The Indian food and facility services industry is growing at a rate of 30%-40% and is expected to sustain this growth. The industry, relatively unorganised, is an attractive target for acquisitions and has drawn the attention of overseas companies like the $12.4 billion US-based Aramark Corporation, which is eyeing buyouts here.
?We are looking at China, India and Brazil for expansion. Typically, we enter a market through acquisition,? Ravi K Saligram, president, international and executive VP, Aramark, told FE.
Aramark has made its foray into the Indian sub-continent through acquisition of The Patman Group, provider of facilities management, housekeeping, business dining, catering and other related services.
“The company is open to more such acquisitions in India providing geographical reach and management talent,? Saligram added.
The new company will be known as Aramark Patman. Some of the corporate clients of The Patman include Reliance (both groups), ICICI Bank in the northern region, Tata and Air Deccan.
Currently, the international business of Armark is $3.5 billion, comprising up to 25% of its total sales. ?We expect the international business to grow double the rate of our domestic business four years down the line,? Saligram said.
The company sees $100 million business coming from all the developing countries taken together.
To start with, Aramark plans to concentrate on the segments its acquired company – The Patman – is currently serving including guest house management and corporate facilities. ?We are conducting feasibility studies for healthcare in the country and have been approached by hospitals for services,? he said, adding that the healthcare sector will be the main revenue generator for the company in India. Domestic player, Radhakrishna Hospitality Services Pvt Ltd (RKHS), a part of Radhakrishna group, with turnover of Rs 400 crore, is too upbeat about the business and expects it to grow 25% year-on-year. The company has a portfolio of 900 clients spread across sectors like hospitals, education, offshore, transport and business. ?Business sector is the largest revenue generator for us,? said Sunil Nayak, chief executive officer, Radhakrishna Hospitality Services Pvt Ltd, who plans to add another 50-60 corporate clients this year. Some of the corporate clients of the company include Toyota Kirloskar, Volvo India, Wipro and Mahindra & Mahindra, among others.
The group is designing and planning base kitchens for Indian Railways that will come up in cities like Mumbai, New Delhi and Kolkata.