Sodexo Sees Growth In India As Corporate Investments Surge

French food services and facilities management company Sodexo is witnessing significant growth in India, driven by corporate investments across key sectors, according to Johnpaul Dimech, Zone President for Asia Pacific, Middle East, Africa, Brazil, and Latin America.

Speaking during his visit to India last week, Dimech highlighted that investments in manufacturing, education, healthcare, technology, and Global Capability Centres (GCCs) are creating new opportunities for the company.

“Investments are also coming into electronics, pharmaceuticals, automobiles, aviation, semiconductors – we service these sectors. That is really helping us – we see that as fuelling our opportunity,” he told ET.

Growing Presence Of Sodexo In India

Sodexo’s India operations, which provide on-site dining and facility management for companies like Adobe, SAP, Airbus, Adani Group, and Reliance Industries, have now emerged as a top-five growth market in the Asia-Pacific and Middle East regions.

The company serves over 350 organizations across the country.

According to a Nasscom-Zinnov report, the number of GCCs in India reached 1,700 in FY24, generating $64.6 billion in export revenue and employing over 1.9 million professionals.

The report added, “By 2030, the GCC market in India could grow to $99-105 billion, with the number of centres reaching 2,200.”

Dimech emphasized that Sodexo is scaling up its focus in India to meet the rising demand for organized service solutions.

The company, which entered India in 1997 as a meal voucher provider, later expanded into food services and facility management in the early 2000s.

Post-Pandemic Shifts Fueling Growth

Dimech noted that growth has also been driven by a significant shift in expanding markets like India following the Covid-19 pandemic.

He explained, “How do corporations bring people back to the office – that’s a key question. Companies which invested heavily in real estate for workplaces need to optimise those workplaces and bring teams back to offices, not just to fill the asset or make the place look busy, but for social connections.”

“We’re finding that food and experiences that come with it are a key driver being used by corporations to attract employees,” Dimech asserted.

In response to the Covid-19 outbreak in early 2020, companies adopted work-from-home models as contingency measures. Since then, many large firms have continued with hybrid work arrangements.

While remote and hybrid work models remain prevalent, India’s food services and catering industry continues to expand.

The sector, valued at Rs 70,000 crore, still has a significant unorganized segment, leaving room for structured players like Sodexo, Compass India Food Services, and K Hospitality to grow.

A report by the National Restaurant Association of India (NRAI) projects that the Indian food services market will grow at an 8.1% compound annual growth rate between 2024 and 2028.

The sector, valued at Rs 5.69 lakh crore in FY24, will likely reach Rs 7.76 lakh crore by FY28.

Sodexo’s expansion in India aligns with these market trends, positioning it to capitalize on the evolving corporate and food services landscape.

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