Tata Jagriti Yatra Day 1

Day 1 at TJY

I have never been so excited as much as I have been for this trip, I have awaited TJY since almost over a month, since I was shortlisted. We were called at 8 am at Ravindra Natya Mandir, staying in Mumbai, gave me a little comfort. I reached about at 9 am, met over 400 vibrant young men,We exchanged ideas. We had breakfast, got done with the formalities and it was lunch time. Then finally we were inducted into the process and institution. TJY is an initiative of Jagriti Sewa Sansthan, a non-profit instituted by Mr. Shashank Mani. I went through the notes and the handbook, a part of the Yatri Kit.

And the excitement just kept growing. Post lunch, Ms. Rewati Prabhu and Mr. Shashank Mani presented about how it all began and introduced the 3^rd edition of TJY. The mammoth TJY event is organized by a skeleton team of about 8.

We practiced the Jagriti Geet. More on that a little later.

Recalling, when I met an enterprising young man at an entrepreneurship summit in New Delhi, explaining me more about this event, I could never imagine, that this is how exciting it is going to be. This was the TIE Entrepreneurship Summit way back in October 2007, when Swapnil introduced me to TJY.

I feel that Franchising in 2010 will be a lot more inclusive, just thanks to social franchising and its outlook.

During the networking break, I met with a lot of people, explaining what is franchising, what is our business model and so on. By the end of the day, I had already learned how-to-simplify-it. It just helps you get your ideas clearer.

I was just regretting all the people that could not join me for the trip, namely my friends and colleagues. TJY is a great event, the audience mix is more of students (potential entrepreneurs) than actual entrepreneurs, between the age of 20 and 25. I met a lot of engineers during these days.

Read More

The year 2009: Learnings as an Entrepreneur

2009 has been a great year for me and Way2Franchise.com, we went through a ride, a very exciting one, just like the Revenge of The Mummy Ride, I experienced at Universal Studios Park at LA. Thrilling, Exciting and exasperating, little do you realise that it would get over in the flashes of flashes. The roller coaster analogy can be better applied of what we went through in earlier in 2009, one morning we wake up and we feel our idea can change the world, the next day, we feel doomed. 

Some of the brief learnings, just penning it down: 

If you say what you mean and mean what you say, you are probably in the 10% of all people. This is what your clients would appreciate. A candid approach did get a lot of people excited and encouraged them to contribute thoughts and idea. Honesty pays and pays in leaps and bounds

Make an offer, that they cant refuse:  Our online business is all about sales, in fact for most businesses it would be the driving force or the life blood. It is difficult when you are a startup to get new customers interested. We tried out a free 50 Franchisee leads offer. Franchisors are always looking for qualified leads, clients pay as much as Rs. 1000 for every  qualified lead, here is it that you get a value of Rs. 5000. 

Small is still Beautiful is more than a book: We started off with over 18 competitors in our business and each one of them had an average team of 35. Can Small be beautiful, absolutely? Team size has nothing to do with success. A team of 4, thinking unanimously of enhancing the entrepreneur experience can mean a lot than a team much bigger, with deep pockets trying to do everything for everybody. 

Thoughts do become reality: The power of Secret comes alive, when you simply believe it. We believed we can offer a better solution, today, Thank Goodness, Way2Franchise.com and FranchiseExpo.in have catapulted to #2 Position. All of the hard work does pay off. In the past, during my previous stint with Franchising Association of India, I took up ownership and took an active interest, a lot of times, people advised me, is that really your company, but I kept going and now I realise that some of my smallest learnings are paying rich dividends. confirming that no effort ever gets wasted. 

Read More

Ducati Franchise to expand in major Indian metros in five years

New Delhi: Mirko Bordiga, chief executive officer of Ducati Asia Pacific, is no stranger to the luxury auto business. He’s spent almost all his career selling Ducati bikes and Ferrari and Maserati cars.

Riding on hope: Ducati expects it will sell 150 bikes in India in 2010.. Ramesh Pathania/Mint

As one of the first entrants into the Indian luxury bike market, Ducati has gone about building its brand and presence in a slow and steady manner. The bikes, which will retail with a price tag of Rs10-45 lakh, are currently sold from two showrooms—one each in Mumbai and Gurgaon. Now Bordia, 41, plans to up the ante and expand rapidly in order to maintain an edge in a market that has seen a slew of launches in the past few months. Edited excerpts from an interview:

 

Global luxury bike makers have become more aggressive in the Indian market of late. Harley-Davidson announced its entry a few months ago. Are you also getting more aggressive as a result of this?

To be honest, it’s the others who became more aggressive because of our actions. We entered India in 2008 and we’ve been searching for the best way to grow the brand in India. We’ve been making sure we took the right steps in the beginning. So, we found a very good location in Mumbai and now this location in Gurgaon and we’re very positive about the future. You see things are moving very fast in India in our sector.

Ducati is going through the franchise route through Precision Motors India Pvt. Ltd as your sole importer. Other bike makers have set up wholly owned subsidiaries. Why have you chosen this model and what are its advantages?

The Indian market is not an easy market and our company is used to operating with partners outside of the major markets. At the moment, we have subsidiaries in Europe, USA and Japan, but each one of these markets is over 2,000 units (a year). India has a huge potential but we still need to make the right steps first. In a market like this you need a local partner who knows what they’re doing.

