore. The company has launched their range of 3 phase industrial vacuum cleaners and single phase industrial vacuum cleaners. The company is also studying the Indian market and may start manufacture in India. High Value Vehicle-mounted Sweepers and Vacuum Cleaners In addition to the conventional cleaning equipment, there is also a significant and growing market in India for high value vehicle-mounted Sweepers and Vacuum Cleaners for various applications such as road cleaning, airports, etc. Ace Global Private Limited, New Delhi, India 12
  • 18. Market Research on Cleaning Industry in India The market size for high value mounted Sweepers and Vacuum Cleaners is estimated to be about Rs. 1 billion. Delhi based TPS Infrastructure Ltd. is the leading supplier of these types of equipment, claiming 80% share of the market with a turnover of about Rs. 800 million. A small company Guru Nanak Engineering Works in Ludhiana has also started manufacture of mounted sweepers, mostly for Government departments and expects to sell 35-40 machines per year. 3.1.2 Market for different types of industrial cleaning equipment By value The overall market composition for industrial cleaning equipment is summarised below. Vacuum Cleaners (dry and wet & dry types) are the most widely used industrial cleaning equipment in India, followed by Sweepers and Scrubber Driers, together constituting almost two-thirds of the market by value. As can be seen in the table, there is no major change in the composition of the market since 2005. Table 4.: Composition of market for Industrial Cleaning equipment - by value Share in 2005 Share in 2008-09 Sweepers 15-20% 17% Vacuum cleaners (dry and wet & 35% 35% dry) High pressure washers 10-12% 10% Single disc machines 10% 7% Scrubber Driers 15-20% 22% Carpet cleaners 5% Included in Vacuum cleaners Steam cleaners 1-2% 2% Others 3-5% 7% Source: Primary survey by Ace Global The sales composition of the leading companies is provided in the table below. Vacuum cleaners form an important category for all companies, though to a varying degree. However, scrubber driers are most important for Roots Multiclean, while vacuum cleaners and sweepers are important for Eureka Forbes. Some companies which are marketing only one type of equipment are not included in the Table (e.g. Nilfisk Advance - road sweepers, Hafi Industrial vacuum cleaners and Bosch Cold washer high pressure cleaners) Ace Global Private Limited, New Delhi, India 13
  • 19. Market Research on Cleaning Industry in India Table5.: Company-wise Sales break-up (% by value) A) Tier I companies Equipment Roots Eureka Johnson Man Dulevo TPS Multiclean Forbes Diversey Machine Karcher Vacuum Commercial 11% 19% 28% 21% 6% cleaners Industrial 3% 12% 0% 2% 2% Industrial 0 0 0 0 0 47% Fixed / Vehicle Mounted Sub Total 14% 31% 28% 23% 8% 47% Single disc machines 0% 4% 13% 0% 3% 0 Sweepers Manual 13% 0 0 0 0 Ride On 10% 16% 22% 0 18% 5% Road 32% 0 0 23% 59% 48% sweepers Sub Total 65% 16% 22% 23% 77% 53% Scrubber Walk 20% 22% 22% 14% 6% 0 Driers behind Ride on 6% 11% 13% 10% 4% 0 Sub Total 26% 33% 35% 34% 10% 0 High Hot water 0 0 0 0 0 0 Pressure Cold water 3% 9% 4% 8% 1% 0 Cleaners Sub Total 3% 9% 4% 8% 1% 0 100% 100% 100% 100% 100% 100% B) Tier II & III companies (selected) Equipment IPC Inventa Charnoc Aman Jags Godrej & Western Cleantec k Impex Boyce Floors (Tennant) Vacuum Commercia 39% 14% 50% 14% 84% 0 cleaners l Industrial 12% 0 0 0 0 0 Sub Total 51% 14% 50% 14% 84% 0 Single disc machines 5% 4% 4% 4% 16% 0 Ace Global Private Limited, New Delhi, India 14
  • 20. Market Research on Cleaning Industry in India Equipment IPC Inventa Charnoc Aman Jags Godrej & Western Cleantec k Impex Boyce Floors (Tennant) Sweepers Manual 0 38% 0 38% 0 0 Ride On 0 13% 0 13% 0 69% Sub Total 0 51% 0 51% 0 69% Scrubber Mechanise 0 0 0 0 0 0 Driers d Walk 24% 10% 24% 10% 0 12% Behind Ride on 10% 6% 6% 6% 0 19% Sub Total 34% 16% 30% 16% 0% 31% HOT 0 0 0 0 0 High WATER Pressure Cold water 10% 16% 8% 0 0 0 Cleaners Sub Total 10% 16% 8% 16% 0% 0% Total 100% 100% 100% 100% 100% 100% By volume The market size for different types of industrial cleaning equipment, in terms of volume of sales, is difficult to estimate due to the wide range of models within each type of equipment, suited for different applications. For example, Man Machine offers several models of vacuum cleaners (including shoulder mounted model), with air flow ranging from 44 litres/sec to 112 litres/sec. Similarly the company sells 9-10 different models of Scrubbers and Scrubber Driers, including walk-behind and ride- on models. However, based on feedback of equipment marketing companies as well as end users, the broad market size by volume, is as in the table below, for the leading companies in each equipment category. The wide variation in prices in some cases is due to availability of low-cost Chinese and locally manufactured equipment. Vacuum cleaners are by far the most commonly used equipment, in volume terms. Table 6.: Composition of market for Industrial Cleaning equipment - by volume Equipment Type Market size Price range (Nos.) (per unit) Ace Global Private Limited, New Delhi, India 15
