Showing posts with label manpower. Show all posts

H A N D I M A N S E R V I C E S L I M I T E D , DIRECTOR

December 9, 2008

Porus Irani
35,HOUSEHOLD SERVICES PROVIDER
DIRECTOR, H A N D I M A N   S E R V I C E S   L I M I T E D
INITIAL INVESTMENT : IN 1998 Rs 20 lakh
CURRENT TURNOVER: Rs 35 crore


SUCCESS MANTRA: Being positive and believing everything is possible.
ROLE MODEL:"His father Behram Irani who gave him the opportunity to make his own mistakes and  learn."
BIGGEST OBSTACLE: Getting the apt people and building the right team for his company.
So the party last night was a blast, but have you considered the clean-up? If you’ve  been  wondering  whether someone could do it for you, call for the dust-buster plan of Porus Irani, director, Bangalore-based,Handiman Services."We provide post-party cleaning services and even shampoo the carpets if a customer wants,” says Irani. That’s not all. One of India’s biggest facility management firms, Handiman maintains big housing and office complexes and offers a host of services that range from housekeeping to interior fitouts.Ten years ago, Porus Irani was going door to door in his neighbourhood in Central

                          Porus irani and his team of workers at handiman on the job

Bangalore, offering electrical and plumbing services. Today, he is the Director of a facilities management and home-maintenance company, Handiman Services.with about 5,500 employees. The journey, which began with the real estate meltdown of 1997, has been long and hard. Irani set up Handiman in 1998. His father Behram Irani had an electrical contracting business, but Porus thought bigger. "Back then, my father had a wiring business, and the crash had left our electricians idle, as most projects had stalled. We needed to do something if we were to stay afloat, and that’s when I thought of starting a home-maintenance company. I knew from experience that it was hard to find an electrician or a plumber in Bangalore," he says. More importantly, he wanted to start a venture that would not be affected by the vagaries of the real estate or stock markets, which  had left his family’s wiring business struggling.Irani pooled in money with his father and two other partners, raising about Rs 20 lakh in capital he set up a 1,500-sq-ft office on Brunton Road in Bangaloreand started supplying electricians, plumbers and carpenters in his neighbourhood. Thus was born Handiman Services, which would soon change the way homes and offices were maintained in the Garden City. Handiman started off by sending electricians and plumbers to whoever called.  Initially, Irani and his team would make direct marketing calls and distribute handouts at street corners. Irani studied at night college  (Baldwin Methodist College) so that he could run his business by the day. He soon realised that he needed bigger clients than his neighbours.Within months, they had figured out the gap in the market, and started adding more services. Gradually, the company went beyond cleaning and electrical problems, and began handling everything from fixing a leaking tap and nailing a picture frame to renovating bathrooms and cleaning up after parties. Despite the home services being a hit, Irani realised that the big money would come only from corporates and housing complexes. So, he began by talking to big firms in Bangalore, offering to do everything from providing security guards to cleaning the insides and outsides of buildings and taking care of gardens.
Slow start:
The journey wasn’t easy. "Like any start-up, we too started off with just one client and one person running the show. We had to sell the very idea of property maintenance," he says. Handiman’s first corporate client was real estate major Raheja Group, which had four buildings in Bangalore that needed maintaining. Since the Rahejas had never outsourced this sort of work to a third party, Handiman had to pass a little test before bagging the maintenance contract. The company was told to clean and maintain a road divider sponsored by Raheja on St Mark’s Road, a busy intersection in the city. "This was a real test since traffic on that road was very heavy. We could only scrub the divider in the middle of the night," reminisces Irani.Irani took seven nights to do it and under-quoted himself, so finally didn’t make any money.But his team pulled it off, and the Raheja contract was in the bag.The Rahejas offered him maintenance of three of their housing complexes, where handymen would take care of security, housekeeping, engineering services, electrical and plumbing services, carpentry and landscape maintenance.