Ducati sold about 20 bikes in calendar 2008. What are your targets in 2010?

We forecast a (sale of) 150 bikes.

What are your plans for expanding your presence in India?

We do have a plan to be present in all metros—Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata.

In the past you’ve sold luxury cars as well, such as Ferrari and Maserati in China. How is the Indian luxury car or bike customer different from a Chinese customer?

Indians are showing a much bigger interest and much bigger (car and biking) culture than the Chinese. India has been a producer of big bikes like the Royal Enfield. So, in your mind, the concept is not as strange.

But the Chinese market is much larger than the Indian market at present.

No. In our plans, India will be ahead of China for a while because it is easier to sell in India than in China due to regulations. In many cities in China, you cannot register motorcycles that have an engine capacity of more than 250cc. Now, they’ve opened up registrations in Beijing and Shanghai, but there is a lot of work to do not only in terms of brand building but creation of motorcycle culture.

How does the Indian market compare with other global markets?

It is totally different. Big motorcycle markets in the West have been around for many decades. In India, we’ve just started a few years ago in the late 1990s. So, in terms of evolution, those are mature markets. We know what to expect. India, we know, has a big potential, but is very unexplored. But we know that if we do the right things in terms of customer service, brand positioning, after-sales, we think we can cut out a significant share for our products.

Where do you see the Indian market in five years?

Good question. It’s very difficult to say, to be honest. I think in five years, if the pace of change goes on like this, India can be a major market in my area of operations.

What are your favourite bikes to ride?

My favourite bikes are always the future models. I think among the new bikes the Hypermotard 796 will be a hit. I like it a lot. At the moment, I am riding a Monster 696 in Italy. In China, I don’t have a bike as yet.

Your favourite luxury car?

Very difficult question. The Ferrari 458 is very beautiful. They’ve done a great job in designing it.

Read More

SA's News Cafe makes India foray, to invest Rs 100 cr (USD 20 Million)


New Delhi, Dec 20: South African premium cocktail- bar chain News Cafe plans to invest up to Rs 100 crore over the next five years to expand operations in India.
The company, which ventured into India last week under a franchise agreement with Hyderabad-based, Numbers Only Hospitality, said it plans to open 20 outlets across India in the next five years.


Read More

Some Do’s & don’t for Potential Franchisees
Geetanjali Mehlwal, Franchising Professional, Way2Franchise.com

There wasn't much happening in the form of franchising, in India, till about the mid 1990s; barring a few exceptions here and there. Post liberalisation, and in particular, towards the present decade, the concept of franchising has expanded exponentially and is growing at a healthy growth rate of about 30-40%. Franchising, today, encompasses many diversified areas, from retailing, childcare, garments, food, and education amongst others. The list is growing manifold, thanks to the spectacular economic growth of the country, the availability of liquid cash, and the ever increasing ready to indulge middle class.
As a business, franchising may seem like an easier model to adopt, but it is a serious trade decision, and before entering into this business, there are certain Do’s and Don’ts that a potential Franchisee may take into consideration.

Dos:

• Do select a business that interests you and to which you can passionately devote yourself.

• Do self appraisal, whether you have what it takes to slog 24x7, by committing your money and energy.

• Do research suitability of your selected business to the region you are planning to set up business in.

• Do plan your financial requirements, with great thoroughness, to undertake and run your selected business, and means available to fund these requirements. You may consider hiring professionals to advise you to plan it in great details.

• Do a thorough research on your selected Franchisor. It is advisable and highly desirable to select well established, financial sound, quality managed and reputed Franchisor. It may seem initially more expensive but in the long run would prove reasonable and tension free. Go travel and interact with other Franchises having business of same Franchisor. Talk to them, clear your doubts.
Read More

India Franchise Portal Rankings

 

Rankings	Traffic  Estimate as per TrafficEstimate.com (Higher the Better)	Google Page Rank Checker(Higher the Better)
1.       FranchiseIndia.com	257,900	5
2.       FranchiseExpo.in + Way2Franchise.com	93,400	4 and 2 Resectively
3.      FranchiseMart.in	88,100	0
4.       FranchiseBusiness.in	81,900	4
5.       Franchise-Plus.com	36,800	4
6.       FAI.co.in	35,000	5
7.       FranchiseIndia.org	NA	4

Source:

Traffic Estimate based on: www.TrafficEstimate.com as on 17th December 2009

Google Page Rank: http://www.prchecker.info/check_page_rank.php as of 17th December 2009

The Indian Footwear Retail Market

Bindu D. Menon

Shoe retail is in the process of taking a giant leap with the industry not only becoming more organised but also attracting a larger number of players into its fold. Touted as the next big impulse purchase after apparel, footwear retailing is sprouting ‘green shoots' in India. Manufacturers who had till recently been concentrating on the export markets are now looking inwards. Eyeing the sizeable mall-hopping consuming class, manufacturers are turning retailers, either going ahead on their own or forging alliances with international partners. Interestingly, the needs of the domestic market still continue to be catered to by the unorganised segment.

“The recession has been a great teacher. The US and the European Union, which were our primary markets, crashed following the economic downturn. Order books too remained grim until we decided to sell our European designs in the Indian market. This gave us the confidence that we could replicate our overseas success here where there is a huge chunk of buyers looking for the right products,” says a Delhi-based exporter.