  • 21. Market Research on Cleaning Industry in India Sweepers Manual sweepers 9000 Rs. 6000 – (with/without 10,000 aspirator) Industrial sweepers walk behind type 200 Rs 100,000 ride on type 190 Rs. 0.7 – 1.5 million Vacuum cleaners Commercial and Professional 39,500 Rs.7,000 -25,000 (dry and Industrial Vacuum Cleaners 420 Rs. 70,000 - wet&dry) 125,000 High pressure Cold 8,450 Rs.5,000 – washers 40,000 Hot 1,500 Rs. 100,000 - 125,000 Single disc 3,000 Rs. 30,000 - machines 70,000 Scrubber Driers Walk behind Scrubber Drier 2,665 Rs. 80,000 – 150,000 Ride on Scrubber Drier 200 Rs.550,000 - 700,000 High Value Large industrial vacuum 75 – 100 Rs. 4 million Vehicle-mounted cleaners 7.5 KW to 200 KW (excluding the Sweepers and price of vehicle) Vacuum Cleaners Sweepers 200 litres to 6500 ~ 200 Rs. 1 to 5 million litres (excluding the price of vehicle) Recent new product introductions: In the recent years, several foreign companies (including Italian) have entered the Indian market, either by setting up Indian subsidiaries or through marketing tie-ups with importers and distributors. Some of these as well as Indian companies have launched new products. An indicative list of companies and their products launched in India, is given below: • Roots Multiclean – EZE Clean and dry mops, RM series floor stripper, sealer and floor finish, Dry Foam carpet cleaning system, Minuteman MPV31 wide area vacuum cleaner • Cimel s.r.l Italy - automatic scrubber drier Turbolava 35 Facile • Im.Ex.Serve Italy – IMEX Air Water high pressure Washer, IMEX-CxW microfiber cloth wipe , IM.EX.SV13 Nebraska, a diesel steam car wash. Ace Global Private Limited, New Delhi, India 16
  • 22. Market Research on Cleaning Industry in India • Soma Specialty – Cyclotron Mini compact scrubbing machine, Desiderio Plus steam cleaner from Capitani of Italy, Cyclon Max-75 special purpose machine for restoration of stone floors, cyclone FP 240 flame proof floor cleaning machine • Dulevo India – 1300 Star sweeping machine, model S20/E Industrial Vacuum Cleaner from Dulevo Italy, • Inventa - Italian RCM S.p.A road sweeper for cement industry, Compact scrubber/drier, smokeless Hot Water High Pressure Jet cleaning machine, • Cilmas s.r.l Italy – Mirage Spinning 490 floor washer drier-Rainbow Cleaning System manufactured by Rexair LLC, USA which can purify, deodorizer, medicate and aromatize air in a room • Lavorwash sps Italy – High pressure vacuum cleaners and auto scrubber drier through Aman • Lavorwash S.p.A FA-SA , Italy – Kappa & Kaiman range s of hot water high pressure systems • Hako & Roots Multiclean – Hakomatic B45 compact scrubber-drier, Hako Citymaster 1200 street sweepers (about 50 supplied0, Hakomatic B 30 compact scrubber drier, • Super Tech Equipment, Thane – SEW Series Vacuum Cleaners in 5 models • Glutton of Lange Christian, Belgium – Self Propelled street sweeper • Surie Polex – high speed floor polishers • Taski - Swingo 1650 for floor cleaning, JFfit onboard dilution control system that automatically feeds right amount of chemicals and Swingo 150 new ultra compact scrubber, which is like a vacuum cleaner for entry into restricted areas. • Man Machine – Karcher CV 66/2 brush type vacuum cleaner, Karcher BR 30/4C, BD 60/95 RS Model step on scrubber drier • Hefter Cleantech, Germany – Convert 82 convertible cleaning system for scrubbing, grinding, burnishing and crystallizing. • Nilfisk Advance – Alto Scrubtec 233 compact scrubber driers • Johnson Diversey India – Trooper SD Plus scrubber with attached foam generator, Alpha HP (a green seal certified multi-surface cleaner), New range of industrial vacuum cleaners for industrial waste and soil • Kam Avida – VT 650 Dual Sweep mounted sweepers from Johnston Sweepers, UK. • Tennant, USA – Green Machines through Godrej & Boyce Ace Global Private Limited, New Delhi, India 17
  • 23. Market Research on Cleaning Industry in India • Annovi Roberberi India – High pressure cleaners and pumps from Annovi Roberberi Spa • Bitimec International, US have launched its simple compact inexpensive and cost effective power-brush Speedy Wash line for buses and trucks. • Charnock – Ride on scrubber drier Vario from Numatic 3.2 Consumables The market size for consumables used for industrial cleaning in 2008-09 is estimated at about Rs. 6.50 – 7.00 billion, representing an increase of about 140% over the 2005 level. Among the two constituents of the segment, namely Cleaning Chemicals and Tissues, the share of cleaning chemicals has increased from 66% in 2005 to 78% in 2008-09, which is in line with the trend of increasing use of mechanised cleaning equipment for various applications. The industry players have also pointed out that in the last few years, the share of organised players has increased from 25% to about one-third of the market, as more end users now prefer to use high quality consumables which are not only more efficient but also more suitable for use with cleaning equipment, and therefore work out to be more cost effective. 