Food Service India Pvt Ltd, a company manufacturing (in-house and through third parties) and selling spices, sharbats, gravies, sauces, and bakery premixes, is planning to raise ₹80-120 crore to fuel its growth, with an IPO target in the next 3-4 years. The company aims to grow its revenue to ₹1,000 crore by 2027-28, driven by product expansion, deeper market penetration, and entry into smaller towns.
Last year, the company achieved a top line of ₹240 crore, with expectations of ₹320-330 crore this year. “We’re about three to four years away from an IPO, with the milestone being ₹1,000 crore in revenue, which would be the right time to consider going public,” said Managing Director Ajay Mariwala, who promoted the company and holds 89% stake in it. Discussions are on with plans to finalise a fundraiser within eight months.
Room for growth
Over the past five years, the company has achieved a CAGR of 45-50 per cent, though in the last three years, it’s been around 30-31 per cent. Mariwala is confident they can push this up to 35 per cent, especially if India’s anticipated economic boom materialises. Growth will be driven by expanding product categories, increasing customer numbers in existing markets, and entering smaller towns. “We’ve focused on tier 1 and 2 cities but have yet to tap smaller towns, leaving massive growth potential,” he added.
The Mumbai-headquartered company’s product portfolio includes six categories: seasonings, spices, gravies and sauces, beverage mixes, sweet goods, and a category called FX, which features single-ingredient products like canned fruits, vegetables, pasta, and breadcrumbs. These FX products are sourced from a network of over 30 factories across India.
“From a drive-through breakfast at an international QSR chain on your way to the airport, to the lounge meal, in-flight service, and even the hotel meal when you check in — we’re there, providing ingredients at every step,” said Mariwala.
Though primarily a B2B company, Food Service India positions itself as a full-service food solutions provider, offering not just products but also expertise through chefs and mixologists who support clients. Mariwala explained, “We don’t just sell pasta; we help clients create seasonal menus, from Italian to American dishes and limited-time offerings (LTOs). Our range covers everything from Indian cuisines like Bengali and Rajasthani to international options like Chinese, Italian, Thai, and soon, Japanese.”
“We’re building a food service business, not just a distribution network, following the model of global food service giants,” he said.
Gravies and seasonings are the company’s flagship products, forming the core of its product line. As a pioneer in the gravy segment, Food Service India has built a strong reputation in both categories. The FX category is also growing rapidly as the company expands its range.
Expansion map
To sustain growth, the company plans to invest ₹12-15 crore annually, excluding potential expansions into frozen or chilled categories, which could increase investment needs.
Its diverse client base includes stand-alone restaurants, chains, star hotels, caterers, and corporate catering businesses. He noted that corporate catering has seen significant growth as more companies, including Amazon, are bringing employees back to office post pandemic.
Mariwala also highlighted India’s outdated tax and policy framework, which still treats processed food, which is key to controlling inflation and ensuring a stable food supply, as a luxury. This has caused inefficiencies in the fresh produce supply chain. While new farm laws aimed to address these issues, political challenges have delayed reforms. Without changes, rising prosperity could drive demand for fresh foods, leading to unmanageable inflation, especially in off-seasons, he warned.