The company, which is expanding its presence in food catering opportunities, focuses on customers in the manufacturing, education and healthcare sectors, and aims to achieve “above double-digit” market share in the next five years .
Compass Group India, part of British multinational Compass Group PLC, a provider of contract food services and facilities management services, is looking to double its business every three years in the country, a key growth market.
Also, the company that recently acquired ICS Foods is “very open to looking” for more such opportunities to expand its business here, Compass Group India CEO Vikas Chawla said.
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The company, which is expanding its presence in food catering opportunities, focuses on customers in the manufacturing, education and healthcare sectors, and aims to achieve “above double-digit” market share in the next five years.
Over the next three years, Compass Group India aims to serve over two million meals a day and grow its presence across 600 customer locations, strengthening its leadership in the food and support services sector, it added.
“If we expand at a rate of over 20 per cent, which we want to do, I feel like we would double our business every three odd years, which would take us to a very, very significant size from an Indian perspective and from the perspective of Compass Group,” said Chawla.
He refused to share the company’s income. According to financial data accessed by business intelligence platform Tofler, Compass India Food Services’ consolidated revenue stood at Rs 1,212.7 crore, while its net profit was Rs 33.6 crore in the financial year. which ended in March 2023.
The brand serves around 0.6 million meals a day and has partnered with over 450 customer locations across India.
Compass Group India’s ambition is to become a “sought after” food company in India, where opportunities in the food and facilities management landscape are evolving with the growing economy.
“With India’s dynamic economic landscape and initiatives like ‘Make in India’, we see huge opportunities to scale our operations significantly, aiming to increase offerings tenfold in the next 5-7 years,” Chawla said. .
According to Chawla, the next two decades in India will be decades of very strong growth for Compass Group. It will continue to expand support services in key sectors such as manufacturing, education and healthcare.
“Our focus is not only on growth but also on delivering value that exceeds industry benchmarks. We are closely aligning our services with changing customer needs while exploring strategic acquisitions to fuel our momentum. We anticipate between 25 and 30 percent of our growth in the next fiscal year will come from acquisitions as we look to expand our reach in key markets,” he said.
When asked if Compass Group India will participate in any opportunities for government-run educational institutions and schemes like mid-day meals, Chawla said, “We would be very happy to partner because we have a manic focus on food security.”
On network expansion in India, he said Compass Group is present in 45 cities and would focus on big markets like Bengaluru, Hyderabad, Mumbai, Delhi, Chennai, etc., instead of having a “deep expansion”.
“We will go to other cities… But it will be more opportunistic than the planned expansion, per se, to a large number of cities,” he added.
India is currently among Compass Group PLC’s top ten markets and, according to Chawla, has the potential to be among the top five.
“We see changes happening in India. If you look at employers, they want better food for their people. They are looking for food security, which is much stricter in terms of standards than what they have been getting. If you look at The hospitals, which we also serve there, are looking for something better for their patients, as well as for their staff,” he said.
Even in educational institutions, people are starting to think similarly about delicious nutrition for students.
“So the whole world is changing and I think the change will accelerate over time and that will give us many more opportunities for growth,” Chawla added.
First published: September 29, 2024 | 11:56 am IS
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