VLCC comes up with its first franchise

India's largest slimming, fitness and beauty brand, VLCC Healthcare Limited, has come up with its first franchise outlet at Yamunanagar. For the first time, VLCC has chosen the franchising route for expansionof their business. This marks the first phase of expansion diverting from the currently fully owned 100 centres.

In order to make sure that the franchising operations are in the same league with VLCC's own model as far as quality service is concerned, the franchisee would undertake extensive training about the industry and the business. The staff would be recruited and trained by VLCC appointed personnel. VLCC has setup high quality benchmarks for the franchisee centers to maintain high service delivery, which it has always done in all its centers in India and abroad.

VLCC's franchising model will focus mainly on towns with a population between 100 million to 500 million, which includes places like Rohtak, Karnal, Phagwara, Moga, Udiapur, Ajmer, Meerut, Muzaffanagar, Jhansi, Roorkee, Dhanbad, Jamnagar, Rachi, Kolhapur, Kozhikode etc. VLCC is expected to be the first ever healthcare and slimming in many of these centers.

With access to latest equipments, trained staff and technology, VLCC has given a professional look to the whole fitness industry. With the franchising channel VLCC plans to extend the professional approach to more players in the market and also make the industry more organized.

Country Hearth brand is heading towards India

America's Best Franchising Inc, which franchises Country Hearth Inns & Suites, has recently signed a franchisee agreement with KI Group to develop at least 20 greenfield properties in the metros of India and several secondary cities such as Chandigarh, Hyderabad, Jaipur, Goa and Pune with in next five to seven years. It also plans to develop the brand in other Asia Pacific markets such as Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka and the Maldives.

Arun Malhotra, director of KI Group, says, "With all the recent economic and commercial growth in India, there is a real need for quality mid-market hotels. Country Hearth, with its homelike feel, is the perfect fit and will be a welcome addition to the region's lodging market."

Doug Collins, chairman and CEO of America's Best Franchising and its subsidiaries, says, "The Indian market represents an important and ongoing development opportunity for Country Hearth hotels, which are especially suited to the region's vibrant and growing economy."

As informed by Douglas Collins, the budget hotels will combine the environment of a bed-and-breakfast outfit with the convenience of a hotel.

The group is also looking at introducing the group's America's Best Inns & Suites brand in suburban markets and across various highways. Each Country Hearth Inns property is expected to house anywhere between 75 and 100 rooms.

Tag Heuer aims to be the leading premium watch in India

World's leading luxury products group, Louis Vuitton (LVMH) has mapped out plans to strike the top slot in Indian premium watches market for its 'Tag Heuer' brand watches within next three years.

At present the premium watches market is led by Omega and Rado

At present, Tag Heuer is at the third position in Indian market and aims to become number one brand in premium watches in India, said LVMH Group Director South Asia, Ravi Thakran.

To increase volumes, the company will go for aggressive retail expansion with initial plans to open 30 Tag Heuer boutiques in next 18 months, said Thakran.

Retail expansion will be on franchise model in major metros across the country, he added.

Riding high on the returns from its superstar, the company has been achieving fast growth in India.

Tag Heuer sales presently are in five digits, becoming the fastest growing business in India, helped through endorsements by Shah Rukh Khan, said Thakran.

Argos poised to strikes the Indian Market.

UK retail major Argos has announced plans to enter India later this year after signing a franchise agreement with a joint venture company owned by Shopper’s Stop and HyperCity Retail India.

Argos is among the leading general merchandise retailers in UK and Ireland, which operates a unique format of catalogue stores, along with home shopping and online retail. The stores and catalogue shall be branded HyperCity Argos and shall be operated by an SVP jointly owned by Shopper’s Stop and HyperCity Retail.

The stores named HyperCity- Argos are likely to be launched initially in Mumbai region and will be rolled out nationally in the long term. Home Retail Group CEO Terry Duddy, told the media: 'The heads of terms with Shopper's Stop and Hypercity, both pioneers in the Indian retail market, give Argos an initial foothold in what is a rapidly expanding market.' Its plans for India include providing its brand, catalogue, IT support and enterprise in linking high streets and home shopping.

