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In this issue, you will find:
From the Chairman’s Desk
Food Security Bill and its
impact on Franchising -
Food and Beverage Sector:
FranBuzz
Events
Hot Opportunity of the month
Interview with V care health clinic Pvt. Ltd.
New Member Area
Fran Recruit
FRA EWS An IFA Newsletter
N FEB II
ISSUE
Franchising IndustryAn Insight to the
Page
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04 - 05
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FROM THE CHAIRMAN'S DESK
Gaurav Marya
Dear Friends,
Let me take this opportunity to introduce you to IFA's
Newsletter - Fra(n)ews. With Fra(n)ews, we aim to bring
forth the latest developments taking place in the franchise
sector, thereby increasing awareness in the franchise
community. This newsletter would also act as a platform for
all the start-ups as well as established brands, to
showcase the business potential and seek potential
franchisee's attention.
It's my sincere hope that Fra(n)ews would successfully
help in disseminating franchise knowledge to the entire
franchise fraternity. In addition, I strongly believe that it
would assist franchisors in reaching out to their potential
investors, and in turn aid the aspiring entrepreneurs to get
their desired brands.
Gaurav MaryaChairmanIndian Franchise Association(IFA)
02
According to the India's Agriculture Minister
Sharad Pawar, “The country will have to
take responsibility of producing huge
quantities of food grains”.
Food security bill's discussion has been in air since
past few months. Its relative advantages and
disadvantages for the common masses has been
the issue of concern for the parliament where the bill
was placed before the Lok Sabha. The intent of
National Food Security Bill is laudable, but as we
start analyzing and interpreting its impact, the
foundation is neither based on sound economics
nor does it take into account hazards of
implementation. Therefore, in this article we would
be analyzing the impact of food security bill on
franchising-food and beverage sector.
According to the senior economists of India, they
see food security bill's implementation as a scary
component for Indian Economy. They say that it is a
huge financial burden on the government at
precisely the wrong time. The National Food
Security Bill intends to provide subsidized food
grains to 75% of the rural population and about half
of urban households. But when it will come to its
actual implementation, this would prove out to be a
big challenge.
According to the India's Agriculture Minister Sharad
Pawar, ”The country will have to take responsibility
of producing huge quantities of food grains”. For
increasing the capacity of production of grains,
banks will first need to liberally finance the farmers
and other related associations.
If the demand for minimum food security will not be
fulfilled by the domestic sources, imports would
come into the scene.
Herein, Multinational corporations all over the world
will be thrilled to strategize by exploiting the urgency
of Indian sovereign demand. This way India will
then be an active consumption market for such
basic necessities of food, thereby increasing the
rate of food inflation.
According to the wall street journal, implementation
of bill will cause food subsidies to balloon to an
estimated 949.73 billion rupees ($18.05 billion) in
the first year of implementing the food security
program, up from around 673 billion rupees now.
The government will also need an investment of 1.1
trillion rupees to boost farm output over next few
years, thereby increasing fiscal burden on
government. Further coming to analyzing the impact of food
security bill on food and beverage sector in
franchising, it would increase all aspects of cost.
Due to the increase in the cost of purchase of raw
materials of food grains; the cost of franchisee,
royalty and profit sharing etc. would increase for
sure. This is the resultant of upward pressure in
prices for food and grains. In lieu of the off take of
rice in the current fiscal year has been 74% of the
allotment, and that of wheat, 64%. The residual will
keep adding to the grain mountain with the
government, which will rot, due to poor storage, be
eaten by rats and be pilfered. By cornering huge
volumes of grain, the government reduces the
supply in the open market, putting upward pressure
on prices.
FOOD SECURITY BILL - ITS IMPACT ON FOOD AND BEVERAGEFRANCHISE SECTOR
03
Dubai-based Al Bayan Group is on an expansion spree for its fried chicken fast food chain
''Chicking'' in India targetting to have at least 100 outlets across the country by 2015.
The group that currently operates 25 Chicking outlets in South India is now expanding the
chain in Northern India.
"The first outlet (in North India) has been opened in Delhi. By 2015, we have a target of setting
up a minimum of 100 outlets of the brand across India," Al Bayan Group Managing Director A
K Mansoor told reporters here. Mansoor, who is of Indian origin, had star ted the Chicking
chain in 2000 in Dubai and introduced the brand in India in the same year. "At present we
operate 25 Chicking outlets in South India, out of which around one third are operated by
franchisees," he said.
