Franchising - A Realistic Business Opportunity In India

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A presentation looking at the criteria for a business wanting to expand through franchising.

Looks at the entrepreneurship scalability with franchising in India within the Education Sector.

End result is that any successful franchise is probably a mix of the various models.

There are as many models of Franchises as there are business multiplied by the different ambitions and desires of the owners of those businesses.

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Franchising - A Realistic Business Opportunity In India

  1. 1. © 2008 KarROX Technologies Ltd. A REALISTIC OPTION FOR EVERY BUSINESS IN INDIA? Franchising
  2. 2. Slide | Karrox Technologies Ltd. Agenda An Insight into karROX Entrepreneurship in India Industry Overview Leading Sector - Education Is Now A Good Time? Business Opportunity with karROX Confidential – Not for Circulation Summary
  3. 3. KarROX an Insight Slide | Karrox Technologies Ltd. <ul><li>High-End Technology Training </li></ul><ul><li>Incepted in the year 1992 </li></ul><ul><li>Leading training and certification company in India </li></ul><ul><li>Trained more than 250,000 candidates worldwide </li></ul><ul><li>An ISO Certified Training Organization </li></ul><ul><li>Training Centers in India, Africa, Middle East and South East Asia. </li></ul><ul><li>Providing Corporate Training Worldwide </li></ul><ul><li>Among the fastest growing Education Organization </li></ul>Confidential – Not for Circulation <ul><li>About Jeetendra Nair, CEO, karROX </li></ul><ul><li>CEO , karROX Technologies Ltd. </li></ul><ul><li>He is viewed as an industry leader and has been a speaker at various industry related forums in India as well as abroad and has often participated in panel discussions for TV programmes connected with Information Technology </li></ul>
  4. 4. <ul><li>With a population of 1108 million people at present to 1269 million by 2016, the economy is booming with the proliferation of entrepreneurial opportunities and free enterprise </li></ul><ul><li>With the 1991 reforms there emerged a new India , an India of new ideas and vision for its future </li></ul><ul><li>This India was a hub of business possibilities and innovation . There were technocrats, IT professionals, educated and not so educated but enterprising people all waiting to venture in to the new market arena. Thus was born the new India </li></ul><ul><li>India’s projected economic prosperity is likely to be spearheaded by a real GDP growth of 8-9 per cent with a possible annual per capita income of Rs. 50,000 by 2012. This macro growth would entail significant sub trends like a increase in high-income households, led primarily by urban India </li></ul><ul><li>Between 2005-06 and 2013-14, the number of households with annual income greater than Rs. 12 lakh will grow nearly fourfold. Within this band, there are 3.4 million households with an income in excess of Rs 24 lakh at 2005-06 prices </li></ul><ul><li>This segment is likely to include more than 15 million people , greater than the population of Denmark, Finland and Ireland put together </li></ul>Entrepreneurship in India Slide | Karrox Technologies Ltd. Confidential – Not for Circulation
  5. 5. <ul><li>Though the Franchising  in India is at a very nascent stage, but this industry has clocked the growth rate of 25-30 per cent, the second  fastest growing industry. </li></ul><ul><li>• There are approximately 1150 national and international business format franchise systems in India in 2007;  </li></ul><ul><li>• There are an estimated 70, 000 units operating in business format franchises. </li></ul><ul><li>• The growth rate in franchised units from 2005-06 to 2006-07 was 30 to 35 per cent for the last 4-5 years </li></ul><ul><li>• Some 500000 persons are employed in business format franchise organizations </li></ul><ul><li>• Franchising contributed approximately 3-4 per cent to India’s Gross Domestic Product (GDP) in 2007. </li></ul><ul><li>Successfully doing business in more than 35 sectors </li></ul><ul><li>Annual turnover is approximately  US $ 4 billion </li></ul>Industry Overview Slide | Karrox Technologies Ltd. Confidential – Not for Circulation
