Compass Group India, a subsidiary of British multinational Compass Group PLC, aims to double its business in India every three years, viewing the country as a vital growth market. Additionally,͏͏ following͏͏ its͏͏ recent͏͏ acquisition͏͏ of͏͏ ICS Foods, the͏͏ company͏͏ is͏͏ actively͏͏ seeking͏͏ further͏͏ opportunities͏͏ to͏͏ expand͏͏ its͏͏ presence,͏͏ according͏͏ to͏͏ Managing͏͏ Director͏͏ Vikas͏͏ Chawla.
Targeting͏͏ Key͏͏ Sectors:
The͏͏ company,͏͏ which͏͏ is͏͏ broadening͏͏ its͏͏ focus͏͏ on͏͏ food͏͏ catering͏͏ opportunities,͏͏ is͏͏ targeting͏͏ clients͏͏ in͏͏ the͏͏ manufacturing,͏͏ education,͏͏ and͏͏ healthcare͏͏ sectors.͏͏ It͏͏ aims͏͏ to͏͏ achieve͏͏ a͏͏ market͏͏ share͏͏ surpassing͏͏ double͏͏ digits͏͏ within͏͏ the͏͏ next͏͏ five͏͏ years.
Continue͏͏ Exploring:͏͏ Compass Group India acquires͏͏ 70%͏͏ stake͏͏ in͏͏ food͏͏ services͏͏ company͏͏ ICS͏͏ Foods,͏͏ eyes͏͏ further͏͏ growth͏͏ in͏͏ Indian͏͏ market
Meal͏͏ Service͏͏ Expansion:
In͏͏ the͏͏ next͏͏ three͏͏ years,͏͏ Compass͏͏ Group͏͏ India͏͏ plans͏͏ to͏͏ serve͏͏ over͏͏ two͏͏ million͏͏ meals͏͏ daily͏͏ and͏͏ expand͏͏ its͏͏ presence͏͏ to͏͏ 600͏͏ client͏͏ locations,͏͏ further͏͏ solidifying͏͏ its͏͏ leadership͏͏ in͏͏ the͏͏ food͏͏ and͏͏ support͏͏ services͏͏ sector,͏͏ he͏͏ added.
“If͏͏ we͏͏ achieve͏͏ growth͏͏ of͏͏ over͏͏ 20%,͏͏ which͏͏ we͏͏ aim͏͏ for,͏͏ I͏͏ believe͏͏ we͏͏ could͏͏ double͏͏ our͏͏ business͏͏ approximately͏͏ every͏͏ three͏͏ years,͏͏ positioning͏͏ us͏͏ at͏͏ a͏͏ very͏͏ significant͏͏ scale͏͏ both͏͏ from͏͏ an͏͏ Indian͏͏ and͏͏ a͏͏ Compass͏͏ Group͏͏ perspective,”͏͏ said͏͏ Chawla.
He͏͏ declined͏͏ to͏͏ disclose͏͏ the͏͏ company’s͏͏ revenue.͏͏ However,͏͏ financial͏͏ data͏͏ from͏͏ the͏͏ business͏͏ intelligence͏͏ platform͏͏ Tofler͏͏ reveals͏͏ that͏͏ the͏͏ consolidated͏͏ revenue͏͏ of͏͏ Compass͏͏ India͏͏ Food͏͏ Services͏͏ was͏͏ INR͏͏ 1,212.7͏͏ crore,͏͏ with͏͏ a͏͏ net͏͏ profit͏͏ of͏͏ INR͏͏ 33.6͏͏ crore͏͏ for͏͏ the͏͏ financial͏͏ year͏͏ that͏͏ ended͏͏ in͏͏ March͏͏ 2023.
The͏͏ brand͏͏ currently͏͏ serves͏͏ approximately͏͏ 0.6͏͏ million͏͏ meals͏͏ daily͏͏ and͏͏ has͏͏ partnered͏͏ with͏͏ more͏͏ than͏͏ 450͏͏ client͏͏ locations͏͏ across͏͏ India.
Compass͏͏ Group͏͏ India’s͏͏ ambition͏͏ is͏͏ to͏͏ become͏͏ a͏͏ “sought-after”͏͏ food͏͏ company͏͏ in͏͏ India,͏͏ capitalising͏͏ on͏͏ the͏͏ evolving͏͏ opportunities͏͏ in͏͏ the͏͏ food͏͏ and͏͏ facility͏͏ management͏͏ landscape͏͏ driven͏͏ by͏͏ economic͏͏ growth.
“Given͏͏ India’s͏͏ dynamic͏͏ economic͏͏ landscape͏͏ and͏͏ initiatives͏͏ like͏͏ ‘Make͏͏ in͏͏ India,’͏͏ we͏͏ recognise͏͏ substantial͏͏ opportunities͏͏ to͏͏ significantly͏͏ scale͏͏ our͏͏ operations,͏͏ targeting͏͏ a͏͏ ten-fold͏͏ increase͏͏ in͏͏ our͏͏ offerings͏͏ over͏͏ the͏͏ next͏͏ 5-7͏͏ years,”͏͏ said͏͏ Chawla.