Despite this initial success, the going was slow. Although Handiman managed to pick up a few clients, revenues were low. The big break came in 2000, when Texas Instruments asked the company to manage all its facilities. This, and some other big names, helped the company expand its customer list. Today, it counts 400 companies, retail outlets and banks, as well as 80 housing colonies and 3,000 households in Bangalore alone among its clients. "TI was the turning point. Today, we have about 100 people working onsite at the company, managing everything from housekeeping to maintaining gardens," Irani explains.
Home delivery:
"We do charge a premium. It’s for delivering good workmanship and taking full
responsibility for our work"         
Porus Irani
Director, Handiman
In 2000, Handiman launched a plan for households, called the Handihome plan. Under the scheme, a household would have a plumber, electrician and carpenter at its disposal 24X7 for an annual charge of Rs 2,000. At Rs 200 apiece for every service thereafter, the services are quite steep. "We do charge a premium, but you get a lot in return for that—good workmanship, reliability and complete responsibility from the time the worker enters your house to the time he finishes the work," says Irani.
But consumers in Bangalore aren’t really cribbing. "Although they charge more than the neighbourhood plumber, at least they are on call day and night. For a working couple, that is a big boon," says Shruti Sharma who has been using the Handihome plan for the last three years.
Today, Handiman has 3,000 households subscribing to its services. But most of them belong to the high-income group, a tiny segment of the population. Most of them live in gated communities or high-end apartment blocks.
Still, Irani is confident he can expand his business beyond this small group: "We are already seeing an increase in the household services segment. People are becoming more and more conscious of the surroundings that they live in. For example, houses today are painted at least once in two years if not more often, unlike earlier." Handiman also has a dedicated 25-member team that goes out and gets business.
Competition has sprung up in the local market, and Handiman has even fallen prey to impostors, who have tweaked their names and claim to be associated with the company. In the home segment, most of its rivals are small local players that have cropped up and started sending electricians to people’s homes. "But we have an edge since we are the only comprehensive property management business. Unlike the competition, we don’t outsource a single function of our business," he clarifies.
Most of the company’s 5,500-odd employees are blue-collar staff like plumbers, cleaners, security officers, gardeners, painters, electricians, tile layers and masons. However, with such a large employee base, the cost of providing benefits such as PF, pension, etc, is very high, accounting for 30% of the cost of operations. In addition, there is the difficulty of finding skilled people, and then training and retaining them.


. Handiman has annual maintenance contracts of  housing complexes in Bangalore and corporate clients including Volvo, Caterpillar and Vodafone. It has a 24/7 toll free number, on which anybody can call up for any kind of job, from fixing a leaking tap to polishing a floor. The company has a team of 4,500 technicians and engineers and is present in Hyderabad, Mumbai, Chennai and Pune.

Expansion plans
"We started making profits within 16 months of commencing operations," says Irani. In 2007, the company had revenues of close to Rs 30 crore and is looking to double this in 2009. It is also in an aggressive expansion mode. Handiman opened its first branch in Mumbai in 2003, another in Chennai(2006). By the end of 2008, it will be operating out of Bangalore, Chennai, Delhi, Hyderabad, Mysore and Pune. The company is now focusing on the aviation sector to provide ground-handling and support services for airlines, including aircraft cleaning and baggage handling. Irani also wants to open offices in Dubai, Bangkok and Colombo by 2012. And if all goes as planned, Handiman will go public in 2015. The business opportunity is huge, says Irani: "Every door in every city presents a business opportunity for us."
“In a couple of years, we’re looking at a pan-Indian presence in 23 locations and by 2012, I’ll be expanding to Dubai and Colombo. Also, I have to realise my dream of launching an IPO,” he says. A fitness freak, Irani doesn’t believe in late hours and spends free time with his wife Natasha and sons, Yohan, 7, and Zaran, 4. But at work, everyday is a battle to organise his 5,500 employees to provide quality service. “My products are people. Goodwill, therefore, is very important.” He’s certainly earned it.

FULL STORY >>

SECURITY AND INTELLIGENCE SERVICES CHAIRMAN


RAVINDRA KISHORE SINHA
57,SECURITY PROVIDER,
CHAIRMAN, SECURITYAND INTELLIGENCE SERVICES.
INITIAL INVESTMENT: IN 1974 Rs 250.
CURRENT TURNOVER: Rs 1,600 crore.

            Ravindra Kishore Sinha, 57, Chairman of Security and Intelligence Services has a current
                                                      turnover  of   Rs 1,600 crore
SUCCESS MANTRA:His indomitable spirit and ensuring “customer delight rather than customer       satisfaction    ”.
HIGH POINT:When SIS bought Australia’s largest security agency,Chubb Security, for Rs 1,000
 crore this  year.
UNFORGETTABLE MOMENT:When a station master in Bangladesh saved his life by telling Pakistani   soldiers that Sinha was his son-in-law.

