Industry
Hotel Business Review
Laundry:
No Dirty Business By Ashok Malkani
W
hile washing dirty linen in public may not be civil, washing linen, per se, is not only good for the society but also could be highly profitable. If you are looking for business opportunity which can be managed with a minimal investment then laundry business may be a viable option. The laundry industry is just getting bigger and more qualityconscious. And to add to the upbeat mood, the industry has, globally, to some extent, has remained insulated from the devastating impact of recession. The reasons are simple. At hard times people can stop buying new clothes, but doing without washing is a strict no. In India, the laundry business is still at a take off stage but growing by leaps and bounds. More and more organised players are now entering this business, which they believe is set for a bright future. While the unorganised sector rules the roost, organised players are slowly making inroads into this fast growing industry. According to the estimates of A C Nielson, a market research firm, the country’s dry-cleaning and laundry industry is approximately worth Rs 3,000-Rs 3,500 crores. Yes, this is the service industry where you may get your hands all dirty. But, the moolah you earn will help in quickly cleaning them up. Getting into the laundry service business is definitely a good bet as it is among the few businesses considered recession-free. 56
Nov-Dec ’15
With one of the fastest-growing economies in the world and a rising middle class, India holds the promise of good opportunities for laundry and dry-cleaning suppliers. When one speaks of laundering, the general concept is that of a laundry serving the office goers and their families. However there is another aspect to this business: That of serving the hospitality industry and the hospitals.
Laundering for Hospitality Business For those seeking to serve the hotel industry by making their linen clean there are ample opportunities. One can try to meet the increasing laundry demands from the hotels who are, increasingly, outsourcing the cleaning of their linen and are looking for launderers who can meet their standards at economical rates. Most small and medium sized hotels contract out their laundry, as it is simply is not economical to do it themselves. The capital expenditure to get adequate machines to do it, plus the cost of staff to iron the linen could be prohibitive. Most hotels outsource their laundry cleaning to commercial launderer/dry cleaner. The practice of outsourcing laundry services in the Indian hospitality is not of recent origin. With the growth of fine dining restaurants, importance of their linen presentation has also grown. To manage the same, restaurants have
also started outsourcing their laundry services to professional agencies. Many serious players in the hospitality industry including hotels and restaurants today feel that laundry outsourcing curbs maintenance costs and helps them focus on their core operational areas.
Laundry Business Set-up The cost of setting up a laundry business depends on several factors and you will have to conduct your own research to determine how much money you will need to raise. There are various suppliers around the country that will be able to give you quotes on buying new or reconditioned machines. You could also consider leasing the equipment. The needs will be based on the kind of services you intend to offer and the size of the laundry you wish to set up. It is better to estimate the amount of space you will require on the basis of the number of machines you will install, your estimated demand and the number of people you wish to employ. Please note that equipment, unwashed clothes and washed clothes will take up space. The location of your laundry business should have adequate space to house all the necessary materials and collaterals for ease of operations.
Precautions: Cleaning Hotel Linen Besides following the right procedure, five other factors impact the quality