BVG India Limited

Friday, Mar 29, 2024

About BVG India Limited:

BVG India Limited was initially launched in 1993 as Bharat VikasPratisthan by HanmantraoRamdas Gaikwad with a vision to empower Indian youth by getting them employed in various sectors across India. Later, in 1997, it got converted into a fully-fledged service company and came to be known as BVG Limited.

BVG India Limited is an integral part of the Indian service Industry which focuses on the overall growth and development of the Indian youth and economy. It aims to positively impact the lives of Indian youth by 2030 by providing them with education, employment, and empowerment. Overall, BVG has evolved as a successful service-providing company in the past few years.

The list of services offered by BVG India Limited is as follows -

Integrated Facility Management Service
Emergency Response Service
Renewable Energy
Solid Waste Management
Special projects

The company has come a long way since its inception and currently has more than 53000 employees working for it. BVG extends its services to various sectors in India, such as Automobile, Pharmaceutical, Oil and Gas, Metal, Chemical, FMCG, Transport, PSU’s, Schools and Hospitals etc.

Promoter and Promoter Group:

The promoters of the company are HanmantraoRamdas Gaikwad and UmeshGautam Mane. Together, they hold 59.96% of the company’s shares. The promoter group formed by VaishaliHanmantrao Gaikwad, VikasVyankatNipane, DattatrayaRamdas Gaikwad and MohiniUmesh Mane hold a total of 7.26% of the total share. HanmantraoRamdas Gaikwad is the main promoter of the firm and holds 52.64% of the total company’s share.

Developments:

Brought into existence in the year 1993, by Mr. HanmantraoRamdas Gaikwad, BVG India Ltd has managed to reach to the top of the service industry. Some of the major developments of the company over the past years are:

2020- Jammu & Kashmir Medical Supplies Limited awarded BVG Limited with a contract for the operation of 102 and 108 ambulance services.
2021- Received cleaning contracts for Mumbai International Airport, Mangaluru, Kolkata, and Dehradun.

Awards and Recognitions

BVG India Limited has bagged many awards over the years of its service. Few of them are

Maharashtra chi Girishikare Award conferred by Bhagat Singh Koshyari, the Governor of Maharashtra.
National Positivity Award conferred by Dr.DnyaneshwarMulay, IFS, former secretary, Ministry of External Affairs, Govt. of India.

Strengths:

Integrated Service Providers

The company has more than 53000 employees under its purview and offers s wide range of integrated services spread across various sectors in India. It currently captures a total of 6.4% of the market share of the integrated FMS sector.

Diverse base of clients:

The company has a diversified clientele list. The list comprises big companies such as Bajaj Auto Limited, Bosch Limited, Hyundai, Fiat, and many other government as well as private institutions.

Comprehensive portfolio of services

The company offers integrated services to various sectors which require special manpower, training, technology, and equipment. It provides custom-made solutions to its customers and has managed to spread its wings among various sectors by providing them with diversified services.

Differentiated Business model

Based on the ‘solution-pricing’ model, it operates on output based/ and –or fixed billing contracts instead of the traditional cost-plus basis. This gives the company an edge over others by letting them charge clients based on the value of the services received by them.

Competition in the market:

BVG India Limited has about 1501 competitors in the industry and it ranks 13th among them all. A few of the major competitors of BVG are:

CBRE
Rays Power Infra
Amp Energy India
Freyr India

BVG India Limited accounts for a total of 6.4% market share in the Indian facility management industry

Financial performance of the firm:

BVG India Limited has managed to show an increase in its total net profit by 32.83% in 2022 as compared to the net profit figures in 2021.

The financial status of the firm for the year ending 2021 and 2022 are given by:

(figures in crores)
Particulars	31.03.22	31.03.21
Total Income	2036	1669
EBITDA	295	232
Net Profit	121	86
EPS	46	32

Managerial Commentary:

Mr. Hanmantrao R. Gaikwad, founder, Chairman, and Managing Director of BVG India Limited aims to impact the life of more than 10 crore Indians by 2030. He has a profound belief in his team and wishes to provide superior services to their clients all over.

“Humanity Ahead” is the company’s core value and each of its activities is undertaken to keep this value in mind.

IPO Expectations and Future Outlook:

The company filed its draft prospectus with the Securities and Exchange Board of India (SEBI) in May 2021. The initial public offering consisted of a fresh issue worth Rs.200 crore along with an offer of sale of about 7196214 shares by the company’s existing shareholders as well as the promoters. However, it failed to launch its issue which was to be done in July.

Hence, it had to re-file a petition for a fresh issue of the sale of shares in August 2022. SEBI returned the draft papers to the company on March 2nd, 2023.