Terry Duddy said HRG had settled on India after ruling out Eastern Europe and China because of the potential it offered. He said, “ We are always looking for opportunities that allow us to leverage our skills, sourcing scale and capacity. We are, therefore, delighted to announce this tie up that will enable us to evaluate the appeal of the Argos proposition to consumers in the emerging market of India.” He further said, “ It is exciting because strategically it will help us answer the question of what could happen to Argos in emerging markets.”

Wal-Mart recently signed a deal with Indian firm Bharti Enterprises and is expected to spend $2.5 billion (1.3 billion pounds) on developing a chain in India. Another retail major, TESCO, is also said to be in talks with the TATA group on forming a partnership to enter India. A TESCO spokes person said, “ We are interested in India and are researching the market.”

HRG will invest 10 million pounds to establish an Indian Business. It will not get revenues for the first two years but will move to a revenue-sharing agreement in late 2009 if the move has been deemed a success.

Wal-Mart is here finally

Bharti Enterprises, which is planning to enter the Indian retail sector with US-based giant, said that its agreement with Wal-Mart was set within the rules set for investments in the market.

Bharti Enterprises chairman Sunil Bharti Mittal told the Press Trust of India (PTI) news agency, “The joint venture on retail has been finalized and legal agreements are being worked out. We expect to sign an agreement in the coming weeks.” Mittal further added that Bharti’s joint venture accord with Wal-Mart would be for cash-and-carry and back-end linkages.
“Wal-Mart is going to apply for a joint venture (permission) only in the area where policy exists,” Mittal said.

Foreign investment is not allowed in the Indian retail sector except for single-brand stores such as Nokia or Nike. Any foreign multi-brand retailer including Wal-Mart has to sign franchise deals with local companies in order to enter the market.

Mittal confirmed that there were no regulatory hassles to the venture. Mittal and Wal-Mart Vice Chairman Mike Duke had a meeting with the Planning Commission Deputy Chairman Montek Singh Ahluwalia, Farm Minister Sharad Pawar and Trade Minister Kamal Nath on Friday.

Nath said that there was no proposal to open up multi-brand retail to foreigners.

"There is no FDI (foreign direct investment) in multi-brand retail. I've always said that."

"Whatever is there in existing government regulations will be allowed," he told reporters after his meeting with Mittal and Mike Duke.

However, this new venture is met with a lot of oppositions from Indian Communists who protested in New Delhi on Thursday when Duke arrived to meet officials and study the market.

Shop owners and state-run supermarkets in Mumbai also expressed their grievances when Duke visited there to meet top government officials to get a clear picture of policy guidelines in the retail sector.

Congress party chief Sonia Gandhi has also put forth her views about allowing foreign retail giants into a country primarily dominated by small retail stores.

However, according to the Agriculture Minister Sharad Pawar farmers would benefit from the Bharti-Wal-Mart venture because they would get a good price for their products.
“From this angle, efforts which Bharti group is making is certainly useful for India’s farming community,” Pawar said after a meeting with Duke.

A rapidly-emerging affluent middle class estimated to make up as much as a third of India’s population spends an estimated amount of $300bn annually on shopping. According to consultants PriceWaterhouseCoopers, that figure is forecasted to be more than double by 2015.

Starbucks soon in Delhi, Mumbai

"We target opening the doors to our first store in India, with a yet-to-be announced joint-venture partner by the end of 2007 either in New Delhi or Mumbai," a company official told .

While reports suggested that Starbucks has plans to enter the Indian market in partnership with Pantaloon's Kishore Biyani and VP Sharma, Head of Starbucks' Indonesian franchise, the official declined to confirm them.

"We do not comment on rumours and speculations. However, we are enthusiastic about bringing the unique Starbucks experience to one of the most exciting growth markets in the world in the near future," the official said.

The company plans to target the young adults of the country for expanding its presence in India and also aims to reap the benefits of a growing coffee culture in a traditionally tea-drinking nation.

Besides, the company is also seeing robust growth potential in the vast population of the country and an appetite for the western brands among the youngsters here.