HISTORY: 
Conceptualization Stage (1974 to 1978):

Mr. Ravindra Kishore Sinha, a graduate of Political Science and Law who started his career as a journalist and was a leading investigative reporter and writer, particularly as a war correspondent during 1971 war.
As a first generation entrepreneur, he initiated the security service business by taking up the first security service contract in 1974 when it was decided to be outsourced by an industrialist at Ramgarh near Ranchi. It was a small contract of 11 guards in Eastern India. SIS was born!

It was coincidental that SIS was the first security service providing company started by a non Ex-serviceman and a first generation entrepreneur professional in an era when venture capital was not even conceptualized!
Formative Years (1978 to 1992):

While the guarding business grew gradually, the primary focus for Mr. Sinha, continued to be investigative journalism and detective services. It was during the late 70s - early 80s when rapid industrial growth led to an increased demand for contracted security services. This was the time when the `private security guard' started replacing the `company employed chowkidaars' that consequently gave rise to the private security business in India. SIS also benefited from this trend and started developing into a full scale guarding company to meet the growing demand.

In 1981-82, SIS, which was so far operating exclusively with ex-army personnel, felt the need of recruitment of civilian manpower due to increased business requirements. There was also a pressure to have the manpower specially trained in industrial security duties. This led to establishment of the first fully residential training facility in the Indian private security industry by SIS which was developed on the lines of Police Training Academies and located at Palamu District Jharkhand (formarly Bihar). This was the first of the many visionary and pioneering steps taken by Mr. R K Sinha and even today remains a unique feature of SIS amidst private security service providers in India.


During the period 1985-90, the company experienced exponential growth in Bihar, Jharkhand,Orrisa and West Bengal primarily due to the fact that it received recognition as the only security service company providing trained, regimented and disciplined manpower. This brand equity sets SIS apart from its competitors even today. This was also the time when SIS ventured into new territories and commenced operations in the Northern, Central and Southern India. Thus, in 14 years from inception, SIS had become a major player in the private security business.

After creating a reliable supply chain for trained security guards, the next challenge was to induct young individuals to form the managerial cadres of the company. To meet this requirement, Mr. R K Sinha took yet another visionary step by launching the GTO (Graduate Trainee Officer) program that aimed at inducting young graduates and training them in every aspect of private security. It was envisaged that these young trained officers in course of time would graduate into middle level managers.

Today such officers are leading SIS business at the divisional,regional and branch levels. This is one of the core strengths of SIS, envied by its competitors. Needless to say that SIS has several welfare and retention schemes in place to retain its valuable managerial team.

These pioneering steps propelled Mr. R K Sinha to the center stage of industry leadership and earned him recognition and respect of hundreds of security service providing companies in India. To meet the expectations of the industry, Mr. Sinha established "International Institute of Security and Safety Management" (IISSM) in 1991 in line with the American Society of Industrial Security (ASIS International) with the primary objective of creating the first ever industry forum of users, providers and consultants in the Indian security industry. The forum focused on experience sharing through conducting seminars, workshops and chapter meeting. It also aimed at industry representation and conducting development programs for security professionals.

Expansion and Consolidation Phase (1992 to 2002):

In 1990s, the entry of multinational security companies in India led to several fundamental changes in business dynamics. The most significant amongst them was larger acceptance of outsourced guarding as a service.
This development also altered the market qualitatively and in commercial terms. While on one hand, these developments led to the recognition of the industry, on the other hand, it enhanced competition, customer expectations and pressure on the Indian owned security companies. Under the changed market dynamics, SIS initiated several measures to face the new challenges of the business. Major initiatives were taken towards re-engineering the organization and amending the processes of recruitment, training, communication, quality assurance and customer relationship management.

Accordingly, as a first step, the company registered itself as the first public limited company in the Indian Security Industry on 29 th July 1993. Another landmark step implemented by Mr. R K Sinha in 1995 was company made implementation of the international standard ISO 9001. SIS, today is certified to ISO 9001:2000 standards for design, development and delivery of its security services. In order to further refine the business processes, in 1996, SIS undertook implementation of the British Standards, BS 7499 and BS 7858, and got itself certified by the International Professional Security Association (IPSA) of UK. This standardization added significant value to the selection, recruitment and training processes in the company and wide scale acceptance by discerning multinational customers who required security service providers to be of international standard. The Company thereafter, launched its operation in Western India in 1997 and became one of the few nationwide operators in the country.