Commenting on the plans for northern region, Yogesh Lakhanpaul, Managing Director, KYM
Foods & Beverages Pvt. Ltd, said: “The company plans to expand its network through a
franchise route in India with presence in Delhi-NCR, Ludhiana, Jalandhar and Amritsar in
Punjab and Chandigarh, Jammu & Kashmir, Kanpur, Agra, Meerut and Lucknow in Uttar
Pradesh, and Jaipur and Udaipur in Rajasthan.” In the southern region, the brand is present
in the ratio of 70:30 in retail and franchise respectively, and for the northern region, they plan
to keep the ratio of 90:10 in favour of franchising. Adding further Lakhanpaul said: “The
company will open nearly 50 outlets in Delhi-NCR. It is a big market for us to expand, and our
target is to open at all strategic locations in Delhi.”
Shemford, a senior secondary school chain is planning to open 15 new schools across the
nation via franchising. The futuristic school chain presently operates 22 schools in India and
one in Doha, Qatar. The school chain franchise demands an area around 4,000 sq. f t in Delhi,
NCR region and for other regions the area requirement varies.
Shemford futuristic school is a pioneer in quality education. It is one of the nation's leading
senior secondary school chains with branches spread across the country. The school offers
CBSE and ICSE Board. The group also runs a pre-school brand Shemrock Group of Schools
which operates 150 pre-schools in India and Nepal.
04
Chicking fast food chain
starts operations in India:
Shemford to open 15 new
schools:
FRAN BUZZ
Gems and Jewellary Sector:
05
Diamond export is on upsurge, market penetration opportunities in foreign domains:
As per Mr. Mehul Choksi, CMD Gitanjali Jewels “Sales have shown double digit growth in
the last two months or so. Surprisingly, Japan has emerged out as one of the key buyers in
recent times.”
The current data is showing an upsurge in the demand of diamonds across the globe.
Demand from China has gone up 40% over the last year while Japan is also buying in large
volumes the premium diamonds. Further as per the study conducted by Melbourne based
research firm IBIS- World estimated that revenue from diamond and gemstone mining will
increase by 37% to $600 million in 2012.
The firms in the franchising of gems and jewellary sector have an advantage of settling up
their outlets in dif ferent foreign domain to exploit the opportunities available. As per the ET
“More than 100 exporters in Surat's Rs. 65000 Crore diamond cutting and polishing
industry have their books full with surging foreign orders.”
FRAN BUZZ
06
EVENTS
Indian Franchise Association
supported FRO 2012 Chennai:
Indian Franchise Association (IFA) in association with Franchise India has supported the India's national Franchise & Retail opportunity show (FRO) conducted on January 31st and February 1st 2012 at Hotel Green Park in Chennai. FRO basically aims at providing a platform and network to various organizations who wishes to expand their business and franchise concepts with potential entrepreneur and investors in and around Chennai.
The Chairman- Mr. Gaurav Marya- Indian Franchise Association with the Chief Guest Shri Kutralingam Mahalingam, Principal Secretary, MSME, Govt of Tamil Nadu inaugurated the show.
There were various prominent speakers present there from different industry verticals such as fashion & lifestyle, f&b, education, financial services, health, beauty & wellness, travel, entertainment etc. There were various acclaimed exhibitors participated in the show which included Chhabra 555, Body Spa, Moti Mahal, Rockport, Ritu Kumar, U.S Pizza, Mom & Me, Yogurberry, Gini & Jony, Everonn, IFB, I Play I Learn, Gitanjali Jewels, Yatra.com, Titan Eye+, Yo China and many more.
Indian Franchise Association- a
supporting partner to Indian e-Retail Congress 2012
concludedsuccessfully
Indian Franchise Association as a supporting partner to Franchise India
presented Indian eRetail Congress 2012 on February 20 and 21, 2012 at Hotel
Claridges, New Delhi. It was an initiative on the part of Franchise India wherein
there was an over viewing of the Indian eRetail expedition. The e-Retailmarket in India is showing growth in various sectors. On this platform,
strategies to ripe to understand their success model were made thereafter
taking the e-retailing business to the next level.
The two day conference collated key policy makers, retail professionals,
corporate, vendors and suppliers at both national and international level for
deliberations and interactions. This lead to sharing of learning and knowledge,
draw attention to best practices and promote innovation to capture consumer
interest in the eRetail segment.
The Congress is aimed at creating a thought leadership which lead eRetail
revolution in India. The two day agenda was spaced out to create networking
opportunities and round table discussions that came up with innovative
solutions for the eRetail industry. The show also evolved special Awards for
those who have created path breaking trends and have led unprecedented
innovations that have uplif ted the morale of the entire eRetail Industry.
07
HOT OPPORTUNITY OF THE MONTH
CASE STUDY
V care health clinic Pvt. Ltd.
