Mumbai: TVS Shriram Growth Fund, managed by Chennai-based TVS Capital Funds Ltd, will invest Rs35 crore in Bangalore-based Dusters Hospitality Services Pvt Ltd and Mumbai-based Total Solutions Facility Management Pvt Ltd.
Total Solutions will be merged with Dusters Hospitality in the next 2-3 months and the invested funds will go into the combined business. Both firms provide facility management services and are headed by brothers Shamsher Puri (Duster Hospitality) and Jasmer Puri (Total Solutions).
The stake purchased by TVS Capital is approximately 36%, said D. Sundaram, vice chairman and managing director, TVS Capital Funds, in a conference call Tuesday. According to Sundaram, the facility management services sector is expected to grow at a rate of 20%-25% in the next five years. TVS Capital, which has also started operations in Mumbai, has drawn down 40% of its corpus of Rs600 crore.