The consumer services industry that has historically evolved from the needs of the end consumers, is today at the threshold of witnessing unprecedented growth. The high growth of 20% CAGR is seen during the last decade. Today is a small industry but we may see this segment as a growing industry of tomorrow. The market size of around 1.5 lakh cr till 2025. There are 3 major Listed companies in this industry QuessCorp, SIS & Teamlease and all are growing by around 20% CAGR for the last 5 years by organic as well as In-organic growth. Huge growth is expected this decade.
There we several Structural reforms to accelerate formalization. Government initiatives in past 5 years helped drive 11% CAGR in formal employment. Introduction of regulations and initiatives like EPF, ESIC, GST, Skill India, demonetization, Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), Pradhan Mantri Kaushal Vikas Yogna (PMKVY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana, maternity benefit, fixed-term contract and the recently introduced labor reforms have further augmented the need for formal employment, accelerating the demand for Flexi-staffing. 1.5 Cr Students pass higher secondary school while 1.2 Cr students pass secondary school. 64 Lakh Students graduate every year while 16lakh complete post graduation.
Many companies from different countries have grown larger from the same industry and are today in the world's largest 1000 companies list. All are with more than 2 lakh Cr sales. Netherlands Randstad Holdings, US ManPower, Japan Recruit Holding in Fortune 500 with China’s SFHoldings in the world. Huge opportunity in this industry as countries grow further.
Can Have One Company in the long term Portfolio from this Industry.