Sodexho eyes Rs 300 cr business in three years

Sodexho India, the Indian arm of the $16 billion French major Sodexho group, plans to become an over Rs 300 crore company employing 10,000 people over the next three years.

The Rs 55 crore outfit is known in the domestic market for its food voucher business.

The envisaged growth will be driven by its facilities management and food services business, thanks to the business process outsourcing, infotech and the healthcare sector boom in the country

The Rs 550 crore (organised sector) industry, which is growing at a rate of 100 per cent per annum, is expected to acquire a size of Rs 4,500 crore by 2008.

The company, propelled by investment needs for a nationwide expansion, may also go for an initial public offering (IPO).

"We may look at an IPO if we decide to set up infrastructure facilities like a central kitchen," said Ravi Saxena, managing director of Sodexho India.

Some of the hotels are looking at outsourcing these services to Sodexho. The company, which now manages the Osho resort at Pune, is in talks with Shereton group of hotels.

"In doing this kind of job, not only is there a cost advantage but also the efficiency of asset management increases. We customise strategies to maximise business efficiency and retain the value of expensive infrastructural assets. Combine this with food services, and we enjoy a uniquely advantageous position to manage end-to-end needs of corporates," Saxena said.

Having spotted an opportunity, leading real estate builders like the Hiranandanis and the Rahejas have also jumped into the fray.

These services include front office management, space planning, inventory management, asset management, fleet management, energy management like upkeep of gensets and air-conditioners, UPS systems besides security, house keeping, horticulture, landscaping and pantry services.

"Unlike other players, we do not subcontract services to local vendors. All personnel deployed at sites are employees on our pay rolls thereby eliminating the need for corporates to pay attention on employees doing non-core activities," Saxena said.

Some of its clients include Oberoi Chambers, IBM, DELL Infosys, Wipro, DSP Merill Lynch, Monsanto, Wockhardt Hospitals and Accenture.