Growth͏͏ through͏͏ Acquisitions:
According͏͏ to͏͏ Chawla,͏͏ the͏͏ coming͏͏ decades͏͏ will͏͏ be͏͏ pivotal͏͏ for͏͏ Compass͏͏ Group’s͏͏ growth͏͏ in͏͏ India.͏͏ The͏͏ company͏͏ will͏͏ continue͏͏ to͏͏ expand͏͏ its͏͏ support͏͏ services͏͏ in͏͏ key͏͏ sectors͏͏ such͏͏ as͏͏ manufacturing,͏͏ education,͏͏ and͏͏ healthcare.
“Our͏͏ focus͏͏ is͏͏ not͏͏ solely͏͏ on͏͏ growth͏͏ but͏͏ on͏͏ delivering͏͏ value͏͏ that͏͏ surpasses͏͏ industry͏͏ benchmarks.͏͏ We͏͏ are͏͏ aligning͏͏ our͏͏ services͏͏ closely͏͏ with͏͏ the͏͏ evolving͏͏ needs͏͏ of͏͏ our͏͏ clients͏͏ while͏͏ exploring͏͏ strategic͏͏ acquisitions͏͏ to͏͏ maintain͏͏ our͏͏ momentum.͏͏ We͏͏ expect͏͏ that͏͏ 25-30%͏͏ of͏͏ our͏͏ growth͏͏ in͏͏ the͏͏ next͏͏ fiscal͏͏ year͏͏ will͏͏ stem͏͏ from͏͏ acquisitions,͏͏ as͏͏ we͏͏ aim͏͏ to͏͏ expand͏͏ our͏͏ presence͏͏ in͏͏ key͏͏ markets,”͏͏ he͏͏ said.
When͏͏ asked͏͏ if͏͏ Compass͏͏ Group͏͏ India͏͏ would͏͏ participate͏͏ in͏͏ opportunities͏͏ from͏͏ government-run͏͏ educational͏͏ institutions͏͏ and͏͏ schemes͏͏ like͏͏ mid-day͏͏ meals,͏͏ Chawla͏͏ responded:͏͏ “We͏͏ would͏͏ be͏͏ very͏͏ pleased͏͏ to͏͏ partner,͏͏ as͏͏ we͏͏ have͏͏ an͏͏ unwavering͏͏ commitment͏͏ to͏͏ food͏͏ safety.”
Regarding͏͏ the͏͏ expansion͏͏ of͏͏ its͏͏ network͏͏ in͏͏ India,͏͏ he͏͏ stated͏͏ that͏͏ Compass͏͏ Group͏͏ is͏͏ currently͏͏ present͏͏ in͏͏ 45͏͏ cities͏͏ and͏͏ will͏͏ concentrate͏͏ on͏͏ major͏͏ markets͏͏ such͏͏ as͏͏ Bengaluru,͏͏ Hyderabad,͏͏ Mumbai,͏͏ Delhi,͏͏ and͏͏ Chennai,͏͏ rather͏͏ than͏͏ pursuing͏͏ a͏͏ “deep͏͏ expansion.”
“We͏͏ will͏͏ explore͏͏ opportunities͏͏ in͏͏ other͏͏ cities,͏͏ but͏͏ our͏͏ approach͏͏ will͏͏ be͏͏ more͏͏ opportunistic͏͏ than͏͏ a͏͏ planned͏͏ expansion͏͏ into͏͏ a͏͏ large͏͏ number͏͏ of͏͏ locations,”͏͏ he͏͏ added.
India͏͏ is͏͏ currently͏͏ one͏͏ of͏͏ the͏͏ top͏͏ ten͏͏ markets͏͏ for͏͏ Compass͏͏ Group͏͏ PLC,͏͏ and͏͏ according͏͏ to͏͏ Chawla,͏͏ it͏͏ has͏͏ the͏͏ potential͏͏ to͏͏ rise͏͏ into͏͏ the͏͏ top͏͏ five.
“We͏͏ see͏͏ significant͏͏ changes͏͏ happening͏͏ in͏͏ India.͏͏ Employers͏͏ are͏͏ increasingly͏͏ seeking͏͏ better͏͏ food͏͏ options͏͏ for͏͏ their͏͏ employees,͏͏ prioritising͏͏ food͏͏ safety͏͏ with͏͏ higher͏͏ standards͏͏ than͏͏ what͏͏ they͏͏ have͏͏ previously͏͏ received.͏͏ In͏͏ hospitals,͏͏ which͏͏ we͏͏ also͏͏ serve,͏͏ there͏͏ is͏͏ a͏͏ demand͏͏ for͏͏ improved͏͏ meals͏͏ for͏͏ both͏͏ patients͏͏ and͏͏ staff,”͏͏ he͏͏ said.
Even͏͏ in͏͏ educational͏͏ institutions,͏͏ there͏͏ is͏͏ a͏͏ growing͏͏ awareness͏͏ about͏͏ the͏͏ importance͏͏ of͏͏ providing͏͏ great-tasting͏͏ nutrition͏͏ for͏͏ students.
“So,͏͏ everyone͏͏ is͏͏ adapting,͏͏ and͏͏ I͏͏ believe͏͏ this͏͏ change͏͏ will͏͏ accelerate͏͏ over͏͏ time,͏͏ providing͏͏ us͏͏ with͏͏ significantly͏͏ more͏͏ growth͏͏ opportunities,”͏͏ Chawla͏͏ added.