The health & Wellness industry in India is a very fast growing segment. The awareness created among public has become the main reason for the rapid growth of this segment. People have star ted providing greater impor tance to preventive health care rather than approaching the health care providers when there is a disorder. The industry is expected to grow at a rate of nearly 40-50%, every year. This has led to the rapid growth of diagnostic centers, hair treatment clinics, skin treatment clinics, alternative medicine clinics, fitness centers, spas and slimming centers.
Vcare group is a leading health & wellness provider in South India. The group is involved in a variety of activities like hair treatments, hair transplantation, skin treatments, spa services, research & development, manufacturing, health education and retailing. Vcare Trichology Hair treatment Clinics are located at 10 locations now, spread across the states of Tamilnadu, Andhra Pradesh and Pondicherry. The clinics are going to be opened in two more locations now, one in Chennai and other in Bangalore. Vcare Medspa, the skin clinic and the spa has branches at 7 locations spread across the same geography. The group owns a manufacturing facility in Pondicherry. It also operates a full fledged sales network for the retailing of its innovative products like Shikkakai paste, 100% herbal hair dye, hair growth vitalizer, lice & nits treatment kit, etc. An academy of international standards is run by the group. This division of fers international courses in Trichology, hairdressing and beauty therapy. “The group has plans to venture into various new arenas of health & wellness sector in a very short span of time”, says Mrs. E.Carolin Praba, a certified Trichologist from IAT, Australia and the Chairman of Vcare Group.
The group has also started franchising its skin business, Vcare Medspa. The company is planning to market a wide range of professional cosmetics required by the salons, beauty parlors and the spas.
The group is in the process of establishing a full fledged sales network for this activity. “We are planning to include a wide range of unique and value added personal care, beauty and hair products to our retail product mix” says, Mr. Mukundan, the CEO of Vcare group.
The concept of hair treatments based on the science of Trichology is relatively a new segment in India. There are only a few players in this segment and undoubtedly Vcare Trichology Hair Clinics are the pioneers and the business leaders in South India. The skin clinic, Vcare Medspa faces a healthy competition from similar service providers like the Kaya Skin Clinic, Anoos, etc. But the signature treatments offered at Vcare makes it stand unique, among the other top players in this segment. Vcare group has recently franchised its skin business in three locations namely Anna Nagar, Chennai, Bangalore and Salem. More no of franchise clinics are expected to open in the next few months.
Trichology is a unique science which deals with the study and treatment of hair and scalp related disorders. This subject has made an entry into India in the late 90's. Vcare has played a significant role in creating awareness about Trichology through its Television programs and magazine articles. Vcare is also involved in the process of developing more number of trichologists through its academy Vcare's Global Institute of Health sciences. The group has also established a state of ar t research and development facilit y at Chennai for the development of Trichological treatment process & hair treatment products. The R & D division is also in the process of entering into an agreement with a leading Chennai based
University involved in clinical research. The products of Vcare will be clinically tested and validated by the University owned clinical testing laboratory.
With all these developments set to happen within a short span of time, Vcare is all set to emerge as a leading player in the health & wellness sector in the near future.
08
With the ongoing success through its events like Business Opportunity Show, CEO Forum, FRO and Indian Education Congress – IFA takes pride to introduce its new members to the entire franchise fraternity and hopes to strengthen and consolidate this bond of franchise network in the years to come.
NEW MEMBER AREA
EVANA
Makemytrip (India) Pvt Ltd.Mr. Ravish Doctor
103, Udyog Vihar Phase-1Gurgaon-122016, HaryanaMobile: +91-9958004557
Email Id: [email protected]
Prabha's V care health clinic Pvt. Ltd.S. Mukundan - CEO
113-114, Menakampala Arcade (Globus)3rd floor, B-wing,Sir Thyagaraya Road
T. Road, Chennai-600017Mobile: +91-9600029514
Email Id: [email protected]
Naturals Beauty Salon Pvt. Ltd.Mr. C.K. Kumaravel - Managing Director
No. 25, 1st floor,ISTE Professional centre,
Gandhi Mandapam Road, KottupuramMobile: +91-9884066799Email Id: [email protected], [email protected]
Body Spa International Pvt. Ltd.Mr. Jatin Walia – Managing Director
B-11 Greater Kailash-1New Delhi -110048
Mobile: +91-9654777171Email Id: [email protected]
Prabha's V care health clinic Pvt. Ltd.S. Mukundan - CEO
113-114, Menakampala Arcade (Globus)3rd floor, B-wing,Sir Thyagaraya Road
T. Road, Chennai-600017Mobile: +91-9600029514
Email Id: [email protected]
Little Elly- Learning Edge Pvt. Ltd. Director-Vitthal Das Bhandary
742, 3rd block, 7th cross, Near BDA complex Koramangala,
BangaloreMobile: 09900083813
Email Id: [email protected]
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ABOUT US
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