Like all aspects of retailing that is accepted by consumers, players in the organised sector are pooling their resources and pumping in investments to cater to the next generation of clients. Of late, this has catalysed a slew of joint ventures and seen retail presence ramp up, and resulted in the scaling up of capacities and design enhancements.

Consider some of the joint ventures that have taken shape during the past 12 months. The UK-based Pavers has inked an agreement with Chennai-based exporter Foresight Group to introduce European fashion footwear brand Staccato in India. The Timberland Company, a major manufacturer of outdoor footwear and apparel, has entered into an exclusive partnership with Reliance Brands Ltd, a part of Reliance Industries, for distribution. The Kishore Biyani-led Future Group and the UK shoe retailer, Clarks, have agreed to form a joint venture to build a strong brand. Similarly, Winner Sports, a wholly-owned subsidiary of the Kishore Biyani-promoted Pantaloon Retail, has tied up with US-based lifestyle footwear and apparel maker Skechers to licence and distribute its products in India. “With its rapidly-growing fashion and retail sectors, we believe India will become a key market for us,” Timberland President and CEO Jeff Swartz says in an e-mailed statement.

So besides a large captive consumer base, what do footwear retailers see in the domestic market? According to a retail expert, India ranks second among the footwear-producing countries, next to China. The industry is labour-intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large-scale units, sandals and chappals are produced in the household and cottage sector. India produces more men's footwear while the world's major production is in ladies footwear. In the case of chappals and sandals, the use of non-leather material is prevalent in the domestic market.Therefore, the joint venture partners can use India not just as a selling point but also as an economical sourcing hub.

In fact, a number of areas in and around Chennai, Kanpur, Ranipet, Jalandhar, Agra and even Delhi cater to big global footwear makers who source from India. Owing to the non-compete clause and barriers to design reproduction imposed by these brands, local companies could not sell here for fear of losing a dollar remittance, the expert says. However, with several large retailers forging alliances, manufacturers can now look forward to catering to the domestic market too.

Eyeing aspirational customers

The Rs 1,500-crore domestic footwear market is targeting aspirational customers. While international brands largely dominate the higher end of the spectrum, the lower end of the market is dominated by homegrown players as well as unorganised players. While men's footwear is the biggest target category, children's and women's lifestyle footwear is not behind in the race. Last year, the iconic brand Crocs launched in India. The brand retails itself through a chain of footwear retailers such as Metro and through company-owned outlets.

Future Group's joint venture with Clarks is looking to build a strong brand for the market. Clarks, a British, family-owned footwear business, has expanded from the UK market and is today a global brand for men, women and children. The group turnover reached £1.1 billion in the year.

Clarks is well established around the world with 48 per cent of its turnover coming from international business. Originally developed as a wholesale business, the company is quickly expanding the number of Clark's stores around the world, mainly with franchise partners.

“India is a top strategic market for us. We have done a great deal of research on the complex Indian market and have invested substantially in it with the aim to develop it as a sourcing hub for our global business. This is an ideal partnership as it combines the Clarks brand and product development capability with Future Group's retail expertise, infrastructure and knowledge of India. I'm sure this bond will help serve the needs of both the Indian market and the brand's global requirements,” Andrew Martland, Head of International Business Development, Clarks, said after inking the joint venture with Winner Sports, the specialist footwear/ sports division of Future Group. Winner Sports already runs the multi-brand sports speciality chain, Planet Sports, and is the exclusive India licensee-cum-distributor for retailing and marketing international brands such as Converse, Speedo, Wilson and Skechers.

While the two companies are mum on investments, Rakesh Biyani, CEO – Retail, Future Group said, “We are focusing on research right now to evolve and suit changing Indian tastes. We are confident this collaboration will meet the growing needs of Indian customers as Clarks has years of experience in shoe manufacturing and retailing, while we have an in-depth understanding of Indian consumers.”

Read More

Ultimate Motors announces foray into India through Franchise partnership with 'The National Garage'

Ultimate Motors, one of the leading distributors of exotic and luxury sports cars in the GCC, has announced its foray into the Indian car market through a partnership with 'The National Garage' at the sidelines of the 'Dubai International Motor Show 2009', which opened on December 16, 2009. The move is in line with the distributor's aims to penetrate the potential-laden market, which is growing at the rate of 25 per cent per year according to latest research, as a more luxury car brands enter the country to leverage the increase in demand from the affluent population.

The acceleration in India's luxury car market is being driven by the shift in attitude, which is now focused on design, high-quality and ultimate performance, especially with the rise in the number of millionaires and high net worth individuals in India. In addition, the regional coverage of glamorous car rallies, exhibitions, Formula 1 and international motor shows in the country has stirred the country's passion for supercars that offer high-performance and control matched with extreme comfort.

Furthermore, the Indian Government's initiatives to lower interest rates and build better infrastructure, particularly good roads, are also positively affecting the demand for ultra-exclusive supercars in India.

"Given its rapidly growing economy and the increasing capacity of high net worth individuals to afford luxury supercars, we have identified India as an ideal market for these new automotive wonders from SSC, Zenvo Automotive and Arash Motor Company. We are also seeing encouraging support from the Indian Government, which fosters the growth of the luxury car market, such as policies on relaxation of equity regulations and the reduction of import tariffs on automobiles," said Nasser Al Hai, President, Ultimate Motors. "We have partnered with The National Garage in this expansion initiative to India, and by leveraging their presence in the local market, we are confident that this alliance will enable us to reach the most discerning car enthusiasts and buyers based in India."

