With IT slowing down, catering sees lean days

VV Balakrishna
First Published : 20 Feb 2009 07:37:00 AM IST
Last Updated : 20 Feb 2009 12:00:20 PM IST
V.Nagaraju was one of the worst sufferers of IT industry’s slowdown. He used to supply lunch to 700 to 1,000 IT employees every day in the city. After the austerity measures in the IT companies, his catering business too was pushed into losses. Now, Nagaraju is selling fruits on the pavements in Madhapur and Film Nagar areas.
Nagaraju (Nathaniel) hails from Kaikalur in Krishna district. He ran a mess on the Eluru Road there. Four years ago he had migrated to Hyderabad and started supplying lunch to employees of Wipro, iLabs, Satyam and other IT giants.
His business flourished with the boom in IT industry. ``I used to earn Rs 10,000 to 12,000 a day,’’ Nagaraju recalls.
Since the downtrend in the IT industry started, Nagaraju too started incurring heavy losses in his business. ``I suffered huge losses for four successive months,’’ he said.
He attributes the decline in his business to the pruning of staff and a 20 percent cut in the salaries by IT companies.
Nagaraju used to supply food for three shifts. A busy bee once, he now awaits anxiously for customers to buy fruits from him.
With the cut in salaries and increase in the working hours from eight to 12 hours, around 50,000 employees in various IT companies migrated to other cities and countries in search of greener pastures, Nagaraju says. "The catering business has lost its flavour.
Just a few employees are now opting for food available outside, that too only once in a day. Earlier, they used to take food outside three times a day. Some employees have started carrying their own lunch-boxes with them.’’.
After suffering heavy losses for four months, Nagaraju thought of shifting to other business. "I sold all my utensils at half the price. I have lost around Rs 1.5 lakh in four months,’’ the once succesful man bemoans.
``I know of at least 12 caterers who changed their line of business.
Some caterers who suffered heavy losses are now selling mirchi bajjis on road margins,’’ he notes.
"I migrated to Hyderabad on account of my mess in Kaikalur not doing well due to the slump in aquaculture.
Now, the IT slowdown has hit my business,’’ he says.
Not wanting to return to his native place as afailed businessman, Nagaraju is determined to stay on in Hyderabad and revive his fortunes. He is now selling fruits in the streets of Madhapur, Jubilee Hills and Film Nagar in a Maruti van. Of the two vans he had, Nagaraju has sold away one out of need. As for his family, they are learnng to live within their means.