  6. 6. <ul><li>India’s youth, comprising over 50 percent of its population, is referred to as its demographic dividend </li></ul><ul><li>A rough statistics in the past year estimates the presence of 367 universities, 18,000 colleges, half-a-million teachers and about 11 million students on the rolls (Source- ibef.org) </li></ul><ul><li>Statistics reveal that less than 25% of the graduates are actually employable. It is believed that based on the current and future manpower requirements of the various sectors, there is a huge demand-supply gap in the education space </li></ul><ul><li>The latest news that India’s education sector is forecasted to increase its IT spending from an estimated $356 million in 2008 to $704 million by 2012, reflecting in a Compounded Annual Growth Rate (CAGR) of 19 percent during 2007-2012, according to the research study by Springboard Research, an IT Market Research industry (Source - Silicon India) </li></ul>Leading Sector - Education Slide | Karrox Technologies Ltd. Confidential – Not for Circulation
  7. 7. IS NOW A GOOD TIME? <ul><li>People being made redundant, have a pay off and its difficult to find new jobs </li></ul><ul><li>Businesses have less money to expand using company owned expansion </li></ul><ul><li>The success rates are higher for both franchisors and franchisees than for non franchise businesses </li></ul><ul><li>For Franchising to succeed still need to apply proper / sound business practices </li></ul>
  8. 8. IS NOW A GOOD TIME? <ul><li>In India, acceptability for franchising is growing by the day and it has a fairly wide industry spread. </li></ul><ul><li>There are approx. 1150 established franchisors, 75,000 franchisees with an annual turnover around Rs.12, 000 crore and employing around 500000 persons. </li></ul><ul><li>Between 2004 and 2007, the franchised Business systems grew in the country by almost 100 per cent, and this proved a positive sign for small business development in India and the catalytic role played by franchising to spur the growth of the system. </li></ul>
  9. 9. Slide | Karrox Technologies Ltd. <ul><li>A highly scalable and sustainable business. </li></ul><ul><li>A time tested business model. </li></ul><ul><li>A vision to replicate success. </li></ul><ul><li>A structured and systematic approach. </li></ul><ul><li>An unparallel support from startup to growth. </li></ul><ul><li>Global network and Brand Image. </li></ul><ul><li>A spirit of being together. </li></ul>Why Karrox ??
  10. 10. Slide | Karrox Technologies Ltd. Karrox – Unique Franchising Features <ul><li>Offerings include IT Training & Education – not purely IT training. </li></ul><ul><li>De-risked business model . Hence higher probability of success. </li></ul><ul><li>Alliances viz Microsoft, Prometric , University alliances – passed on to partners. </li></ul><ul><li>Business Partners play an important role in deciding the promotion and strategy in their area of operation. </li></ul><ul><li>Course fees are finalized in consultation with Business Partners, taking into account local market conditions. </li></ul><ul><li>Feedbacks from karROX Business Partners- used to continuously update course curriculum, processes and training methodology. </li></ul><ul><li>Willing to fund growth. i.e for expansion Karrox is willing to provide capital for 2 nd and future centers - to its successful and loyal partners. </li></ul><ul><li>Franchisees could realistically achieve profitability proportionate to karROX India . </li></ul>
  11. 11. <ul><li>Dedicated Partner Account Manager. Joint responsibility of success. Single point of contact for all support services. </li></ul><ul><li>Quarterly performance review held in Mumbai besides the monthly meetings at partner center. </li></ul><ul><li>Product launch calendar given in advance and all TTT shall be provided at no additional costs. </li></ul><ul><li>Partners with good technical resource can avail of Corporate Training outsource to the tune of 50 lacs to 1 cr per annum. </li></ul><ul><li>Marketing training and product launch training on a timely basis. </li></ul>Karrox – Unique Franchising Features
  12. 12. Slide | Karrox Technologies Ltd. Summary <ul><li>Entrepreneurship is the current flavour of the nation, adding value to the country’s real GDP. </li></ul><ul><li>Franchising industry is not only about facts and figures but real flourishing business spread across the globe and building boom in the country. </li></ul><ul><li>India is the nation with 50% youth which are employable but with no jobs and this space is in absolute need of entrepreneurs. </li></ul><ul><li>Karrox is the leader in the training and Education Sector </li></ul>
  13. 13. Get in touch with us: Surjeet Singh Padma: [email_address] Contact Number: 9820785685 Website: http://www.karrox.com/franchises.html Blog: http://www.franchisenxt.wordpress.com
  14. 14. YOU Thank © 2008 KarROX Technologies Ltd. Corporate Head Office: karROX Technologies Limited Bhaveshwar Arcade, LBS Marg, Ghatkopar West, Mumbai-86 India. www.karrox.com

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