A French food catering and support services provider, Elior India Catering LLP is considering a buyout with three companies as it plans to expand its footprint by building centralised kitchens and paring costs using technology.
Elior India aims to challenge competitors such as Sodexo and Compass Group in India. The Indian food service industry is valued at about $40 billion and growing at a CAGR of 11 per cent, according to Elior. It is slated to reach $78 billion by 2018. The Indian contract catering market is worth $3.3 billion and growing at a compounded rate of 16 per cent. The market is, however, highly fragmented with more than two million organised caterers.
Elior is currently present in the education segment. It caters to different universities and hostels. At present, the firm is associated with Indian Institute of Technology, Canadian International School and others. Elior is also considering moving into the healthcare segment.
Elior entered India in late 2016 through two acquisitions, a 70 per cent stake in Chennai-based CRCL and 100 per cent of Bengaluru-based Megabite Food Services. Post-acquisition, Elior’s customers include Daimler, Pfizer, Cisco, Google, MRF, Vellore Institute of Technology, Larsen & Toubro, Ashok Leyland, Panasonic and Hindustan Motors.