Earlier, Starbucks' Chairman Howard Schultz had stated that planning and research was well underway for its India plans and the company was holding discussions with potential JV partners.

"We are scouting locations, meeting with government officials, all towards gaining additional market knowledge and building critical relationships to make our market entries a success," he said.

Indian coffee chain blends into Karachi.

Cafe Coffee Day, the popular name for Amalgamated Bean Coffee Trading Company, is breaking new ground for Indian companies in Pakistan by getting into the retail business.

Pakistan, like India, is a tea-drinking nation, but Cafe Coffee Day aims to attract a following among the better-off urban youth. The absence of bars - alcohol is banned for Muslims - could make the market easier to crack.

The first Cafe Coffee Day branch opened in Karachi's posh Clifton neighbourhood, and Ameen Hashwani, a member of one of Pakistan's leading business families, said on Friday that there were plans to open 30 cafes in the country's main cities.

Cafe Coffee Day currently operates around 370 outlets in India with one in Vienna.

"We have kept our prices very reasonable at Rs50 (85 US cents) for a cup of espresso, as other coffee shops in Pakistan are heavily priced," Hashwani said.

"Our lounges will be a place for the huge young population to relax in a nice ambience," he added.

Burger King likely to adopt franchisee model in India

Burger King is likely to replicate its Japan strategy in India. It will be franchisee-driven and as mentioned in its 2006 annual report, the company is expected to lower the capital needed to open new restaurants by designing smaller, less-expensive, space-optimised restaurants. "We're attracting key franchisees with strong local and financial standing who can open several profitable restaurants quickly, establishing Burger King in previously under-penetrated areas," the report said. The company wants to open more than 400 restaurants worldwide in 2007.

Typically, Burger King restaurants sell flame-broiled hamburgers, chicken and other specialty sandwiches and French fries. As of 30 June 2006, the group owned 11,129 restaurants in 65 countries and US territories, of which 1,240 restaurants are company-owned and 9,889 restaurants owned by its franchisees. The group operates in the US and Canada; Europe, Middle East and Africa and Asia Pacific; and Latin America

Nike to have 100 stores by year end

Debenhams set for 10 new stores across India

Major UK department store brand Debenhams is all geared up for major expansion in India, where its Master Franchisee, Planet Retail Holdings has set out plans to open up to 10 stores by 2010.

Arun Bhardwaj, Managing Director of Planet Retail Holdings said, "By 2010, Debenhams stores will come up in locations such as Delhi, Mumbai, Bangalore, Kolkata, Chennai, Hyderabad and Ludhiana."
"The first Debenhams store will come up in Gurgaon, followed by a second store in Delhi," he further added.

Planet Retail Holdings also holds the Indian Master Franchises for brands like, Marks & Spencer, Guess, Women's Secret and Body Shop.

Established through company-owned stores in the UK and Ireland, Debenhams also owns franchise stores in Bahrain, Cyprus, Czech Republic, Denmark, Dubai, Iceland, Kuwait, Indonesia, Malaysia, Qatar, Saudi Arabia, Sharjah and Sweden.

13 Búho St. reveals global expansion strategy

"Potential franchisees have been attracted to the high returns and the simplicity of the system we now offer. This means they will make profits quicker," said Franchise Manager Samantha Herelle. "The franchisee can now choose exactly what they need for their store, customers and market and in compensation for the hard work they have to put in at the beginning, they will be rewarded with higher margins, lower costs and subsequently higher returns on their investment."

The 13 Búho St. concept was launched over 12 years ago in Spain. The company now has five brands: GIZBO, SPOON, DASOUZA, SUN TZU and BIOHAZARD, which caters to various styles of young people including, street and skate wear, sophisticated club wear, the hottest fashion items and more radical tastes.

Costa Coffee expanding fast in India

UK Franchisor Costa Coffee recently announced plans to establish a network of 290 outlets in India over the next four years.
In August 2005, the company signed a Master Franchise agreement with local partner Devyani International, a food and drink group that also holds licences for Pizza Hut and KFC outlets in India.

