EFS wins new contracts worth over $108mn in 2014
Company expects to achieve 25% growth by end of the year
EFS Facilities Service Group has announced impressive business growth results for 2014 with the value of the new contracts it has won in the first half of the fiscal year exceeding AED400mn ($108mn).
The company recorded strong growth by winning regional contracts awarded by international banks and multinational corporations across the Middle East, Africa and South Asia region, along with local contracts in the UAE, India and Egypt.
The new deals included contracts for the provision of integrated FM services for Abu Dhabi Education Council (ADEC) schools, Abu Dhabi government buildings, local and international banks as well as Fortune 500 multinationals.
The new contracts across its regional portfolio has given the company the confidence of achieving 25% growth by the end of 2014, which is substantially higher than its previous year’s performance.
A recent report by the Middle East Facility Management Association (MEFMA) suggested that around AED80bn was spent on FM services in 2012, with the industry growth by 2020 projected to reach about AED300bn.
The boom in the FM industry has prompted EFS to implement a strategic expansion initiative in the GCC, South Asia and Africa.
Tariq Chauhan, group CEO, EFS Facilities Services, said: "Today, stakeholders and corporate players understand the importance of having efficient infrastructure, improved building management, as well as the importance of moving from an in-house fixed-cost model to a variable outsourced model. This realisation will facilitate an increased demand for outsourced services in the region.”
“As such, the UAE, Egypt and India continue to remain strong FM markets due to the increasing GDP contributions of its construction and real estate segments,” Chauhan said. “The African and South Asian countries have been witnessing fast-paced growth, which presents ample growth opportunities for the FM industry.”
The industry veteran added there has been a heightened awareness to move to a variable cost model by outsourcing more of the non-core services that will allow businesses to maintain their focus on core operations.
EFS’s growth, he said, was being driven by its strong regional presence across 19 countries, providing large multinational corporations and banks a truly integrated service experience.
“We believe that the essential driver to more growth for EFS will be through further increasing awareness about the benefits and advantages of having a good FM services provider,” Chauhan said.
“The industry is now moving towards technologically advanced equipment and processes to ensure high quality services,” he added. “The industry still has to deal with a few challenges like the need for international and large corporates to move away from fixed costs to variable costs by more outsourcing of non-core operations by the FM providers.”