Food Service India Pvt Ltd. (FSIPL), which caters to the ready-to-cook and processed food sourcing requirements of the HORECA (Hotel, Restaurant, Catering) industry, has announced to invest upto ₹100 crore by 2028 to meet growing demand from this segment to deal with food price inflation and labour shortage, its Chairman & Managing Director Ajay Mariwala said in an interview.
"FSIPL has been at the forefront of providing innovative and ready-to-cook solutions to the HORECA industry, driving growth for our customers."
“We are helping them to manage inflation and to address the issue the less availability of labour. Also post Covid all institutions (institutional buyers) have decided to simplify their operations by sourcing processed and ready-to-cook products,” he said.
“The ready-to-cook segment is witnessing a surge in demand as restaurants, cloud kitchens, and food chains are seeking solutions to streamline operations while enhancing menu creativity,” he added.
Market Projections
The National Restaurant Association of India (NRAI) recently projected India’s food service market to reach ₹7.7 lakh crore by 2028, growing at a CAGR of 8.1%. However, FSIPL is growing at a much higher rate of 33% CAGR, eyeing a growth of 35% as the sector continues to thrive.
In line with this, FSIPL is targeting a revenue of ₹310 crore in FY25 as compared with ₹240 crore in FY24. From now till 2028, the company plans to increase its production by adding more lines at existing facilities and to set up new lines.
Strategic Expansion
It has decided to increase its premium offerings as people are expected to consume more high-end food in line with their rise in income. “With our expansion plans, we aim to lead India’s food service transformation and help businesses to grow,” he said.
The company’s product portfolio spans six categories: seasonings, spices, gravies and sauces, beverage mixes, sweet goods, and single-ingredient products under the FX label. The FX products include canned fruits, vegetables, pasta, and breadcrumbs, sourced from a network of over 30 factories across India.
Customer Reach
Meeting the unique culinary needs of over 40,000 customers, ranging from leading hotel chains and cloud kitchens to top 300 hospitality brands across India.
Scale by 2028
Aiming to scale from 550 cities to about 3,500 cities and towns by 2028, targeting a milestone revenue of ₹1,000 crore.
Beyond Ingredients
Besides supplying ingredients, the company helps its customers in development of menu, streamlining processes, staff training and backend operations.
“Our main focus will be to continue to expand our product range. The food industry that caters to the institutional segment is growing significantly because of travel, and work from home has stopped. So people are eating out more and ordering more,” Mr Mariwala said.
“There is a massive opportunity now in tier 2, 3 and 4 towns, where the aspirations are growing for people to taste newer foods,” he added.