UK-based $21-billion food services major Compass Group plc has re-entered India with the acquisition of Pune-based Tirumala Hospitality Services Private Limited. Tirumala, a strong player in catering services in the Western Indian markets with clients like Infosys and Wipro, had revenues of Rs 27.16 crore for FY10.
The shares were acquired from Ramkrishna Mankari and his family, who are the promoters of the firm. Tirumala had gross assets of Rs 10.52 crore as on 31 March 2010, said Compass in a release without disclosing the deal size.
Compass, which is listed on the London Stock Exchange, is a leading food services player with a net income of $926 million in 2009. The firm earlier had a presence in India through a joint venture with Radhakrishna Hospitality Services Group, which Compass got through its acquisition of Accor group unit Eurest in mid-90s. This JV ended in 2008 with Radhakrishna buying Compass' stake as the latter wanted control in the company.
Radhakrishna Hospitality was then later acquired by French food services giant Sodexo for $100 million in March 2009.
Tirumala was set up in 1997 and started its services with a single contract at Kolhapur-based Shivaji University. Its current clients include LG Electronics India, SKF Bearings, National Panasonic, Kinetic Engineering.