Through this partnership, Ultimate Motors will introduce three new brands to the Indian market, including the world's fastest production car - the '2010 Ultimate Aero' by Shelby SuperCars (SSC), and two other supercars - the 'Arash AF-10' and the 'Zenvo ST1', which have all been tested to meet the ground clearance durability and fuel standards in the country. With a top speed of 439 km/h, the '2010 Ultimate Aero' sets the benchmark for supercars today producing 1,287 horsepower. Ultimate Motors will also bring to India the limited edition 'Arash AF-10', with only an estimated 25 cars to be manufactured per year; and ultra exclusive 'Zenvo ST1' - only 15 of which is expected to be produced for global distribution. 

Read More

Au Bon Pain, Bakery Franchise expands to India, opens flagship cafe in Bangalore

The retail business of RPG group, which runs supermarkets under the Spencer brand, on Thursday, launched its first flagship cafe in Bangalore on M G Road. The cafe was launched in a franchise arrangement with Au Bon Pain, Boston-based bakery cafe chain which has more than 250 outlets in the USA, South Korea, Taiwan and Thailand.

Au Bon Pain comes to India through an exclusive joint venture between Spencer’s Retail Limited and Varin Narula, a Director & Promoter of Au Bon Pain, Thailand. The cafe will serve a range and assortment of breakfast and lunch items such as sandwiches, harvest rice bowls, soups, salads, bread & bakery items, confectionaries, and hot and cold beverages.

Briefing reporters, RPG Retail’s President & Chief Executive Sumantra Banerjee said “Keeping in mind the cultural and local taste and preferences, the menu in India will include whole range of vegetarian dishes.” Keeping in mind Au Bon Pain’s focus on distinctive & nutritional foods, the cafe will not serve any fried food, Banerjee said.

Read More

State govts offer wellness infrastructure to Birla Kerala Baidyashala Franchise

CHENNAI: State governments like Rajasthan, Maharashtra and Madhya Pradesh are wooing Birla Kerala Vaidyashala (BKV), a joint venture promoted by the Rs 3,000-crore Yash Birla group and Kerala Vaidyashala, to set up ayurvedic spas and wellness-related ventures in their states. 

BKV seeks to use the infrastructure support provided by the states to push its ayurvedic venture, through various formats, including franchising route, tying up with hospitals and hotelchains. It has tie-ups with Apollo Hospitals in two of its hospitals. Though it is yet to formalise any pact with a state government, Jaipur, Jodhpur, Jaisalmer and Kota are the key locations, where it is intending to firm up its footprints initially, BKV MD Harshajeet Kuroop told reporters here on Thursday. 

All these state governments are willing to allot an area of five to eight acres for BKV to establish ayurvedic spas. On the overseas front, BKV plans to set up shops in Colombo, Malaysia, Singapore and Australia before March. It is targeting a turnover of around Rs 80 crore in two years. BKV is also scouting for acquisitions and is close to signing up a deal soon. 

Read More

India Infoline to double number of franchisees: Nirmal Jain

Financial services firm India Infoline today said it plans to begin mutual funds operations in the first quarter of the next fiscal, after securing final approval from capital market regulator, SEBI. "We have received the in-principle approval from Sebi (to set up the asset management company). The final approval is expected in the next 2-3 months," IIFL Chairman Nirmal Jain told reporters here.

IIFL plans to start AMC operations on its own but may look at the option of partnering with any existing player in the future, Jain said. At present, IIFL has operations in equity and derivative brokerage and investment management amongst others. The company is operating from 1,500 locations. It plans to increase the current branch strength, around 500 by 25-30 per cent over the next one year, while the number of franchise now at 1,000, will be doubled during the period.

Commenting on its mortgage business, Jain said the company has grown its mortgage business to a loan-book size of Rs 600 crore. "We now have a loan-book of Rs 600 crore. We are currently offering the loan products from 20 centres, which would be scaled to 40 over the next 3-4 months," Jain said. India Infoline has also received approval from the National Housing Bank to start a housing finance company, and expects to commence operations in the near future. Moving ahead, IIFL also plans to scale up its operations in Singapore and has applied for a 'securities licence' in the UK, Jain said.

Read More

Interview, Adesh Gupta: Liberty Shoes plans to add 50 retail stores in FY11

In an exclusive interview with CNBC-TV18, Adesh Gupta, Chief Executive Officer, Liberty Shoes, speaks about the company and his outlook going forward.

Here is a verbatim transcript of an exclusive interview with Adesh Gupta on CNBC-TV18.

Q:I believe that you are investing quite a bit in retail distribution channels in India – can you take us through how much money is being invested and specifically for what?

A: We have very strong clients for retail side. We have company owned and company managed stores, which are about 75 in numbers as of now. The plan for the next financial year is to add about 50 more stores and this will take up the figure to 125. Then we also have franchise stores about 450 in numbers, which we also plan to take along with a growth of 20-25% to a level of 550. So this means we will put a strong effort and also put finances in the retail side so that our brand gets noticed in the domestic domain.