Devyani International has already opened 12 outlets, CEO Virag Joshi said, "This year we will add another 50 outlets. We expect to be in all major cities in the next two years."

Further, Costa Coffee Managing Director Mark Phillips added, "India will be a very important market for Costa. Our long-term plan is to have 300 outlets in the next three to four years. With the overall fast food segment growing at the rate of 40 per cent every year, coffee consumption is set to grow further. Coffee chains in India are expected to grow at a CAGR of over 30 per cent in the next couple of years."

Liberty forms JV With Pantaloon For Setting Up FootMart Retail

As part of its new strategy, the Karnal based footwear major Liberty has entered into a JV with Pantaloon for setting up FootMart Retail India.

"The Indian market is changing quite fast and this has brought in changes in the lifestyle. There is big demand in retail for our products so we devised a new strategy that apart from expanding our presence in the market would also expand our capacity," Liberty Group CEO Adesh Gupta said.

The group pocked a profit of Rs 19.19 crore last fiscal on a gross sale of Rs 222.92 crore of which 28.23% was the overseas sale. Though its exports maintained a status quo, its overall sales in 2005-06 witnessed a jump of 14.09% over the earlier fiscal.

Now, the group wants to strengthen the foothold. On the retail front, Mr Gupta said, they have a three point blueprint. With an investment of Rs 25 crore, we are setting up 25 exclusive Revolution stores under Liberty Group. The group is investing nearly Rs 25 crore on its part to add up another 100 outlets across the country through the existing franchise system. It has right now 400 outlets.

FootMart Retail initiative would launch a branded footwear retail chain and open large stores between the size of 10,00 to 20,000 square feet in metros and sub-metros. Bangalore, Mumbai, Hyderabad and Ahmedabad fall in the top priority list where the stores would open before December. With an initial investment of
Rs. 30 crore, FootMart has already opened a factory each in Ahmedabad and Bangalore.

GURGAON: The high-end Indian consumer will not have to go shopping to Paris or London to hunt for that premium interior furnishing brand.

The brands that the group will introduce as an exclusive franchisee include Fabricut from the US, Jero from Paris & Warwick from the UK. These brands will be sold at existing world prices via the group’s upcoming retail outlet, likely to be called Club Class.

The brands will be positioned exclusively in the premium category and will be priced between Rs 5,000-50,000 per metre. IS Wadhwa, chairman, Seasons’ Furnishings told ET: “Club Class will be functional by July-end and will host some of the most premium home furnishing brands from across the world.

It will also be a first-of-its-kind format in India.” Apart from the new format, the group is also expanding its existing manufacturing and retail capacities and plans to get into some new product categories, such as velvet furnishings.

Top of the agenda is gaining ground in the international market. The group has already tied up with some leading Asian retail chains, including Serbantic in Indonesia and Singapore, Fella Interiors in Malaysia, and Shell Canvas in the Philippines.

Seasons’ Furnishings is also in talks with some other retail majors for getting into Dubai, Sharjah, Abu Dhabi and Jordan.

Cleopatra soon in India

This Cleopatra is not one from Egypt but this is the new age Cleopatra from Ahmedabad, which celebrates women power.

Seen as the first of its kind in India this women-only restaurant is gearing up to attract the women in Ahmedabad by offering an exclusive recreational zone. What sets Cleopatra apart is the exclusive rights it offers to women. The entry for men is only after 7 pm and that also on an invitation by a woman dinner.

Ajay Thakkar, who is an Ahmedabad-based diamond merchant and also the mastermind behind this unique concept said, “I came up with the concept sometime ago. I found the idea so appealing that I immediately made it a reality and gifted it to my wife to run”.

Currently, the restaurant employs six female and three male chefs. Though the restaurant is yet to start sailing, talks are already doing the rounds to open a franchise in the US and UK. Cleopatra is likely to have at least eight outlets within a year.

The interiors depicting Macedonian culture and walls painted by local art students, the 5,000 sq ft space is all set to offer customers an absolute way to enjoy their femininity. Some added advantages are also in the offering including a yoga centre, an eco boutique and the services of a gynecologist who will provide free consultation twice a week.