3.2.1 Chemicals As per discussions with some of the leading players, the market size for industrial cleaning chemicals has grown from Rs. 1.8-1.9 billion in 2005 to about Rs. 5.0-5.5 billion, an increase of about three times. The use of professional grade cleaning chemicals has increased substantially, although according to the industry the use is still limited mainly to high end users in various segments like HORECA, healthcare and commercial segments. Therefore, the demand is expected to increase manifolds in the coming years, due to several factors, such as increasing demand for the industrial cleaning equipment, increasing trend of cleaning services being outsourced to professional facilities management companies, and increasing awareness for using more effective, efficient and environment friendly products for cleaning applications. 3.2.2 Tissues Tissues market (washroom tissue papers, facial tissues, paper towels/napkins etc.) is estimated to be about Rs. 1.50 to 1.60 billion (up from Rs. 0.90-1.00 billion in 2005. Kimberley Clark, the market leader holds about 30% share of the market by value. Another leading company in the organised sector Pudumjee’s imports bulk rolls and converts the same into retail packs at their works in Pune. Table 7.: Composition of market for Industrial Cleaning Consumables - by value 2005 2008-09 % Rs. Million Rs. Million Ace Global Private Limited, New Delhi, India 18
  • 24. Market Research on Cleaning Industry in India Cleaning 1800 – 1900 5,000 – 5,500 ~78% chemicals Tissues 900 – 1000 1,500 – 1,600 ~22% Total 2,700 – 2,900 6,500 – 7,000 The company-wise sales of the organised sector players, are summarised below: Table 8.: Company-wise sales of Chemicals and other cleaning products (organised sector) Total Sales Turnover Total Sales Turnover 2005 (Rs. Million) 2008-09 (Rs. Million) Pudumjee 120 700 Kimberly Clark 50-60 600 Johnson Diversey 100 – 120 250-300 Schevaran Laboratories 80 160 Eureka Forbes (Ecolab) 40 75 Jade 30-40 N.A. Origami 50 75 Haylide Chemicals 10-20 40-50 Rancher 10-15 N.A. Hygiene Products of India 10 N.A. Altret Performance Chemicals 5 N.A. Gujarat Naveen Polycon > 10 Others 125 – 150 250-300 Total (organised sector) 650 – 750 2,200 - 2,300 For Kimberley Clark, about 80% of the turnover comes from Tissue paper, while 20% is contributed by other products like Wipers, Apparels & garments, Gloves, Eye protection, soap/hand sanitizers, dispensers, air neutralizers, Paper napkins (locally procured). Some of the companies met during the research felt that the economic recession has not impacted their sales much as they have maintained the quality and competitive pricing of their products. Recent new product introductions: Ace Global Private Limited, New Delhi, India 19
  • 25. Market Research on Cleaning Industry in India • Bio-Productions Ltd. / Stapro, UK - environment friendly cleaning products and formulations through Charnock, Bangalore. • Haylide Chemicals, Jabalpur – Sterix-A, advanced biodegradable cleaning solution • Henkel India – Pril degreasers, Renuzit brand car & air fresheners, super odour neutralizers • Jade – Auto Foam soap dispensers • Mecserflex UK – Sagewash Sanitizer through Orange Care Solution Pvt. Ltd. Bangalore • Cole-Palmer India – IS formulated cleaning concentrate • A R Enterprises, Delhi – Valorem Aerosol Dispensers • Pudumji, Mumbai – Greenlime range of fragrances • Hokwang , Taiwan – HK-RSD Auto Soap Dispenser • DAGA Finmark India, Ahmedabad – Electroclean for electronic items like computers, fax machines, photocopiers etc. • Vinci Chem, Andhra Pradesh – Vinci Biomex, a European technology cleaning solution. • Quartz Home Care, New Delhi – Wizard floor cleaners 3.3 Tools & Accessories The tools and accessories comprise of non-mechanised equipment used for manual cleaning, categorised broadly as follows: o Mops and mops holders o Multi-purpose Trolleys (including wringer buckets) o Window cleaning tools & accessories o Floor cleaning tools o Others (brushes, pads, discs, wipers etc.) The total market for tools and accessories is estimated to be between Rs. 1.30 to 1.50 billion, of which the share of unorganised sector is estimated to be around 65%, including sundry imports from China, Hong Kong and Korea. Table 9.: Composition of market for Industrial Cleaning Tools & Accessories - by value Value 2005 Value 2008-09 (Rs. million) (Rs. million) Mops and mops holders 200-225 350-375 Ace Global Private Limited, New Delhi, India 20
