Food Service India Pvt Ltd, a company producing and selling spices, sharbats, gravies, sauces, and bakery premixes through both in-house and third-party manufacturing, is planning to raise INR 80-120 crore to support its growth. With͏͏ an͏͏ IPO͏͏ planned͏͏ in͏͏ the͏͏ next͏͏ 3-4͏͏ years,͏͏ the͏͏ company͏͏ is͏͏ targeting͏͏ a͏͏ revenue͏͏ of͏͏ INR͏͏ 1,000͏͏ crore͏͏ by͏͏ 2027-28,͏͏ driven͏͏ by͏͏ product͏͏ expansion,͏͏ deeper͏͏ market͏͏ penetration,͏͏ and͏͏ entry͏͏ into͏͏ smaller͏͏ towns.
Strong͏͏ Financial͏͏ Performance͏͏ and͏͏ Growth:
The͏͏ company͏͏ recorded͏͏ a͏͏ top͏͏ line͏͏ of͏͏ INR͏͏ 240͏͏ crore͏͏ last͏͏ year͏͏ and͏͏ expects͏͏ to͏͏ reach͏͏ INR͏͏ 320-330͏͏ crore͏͏ this͏͏ year.͏͏ “We’re͏͏ aiming͏͏ for͏͏ an͏͏ IPO͏͏ in͏͏ the͏͏ next͏͏ three͏͏ to͏͏ four͏͏ years,͏͏ with͏͏ INR͏͏ 1,000͏͏ crore͏͏ in͏͏ revenue͏͏ being͏͏ the͏͏ key͏͏ milestone͏͏ before͏͏ considering͏͏ it,”͏͏ said͏͏ Managing͏͏ Director͏͏ Ajay͏͏ Mariwala,͏͏ who͏͏ promoted͏͏ the͏͏ company͏͏ and͏͏ holds͏͏ an͏͏ 89%͏͏ stake.͏͏ Discussions͏͏ are͏͏ ongoing,͏͏ and͏͏ the͏͏ company͏͏ anticipates͏͏ finalising͏͏ its͏͏ fundraising͏͏ efforts͏͏ within͏͏ the͏͏ next͏͏ eight͏͏ months.
Expanding͏͏ Product͏͏ Portfolio͏͏ and͏͏ Market͏͏ Reach:
Over͏͏ the͏͏ past͏͏ five͏͏ years,͏͏ the͏͏ company͏͏ has͏͏ achieved͏͏ a͏͏ CAGR͏͏ of͏͏ 45-50%,͏͏ though͏͏ it͏͏ has͏͏ been͏͏ around͏͏ 30-31%͏͏ in͏͏ the͏͏ last͏͏ three͏͏ years.͏͏ Mariwala͏͏ is͏͏ optimistic͏͏ about͏͏ raising͏͏ this͏͏ to͏͏ 35%,͏͏ particularly͏͏ if͏͏ India’s͏͏ expected͏͏ economic͏͏ boom͏͏ comes͏͏ to͏͏ fruition.͏͏ Growth͏͏ will͏͏ be͏͏ fuelled͏͏ by͏͏ expanding͏͏ product͏͏ categories,͏͏ increasing͏͏ customer͏͏ numbers͏͏ in͏͏ existing͏͏ markets,͏͏ and͏͏ entering͏͏ smaller͏͏ towns.
“We’ve͏͏ primarily͏͏ targeted͏͏ tier͏͏ 1͏͏ and͏͏ 2͏͏ cities,͏͏ but͏͏ we͏͏ haven’t͏͏ ventured͏͏ into͏͏ smaller͏͏ towns͏͏ yet,͏͏ which͏͏ leaves͏͏ us͏͏ with͏͏ substantial͏͏ growth͏͏ potential,”͏͏ he͏͏ added.
The͏͏ Mumbai-based͏͏ company͏͏ offers͏͏ a͏͏ diverse͏͏ product͏͏ portfolio͏͏ that͏͏ includes͏͏ six͏͏ categories:͏͏ seasonings,͏͏ spices,͏͏ gravies͏͏ and͏͏ sauces,͏͏ beverage͏͏ mixes,͏͏ sweet͏͏ goods,͏͏ and͏͏ a͏͏ category͏͏ known͏͏ as͏͏ FX,͏͏ which͏͏ consists͏͏ of͏͏ single-ingredient͏͏ items͏͏ such͏͏ as͏͏ canned͏͏ fruits,͏͏ vegetables,͏͏ pasta,͏͏ and͏͏ breadcrumbs.͏͏ These͏͏ FX͏͏ products͏͏ are͏͏ sourced͏͏ from͏͏ a͏͏ network͏͏ of͏͏ more͏͏ than͏͏ 30͏͏ factories͏͏ throughout͏͏ India.
“Whether͏͏ it’s͏͏ a͏͏ drive-through͏͏ breakfast͏͏ at͏͏ an͏͏ international͏͏ QSR͏͏ chain͏͏ on͏͏ your͏͏ way͏͏ to͏͏ the͏͏ airport,͏͏ a͏͏ lounge͏͏ meal,͏͏ in-flight͏͏ service,͏͏ or͏͏ even͏͏ the͏͏ hotel͏͏ meal͏͏ when͏͏ you͏͏ check͏͏ in͏͏ —͏͏ we’re͏͏ present,͏͏ supplying͏͏ ingredients͏͏ at͏͏ every͏͏ stage,”͏͏ said͏͏ Mariwala.
