With the vision to expand across India, ICICI Securities, one of the leading financial institutions, is all set to take the count of its franchised outlet to 2, 000 by 2010 year end. In an interview, Dharmesh Dixit, Head, Sub Broker Channel, ICICI Securities shares the future plans of his company.
Abha Garyali (AG): Brief us about the inception and success of ICICI Securities.
Dharmesh Dixit (DD): ICICI Securities Ltd is the largest equity house in the country and is operational since 2000. It is known for providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. The company deals in corporate finance including equity capital markets, advisory services, institutional equities, retail and financial product distribution.
AG: When and what inspired the company to opt franchising as a mode of expansion?
DD: The company has started franchising in the year 2002 in order to expand its reach to every nook and corner of the nation. Franchising is the best business model to increase the presence of a business without investing a lump-some amount of money.
AG: How many franchises does ICICI Securities have at present and in which cities?
DD: Presently, we are operating through total units of 1,274 in over 500 cities. Out of which,215 are company owned offices and 1059 are franchised channel partner outlets.
AG: What are the essential qualities to take up a franchise of your company?
DD: Our recruitment process has been established considering the unique skill and knowledge required to do share trading business. The recruitment process ensures that the best business partner comes into the system. The key parameters that we look for while evaluating a potential partner includes:
AG: How much investment is required by the franchisee to secure the franchise of your company?
DD: A franchisee needs to invest around Rs two to three lakh including infrastructure, application fees and security deposit.
AG: What kind of location is apt to start a franchised outlet of I-Sec?
DD: We are in the business of financial services and we look for space in commercial centres or office complex. We have sub brokers who have outlets at community centres also. The location primarily depends upon the business model of sub broker in terms of target segment. If a sub broker caters to high net worth individual, he would prefer to have outlet in office complex whereas, a pure retail sub broker would prefer an outlet at a community centre to attract walk-ins.
AG: What training and support do you provide to your franchisees?
DD: We have well defined training schedule, which includes both the induction and refresher training for our channel partners and their team. There are continuous training programme and also with regard to sales staff. I-Sec sales team does joint calls with the sub brokers’ sales staff for the job training.
AG: What are your future plans in terms of expansion of ICICI Securities through franchising?
DD: Our ambitious growth plan will see ICICI Securities footprints spreading across India. The sub broker outlets will act as business catalyst and work as extension counters and help our clients getting the best technological platform with variety of products.