  • 26. Market Research on Cleaning Industry in India Trolleys 25-30 50-100 Window cleaning tools and 70-80 200-225 accessories Floor cleaning tools 250-275 450-500 Others (brushes, pads, discs, wipers, 100-150 250-300 etc.) Total 650-750 1,300-1,500 Almost all the organised sector players are marketing imported tools and accessories, except Roots Multiclean, which manufactures some mops and wringer buckets/trolleys. Table 10.: Company-wise sales of Tools & Accessories (organised sector) Value 2005 (Rs. Value 2008-09 (Rs. million) million) Continental Hygiene 80-100 150-200 Concepts Cradle Runways 35-40 100 Roots Multiclean 30-35 30-35 Unger 35 50-75 Johnson Diversey 20-25 40-50 Poona Brush 20 25 Man Machine Karcher 10-15 20-25 Bangalore Brushware 10 15 IPC Western Floor 5 6.5 J&B - N.A. Inventa Cleantec - 2.5 Others 5-10 20-25 Total 200-250 450-550 Note: Aerial work platforms used for cleaning of windows and building facades, are multi-purpose equipment also used for construction, repair & maintenance, painting etc. The leading company, Cradle Runways Pvt. Ltd. reported sales of about R.s 35-40 million during 2005-06. In 2008-09, the company received orders to the tune of 200-220 million and executed about half of the orders. It expects to reach a target of Rs. 150 million during 2009-10. Recent new product introductions: • Brush Tech India – Welcome brand brushes for road and floor sweepers • Corazzi Fibre S.r.l, Italy – Non woven abrasives through Ethos Corp, Mumbai Ace Global Private Limited, New Delhi, India 21
  • 27. Market Research on Cleaning Industry in India • Superclean Scandinavia AB, Sweden – Qleeno Quiet, a combi scrubber for noise sensitive areas. 3.4 Industry Growth Trends The industrial cleaning industry in India has seen accelerated growth in the last few years, registering a CAGR of 34% per year, with the equipment segment growing at the fastest rate of 39% per year. Market size in 2005 Market size in Growth (Rs. million) 2008-09 Overal CAGR (Rs. million) l Equipment 950 – 1,000 2,550 - 2,700 170% 39% Consumables 2,700 – 2,900 6,500 – 7,000 141% 37% Tools and 650-750 1,300-1,500 100% 26% Accessories Total 4,300 – 4,650 10,350 – 11,200 141% 34% Consumables continue to account for a major share of the industrial cleaning market (63% by value) as their use extends to applications where mechanised cleaning, using equipment and/or tools, has not yet become common. Ace Global Private Limited, New Delhi, India 22
  • 28. Market Research on Cleaning Industry in India Market Composition, 2005 Market Composition, 2008-09 Tools Tools and and Access Equipm Access Equip ories ent ories ment 13% 24% 16% 22% Consu Consu mables mables 62% 63% Market Size Growth 7000 6000 5000 Rs. million 4000 3000 2000 1000 0 Equipment Consumables Tools and Accessories 2005 2008-09 The above computed industry growth rates are also corroborated by the key industry players met during the research. Most companies claim to have grown at a healthy rate of 20 to 40% per year during the last three years. The overall industry has grown at an average of around 30% per year. Further, there is near unanimity among industry players that the industrial cleaning sector is poised for an even higher growth of 30%-40% in the coming years, given the healthy growth in most of the end-use sectors. Ace Global Private Limited, New Delhi, India 23
  • 29. Market Research on Cleaning Industry in India The table below summarises the responses relating to past growth trends and the expected future growth of the industry. Table 11.: Rate of expansion/ growth of the sector in the last few years Annual Growth rate (%) Past (3-year Projected Growth average) Company Industry Equipment Roots Multiclean 15-20% 30-40% 45% Eureka Forbes 20% 15% 35-40% Johnson Diversey 50-60% 10-11% 15% Man Machine 25% 25% 40-45% IPC Western Floors 25-30% 25040% 30% Inventa Cleantec 25% 40% 50% Soma Specialities 30-40% 30-40% Innovative 30% 100% R V Industries 30% Santoni 10-15% 20% >25% Rodak Swiss 200% 20-30% 30% Technoclean Equipments 40% 40% Aman Cleaning Equipments 0 40-50% 50-60% Magna Cleaning 30-40% 50% Godrej 25% TPS Infrastructure 100% 40% 40% Guru Nanak engineering 15-20% 15 – 20 – 25% works 20% Consumables Pudumjee 18-20% 18-20% Schevaran Laboratories 20% 30% Eureka Forbes 20% 15% 35-40% Jade 15-20% 20% Kimberly Clark 10-15% 10-15%% Poona Brush 10% 20% >20% Hygiene Products of India 40-50% 50-60% Haylide Chemicals 200% 10-15% >15-20% Ace Global Private Limited, New Delhi, India 24
  • 30. Market Research on Cleaning Industry in India Naveen Polycon 10-15% 10% 20% Tools & Accessories Continental Hygiene 25% 50% Products Unger India 40% 40% 40% J & B Industries 20% 20% 30-40% Ace Global Private Limited, New Delhi, India 25
