In an announcement Tuesday, UK headquartered firm, Compass Group Plc said it had acquired Indian catering services provider, Tirumala Hospitality Services Private Ltd. However, the exact amount involved in the transaction was not revealed by either party in the investment.
Even so, the acquisition will see Compass Group Plc, a British food services company; acquire all of Tirumala’s shares from its previous owner, Ramkrishna Mankari. Further more, the statement announcing the purchase stated that the Indian firm’s strong presence and its status as one of the foremost firms in the Indian food sector will be crucial in growing Compass operations.
Tirumala has dominated the food service industry in Western India and is an expert in the provision of catering services to the business sector. Even though the financial details of the deal remain undisclosed, Tirumala Hospitality’s gross assets were valued at about Rs 10.52 as at March the 30th this year. In addition, Tirumala’s revenue for the full year ended March 31st was pegged at about Rs 27.16 crore.
Tirumala Hospitality Services a client list inclusive of major firms such as Wipro, LG Electronics, Infosys and General Motors amongst others. Tirumala is based in the state of Pune, India and is mainly supported by the Ramkrishna Mankari family. The UK firm, Compass Group, is focuses its operations on food, vending and related services for its clients.
As at last year 30th September, Compass had reported annual revenues of more than £13 billion. Tirumala was begun in 1997 and is involved in the supply of food management services as well as the provision of on the job employee training for food production, service and housekeeping. Compass, listed on the London Stock Exchange, is a leading food services player with a net income of $926 million as at 2009.
Compass Group is also the world’s leading foodservice company. The firm specialises in providing food, vending and related services on its clients’ premises and generated annual revenues of over £13 billion in the year to 30 September 2009. The company operates across sectors such as Business & Industry, Defence, Offshore & Remote Site, Healthcare, Education, Sports & Leisure and Vending with an established brand portfolio. Compass Group said in the statement that it was delighted to have acquired the Indian firm as it seeks to further its operations in India and globally. Given Tirumala Hospitality’s strong presence in the region, the UK firm hopes to be able to capitalize on the foothold to bolster its business.