Q: Are you fully capitalized or you need to raise more capital for this plan?

A: We would be needing capital as working capital requirement or also maybe little bit of capex. We are looking towards almost Rs-50 crore for the next financial year to support the growth plans we have in retail.

Q: Rs 50 crore of equity capital or Rs 50 crore of debt?

A: We are looking at almost Rs 50 crore of debt going forward in the next financial year.

Q: So no equity dilution planned at all?

A: Not as of now.

Q: What is going on with the export side of the business, which is why I believe that, is now about a fifth of your revenues particularly from the German market where you seem to have a presence? 

A: I think exports are looking quite positive for us. Rupee has weakened in the last more than one year more than 20% so it has been cutting edge in the Indian exports. At Liberty we have been bullish about exports and our exports are also showing positive trends particularly in German market and also in the Middle East and Gulf markets, where we have our own brand presence through our distributors and dealers and also exclusive retail outlets. So we are quite bullish about exports going forward in the next financial year to grow rapidly.
 
Q: You had sales of Rs 260 crore last year what do you think you will come with this year domestic retail and exports put together? 

A: I see a very positive trend. I cannot put numbers as of now but I am very positive about the growth segment.

Q: By that do you mean you will report growth of Rs 260 crore, maybe take it up to Rs 300 crore this year?

A: We will definitely try our level best and we will put our best foot forward so we can reach those kinds of figures. Of coruse its not so easy but we will definitely try our best.

Read More

US Food Franchise, Pizza Inn expands to Indian Subcontinent with restaurant in Bangladesh

Pizza Inn, Inc, an international pizza restaurant chain with more than 300 restaurants in 11 countries, announces the opening of its first location in the capital city of Dhaka, Bangladesh. For over 50 years, Pizza Inn has provided consumers with a variety of specialty and traditional handcrafted pizzas, pastas, salads and desserts in a dine-in buffet format with delivery and carryout. The company popularized a unique thin crackery crust that is made from scratch everyday and has since become the signature product offering. Over the years the menu has expanded, but the company's commitment to the highest quality ingredients, the friendliest service and affordable pricing have remained unchanged.

"We're excited about our expansion into Bangladesh as well as the entire Asia and Middle East region," said Charlie Morrison, CEO of Pizza Inn, Inc. "It is a pleasure to provide our freshly made pizzas, pastas and other popular menu items to the local residents at affordable prices in one of the largest restaurants in our system."

To further develop the Bangladesh region, Pizza Inn has entered into a Master Licensee agreement with S.A.K. Edramuzzaman of Mohammed Food & Allieds Private Limited.

Read More

GHCL to expand retail biz, Rosebys Franchise: Aloke Banerjee, CEO






GHCL's retail arm Rosebys Franchise plans to raise its stores to over 200 in India from 80 now by 2010/11 and spend 1.5 billion rupees over the next two years to build its brand, a top executive said on Friday. "A large part of the expansion will be under the franchise route," Rosebys chief executive Aloke Banerjee told Reuters in an interview on the sidelines of a conference on home textiles.







The firm is targeting a presence across India with stores evenly spread across the metros as well as smaller towns and hopes to increase revenues five fold over the next four years. Retailers in India, recovering from the financial crunch are expanding their footprint and targeting the smaller towns in addition to the tier 1 cities. Raymond, for instance, has also announced an ambitious plan to open 300 stores by 2,011 most of them in smaller towns.



Banerjee said Rosebys India is expected to generate revenues of about 1 billion rupees for FY10, but he expects annual sales to reach 5 billion rupees over the next four years aided by its brand building and store additions. "Our biggest cost is on brand building and there will be no let down on that". Roseby which sells products such as bed linens and cushions is poised to benefit from rising demand for home textiles products in India, Banerjee said.



Read More

K Sera Sera to open 500 miniplexes across India




MUMBAI: K Sera Sera will soon be opening 500 miniplexes across the country with a total of 1,000 screens. The company will be incorporating a new private limited wholly owned subsidiary for opening these miniplexes. The company's subsidiary K Sera Sera Technologies has also started developing new technology for digital cinema.



K Sera Sera targets to open the miniplexes in every district of India, which will have two screens each with a capacity of minimum 75 and maximum 125 seats. These miniplexes will also double up as an education centre from 6 am to 12 pm. After 12 pm to midnight, they will run as a theater, so as to make complete use of the infrastructure. The miniplexes will have a feel of the multiplex and will maintain the same quality as a multiplex. K Sera Sera will be involving local people on a franchise basis to open these theaters.



Read More

Aspasia Group to open more organic restaurants via franchising








Aspasia Group, the Premium Boutique Hotel is planning to open 40 more organic restaurants across Karnataka in the next two years. The group supports two restaurant brands; ’Modak’ and ’Tulasi’ and out of the 40 restaurants, 20 will be Modak restaurants and 20 will be under Tulasi brand. These 40 restaurants would be a mix of group-owned and franchise-operated ones. Modak restaurant is positioned as a mid-ranges restaurant while Tulsi comes under ’Darshini’ which is a fast food category.



