Godrej HiCare to use Bharat Gas network to sell services

Pest management service provider Godrej Hi Care (GHC) will roll out a networking plan to increase its market penetration in a segment dominated by unorganised sector players. Vikas Hajela, chief operating officer of GHC, for example has tied up with Bharatgas(BG) to get an entry into households in the eastern region. "Bharatgas has access to 20 million household across the country and can help in creating the awareness of the pest management service provided by GHC as a major organised sector player in the sgement," said Hajela. Godrej Hi Care will be training managers, delivery boys and call officers at the BG distributor point as the first step to increase awareness. The eastern market was expected to contribute significantly to the company's revenue owning to the massive construction and real estate boom, Hajela said. GHC generated a revenue of Rs 13 crore during 2004-05 is looking at a robust growth of 130 per cent in 2005-06. "GHC expects sales to touch Rs 30 crore this financial year, but still it will be addressing just 15 per cent of the pest management market that is estimated to be worth around Rs 200 crore," he added. Out of the targeted Rs 30 crore, around 70 per cent revenue is expected to come from households and the rest from commercial establishments. The company expected turnover to rise to Rs 100 crore in three years. "The pest management market is nearly in the embryonic stage and has the potential to reach a size of to Rs 1,400 crore by 2015," he added. Apart from GHC, the only other branded company at present was Pest Control India (PCI) which had around 30 per cent of the market. Most of the addressable market was occupied at present by nearly 800 players in unorganised sector, he noted. GHC was currently operating through centres at Mumbai, Delhi, Chennai, Kolkata, Bangalore, Ahmedabad, Pune and Hyderabad as well as through 21 franchisees. The franchisee number would be augmented by another 11 by end-2005. Currently, more than 40 per cent of the revenue came from the Mumbai market. The company was planning to spend Rs 5.5 crore for brand building activity this year against last year's budget of Rs 3.5 crore.

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