Chennai-based TVS Capital, which manages the Rs 600-crore TVS Shriram Growth Fund-I, has invested an additional Rs 10 crore in Banglore-based facilities management company Dusters Total Solutions Services Pvt Ltd (DTSS) to fund its acquisition Fascilitec Services Pvt Ltd, which specialises in M&E operations.
The total investment by the TVS Shriram Growth Fund I has reached Rs 35 crore, as committed by the fund in November 2009 for a 45% stake in the company.
Facilities management company, Dusters Hospitality Services Pvt Ltd and Mumbai- based Total Solutions Facilities Management Ltd, run by brothers Shamsher and Jasmer Puri respectively, have recently merged their operations to form Dusters Total Solutions Services Pvt Ltd.
Dusters Total Services provides facility maintenance and management services in India. It offers cleaning and housekeeping, repairs and maintenance, guesthouse management and office support services. It has over 18,000 employees across 10 states, with offices in Mumbai and other cities.
With this tranche, TVS Shriram Growth Fund has completed its commitment in Dusters. Following the acquisition, KC Gupta, MD of Fascilitec Services Pvt Ltd, will head the M&E vertical in DTSS.
“India’s facilities management market is valued at an annual $3.3 billion (Rs 15,400 cr) and expected to grow at 25-30% annually over next three-four years,” said D Sundaram, Vice Chairman & Managing Director of TVS Capital.
The sector has seen increased PE interests recently. Companies like BVG India and Radiant Hospitality got funding recently from Kotak Private Equity and Lighthouse Funds, respectively.