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Moumita Bakshi Chatterjee

New Delhi, Feb 10

Sodexho Pass International (SPI), France, a group company of Food and Management services organisation, Sodexho Alliance, plans to set up a new 100 per cent subsidiary in India that would purchase the existing business of management of service vouchers from a Group subsidiary, which is currently operating in the country.

The move by the company is aimed at aligning the Indian business with the global strategy of the €13.4-billion Group.

SPI focuses on a broad portfolio of voucher services, including means, food, petrol, training courses, national and local government scheme, bespoke solutions for public bodies and blue-chip private companies, eye care, travel and gift. Sodexho Pass operates in over 27 countries issuing about 1.3 billion vouchers annually to over 3.20 lakh clients.

Sodexho Alliance France, the holding company of SPI, had incorporated a holding company in India — Sodexho India Pvt Ltd (SIPL) — through an FIPB approval in 1996. Subsequently, SIPL incorporated a wholly-owned operating subsidiary in India, Sodexho Pass Services India Pvt Ltd (SPSIPL) following an FIPB nod in February 1997. SPSIPL currently operates two businesses — management of service vouchers, and catering and facilities management.

“It is proposed that the management of service voucher business be undertaken in India by a subsidiary owned by SPI, France.

“Accordingly, SPI France will set up a new 100 per cent subsidiary in India that would purchase the existing business of management of service vouchers from SPSIPL,” sources said, adding that the company has approached the FIPB with its proposal.

Company officials could not be contacted for comments.

Sources pointed out that since Sodexho Alliance, France, a Group entity of SPI was already operating in India through the two companies in the same field, the issue of whether the proposal attracts the provisions of Press Note 1, would need to be examined.

The company has already furnished no-objection certificate for the proposal to establish a new subsidiary.

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