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GROWING INDUSTRIAL LAUNDRY MARKET – BENEFITS OF OUTSOURCING LAUNDRY SERVICES

Doing laundry is considered to be repelling task for most of us, and often it consumes a lot of our time.  However, the fully mechanized set up in laundry services will totally change the scenario.  The laundry task will turn out to be a mechanical process rather than a domestic activity with mechanized laundry.   However, the Industrial Laundry set up requires heavy capital investment in machinery and equipment for washing, shipping, ironing and drying processes.  The investment as required for land and property further adds up the setup cost.

Since the laundry market in India is dominated by small traditional dhobis and laundry stores, they are not well-equipped to handle the huge capital requirement.  In the case of the hospitality sector and healthcare sectors, they have the sizable budget to get there laundry done, but it is not their core operations.  However, the supply of cleaned fabric plays an important role in Hospitality and healthcare sectors.  Now, they have the option to outsource it or do it themselves.  It often becomes tough for Hotels and Hospitals to have in-house laundry services.  The setting up and managing in-house laundry require heavy investment in installation, maintenance and upgradations of machinery in addition to the day to day management of the same.

India is one of the fastest growing economies and has a huge market for laundry business which is yet to be tapped.  The number of hospital and hotels out-sourcing laundry service is increasing every year and even India Railways are turning to out-sourcing laundry services and is attracting the attention of the industry of late.  The business profiling of the laundry industry gives a hint that it is attracting a lot of new players in the market.

GROWING INDUSTRIAL LAUNDRY MARKET – BENEFITS OF OUTSOURCING LAUNDRY SERVICES

Here is a summary of the benefits of Out-sourcing Laundry services:

Cutting major costs

Labour and utilities are the highest costs associated with hotel operations.  Unless hotels are willing to spend big on automated equipment, their best alternative is outsourcing.  On an approximate, one person can fold and stack anywhere between 100 and 120 linens per hour, whereas automated folding equipment can handle 600 to 800 linens in the same time frame.  In addition, the price of upgrading adds extra cost to run in-house laundry.

Focus on Core Business

By out-sourcing laundry service, hotels and hospitals will be able to focus on core offerings.  They need not go for heavy investment in non-core activities.  Any prudent administrator will choose to invest such funds into their core operations instead of building a laundry to support their operations.

Trained Staff Are Not Needed

The employees of laundry service provider already have the skills and experience to use equipment and wash and dry linens and clothing. Hence, one can get rid of recruiting and training hands for laundry operations in their premises.

 

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