Small and medium sized companies are fuelling the growth of the country's franchisee business, which is projected to grow by about 35 per cent this year up from Rs 73,000 crore last year, according to Mr Gaurav Marya, President of Franchise India.

The growth is particularly fuelled by local and regional companies seeking larger footprint in the country by offering their products and services to franchise partners, he said.

Speaking to Business Line coinciding with the launch of two-day FRO Expo 2011 in Hyderabad recently, Mr Marya said that multi-national companies too are adopting the franchisee route to grow in the country, as FDI is not allowed in retail. A fourth of the total franchise business in the country is accounted for by MNCs. There are indications that this is set to grow at a much accelerated pace this year. Today there are about 2,800 registered franchisees.

Food and beverage, health care services, education, fashion and lifestyle are amongst the fastest growing sectors. While new sectors do come up, food and beverages, which has local expertise, has caught the attention of companies. For instance, Hyderabad House, known for Biryani, could go pan India through this franchise route.

The two-day FRO Expo 2011 hosted at Hyderabad International Convention Centre here presented by Franchise India, the Indian Franchise Association and supported by the Ministry of Micro and Small and Medium Enterprises, serves as a networking platform for companies and entrepreneurs to expand using the franchise model.

The show covers issues relating to franchising, retailing and licensing. Efforts are on to take this event to tier two and three cities and introduce the concept, he said.

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