Commenting on the fascinations of Cleopatra Anita Thakkar the owner of Cleopatra said, “We are also planning to start milk and honey baths similar to that enjoyed by the Egyptian queen”. She further added, “There are also plans to start a full-fledged division selling rare diamonds and gold and platinum jewellery.”

Leading with word of the mouth publicity, within less than a week of its launch enquiries have already started pouring in. Women are enquiring to hold kitty parties in this no entry zone for men. So the new age Cleopatra is again making everyone sit up and take notice of its allure.

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The company, which was earlier in the retail trade of furniture, has shifted its business operations into project-based solutions with a new corporate office and plans for a new warehousing and display facility here, a company statement said.

"It no longer makes business sense for us to restrict ourselves to only high end retail sales," said Inder Madhan, the company's new chief executive officer.

"Instead of depending on sales through retail outlets, future individual sales will now be by invitation, with viewing of our range by prior appointment."

Explaining some more reasons for the shift in business focus, Madhan said the group's franchising business had not proved successful since its product line made it difficult to ensure the high standards and customer satisfaction.

The lifestyle furniture chain has sourcing arrangements with over 50 companies primarily from Europe and offers a wide range of styles to its customers, the company said.

Interiors Espania also has a special focus on duty free business and the company is currently executing several projects worth over Rs.10 million each for large corporate houses and an embassy in New Delhi.

FranchiseSales.com launches new India portal

FranchiseSales.com has further expanded its international reach by launching a new Indian version of the site.

This new area of the site caters entirely to the Indian market and reflects the continuing aim of FranchiseSales.com to be the premier site for international franchising opportunities. Currently, there are 60 franchises available for sale in India. This number will increase to over 100 opportunities in the coming weeks.

The addition of the India site area is a natural response to the rapidly expanding franchise market in Asia. Opportunities exist across a variety of market sectors, as well as master franchise licenses and franchise resales.

Yasmine Siddiqui, Global Manager Franchisesales.com said, “Franchising is growing at a startling rate all over the world and India is no different”.

She further added, “Buying into a franchise is becoming an increasingly popular way of getting into business, as well as growing an existing business on a global scale. Therefore, we are expanding our services to accommodate the needs of both Franchisors and potential franchisees internationally.”

NAVSON’S CARTRIDGE CLINIC PVT. LTD. is committed towards offering the highest quality refilling services, compatible printer supplies and laser toners to individuals, businesses, government and educational institutions through its network of authorized Franchisees.

Each Navson’s franchise store is equipped with Automatic Inkjet Refilling Machines and other latest refill and priming equipments. Each franchise owner receives professional training and ongoing technical and marketing support.
NAVSON’S franchise is not only profitable and environmentally sensitive but provides fund raising vehicles for local charities while removing industrial waste from our landfills.

NAVSON'S CARTRIDGE CLINIC is based on two beliefs:

To attract small business clients by providing professional Inkjet and Toner Refilling services at affordable prices.

To provide effective solutions to help business owners and individuals cut cost on their printing needs.

Your customer will be saving up to 75 per cent of the original manufacturers cost. Not only this will attract more customers but will also extend you profit margin.

With an investment of Rs. 2,50,000/- to 4,00,000/- you get a fully operational store, plus working capital to launch your own Navson's Cartridge Clinic franchise, Navson’s brand recognition, buying power and superior technology.

Currently Navson’s have four successfully running outlets in Ludhiana, Jalandhar and Phagwara. Four more centers are in the pipeline and in the next year they are looking for 40 more outlets.

The phenomena will be a rage in India as it unveils a wide range of authentic, unique and fantastic merchandise including toys, books, clothes and other merchandise coupled exclusively with the hit television show. Power Rangers is considered to be Disney's highest performing property, it currently airs in the super successful JETIX, the action-adventure block on Toon Disney. The franchise has a new series with some unique adventure plots releasing every season on JETIX.
Currently, the Power Rangers franchise enjoys the highest GRP's across all kid shows in India in the 4-14 age groups. AC Nielson rated it as the most successful kids' franchise of the 1990's and now even Power Rangers is one of the highest contributing franchise in the kids' genre and growing fast.

