Stock markets have become highly volatile with the economic downturn. Under such circumstances, Sykes & Ray Equities (I) Ltd, pioneers in financial planning is all set out to secure investors’ wealth through easy investments. In an interview Saurabh Shah, Head -Business Development, Sykes & Ray Equities (I) Ltd shares the growth and future plans of the company.
Abha Garyali (AG): Tell us something about the inception and success of Sykes & Ray Equities (I) Ltd.
Saurabh Shah (SS): Sykes & Ray Equities (I) Ltd (SRE) was incepted in 1990 under the guidance of Yogesh Gupta and Anup Gupta (promoters). SRE made a humble beginning with a single office in Mumbai and today it is spread across 110 cities with over 350 offices. At SRE, we have always valued relationships, be it with our clients (investors) or with our associates (sub broker), this has been a key contributor to our growth. We have been pioneers in financial planning and fervently believe in creating and growing investor wealth through prudent investments backed by the highest degree of professionalism.
AG: What is the USP of Sykes & Ray Equities (I) Ltd?
SS: We have maintained a long term vision of nurturing the client’s wealth. As a company policy, we do not promote large turnover for revenues. We rather concentrate on value service to enhance the clients experience and in turn our revenues. Today, SRE has translated its experience and acquired knowledge to establish Sykes & Ray Financial Planners and Financial Planning Academy. Sykes & Ray Financial Planners provides financial planning services with a team of certified financial planners. The Financial Planning Academy has been established to initiate an entirely new platform for disseminating financial planning education to the upcoming financial consultants and certified financial planners.
AG: When did you start franchising? From where did you get the inspiration to opt for franchising as a mode of expansion?
SS: We had identified the requirement for franchisees (usually called as sub-brokers in our industry) in the early 90’s. To eliminate the geographical limitations, we had to establish offices at different locations. There were two ways to counter the limitations, either we had to establish our own branches or we could partner with entrepreneurs who aspired to establish themselves in the financial service industry. Thus, we decided to concentrate on the later.
AG: According to you what is the future of franchising in the financial services sector in India?
SS: Currently, less than five per cent of Indian savings are being channelised to the capital markets both directly and indirectly. With the growing awareness about investments in capital markets, people will require more quality advisors (sub brokers) to assist them with their investment. Thus, franchising becomes the most effective medium for the brokers to expand their markets and is therefore a growing business proposition for the sub broker.
AG: Has franchising made a difference in the performance of the company? Please share how it has done so.
SS: Yes, franchising has helped us in increasing the pace of our company’s growth. Our associates have enabled us to reach diverse geographic locations within a short span of time.
AG: What are the qualities that you look for in your prospective franchisees?
SS: A person with basic knowledge of the stock markets is a must to secure our franchise. Secondly, s/he must have the entrepreneurial spirit to grow rapidly with the changing market trends.
AG: How many franchisees do you have?
SS: We are spread over 112 cities through a network of 352 associates.
AG: What are your future plans in terms of expansion through franchising?
SS: Franchising has been the key enabler of growth for us. We plan to continue our expansion through the franchising model. In order to accelerate the expansion rate, we have authorised our franchisees (sub brokers) to recruit franchisees for us.
AG: In what ways do you support and train your franchisees?
SS: We clearly understand that the growth of the franchisee is directly related to ours. Thus, we provide complete technical as well as product related training. Additionally, we also help our franchise partners in the promotional activities such as investor seminars, road shows and so on.
AG: What is the break-even period for the franchisee?
SS: The break even period for a sub broker (stock broking franchise) is typically attained within six months to one year.