Compass Group India which is a subsidiary of British multinational Compass Group PLC intends to double its business in India every three years. Vikas Chawla, Managing Director at Compass Group India, said that the company had recently acquired ICS Foods and is scouring for other acquisition opportunities that would increase its overall bouquet of offerings.Â
The company is particularly focused on food catering while targeting the client base in major sectors of manufacturing, education, and healthcare. “We want to be at double-digit market share within the next five years,” said Chawla. As part of its growth strategy, Compass Group India intends to serve more than two million meals daily and extend its operations to 600 client locations across the country.Â
Chawla noted that “If our business secures profits of 20%, then we would be expanding our business every three years. Growth on this trajectory would keep us far ahead of the Indian market and more so in the larger compass group.” Though the specific revenues were not stated, insights from Tofler indicate Compass India Food Services has a consolidated revenue of ₹1,212.7 crore and net profit of ₹33.6 crore for fiscal year ending March 2023.Â
The company currently serves about 600,000 meals every day and is working with more than 450 locations that would tag it as a client in India. According to Chawla, the company aspires at becoming one of the major food service providers in the country primarily due to the changing landscape of food and facility management in the region.Â
For instance, initiatives such as “Make in India,” are expected to accelerate the development process that Compass Group India views as creating plenty of room for scaling operations. Chawla projects an order-of-magnitude increase in offerings over the next five to seven years, asserting that the next two decades will define growth in the country.Â
In sync with the growth strategy, the company is going to undertake strategic acquisitions that are going to improve the market presence. The management expects 25-30% of growth in the following quarter to come from this effort. Chawla also said that he wants to collaborate with government schools, especially in schemes such as midday meal, and he is committed to food safety.Â
The company now operates in 45 cities and is concentrating its expansion efforts in major urban centers like Bengaluru, Hyderabad, Mumbai, Delhi, and Chennai. Chawla shared observations on how attitudes of employers and institutions about quality and safety of food have altered: “People want better meals, too, for hospitals, and for offices. The demand for ‘better’ food has grown, really, but there really is a lot more to this than just asking for quality.” Summing up with “This shift in the mindset of people brings huge growth opportunities, and we’re well-positioned to seize the moment.Â
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