  • 31. Market Research on Cleaning Industry in India 4. Product Range Most of the companies tend to carry all types of equipment, though the range in terms of number of models varies from company to company. The following table summarises the product range offered by various companies, both imported as well as indigenous. Table 12.: Product range of individual companies a) Equipment Sweepers Vacuum Carpet High Steam Single Scrubber Remarks Cleaners Cleaners Pressure Cleaners Disc s / Driers Dry Wet & Washers machine Dry s Roots Multiclean 80% of machines will be manufactured in- house by 2010- 2011 Eureka Forbes Johnson Diversey Man Machine Karcher Ace Global Private Limited, New Delhi, India 26
  • 32. Market Research on Cleaning Industry in India Sweepers Vacuum Carpet High Steam Single Scrubber Remarks Cleaners Cleaners Pressure Cleaners Disc s / Driers Dry Wet & Washers machine Dry s Dulevo IPC Western Floors Technoclean Equipments Inventa Cleantec Charnock Soma Specialities Innovative Aman Cleaning Equipments Santoni Godrej & Boyce Rodak Swiss Trademark Hafi Elektra Ace Global Private Limited, New Delhi, India 27
  • 33. Market Research on Cleaning Industry in India Sweepers Vacuum Carpet High Steam Single Scrubber Remarks Cleaners Cleaners Pressure Cleaners Disc s / Driers Dry Wet & Washers machine Dry s Magna Cleaning Systems Poona Brush Company Legend: Imported Manufactured b) Consumables Wash Kitchen Floor Carpet Odour Other Tissue room hygiene cleaning cleaning control chemicals paper products products products products products Pudumjee Hygiene Photography & X-rays Johnson Diversey Kimberly Clark Imported in rolls and cut Ace Global Private Limited, New Delhi, India 28
  • 34. Market Research on Cleaning Industry in India Wash Kitchen Floor Carpet Odour Other Tissue room hygiene cleaning cleaning control chemicals paper products products products products products to size Schevaran Eureka Forbes (Ecolab) Jade International Origami Altret Performance Chemicals Haylide Chemicals Chemicals for photography & X-rays Rancher Hygiene Products Naveen Polycon Roots Multiclean c) Tools & Accessories Ace Global Private Limited, New Delhi, India 29
  • 35. Market Research on Cleaning Industry in India Mops and Trolleys Window cleaning Floor Others (brushes, Mop tools & accessories cleaning tools pads, discs, holders scrubbers, wipers, hoses etc.) Continental Hygiene Concepts Roots Multiclean Unger India Johnson Diversey Eureka Forbes Man Machine IPC Western Floor Charnock Poona Brush Bangalore Brushware J & B Industries Dulevo Legend: Imported Manufactured Ace Global Private Limited, New Delhi, India 30
  • 36. Market Research on Cleaning Industry in India 5. Production Overview 5.1 Equipment The industrial cleaning equipment market in India continues to be import driven. Only one of the five tier I companies, Roots Multiclean has production facilities in India. On the other hand, many of the tier two companies have production facilities, though with limited capacity and product range to supplement the imported equipment marketed by them. Roots Multiclean has a well-established manufacturing set up, with three factories in Coimbatore in Tamil Nadu (south India). One of the factories is a 100% Export Oriented Unit, manufacturing a single model of Floor Washer which is exported through Hako’s marketing network in Europe. Nearly 55-60% of the company’s sales (by value) come from domestic production, while imported equipment account for 40- 45% of the sales. The company manufactures a range of equipment, based on technical know-how from joint venture partner Hako, Germany. In 1999, the company also launched an indigenously designed Floor Washing machine ‘Wizard’ which is also being exported through marketing tie-ups with world’s leading companies such as Trovox, UK, Minutemen, USA, Nilfisk, and INB Hong Kong. In the recent years, the company has added Single disc machines to their product range. In 2008, Roots Multiclean also signed a collaboration agreement with Minuteman Power Bosch USA. The indigenous production facilities for industrial cleaning equipment are summarised in the table below: Table 13.: Producers of Industrial Cleaning Equipment Name of Production range Production sites Foreign company collaboration, if any Roots Scrubber Driers, 3 factories: Joint venture with Multiclean Manual Sweepers, - Coimbatore (Tamil Hako Werke, Ltd. Mini Floor Washer, Nadu) Germany Single disc machines Minuteman Power Bosch USA (subsidiary of Hako) since 2008 Inventa High pressure washers Noida (Uttar Pradesh) Italy for exclusive Cleantec and steam cleaners, marketing Ace Global Private Limited, New Delhi, India 31