As told to Neha Purohit at Way2Franchise.com, “There is a need in today's market for hotels where the business traveler can continue to receive the 5 star luxuries he's used to, but minus the discomfort of 5 star prices,” said founder and owner, Bangalore Urban Spaces Pvt. Ltd, Satish Bangalore. He also said that the company has plans to start high-end organic restaurants under the brand name "H3O", with four such outlets in the second half of next year. However, he admitted that he has less affinity for the premium (high-end) category.



Read More

The Angel Broking Sub-Broking Franchise Opportunity


Angel Broking is one of the most respected stock-broking and wealth management companies in India. Recently, it was lauded with the “Best Retail Broking House” and “Broking House with Largest Distribution Network” in the Dun & Bradstreet Equity Broking Award for 2009. It offers various investment products and services like Equities, F&O, Commodities, Currencies, Online Trading, PMS, Investment Advisory, Insurance, Mutual Fund, Personal Loan, Fixed Deposits, IPO and Depository Services.



Angel Broking has a strong reach across the country with a nation-wide network of 21 regional hubs and presence in 155 cities. It derives its strength and success from its associations and partnerships. It has the largest sub-broker network in India with over 8,370 Sub-Brokers and Business Associates and 6.8 lakh retail clients. Angel Broking offers various plans for Sub-Brokers according to their aspirations and budget.





Sit-in Business Partners

Minimum investment of Rs 1.5 lakhs is required to become a sit-in business partner of Angel Broking. It is ideal for people who have limited investment and need a place to start their business. Angel Broking provides exclusive space and trading terminals within Angel’s premises along with a specially designed training program to develop necessary business knowledge.

Business Partners



Read More

Franchising and Nepal, Impact of Fast Food Franchising in Nepal

I can honestly say that I have not been to a fast food restaurant in a long time, really the only time I eat fastfood is for a late night snack after the pit, however now I find myself walking to the bus loop to go home, rather than to McDonalds in the Village.

The fast food industry in Developing Countries
With the rapid increase in local food and a more health conscious public, fast food restaurants like McDonalds, Pizza Hut and Kentucky Fried Chicken (KFC) are no longer attracting the same number of customers as the restaurants did in the 1990’s. We no longer see the lines outside major fast food restaurants and these restaurants are no longer seen as popular “quick bites. These chains were previously  “cool” hangouts but are no longer considered popular meeting points for today’s youth. Customers who buy local are rarely seen eating popcorn shrimp at KFC or ordering chicken wings at Pizza Hut. But if you hop on a flight to Kathmandu, or easier just rewind time 15 hours to Wednesday November, 23, mid-day and picture the 1,000 plus crowd outside the KFC/Pizza hut in Kathmandu as thousands of people welcomed its first multinational chain of restaurants to enter the country of Nepal.

This forced many questions within my group of trekkers: one being why does a country that eats probably more local food than anywhere in the world welcome these chains? The answer is obvious as Nepal begs for more western capital investment. RJ Corp is the biggest bottler of Pepsi brands in Nepal and also the largest franchisee for YUM brands, mainly Pizza Hut and KFC. As stated by the officials of R J Corp, “Nepal is a promising market for these brands and their entry will give the Nepali economy a boost by creating job opportunities for locals”. The opening of these two fast food chains is said to give Nepali consumers the first local experience of an international food chain. Devyani International along with YUM Brands is the world’s largest restaurant company with five global brands and 35,000 outlets across 105 countries, and they are, “…excited to make their entry in the Nepalese restaurant circle and they have extensive plans for growth and expansion in this market”, says a R J Corp spokesperson. This expansion will in the end hurt Nepal and the people in the local restaurant industry.

The funny thing is that, “many of the ingredients for KFC and Pizza Hut are imported from abroad, including the chicken from Brazil and potatoes from Australia”, and this will be the case as ingredients will shipped to India then brought to Nepal. The most common food in Nepal is daal bhat, which consists of Rice (bhat), and a bean soup (Daal), and whenever I enjoyed it (at least once a day) it was accompanied with potatoes. The people of Nepal eat this for breakfast, lunch, and dinner. Almost everything I ate while I was in Nepal included potatoes as an ingredient. So why would YUM ship in potatoes over 5,000 miles from Australia to Nepal when the locals would be glad to sell produce to YUM? And why is there a belief that consumers in Nepal are ready for an international eating-out experience, as one RJ Corp official stated.

On a Global Level

In educating the world of the benefits of eating local, which 99.9% of Nepal has no choice but to do, it is important that we stop the growth and expansion of international chains. And if it is necessary for the YUM brands to expand into the developing world and benefit communities by providing jobs, it should be addresses that these franchises attempt to use local ingredients. Personally I think RJ Corp is trying to exploit Nepal and the introduction of Pizza Hut and KFC will not help Nepal’s economy. Sure it will provide jobs but the amount of customers taken from the local restaurants will do more harm than good. Not to mention that soon we will see a McDonalds, Burger King, Dairy Queen, (and the list goes on) in the Center of Durbar Square and on the main street of Pokhara.

Read More

Franchise your way to wealth

Franchising is one way to give your entrepreneurial self a chance. The challenge is huge, but the rules are simple. Grab the opportunity

Courtesy: Outlook India

Rajat Mathur, 36, had always wanted to strike out on his own. So, when he left the i-flex Solutions office in Mumbai as its senior banking analyst for the last time on 30 April 2006, he did not regret it. An alumnus of the IIT-Mumbai and IIM-Lucknow, he had worked at Times Bank and ICICI Bank before i-flex.