Disney Consumer Products, Disney Worldwide Publishing and the Walt Disney Internet Group are some of the active business lines of Walt Disney that are doing the rounds with the television campaigns. Disney’s products line authentic kids' merchandise range for the latest season of Power Rangers SPD, includes Toys, Clothing, Bags, Stationery, Bed Linen, etc. Disney Consumer Products has joined hands with some of India's leading kids' merchandisers like New Boy, Weekender, Funskool, Milton, Frank Educational Aids, Art for All for their line-up of products. For publishing they have roped in Sterling Publishers to launch an extensive range of comics, story-books, coloring and activity books. The Internet group will make a buzz by launching a completely new Power Rangers game on mobile.

According to Rajat Jain, Managing Director, The Walt Disney Company (India), "Product innovation drives Disney. In recent years, Disney has transformed from passive to active licensing. From a deal-making focus where relationships were singularly with the licensee without much value add from Disney beyond the great brands we create; the focus has shifted to consumers, retailers and product. Now, we work with licensees and retailers as partners."

Power Rangers has its pride in innumerable lines of merchandise across the world. In fact, Power Rangers is the best selling action figure of all time!

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Ma Foi forays into retail job shoppes
Ma Foi Management Consultants Ltd, India's largest staffing and HR service provider are all set to enter into Retailing of Job opportunities according to a recent announcement. The initiative is seen as a pioneering effort that would exponentially increase market penetration of professional staffing services and further lessen the gap between the employers and the employment seeker.

Opening of such a Retail outlet will make the job opportunity accessible to candidates at convenient locations and will provide opportunities in their immediate locality. Accessibility to a variety of database and providing the right job in the locality would be the key drivers of the business.

According to Mr. K. Pandia Rajan, Managing Director & CEO, Ma Foi Management Consultants Ltd, ‘’Ma Foi has earlier taken professional recruitment to tier II and tier III towns through the franchising mode”. He further opines that there is enormous untapped potential in the metro markets like Mumbai and Delhi where the accessibility to the recruitment consultant and the job provider plays a major role in attracting the right talent. Ma Foi job centers will be strategically located across the cities providing a strong professional approach, effective and efficient service at competitive and economical pricing. “This model would provide for effective mapping of the local needs to local talents,” he added.

The industry perspective has it that the demand for localized qualitative database has increased and this solves the logistic and economic problems of a recruitment process. Professional advice from the candidates’ side is also required and it necessitates the need for an immediate solution in their neighborhood. Candidates can walk in to their closest job center, where their job requirement is understood based on their profile and a personalized placement service is provided.

Ma Foi retail outlets will also fine tune the database and classify it better. Candidates with experience and background in FOS i.e. feet on street, Call centre, Financial services, Retail, FMCG and BPO segments would find it comfortable to register at these Job centres. It would also be of interest to small sized companies of the neighborhood, who can bring in their requirements and can get much faster service due to the accessibility factor.

"Papa John’s announces 500 new pizza outlets in India
Famous pizza maker Papa John’s International Inc. has plans to open 500 pizza outlets across India over the next 10 years, according to a company official.
The Louisville, Ky.-based pizza maker plans to expand its operations internationally and has identified six high potential markets — Mexico, Britain, South Korea, China, India and Russia, announced Nigel Travis, the company’s chief executive.

Papa John’s is the world’s third-largest pizza chain in terms of sales. Its total sales in the United States alone in 2005 including those from franchise stores were around $1.8 billion or 6 percent of an estimated $30 billion pizza market in the country, Dow Jones Newswires reported.

Papa John’s has named Om Pizza and Eats India, an Indian fast food company, as its franchisee, with plans to initially open 100 pizza outlets in northern India to cater to the country’s increasing appetite for pizza, estimated to grow at 20 percent annually.

Two outlets have already opened in the New Delhi and suburb of Noida.

Travis said rising incomes in India would result in greater consumption of takeout and packaged foods.

With larger numbers of educated women holding jobs, dual income families were on the rise, he said.

“Growing affluence in India is already evident with families eating out four to five times a week,” he said.

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