Compass Group India aims to double its business every three years and recently acquired ICS Foods to expand operations. The company targets growth in food catering for the manufacturing, education, and healthcare sectors, with plans to serve over two million meals daily and increase its footprint significantly over the next few years. Managing Director Vikas Chawla expresses confidence in substantial growth opportunities amid India’s evolving market demands.
Compass Group India, a subsidiary of the British multinational firm Compass Group PLC, aims to double its business every three years, viewing India as a significant growth market. Recently acquiring ICS Foods, the company is actively seeking more such opportunities to expand its services in the region. Managing Director Vikas Chawla noted that the organization is focusing on food catering opportunities, particularly targeting clients in the manufacturing, education, and healthcare sectors. Their strategy involves increasing market share to surpass double digits within the next five years. In the immediate future, Compass Group India plans to serve over two million meals daily while expanding its reach to 600 client locations, thereby solidifying its leadership position within the food and support services industry. Chawla expressed confidence in achieving growth rates exceeding 20 percent, a trajectory that could lead to substantial business growth in India. While precise revenue figures were withheld, data from the business intelligence platform Tofler indicates that Compass India Food Services had a consolidated revenue of Rs 1,212.7 crore and a net profit of Rs 33.6 crore as of March 2023. Currently, the brand provides approximately 0.6 million meals daily across over 450 client locations in India. Chawla articulated the company’s ambition to become a prominent food company in India, capitalizing on the evolving opportunities within the food and facility management landscape driven by economic growth. He envisions significant growth over the next 5-7 years, targeting a ten-fold increase in offerings. According to Chawla, the forthcoming decades present an optimistic outlook for growth within Compass Group India. The company intends to further its support services across essential sectors, including manufacturing, education, and healthcare. He highlighted their dual focus on both growth and customer value, aligning their services with customer needs while pursuing strategic acquisitions to enhance their market position. He predicted that approximately 25-30 percent of the company’s growth in the next fiscal year would stem from such acquisitions. When asked about potential collaboration with government-run educational institutions regarding mid-day meal programs, Chawla expressed a willingness to participate, emphasizing the company’s unwavering commitment to food safety. Regarding expansion, Chawla stated that Compass Group currently operates in 45 cities within India, with plans to concentrate on primary markets such as Bengaluru, Hyderabad, Mumbai, Delhi, and Chennai, rather than a broad, deep expansion into numerous cities. Chawla noted that India ranks among the top ten markets for Compass Group PLC, with aspirations to reach the top five. He articulated the changing preferences among employers, healthcare providers, and educational institutions, all of whom prioritize high standards for food quality and safety. Chawla concluded by stating that these evolving demands signal substantial growth opportunities for Compass Group in the future.
Compass Group PLC is a leading provider of contract food services and facilities management worldwide. With a significant presence in India, Compass Group India is leveraging the country’s evolving market and economic landscape to drive growth. The increasing focus on food safety and high-quality nutrition in various sectors such as manufacturing, healthcare, and education has created numerous opportunities for the company as it seeks to expand its market share and service offerings.
In conclusion, Compass Group India is strategically positioning itself for substantial growth by aiming to double its business every three years. With a focus on high-quality catering services in key sectors and an openness to strategic acquisitions, the company intends to enhance its market presence significantly. As it aligns its services with customers’ evolving needs, particularly in terms of food safety and quality, Compass Group India is poised for considerable growth in the coming years.
Original Source: www.business-standard.com
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