You would walk into Orbit Mall on the Malad-Goregaon Road in Mumbai to the aroma of freshly baked cookies. The bouquet will lead you past the Good Earth store on your left, and round the corner to the Cookie Man shop. And there, presiding over chocolate and honey-almond cookies, you would meet Mathur again. Counting the cash, checking the cookies, and serving them straight out of the oven at the back to the crowds thronging the counter. “I always wanted to do something on my own as I think that’s where the real fun is. You can never get that in a nine-to-five job.” Mathur’s entrepreneurial spirit is alive and well.

 

Jaya Patodia 34, Lakme Beauty Salon, Delhi

She invested Rs 25 lakh initially and now has a monthly income of Rs 50,000-60,000. Her average monthly turnover is Rs 3.5 lakh

“I have a Swiss watch store in Khan Market, but that was not giving me good returns. The turnaround happened when a friend, who owned a Lakme franchise, told me about it.”Franchisee Checklist While Mathur cut loose, a lot of others wanting to do so have not. With responsibilities and dependents, they don’t dare to leave the warmth of a regular income and plunge into the financial turbulence a new business could bring. But today, the ‘fresher’ can go in with the safety tube of franchising. That’s what Mathur did. T.K.S. Kumar, a franchisee of Whirlpool Service Centre in Chennai for a decade now, says: “I wanted to realise my long-cherished dream of becoming an employment giver from an employment seeker.” But P. Ramarao, president, Australian Foods, which owns Cookie Man, warns: “It’s not for people who aren’t passionate.”

WHAT IS A FRANCHISE?

During the Great Depression, Colonel Harland Sanders started selling fried chicken in the little town of Corbin, Kentucky, on the road to Florida. He is said to have used 11 herbs and spices in a secret recipe that gave the chicken its distinctive taste. Sanders’ fare gained fame and Corbin was a routine stop en route to Florida till a new highway bypassed it. That’s when the colonel shut shop and tried selling his chicken to restaurant owners. In 1952, Pete Harman of South Salt Lake, Utah, signed an agreement to sell Sanders’ chicken and pay him five cents for each piece sold. The eatery was called Kentucky Fried Chicken. It was the world’s first franchise. While Sanders was sharing proprietory knowledge and reputation with Harman for a fee, the latter was running the business on Sanders’ behalf. And that is the essence of a franchise even today.

WHY A FRANCHISE?

The simple answer is to mitigate risk. “The franchiser can expand its reach by investing almost no money and capital, while the franchisee is almost sure of success as he is working in a tested area,” says C.Y. Pal, president, Franchising Association of India, an industry body. A US Department of Commerce study conducted during 1971 to 1997 showed that less than five per cent of franchises closed down each year. In contrast, a study by the US Small Business Administration found that from 1978 to 1998, 62 per cent of non-franchised businesses could not make it past the sixth year. But remember that a franchise will never give the returns that a successful own business will. For example, Biocon CEO Kiran Mazumdar-Shaw, who started her business with Rs 10,000 in 1978, is now the richest woman in India with a net worth of about Rs 2,000 crore. Some franchises could give you annual returns of 70 per cent, but most will be in the 20-40 per cent range. Good franchisers will help you get your business rolling and to keep it that way. Vivek Kaicker, 44, runs a U$ Dollar Store franchise in Delhi. “I had a retail business, but I liked this concept and thought it would increase footfall,” he says.

On 27 November 2006, retail giant Wal-Mart, with a turnover of $316 billion, announced that it would franchise its Indian operations to Sunil Mittal’s Bharti Enterprises. The latter would own and run Wal-Mart retail stores in India. Wal-Mart would also set up a joint venture with Bharti for the supply chain. Thus, systems honed over 46 years would be Bharti’s from Day One. Overnight, Bharti, whose retail plans had earlier been dwarfed by the Rs 3,200-crore investment announced by Mukesh Ambani’s Reliance Retail, was being billed as the company that would battle for supremacy in organised Indian retail. That’s the kind of fillip the right franchise can give. The model is versatile enough to work for Mittal, as well as Mathur. And it can work for you.

WHY IS THIS A GOOD TIME?

As a share of GDP, franchising accounts for 12 per cent in the US, but not even one per cent in India. The comparison gives an idea of where it could go. Industry estimates indicate franchising has grown to a Rs 8,000-crore sector now, from Rs 4,578 in 2004. Pal says there are over 750 franchisers in India today. Throw in the foreign franchisers, and the opportunity grows even bigger. It is attracting local talent in sectors such as food, lifestyle, retail, business services, healthcare, communication, education, entertainment and travel, among others. India is now the world’s largest franchise market after North America and is growing at  about 30 per cent a year, says Tony White, managing director, White Connections, which advises franchise companies.

WHICH FRANCHISE?

While buying a franchise, you have to consider several issues.

Abilities. This is the time for brutal self-assessment. Rule of thumb: stay off what does not interest you. If you are indifferent to food, stay off restaurants. If kids exasperate you, avoid play schools. But don’t lose heart. Your passion for travelling may make you one of the best equipped to plan holidays. Go for that. “I had already done a few beauty courses,” says Jaya Patodia, 34, who runs a Lakme Beauty Salon in Delhi.

