Franchising in India

1
Franchising in India

• C Y Pal
• President, Franchising Association of India

2
INDIA THE LAND OF OPPORTUNITY FOR FRANCHISING

• VIBRANT ECONOMY
• GDP GROWTH RATE OF OVER 8 OVER LAST THREE YEARS
• AIMING FOR A FURTHER RISE IN GDP
• CONTINUING PROCESS OF SUSTAINABLE REFORMS TO
  LIBERALIZE ECONOMY
• CHANGING INDIAN LIFESTYLE
• LARGE INCREASING CONSUMER BASE WITH DISPOSABLE
  INCOME.
• RAPIDLY INCREASING INDIAN MIDDLE CLASS SEGMENT
  (ASPIRING INDIA) WITH GOOD PER CAPITA INCOME
  PURCHASING POWER
• RAPIDLY INCREASING DEMAND FOR BRANDED IMPORTED
  PRODUCTS SERVICES
• REDUCTION IN INTEREST RATES BY BANKS
• IMPLICATION OF VAT (VALUE ADDED TAXATION)

3
INDIA THE LAND OF OPPORTUNITY FOR FRANCHISING

• 3. RECENT POSITIVE FACTORS
• RAPIDLY GROWING ORGANIZED RETAIL
• 51 FDI IN SINGLE BRAND RETAIL
• LARGE CONSUMER BASE

4
Franchising in India

• While Franchising has been growing rapidly over
  the last 4-5 years , it is now at a take off
  stage. Currently Franchising accounts for just
  over 4 of the countrys gross domestic product,
  Franchising is a sector that is waiting to
  happen.
• Industries such as clothing, footwear, computer
  education, FB, healthcare, entertainment,
  beauty, fashion fitness, distribution,
  automotive and many more have already found their
  presence in the Indian Franchise arena
• Currently there are more than 750 Franchise
  system operating in India, which includes both
  national International Franchisors.
• There are over 50,000 franchisees (across
  sectors) in India today.
• The Franchise industry has been growing at a
  rapid pace of arount 30-35 during the last 4-5
  years.

5
Industry Classification of Franchisees in India
6
Number of Franchisee Outlets per Franchise system
7
Annual Turnover from Franchising
8
Some of the major International brands present in
India

• McDonalds
• Pizza Hut
• Dominos
• Dixy Chicken
• Mango
• Baskin Robbins
• KFC
• The UPS Store
• Subway
• Mark Pi
• Marks Spencer's
• Nike

• MarryBrown Chicken
• Hughes Communciation
• Hertz Rent a car
• Holiday In
• Medicine Shoppe
• Golds Gym
• Kodak
• Adidas
• Levis
• Lee
• Arrow
• United Colors of Benetton

and many more
9
Activities of Franchising Association of India to
promote Franchising in India

• ANNUAL EXHIBITIONS
• India International Franchise Expo, World Trade
  Centre, Mumbai (28 30 September 2005)
• World of Franchising, Pragati Maidaan New Delhi
• (22 24 March 2005)
• SEMINARS AND PANEL DISCUSSIONS
• Regular seminars with trade bodies like IMC, CII,
  FICCI
• Recently completed an evening on Franchising on
  7th Feb 2005 at Hotel Ambassador, Mumbai
• The National Franchise workshop was held on 4th
  February 2006 at Taj Residency, Hyderabad.
• A series of Road shows planned to support the big
  event planned as of now in January 2007
• PUBLICATIONS
• Franchising Focus, FAI newsletter
• Franchise Plus, FAI supported magazine

10
FAI REGIONAL COUNCILS
NATIONAL COUNCIL PRESIDENT MR. C Y PAL
SOUTHERN REGION COUNCIL PRESIDENT MR. RATAN JALAN
WESTERN REGION COUNCIL PRESIDENT MR. PRAMOD KHERA
NORTHERN REGION COUNCIL PRESIDENT MR. ALOK MODI
11
NATIONAL EXECUTIVE COUNCIL

• C. Y. Pal, President. (Chairman, Cadbury India
  Ltd.)
• Pramod Khera,  (CEO, Aptech Ltd.)
• Ratan Jalan,  (CEO, Apollo Health Lifestyle
  Ltd.)
• Arun Khetan (CEO, Zee Interactive Learning
  Systems)
• Anil Chopra (Executive Director,Lakme Beauty
  Services_
• Dheeraj Gupta, (MD, Jumbo King Vada Pav)
• R. S. Mani,  (MD, Kodak India Ltd.)
• Vaibhav Parikh,  (Partner, Nishith Desai
  Associates)
• Ashis Nain,  (Mg. Director, Expressit Logestics
  Worldwide Ltd.)
• Sanjeev Agarwal (MD, Fairfest Media Ltd.)
• Zoher H. Khorakiwala,  (CMD, Monginis Foods Ltd.)
• Ashok Jain,  (MD, Oxygen Healthcare
  Communications)
• M. K. Sanghi,  (CMD, Vitesse Ltd)
• Ashok Wadhwa,  (MD, Ambit Corporate Finance
  Pte.Ltd)
• Jagdeep Kapoor,  (CMD, Samsika Marketing
  Consultants Pvt.Ltd.)
• Alok Modi,  (Regional Owner, Uniglobe South Asia
  Travel Pvt Ltd.)
• M.D.Turakhia,  (Proprietor, P.M.Turakhia
  Co.Chartered Accountants)
• Amit Jatia,  (MD, Hard Castle Restaurants
  Pvt.Ltd.)
• S. Nagarajan,  (Country Manager, Walt Disney
  Consumer Products)

12
Contact Information

• C Y Pal
• FRANCHISING ASSOCIATION OF INDIA
• 54 A, ELITE AUTO HOUSE,
• SIR M. VASANJI ROAD,
• CHAKALA. ANDHERI (E),
• MUMBAI 400 093
• Tel/Fax [phone]
• Email cypal_at_fai.co.in

13

• THANK YOU