Rentokil sets up Indian pest control joint venture

Rentokil Initial will merge into Indian pest control business into a new 57%-owned joint venture with privately owned PCI Pest Control that it said will be the largest provider in the subcontinent.

Controlled by the UK's royal rat-catcher, the Indian JV will have combined annual revenues of 4.5bn rupees (roughly £50m) from around 250 locations.

In the 12 months to 31 March 2016, Mumbai-headquartered PCI, which operates in 47 Indian cities, generated revenues of 3.7bn rupees (c. £41m).

Rentokil has calculated the Indian professional pest control services market is worth close to £200m per year and is growing at roughly 15% annual rate, which does not include the product market and semi-professional market.

Rentokil chief executive Andy Ransom said: "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.

"Both companies operate similar business models with a strong commitment to colleagues and delivering great customer service.

He suggested India's growth potential was key to the deal.

"Economic activity, urbanisation, population growth and increasing urban middle classes are some of the key drivers of growth for pest control services, and we see these trends very clearly in India."

India's population is expected to grow to 1.45bn by 2028, making it the most populous country in the world, while rapid urbanisation will see the number of Indian cities with more than 1m people jump to 68 by 2030 from the current 42.