Continue͏͏ Exploring:͏͏ Ajay Mariwala’s Food Service India looks͏͏ at͏͏ 30%͏͏ growth͏͏ for͏͏ HoReCa͏͏ industry͏͏ in͏͏ India
Focus͏͏ on͏͏ Innovation͏͏ in͏͏ Food͏͏ Service:
While͏͏ Food͏͏ Service͏͏ India͏͏ primarily͏͏ functions͏͏ as͏͏ a͏͏ B2B͏͏ company,͏͏ it͏͏ positions͏͏ itself͏͏ as͏͏ a͏͏ complete͏͏ food͏͏ solutions͏͏ provider,͏͏ delivering͏͏ not͏͏ only͏͏ products͏͏ but͏͏ also͏͏ the͏͏ expertise͏͏ of͏͏ chefs͏͏ and͏͏ mixologists͏͏ to͏͏ support͏͏ its͏͏ clients.͏͏ Mariwala͏͏ noted,͏͏ “We͏͏ don’t͏͏ simply͏͏ sell͏͏ pasta;͏͏ we͏͏ assist͏͏ clients͏͏ in͏͏ crafting͏͏ seasonal͏͏ menus͏͏ that͏͏ span͏͏ Italian͏͏ to͏͏ American͏͏ dishes͏͏ and͏͏ limited-time͏͏ offerings͏͏ (LTOs).͏͏ Our͏͏ extensive͏͏ range͏͏ includes͏͏ Indian͏͏ cuisines͏͏ like͏͏ Bengali͏͏ and͏͏ Rajasthani,͏͏ along͏͏ with͏͏ international͏͏ options͏͏ such͏͏ as͏͏ Chinese,͏͏ Italian,͏͏ Thai,͏͏ and͏͏ soon,͏͏ Japanese.”
“We’re͏͏ developing͏͏ a͏͏ food͏͏ service͏͏ business͏͏ rather͏͏ than͏͏ just͏͏ a͏͏ distribution͏͏ network,͏͏ emulating͏͏ the͏͏ model͏͏ of͏͏ global͏͏ food͏͏ service͏͏ leaders,”͏͏ he͏͏ said.
Gravies͏͏ and͏͏ seasonings͏͏ are͏͏ the͏͏ company’s͏͏ flagship͏͏ offerings,͏͏ forming͏͏ the͏͏ foundation͏͏ of͏͏ its͏͏ product͏͏ line.͏͏ As͏͏ a͏͏ pioneer͏͏ in͏͏ the͏͏ gravy͏͏ segment,͏͏ Food͏͏ Service͏͏ India͏͏ has͏͏ established͏͏ a͏͏ solid͏͏ reputation͏͏ in͏͏ both͏͏ categories.͏͏ Additionally,͏͏ the͏͏ FX͏͏ category͏͏ is͏͏ experiencing͏͏ rapid͏͏ growth͏͏ as͏͏ the͏͏ company͏͏ broadens͏͏ its͏͏ range.
To͏͏ maintain͏͏ its͏͏ growth,͏͏ the͏͏ company͏͏ plans͏͏ to͏͏ allocate͏͏ INR͏͏ 12-15͏͏ crore͏͏ annually,͏͏ excluding͏͏ any͏͏ additional͏͏ investments͏͏ that͏͏ may͏͏ arise͏͏ from͏͏ expanding͏͏ into͏͏ frozen͏͏ or͏͏ chilled͏͏ categories.
The͏͏ company͏͏ serves͏͏ a͏͏ diverse͏͏ clientele,͏͏ including͏͏ independent͏͏ restaurants,͏͏ chains,͏͏ luxury͏͏ hotels,͏͏ caterers,͏͏ and͏͏ corporate͏͏ catering͏͏ firms.͏͏ He͏͏ pointed͏͏ out͏͏ that͏͏ corporate͏͏ catering͏͏ has͏͏ seen͏͏ considerable͏͏ growth,͏͏ especially͏͏ as͏͏ more͏͏ companies,͏͏ such͏͏ as͏͏ Amazon,͏͏ are͏͏ encouraging͏͏ employees͏͏ to͏͏ return͏͏ to͏͏ the͏͏ office͏͏ following͏͏ the͏͏ pandemic.
Mariwala͏͏ also͏͏ emphasised͏͏ that͏͏ India’s͏͏ outdated͏͏ tax͏͏ and͏͏ policy͏͏ framework͏͏ continues͏͏ to͏͏ categorise͏͏ processed͏͏ food—which͏͏ is͏͏ crucial͏͏ for͏͏ managing͏͏ inflation͏͏ and͏͏ ensuring͏͏ a͏͏ stable͏͏ food͏͏ supply—as͏͏ a͏͏ luxury.͏͏ This͏͏ classification͏͏ has͏͏ resulted͏͏ in͏͏ inefficiencies͏͏ within͏͏ the͏͏ fresh͏͏ produce͏͏ supply͏͏ chain.͏͏ Although͏͏ new͏͏ farm͏͏ laws͏͏ were͏͏ introduced͏͏ to͏͏ tackle͏͏ these͏͏ issues,͏͏ political͏͏ challenges͏͏ have͏͏ hindered͏͏ reform͏͏ efforts.͏͏ He͏͏ cautioned͏͏ that͏͏ without͏͏ necessary͏͏ changes,͏͏ increasing͏͏ prosperity͏͏ could͏͏ elevate͏͏ demand͏͏ for͏͏ fresh͏͏ foods,͏͏ potentially͏͏ resulting͏͏ in͏͏ unmanageable͏͏ inflation,͏͏ particularly͏͏ during͏͏ off-seasons.
