About Krystal Integrated Services Limited

Krystal Integrated Services Limited is one of India’s leading integrated facilities management services companies, with a focus on healthcare, education, public administration, airports, railways and metro infrastructure, and retail sectors.

Range of service offerings include soft services such as housekeeping, sanitation, landscaping and gardening, hard services such as mechanical, electrical and plumbing services, solid, liquid and biomedical waste management, pest control and façade cleaning and other services such as production support, warehouse management and airport management services. The company also provide staffing solutions and payroll management to customers, as well as private security and manned guarding services and catering services.

We provide services to key government customers in the healthcare, education, airport, railways and metro infrastructure sectors, including Maha Mumbai Metro Operation Corporation Limited and Education Department, Brihanmumbai Municipal Corporation.

As of September 30, 2023, they have provided their services to 135 hospitals and medical colleges, 228 schools and colleges, one airport, four railway stations and 30 metro stations, along with catering services on certain trains/ train routes.

They serves 309 customers across 2,160 customer locations, with a workforce of 39,900 employee personnel, as of 30^th Sep’23, having 21 branch offices and two warehouses located in 16 states and two union territories in India. Apart from this they also have a training center in Vashi to train security guards, house keepers and facility attendants employed by company, as well as area managers and supervisors.

In Fiscal 2023, the outsourced integrated facility management market in India was estimated to be worth ₹ 980.8 billion growing at a CAGR of 14.6% between FY23 - 28, with a potential market size of ₹ 1,935.88 billion. Public administration, industrial, commercial offices, healthcare, educational institutions, railways and metro, and airports are the top end user segments.

Rapid urbanization, growth in tourism and service sectors are driving the demand for commercial spaces in India. Increasing high-rise buildings and shared spaces are the current trends in the commercial office segment and these are expected to drive the demand for facility management services in this segment.

The staffing and payroll management services market size in Fiscal 2023 is estimated at ₹ 729 billion. Investments in end user industries such as IT/ITeS, banking, manufacturing, retail, telecom etc. and the increase in outsourcing from the government sector drive at a CAGR of 20.1% from FY23 - 28 and reach ₹1823.05 billion. The private security and manned guarding services market in India is valued at ₹1,500 billion in Fiscal 2023 and is expected to grow at a CAGR of 20.0% from FY23 - 28 reaching ₹ 3,740.26 billion.

Risk:-

• A significant part of the company’s revenue is generated from government contracts obtained through a competitive bidding process. There can be no assurance that it will qualify for, or that it will successfully compete and win such tenders or maintain these customer relationships. 
• A ~ 80% of the revenues are derived from a few geographical regions- the State of Maharashtra and Tamil Nadu, and any adverse developments affecting such regions could have an adverse effect on the business, cash flows, results of operation, and financial condition.
• The company has a large workforce deployed across workplaces and customer premises. Consequently, the company may be exposed to service-related claims and losses or employee disruptions, as well as employee-related regulatory risks, that could have an adverse effect on the reputation, business, cash flows, results of operations, and financial condition. 
• The operations undertaken by the business such as private security, and facility management are dependent on the performance of the Company personnel. However, any disruption or defect from his end could have a monetary & reputational impact on the Company.
• Uncertainty surrounding growth potential in focus sectors like healthcare & education adds to risk factors.