agencyfaqs! News Bureau
NEW DELHI, October 29
Sodexho of France, one of the largest contract food services group, is set to reorganise its Indian operations. The restructuring follows an internal review of the Indian operations by the French parent.
Following the restructuring exercise, the holding company for all Sodexho's operations in the country - Sodexho India - will be reduced to a shell company. The French company also plans to take control of all shares in Sodexho Pass Services from the Indian holding company and carry them out through a subsidiary Sodexho Pass Services India. Another operational subsidiary, Sodexho Management Services will also be reduced to a shell company after the restructuring.
In addition to providing services in management service vouchers, Sodexho Pass Services will also be engaged in management services for business, industry, schools, colleges, hospitals, and other educational and social institutions as well as remotely located sites such as oil rigs, mines and power plants. In the earlier arrangement, these services were being carried out by the 100 per cent holding company and Sodexho Management Services.
Sodexho kicked off its operations in India some three years back. Sodexho India was given clearance to be incorporated as a 100 per cent subsidiary with permission to invest up to $6 million for providing services in management voucher services. The Foreign Investment Promotion Bureau approval was granted in February 1997 with a rider that the company divest 26 per cent stake in favour of Indian public or promoter.
In India, the food coupon service of Sodexho has found few takers in these three years. However, the food coupon business is estimated to be worth $6 billion worldwide. The concept relies on four different agencies working in a voucher cycle. Coupons are issued to subscribing companies, which distributes them among its employees. The employees, in turn, pay the affiliated restaurants, which already have a tie-up with the food coupon distributing company, for their meals against these coupons.
© 2000 agencyfaqs!