More likely than not, a good franchiser will check out whether you fit the bill. Shahnaz Hussain, for instance, looks for people who are “passionate about beauty care”. Most franchisers will look for specific skills apart from “entrepreneurial attitude and open mind”. Institute of Computer & Finance Executives asks for no less then a chartered accountant, and Spykar Jeans wants a year’s experience in franchising.

Since this will be a new business, it will need a lot of hard work to get it running. “The initial one year is very important as this is when you build up a customer base,” says Hema Malini, 36, who, along with Ambika Viswanath, 24, run a Ferns ‘N’ Petals franchise in Chennai. Most franchisers want the franchisee to be involved personally. Ratan Jalan, CEO, The Apollo Clinic, says: “We need a person who is himself going to run the franchise.” But some may let you hire a manager and work at the franchise part-time. Remember, the monthly expense estimate franchisers give you assume that you will work full time.

Costs & finances. The big question is: how much can you invest in a franchise? Some service franchises could cost as little as Rs 2 lakh. You would need just a room, a table, a couple of chairs and a telephone connection. At the other end are beauty parlours, fine dining restaurants, or retail jewellery outlets. Here, investments could go to a crore or higher.

Read More

Academy of Broadcasting ranked at # 14 among Top 50 Mass Communication Institutes of India

Academy of Broadcasting (under the aegis of the Buzz Network Education & Research Society) which is India’s oldest, largest and the global leader in training Radio Jockeys and radio talent has added another feather to it’s cap by being ranked at # 14 amongst the Top 50 Mass Communication Colleges of India for the year 2009, in a recent survey conducted by the very renowned KAB Educational Consultants, Hyderabad. In achieving this enviable position, the Academy of Broadcasting has been ranked much above some of India’s oldest universities like Mumbai University, Banaras Hindu University, Aligarh Muslim University, Birla Institute of Technology, Jawaharlal Nehru University, Guru Nanak Dev University, Jamia Islamia University, Kurukshetra University, Lovely Professional University, Goa University etc. 

The Academy of Broadcasting has also been ranked above some very respected specialised Mass Communication institutes like Manipal Institute of Communication, Narsee Monji Institute of Management Studies, Amity School of Journalism, Bhartiya Vidya Bhawan’s Sardar Patel College of Communication, Convergence Institute of Media Management, EMPI Institute of Advertising etc.

Read More

Gucci can open single-brand stores in India

The government has cleared the proposal to allow Gucci Group NV, Netherlands, for foreign equity participation of 51% stake in its Indian franchisee, Luxury Goods Retail Private Ltd, with an investment of Rs 1.04 crore. 

With the move,Gucci will now be able to enter the Indian retail market through single brand stores. The proposal was made by Luxury Goods Retail, which sells products under the Gucci brand in India under a franchise agreement. It was in 2006 that Gucci India had entered into a franchise agreement with Murjani Retail for selling its products in the country. The pact was terminated in July this year and replaced with a new franchise. Hence, Gucci will not be further franchising. 

Read More

Cartridge World Franchise eyes 250 stores in Indian sub-continent by 2011

The leading printer cartridge recharging provider, Cartridge World is paving its path to establish over 250 stores across the Indian sub-continent by 2011. While speaking about the advantages of franchising, Naveen Rakhecha, CEO (South Asia), Cartridge World summed up, “Franchising to me is infusing entrepreneurship. It brings the entrepreneurship skills right into the business. That is one of the major reasons we have also recently franchised our company-owned outlets which were opened at the initial stage.”

Read More

Cookie Man Franchise powers Allied Brands Profits

ALLIED Brands says the international expansion of Cookie Man Franchise and its new franchise services arm will help drive its forecast 20 to 33 per cent profit increase.

The Broadbeach company, behind the Australia franchise chains of Baskin Robbins, Cookie Man Franchise, Kenny's Cardiology, Villa and Hut, Awesome Water and Awesome Entertainment, expects to post a profit of between $6.6 million and $7.2 million this financial year.

At yesterday's annual general meeting, the company also announced international basketballer Shane Heale would promote Baskin Robbins, while champion lifesavers Dean Mercer and Reen Corbett would become brand ambassadors for Awesome Water. Allied Brands has signed heads of agreements for two international country licences for Cookie Man Franchise and was in advanced stages of negotiation with a third country licence. Cookie Man Franchise already has 55 stores in India, 15 in China, 13 in Greece and one in Singapore.

Chief executive officer Shane Radbone said the rising profit would stem from the introduction of its franchising services arm, the growth of the Villa and Hut network, the growth in sales of Baskin Robbins, and international interest in Cookie Man Franchise. The franchising services arm had been set up to help those with businesses who wanted to franchise them but do not know how. The arm looked set to contribute $500,000 to the company's bottom line, said Mr Radbone. He said this year's purchase of the Bay Swiss stores was its first move under the new arm.

The Bay Swiss stores will be transformed into Villa and Hut and sold as franchises. "We see this as a potential growth market," said Mr Radbone. "We have the ability to target a number of small to medium businesses." The company was optimistic about strong retail growth over Christmas, with sales figures looking strong.

The positive outlook follows a tough year for the group, affected by fluctuating currencies and the global financial crisis. Earlier this year, the company posted a profit of $2.9 million for the last financial year, well below expectations and almost half the 2008 result.

Read More