Three more training academies were added in northern and southern regions of the country, which together with the first academy in the east covered recruitment on all India basis and subsequent training of personnel to provide quality security services.  The size of guarding force increased manifold and in order to maintain non-unionized status and retention of manpower, several welfare measures including grievance redresser process were implemented. These have been very effective and have prevented formation of a union till today. SIS, in the category of leading national or multinational security service providers in India, remains the only non-unionized workforce.


Exponential Growth Phase (2002 onwards):

The attack at the WTC in New York on 9/11 had a considerable impact on the global security industry. The Indian market was no exception and overnight security became a top priority concern for most customers. This was also accompanied with a radical change in focus and thrust of the customers towards sophisticated and integrated security solutions.  In the changed scenario, SIS promptly mapped its present business processes and service offerings to meet the growth opportunities. Accordingly, a major change process was planned. In true tradition of taking visionary decisions all through, Mr. R K Sinha, as the Chairman & Managing Director of the company, decided to induct professional management team to act as catalyst for the change process. Top professionals with experience in different industry were drawn into the company's fold and the Board was restructured to induct eminent, professional and independent directors. This coincided with the induction of the second generation of the promoter family into business.


With the thrust on decentralization of decision-making and empowerment of middle level management, the Company was restructured to respond to rapidly changing customer demands. The cornerstone of the change process was to shift from individual driven organization to a system driven organization.  A major branding exercise was also undertaken to recreate SIS as a "total security solution provider". This exercise was backed up by creation of independent non-guarding business divisions like C&I (Consulting and Investigation), CS (Cash Services), ESS (Electronic Security Systems) and R & T (Recruitment and Training). Towards meeting the business objectives of these verticals, a divisional bifurcation of the business was done and the organization was restructured into corporate, regional and branch levels.Over the last few years ,SIS has emerged as the fastest growing companies in india (CAGR 51%) with industry best margins and an enviable customer retention record (92%-2007).

SIS :

When intrepid reporter Ravindra Kishore Sinha put his life at stake to sneak into Bangladesh and cover the 1971 war, little did he know that it would eventually pave the way for his Rs 1,600-crore venture, Security and Intelligence Services (SIS). Sinha stayed in touch with many war veterans from the Indian Army, who had become his friends. Many of them, who had retired after the war because of injuries, were looking for jobs. “I
wanted to help them but had no idea how to do it,” Sinha remembers, ensconced in his fortress-like home in Patna.
In 1974, misfortune came visiting: Sinha’s service contract with the newspaper expired, and his employers did not renew it. Sinha was jobless. “This gave me time to look for an alternative career, although I had started working as a freelance journalist,” he recalls. The unemployment, in turn, gave birth to an idea that would change his life for ever. Later the same year, Sinha clinched a contract to provide 11 security guards for a Ramgarh based  factory. He had no money to buy uniforms for the former armymen, who were ready to start afresh. “I asked the Ramgarh factory for an advance, which they readily gave. I got SIS inscribed on the new uniform,” he says. Now Sinha needed to set up an office, but he had no money. 
He finally got an outhouse on rent from an acquaintance, who offered it on the promise of seeking rent only if Sinha made any profit. Luck smiled on Sinha and contracts began pouring in. In 1988, Sinha set up another office in Ranchi. He shifted the corporate office to Delhi in 1995 and established branch offices in almost all states by 2000. He hasn’t stopped at that; Sinha continues to diversify. This year, the SIS tied up with the US organisation,Master Clean, for a foray into the housekeeping business. If the man is to be believed, the list of tie-ups will only grow. Sinha strongly believes in one-to-one interaction with his employees. Every one of the 30,000-odd SIS security guards has his personal mobile number. “I take their calls. I even call them back after receiving their text messages. 
Sometimes, they give me business ideas,” he says. No wonder, despite its large employee base, SIS is an organisation without a workers’ union. It has been a fairytale experience for Sinha. “At times, I sit silently in astonishment, marvelling at how I did all this,” he says. Perhaps to seek an answer he often reaches out to his security guards to give them a pep-talk, his voice soft, yet persuasive, a reminder that power does not need to  shout to be heard.

FULL STORY >>