SATS announced, on July 26, that it will be establishing its first central kitchen in India for $37 million.
This is SATS’s first major investment in the country, which will see SATS establishing a wholly-owned subsidiary, says the airport services provider.
The 14,000 sqm central kitchen marks a key milestone in the group’s expansion of its network of kitchens to supply to its growing customer base across the region.
The new kitchen is expected to produce up to 170,000 ready-to-eat meals per day.
It is expected to be operational in 2022.
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The central kitchen will be located at Kempegowda International Airport, Bengaluru, where SATS has already signed a deal for a 27,000 sqm plot with Bengaluru Airport City Limited (BACL).
BACL is a wholly-owned subsidiary of Bangalore International Airport Limited (BIAL).
Two of SATS’s associate companies already operate at BACL – TajSATS, an aviation food solutions provider and ground handler AISATS.
The company intends to train 300 staff at the production facility.
“We are delighted to partner with SATS as we embark on this exciting chapter of our business. BACL celebrates a culture of innovation and we are confident that this partnership will bring about positive change in the region. SATS' state-of-the-art food technology facility has the potential to create significant employment and training opportunities, as well as enhance Bengaluru's reputation as a knowledge-based economy,” says Rao Munukutla, CEO of BACL.
“Our Bengaluru central kitchen will enable SATS to cater to changing consumer palates by anticipating exciting food trends, while building on decades of culinary expertise in authentic Indian cuisines that can be scaled and exported across our network”, says Sagar Dighe, CEO, SATS Food Solutions India Private Limited.
“This investment is a good fit with SATS’ purpose to feed and connect communities and India’s push to foster innovation and skills development,” he adds.
Shares in SATS closed 7 cents higher or 1.8% up at $3.94 on July 26.
Photo: SATS