  • 37. Market Research on Cleaning Industry in India Name of Production range Production sites Foreign company collaboration, if any Manual sweepers Soma Auto Scrubbers, back- Mumbai (Maharashtra) Specialities pack vacuum cleaners, carpet cleaners Innovative Vacuum cleaners Mumbai (Maharashtra) Magna High pressure washers Mumbai (Maharashtra) Assembly of imported SKDs Santoni All Faridabad (Haryana) Hafi Elektra Vacuum cleaners for Pune (Maharashtra) textile industry Technoclean Single disc machines, Noida (Uttar Pradesh) Equipments Scrubber driers TPS Mounted sweepers, Bhiwadi (Rajasthan) & Wieland Infrastructure Large mounted Ghaziabad (UP) Lufftenchnik vacuum cleaners, Germany, Compactors Stummer Eurowaren, Austria Several other small companies, such as Guru Nanak Engineering Works, Ludhiana (mounted sweeping machines), Aman Cleaning, R V Industries, Delstar, Dynavac, etc., also manufacture industrial cleaning equipment with indigenous know-how. 5.2 Consumables Table 14.: Producers of Chemicals and other cleaning products Name of Production range Production sites Foreign company collaboration, if any Pudumjee Tissue papers Pune (Maharashtra) Ace Global Private Limited, New Delhi, India 32
  • 38. Market Research on Cleaning Industry in India Name of Production range Production sites Foreign company collaboration, if any Johnson Industrial cleaning Two factories Diversey chemicals - Daman 85% of production - Nalagarh 15% of production Schevaran Industrial cleaning Mysore (Karnataka) Rochester chemicals Midland, USA (since 2006) Kimberly – Tissue papers Pune (Maharashtra) Kimberly-Clark Clark Worldwide Altret Industrial cleaning Surat (Gujarat) Performance chemicals Chemicals Haylide Industrial cleaning Jabalpur (Madhya Chemicals chemicals Pradesh) Poona Brush Brushes Pune (Maharashtra) Bangalore Brushes Bangalore (Karnataka) Brushware Naveen Chemicals & Okhla (Delhi) Polymers detergents All leading companies claim to be using latest international technology where the emphasis is on low toxicity and use of eco friendly & biodegradable raw materials, besides overall quality, and effectiveness. Also products are multipurpose and user friendly. Some companies also undertake contract manufacturing for equipment suppliers, such as Haylide Chemicals for IPC Western Floors, which markets equipment from IPC Italy. 5.3 Tools and Accessories Ace Global Private Limited, New Delhi, India 33
  • 39. Market Research on Cleaning Industry in India Roots Multiclean is the only leading player producing trolleys, mops, wringer buckets at their Coimbatore (Tamil Nadu) facility. Poona Brush and Bangalore Brushware manufacture a wide range of brushes used for industrial cleaning applications, as attachments to equipment as well as for manual cleaning. Poona Brush has installed a CNC machine for manufacturing technical brushes. The company imports all critical raw materials (bristle, fibres etc.) from Germany, Italy, USA etc. Cradle Runways produces window cleaning systems, but the major part of their production is the cradle/trolley, which are multi-purpose equipment, used for a variety of applications besides window/façade cleaning. J & B Industries started with a factory in Delhi, and have recently set up a new automated facility near Lucknow in UP for manufacturing Cleaning Brushes, Cleaning Pad, Cleaning Sheet, Dishwasher Scrubber, Galvanized Iron Scrubber, Mops, Pot Scrubber, Scouring Pad, Scrub Sponge & Stainless Steel Scrubbers under the brand name “Super Brite”. Ace Global Private Limited, New Delhi, India 34
  • 40. Market Research on Cleaning Industry in India 6. External Trade 6.1 Imports Directorate General of Commercial Intelligence and Statistics (DGCIS), an organisation under the Ministry of Commerce & Industry, Govt. of India, is the only official source of import data in India. However, as reported earlier, in the Export-Import database maintained by DGCIS, industrial cleaning equipment and products are not discernible as distinct items, as most companies are importing cleaning equipment under a general HS code 84798999, which refers to “Other machines and mechanical appliances having individual functions not specified or included elsewhere in the Chapter 84” – please refer table below. The import statistics under this code do not pertain only to equipment for industrial cleaning applications, as they represent broad product categories covering various applications. Further, all equipment and products used for industrial cleaning are not necessarily included in these statistics as some importers use other custom codes for similar products. However, the import statistics reported in DGCIS data for some of the items of interest is tabulated below. It is seen that China is emerging as a major supplier, mainly due to more competitive prices. As an example in 2007-08, Italy exported 980 industrial vacuum cleaners at US$ 3,980 each, while China supplied 14,640 machines under the same category at an average price of US$ 1,230 each, which is less than one-tenth of the average price of Italian equipment. Table 15.: Imports of Cleaning Equipment Custom code and Value (US$ million) Quantity (Nos.) Description 2005 2006 2007- 2008- 2005 2006 2007 2008 -06 -07 08 09 -06 -07 -08 -09 (Apr- (Apr- Dec) Dec) 84642000 - Grinding / 7.38 8.70 14.3 12.37 300 550 420 430 Polishing machines for working stone etc. 84798950 - Car 0.18 0.22 0.26 0.95 120 50 60 - Ace Global Private Limited, New Delhi, India 35
