I take great pleasure in presenting you the 46th annual report of Majestic Auto Limitedfor the FY 2018-19. As you all are aware India is entering an era of great opportunities.With a new government in place with a stable majority and visionary leadership thecountry is potentially on the threshold of a historic leap forward. However this callsfor rapid reforms and innovative policies aimed at enabling businesses to grow and jobs tobe generated on a massive scale.
As you all are aware that company had discontinued manufacturing operations in theyear 2017-18 and now is fully committed to the new objects of providing FacilityManagement services. Your company has generated revenue of Rs. 91 Cr in FY 19 against Rs.17Cr in FY 18. The Indian FacilitiesManagement industry is in the midst of rapiddevelopments in end-user industries which has led to the considerable areas such asDelhi/NCR Mumbai Hyderabad Pune Chennai and Bengaluru. According to agrowthofcommercial Technavio report analysts forecast a CAGR of 17.9% for the Indian FMindustry over the next three years. In effect FM services are steadily gainingpopularity among commercial as well as residential clients driven by modernization andurban development. The southern western and northern regions pose as potential growthareas due to their ability to attract more real estate investments.
Your company is also focused on giving office/manufacturing spaces on lease in the FY2019-20 in line with the office space leasing business carried through our subsidiaryEmirates Technologies Private Limited. The growth in real estate will be paired with apreference towards safe clean and secure environment. Going forward company willleverage the advantages on focusingonmonetizationof utilizingthe surplus cash flowsfinished inventoryby primarily for debt reduction and re-invest in developments of newprojects for both the businesses. Your company has also plans for doing philanthropicactivities covered under Corporate Social Responsibility in the field of education andskill development this year.
I would like to thank all shareholders employees customers bankers and businessassociates for their valuable support and look forward to continued encouragement in ourmission of Building India.
On behalf of fellow Directors and Majestic family I thank each one of you for thesupport and guidance in all the facets of the company.
Facility Management An insight
Facility Management is a profession that encompasses multiple disciplines to ensurefunctionality comfort safety and efficiency of the built environment by integratingpeople place process and technology.
The Indian Facilities Management (FM) of rapid developments in end -user industrieswhich has led to activities in metropolitan theconsiderablegrowthofcommercial areas suchasDelhi /NCR Mumbai Hyderabad Pune Chennai and Bengaluru. According to a Technavioreport analysts forecast a CAGR of 17.19% for the Indian FM industry over the next threeyears. In effect FM services are steadily gaining popularity among commercial as well asresidential clients driven by modernization and urban development. The southern westernand northern regions pose as potential growth areas due to their ability to attract morereal estate investments.
The growth in real estate will be paired with a preference towards safe clean andsecure environment especially in the residential sector. Beyond the Tier 1 metros demandis also expected to rise from the tier II and tier III cities due to increased businessactivities Untapped areas of potential include Kolkata Chennai the upcoming capital ofAndhra Pradesh (Amravati) and UP. Industry wise IT/ ITES/ BFSI sectors constitute morethan 21% of revenue generated followed by demand leaders in other sectors such as retailhealthcare infrastructure and manufacturing. By 2025 around 38% of India spopulation is predicted to live in urban regions and cities will account for 80% ofIndias GDP. The governments ambitiousplan to develop 100 smart cities(attracting an investment of $216 Billion into infrastructure) will result in a surge ininfrastructure creation driven by sustained population growth. This will create asustained need for professional holistic facilities maintenance services.
The biggest challenge faced by the industry is to transform the perception of FMservices beyond traditional housekeeping services Building maintenance is inarguably thecore of FM services but today also spans sophisticated requirements spanning IntegratedFacilities Management Industrial Facilities Engineering Services and Soft Services. Incomparison with the global industry the Indian FM lags in areas such as market maturityand appreciation for high standards of service delivery. There is a strong case to be madefor raising awareness about the benefits of quality FM services in terms of businesscontinuity operations costs rationalisation long term real estate asset valueoptimisation green standards compliance. The dearth of skilled and non-technical manpowerand the lack of infrastructure to train manpower with technical expertise serve as otherkey challenges. The FM industry suffers from severe fragmentation and is dominated largelyby the unorganised sector primarily through local service providers. The low costunorganized service providers often undercut the organised sector as they have thecapacity to absorb razor thin margins due to their non -existent statutory complianceoverheads. While attractive from a price perspective there is a hidden cost and riskinvolved as is in the midst local players are unable to provide FM services on par withglobal standards and best practices.
Trends defining the
The FM industry is gearing up for a historic shift towards automated services withconsiderable investment of manpower and resources toward creating technology drivenservices platforms. In the coming years buzzwords like Building Information Modelling(BIM) and Computer Assisted Facilities Management (CAFM) are likely to in client demandlists and act as a driving force towards the natural evolution of the industry which islikely to witness:
A consolidation in the industry as unorganised sector transforms and getsabsorbed into organised sector
Driven by greater demand for quality services that adhere to internationalstandards real estatedevelopers and owners will . prefer global and experienced corporateFM services providers
Industrial and Manufacturing sector will shift from in -house maintenance tooutsourcing FM services requirements
An influxof trained and qualified engineers adapt to global engineeringstandards and best The growing footprint of facilities management in the country wouldnecessitate innovation and demand in Specialised Engineering Services covering areas suchas energy efficiency thermal audits and Green Building concepts.
Moreover by 2020 the growth in sectors such as Industrial Manufacturing andCommercial segments are poised to transform the landscape of the FM market in India. Thefuture is bright and ripe with innumerable opportunities and the need of the hour is toinvest in the future and usher in fresh ideas and perspective to help elevate thestandards and norms and transform the FM sector into a thriving highlight of the Servicessector generating employment for millions of motivated professionals.
And theManagementSpecialised organised FM sector has geared up to the challenge ofnurturing the logical evolution of the industry to take it to the next phase of growth.
Source: EFS Facilities Services(India) Private Limited
Majestic Auto Limited: Facility Management Service Provider
We at Majestic Auto Limited manage every insight of Facility and Management in thebest way possible. Here are some pictures of Facility Management done at EmiratesTechnologies Private Limited located at Plot A8A Sector-62 Noida.