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Rentokil and PCI partner up to consolidate leading role in Indian pest control market
Rentokil Initial announced yesterday that it has entered into an agreement to form a joint venture with Pest Control India and to acquire a 57% stake in the new joint venture. As a part of the transaction, the company will merge its Indian business into the joint venture.
The combined entity will be the largest provider of pest control services and products in India with combined annual revenues of INR 450 crores (c. £50m); it will operate from 250 locations and employ c.6,900 people.
Rentokil Initial estimates that the professional pest control services market in India is worth approximately INR 1800 crores (c. £200m p.a.) and growing at c. 15% p.a. No figures are available for the size of the products or semi-professional markets.
The joint venture will bring together two highly recognised forces in the professional pest control services market - the global leader and India's leader.
"PCI is an outstanding business and by combining its national scale in India with our global expertise, we will create a market leader that is strongly positioned to take advantage of the increasing demand for commercial and residential pest control services over the coming years," explained Andy Ransom, chief executive of Rentokil Initial.
"Both companies operate similar business models with a strong commitment to colleagues and delivering outstanding customer service."
Anil Rao, chief executive, PCI and chairman of the joint venture, added: "The joint venture is the most strategic combination of the acknowledged managerial and technical skills represented by Rentokil Initial and PCI's premier position, broad-spectrum customer base and vast experience operating on the Indian subcontinent. It is perfectly suited and timed to capitalise on the surging demand for high quality, world-class pest management services.
"PCI is the only company in this service industry with in-house manufacturing capabilities and the unique ability to create sustainable products, better suited to a business driven increasingly by a global search for ecologically sensible solutions. This would certainly provide a great opportunity to accelerate growth and performance in India and across the region."
Sam Easaw, managing director of Rentokil Initial in India, said: "The joint venture will combine our global expertise in areas such as innovation, digital technologies and international standards, with the national scale and heritage of PCI. Together, we will increase the standard of pest control and hygiene in India leading to enhanced standards for food and medicine safety, and more hygienic places to live and work.
"This is a great day for our colleagues and customers."
Joshua Rao, director, PCI, said, "This is an exciting new phase for PCI's journey. The joint ventre will catapult the business by combining global best practices, digital technologies and vast experience, with the objective to provide improved and efficient pest management solutions for our customers."
Rentokil is the world's leading pest control company - operating in over 60 countries and a market leader in almost 50 countries. The company has a strong presence in Southern India and is currently the third-largest provider of pest control services in India.
PCI, a privately-owned company, is the largest provider of pest control services in the Indian market. It operates in locations across India, including 47 cities. Headquartered in Mumbai in Western India, it also has significant scale in North and East India.
2nd March 2017