  • 41. Market Research on Cleaning Industry in India Custom code and Value (US$ million) Quantity (Nos.) Description 2005 2006 2007- 2008- 2005 2006 2007 2008 -06 -07 08 09 -06 -07 -08 -09 (Apr- (Apr- Dec) Dec) Washing and related appliances 84798991 - Industrial 5.96 7.13 1.57 0 9,180 9,730 18,100 0 Vacuum Cleaners 85081000 - Vacuum 2.34 3.14 6.90 0 157570 222200 287360 0 Cleaners 85092000 - Floor 22.07 11.78 0.07 0 1780 70 320 0 polishers 84798999 - Other s 307 410 559 424 70,000 106,000 127,000 90,000 Table 16.: Imports of Consumables Custom code and Value (US$ million) Quantity Description 2005 2006 2007- 2008- 2005 2006 2007 2008 -06 -07 08 09 -06 -07 -08 -09 (Apr- (Apr- Dec) Dec) 48025450 - Tissue 2.66 3.18 3.78 2.37 1266 1981 2217 1457 Paper (Kg) 33074900 - Other 0.76 0.91 1.19 1.02 286 230 243 220 Odoriferous preparations used for de-odorizing room (excluding agarbatti) (Kgs) 34029011 - Washing and 3.22 3.73 3.63 3.74 1083 1104 953 1331 cleaning preparations having basis of soap other organic surface active (synthetic detergents) (Kg.) 34029019 - Other (synthetic) 4.91 5.49 6.26 4.05 1555 2578 2531 2021 detergents (Kg) 38084000 - Disinfectants 0.65 2.48 1.28 0 108 493 155 0 (Kgs) Table 17.: Imports of Tools and Accessories Custom code and Value (US$ million) Quantity (Nos.) Ace Global Private Limited, New Delhi, India 36
  • 42. Market Research on Cleaning Industry in India 2005 2006 2007 2008 2005 2006 2007 2008 -06 -07 -08 -09 -06 -07 -08 -09 (Apr- (Apr- Dec) Dec) 96035000 - Other 2.25 2.37 2.99 2.81 282 505 549 699 Brushes constituting parts of machines, vehicles etc. 6805 - All types of 11.61 15.94 19.6 16.85 1606260 18434 248063 252622 Natural/artificial abrasive 60 0 0 powder etc. of textile material or paper/ paper board w/n cut to shape 6.1.1 Italy’s Share in Indian Imports Italy is among the leading suppliers of industrial cleaning equipment and tools to India in almost all the categories. However, in consumables, Italy’s share is much lower. As can be seen from the table below, China and other Asian countries such as Korea, Japan, Singapore and Thailand are also emerging as significant contenders for a share in the Indian market. Table 18.: Italy’s Share in Imports Custom code and Description Top exporting countries in 2007-08 (US$ million) Equipment 84642000 - Grinding / Polishing machines Italy 4.63; China 3.31 ; Germany for working stone etc. 3.19 84798950 - Car Washing and related USA 0.09 ; Korea 0.03; China 0.02; appliances Italy0.01 84798991 - Industrial Vacuum Italy 0.39 ; China 0.18 ; Sweden Cleaners 0.38 ; Denmark 0.27 85081000 - Vacuum Cleaners China 3.15 ; Italy 0..81 ; Germany 1.40 ; Singapore 0.23 85092000 - Floor polishers China 0.02 ; Switzerland 0.04 ; Italy Nil 84798999 - Others Germany 77.34 ; Italy 77.33 ; Korea 65.79 ; China 65.59 Consumable 48025450 - Tissue Paper China 0.92 ; Germany 0.55 ; Japan s 0.55 ; Italy 0.01 Ace Global Private Limited, New Delhi, India 37
  • 43. Market Research on Cleaning Industry in India Custom code and Description Top exporting countries in 2007-08 (US$ million) 33074900 - Other Odoriferous China0.44 ; Thailand 0.09 ; preparations used for de-odorizing Vietnam 0.09 ; Italy 0.02 room (excluding agarbatti) 34029011 - Washing and cleaning USA 0.51 ; Germany 0.96 ; preparations having basis of soap Singapore 0.70 ; Netherland 0.31 ; other organic surface active (synthetic Italy 0.17 detergents) 34029019 - Other (synthetic) Switzerland 1.40 ; Germany 0.62 ; detergents Thailand 2.13 ; UK 0.64 ; Italy 0.15 38084000 - Disinfectants China 0.51 ; UK 0.33 ; Japan 0.18 ; Italy 0.16 ; Singapore 0 Tools & 96035000 - Other Brushes Germany 0.89 ; Italy 0.46 ; Japan Accessories constituting parts of machines, 0.12 ; China 0.11 vehicles etc. 6.2 Imports information compiled from primary survey As per information compiled from primary survey feedback, Italy and Germany are the main sources of import of industrial cleaning equipment, tools & accessories. However, Italy is not an important supply source for consumables, which are mainly being imported from USA, UK and other European countries. Table 19.: Company-wise Imports a) Equipment Share of Country Name of Remarks imported of origin foreign products in supplier total sales Roots 40-45% Germany Hako Werke Manufacture in India under Multiclean GmbH license + marketing in India and SAARC countries USA Minuteman Power Bosch Ace Global Private Limited, New Delhi, India 38
  • 44. Market Research on Cleaning Industry in India Share of Country Name of Remarks imported of origin foreign products in supplier total sales Italy SOTECO Wet and dry vacuum cleaners Italy Interpump Pumps Eureka 100% Denmark Nilfisk Forbes Advance Johnson 100% Switzerland, Taski Diversey Italy, USA and China Man 100% Germany Karcher Machine Western 100% Italy IP Cleaning Floors S.P.A. (Interpump Group) Charnock 100% UK Numatic International Rodak 100% Switzerland Perlis Assembly of CKD and Marketing Innovative 50% Italy Fiorentini srl Godrej & 100% USA Tennant Boyce Mfg. Continental 75% Italy IPC Ready Hygiene System, Concepts Floor Dulevo India 100% Italy Dulevo s.p.a Nilfisk- 100% World wide Nilfisk Advance India advance RGS Vacuum 100% Italy RGS Impianti Systems Ace Global Private Limited, New Delhi, India 39
