Taj SATS, IHCL’s flight kitchen, is eyeing a ₹1,000 crore revenue in the next fiscal (FY25), amid growing number of airports.
According to Puneet Chhatwal, Managing Director and Chief Executive Officer of The Indian Hotels Company Limited (IHCL), Taj SATS, the airline’s catering arm, is projecting a revenue milestone of ₹1,000 crore in the upcoming fiscal.
“Taj SATS has continued its record performance with industry-leading revenues, industry-leading margins, and market share in the segment, and is well-poised to cross ₹1,000 crore in revenue in the next financial year,” he said.
IHCL reported an 18 per cent Y-o-Y growth in consolidated net profit for Q3 FY24, with Taj SATS contributing significantly, around ₹233 crore in revenue for the quarter – a remarkable 34 per cent growth compared to the same period last year. Impressively, the year-to-date figures for FY 2024 already stand at ₹650 crore.
Giridhar Sanjeevi, IHCL’s CFO, detailed the key factors influencing Taj Sats’ success, noting the lucrative non-institutional catering avenue, particularly with brands like Starbucks.
He stated, “Taj SATS has been evolving very strongly, number one is the efforts that we have taken within Taj SATS itself in terms of what do you say, the growth opportunities are significant.”
Sanjeevi emphasized the strategic approach of Taj Sats in remodeling and re-engineering capacities, avoiding substantial capital investments. “Delhi as an example capacities have gone up three times with practically nil, CAPEX actually. So, it’s a very efficiently managing this business, and longer-term opportunities are very significant,” he remarked.
Highlighting long-term prospects, Sanjeevi pointed to the expected doubling of airports from 75 to 150. He also noted Taj SATS’ favorable market position due to the current muted supply of planes to India, stating, “Taj SATS is on very strong foot at this point of time.”
The company said that Taj Sats’ financial prowess and strategic positioning within the aviation catering landscape, as well as its emphasis on efficient growth, position it favorably for surpassing the ₹1,000 crore revenue mark in the upcoming financial year. It added that the company’s operational efficiency is part of its aims as well.