  • 45. Market Research on Cleaning Industry in India Share of Country Name of Remarks imported of origin foreign products in supplier total sales Inventa Italy RCM S.p.A Road sweeper for cement industry, Compact scrubber/drier, smokeless Hot Water High Pressure Jet cleaning machine Aman Italy Lavorwash S.p.A FA-SA b) Consumables Share of Country Name of Product range Remarks imported of origin foreign products supplier in total sales Pudumjee 100% UK Waterbury’s Wash room Using Hygiene Vectair and odour dispensers control from Italy products Johnson 10-15% Sweden SCA Tork brand of Distribution Diversey Hygiene tissues, hand in India, Sri Products wash and room Lanka, fresheners Maldives, Bangladesh, Nepal and Bhutan Schevaran Neg. USA and UK Various Dosing Pumps Laboratories and Diluters Eureka 100% Germany Ecolab Forbes Jade 100% USA, UK Technical International Concepts Ace Global Private Limited, New Delhi, India 40
  • 46. Market Research on Cleaning Industry in India Share of Country Name of Product range Remarks imported of origin foreign products supplier in total sales Kimberly- 100% USA Kimberly- Tissue jumbo Conversion Clark Clark rolls into retail Worldwide packs done in India Charnock UK Bio- cleaning Productions products and Ltd. (part of formulations Stapro, UK) c) Tools & Accessories Share of Country Name of Product range imported of origin foreign products supplier in total sales Continental 75% UK TC Hygiene The Bentfield Concepts Netherlands Roots 40-45% Italy TTS Compact Janitorial Trolleys Multiclean Man 100% Italy Euro Mop Various tools & accessories Machine China Trolleys, mops etc. Unger India 100% USA, UNGER Brushes, Mops/Wringers, Germany, Global Trolleys & Carousels, UK, France Washers & Squeegees, Charnock 100% UK Numatic Trolleys, mops/wringers, International carousals, glass cleaning eqpt. Western 100% Italy IP Cleaning Trolleys, mops/wringers, Floor glass cleaning eqpt. Ace Global Private Limited, New Delhi, India 41
  • 47. Market Research on Cleaning Industry in India Share of Country Name of Product range imported of origin foreign products supplier in total sales Poona Brush 5% USA Dupont Bristles Germany Hahl Diamond Abrasive filaments Italy Hollow car washer fibre Mexico Natural fibre for tile floor cleaning 6.3 Import Tariff Import tariffs in India consist of following elements: Basic Customs Duty - the border tariff as defined under WTO; Countervailing Duty (CVD) - being the equivalent of the excise duty on equivalent goods manufactured in India; Special CVD - being the equivalent of the VAT on equivalent goods manufactured in India; Education Cess (EC) - a surcharge on the duties, imposed for a public cause (education) As per the present import policy, the total effective import tariffs applicable for 2008- 09, for the items of interest to this study, are summarised below. Table 20.: Import tariff applicable for 2007-08 Total import tariff Equipment 31.011% to 34.130% Consumables 29.275% to 34.130% Tools & 31.011% to Accessories 34.130% Ace Global Private Limited, New Delhi, India 42
  • 48. Market Research on Cleaning Industry in India 6.4 Exports Roots Multiclean is the only major exporter of industrial cleaning equipment, with exports accounting for nearly 50% of their sales. The company exports floor cleaning machine and equipment to the leading markets of the world including USA, Europe, Australia, Japan, Far East, South America and several other advanced countries. RMCL’s joint venture partner Hako uses RMCL as a production hub for worldwide sales of selected machines, such as Hakomatic Scrubber Drier E 350. Also RMCL’s indigenously designed and manufactured machines (WIZARD floor washer) are marketed in Europe by Hako. In high value cleaning equipment, TPS Infrastructure currently exports equipment accounting for about 5-7 % of their sales. However, the company is targeting to increase their exports to 30% of sales in the next 2-3 years. Exports of consumables, tools and accessories from India are negligible. , except for cleaning brushes. Johnson Diversey and Schevaran Laboratories are exporting a part of their production of cleaning chemicals. Poona Brush Company indicated exports of industrial cleaning brushes, mostly to Indonesia, China and Korea and is currently negotiating with a British importer. J & B Industries indicated that their products are finding acceptance in the overseas markets such as Saudi Arab, South Africa, Australia and Pakistan. Ace Global Private Limited, New Delhi, India 43