Franchise India Holdings Ltd, is probably the first integrated franchise and retail solution company in the country. The company has consulted numerous brands like Videocon, HP, Reebok, HCL, Kwality Walls, Tata, Gitanjali, HSBC and many more through its media initiatives, advisory services and exhibitions. Gaurav Marya, president of the company is quite optimistic about the franchising climate in India. The company, in fact, has lined up couple of deals in the pipeline including Lamborghini, Manchester United, Guinness Book of World Records etc. Marya in an email interview to FE?s Kavitha Venkatraman, talks about his plans for the international market through acquisitions, market in India, industry and competition. Excerpts:

What do you think about the franchising industry in India as compared to other countries? What is the role of the government in the growth of the sector?

In India, the franchising industry received a fillip during the 1990s due to opening up of the economy. Since then, sales from franchised business have grown at an average rate of 25% to 35% compared to an economic growth rate of 6% to 9%.

The country has a vibrant, vigorous and vivacious media, a pool of high skilled and technologically sophisticated labour, an independent and impartial judiciary and a robust legal infrastructure. Based on the successful companies that have enjoyed financial gain since the silent franchise boom, the future of Indian franchise is very bright and positive.

The country has potential for an increasingly powerful internal consumption dynamics, which is an important ingredient missing in most other Asian development models, including China.

At present, the government is taking keen interest in the development of franchise business and is considering enacting franchise laws.

You have been in the market for a decade now. How do you look at competition?

Franchise India has been in the market for 11 years now and has established itself as an absolute authority on franchising, licensing, retailing, real estate and marketing, with well integrated divisions catering to large clientele. We offer comprehensive end-to-end solutions to our clients through our strategically formed divisions and this becomes our strength, as no one in the industry offers such elaborated services under one roof. We have competition emerging in different verticals for our individual divisions like media, events and so on. Hence, we firmly believe that to maintain a leading position, it is important for us to hold onto our innovative thinking and possess well integrated systems. We feel that competition in the industry is healthy. It helps all the stakeholders of the industry to evolve. Till date, Franchise India has successfully engaged 90% of the total domestic brands present in the market. Our total turnover of the group is Rs 48 crore. Though the country?s franchise system is at its nascent stage, however, the company has not only evolved in the industry but has also experienced an impressive growth, which has been the trend in last 10 years.

Are there any further deals in the pipeline? Where do you see opportunities coming from?

We have many deals in the pipeline such as 3M, Sumeet, Lamborghini, Manchester United, Kenny Rogers, Wheat, Guinness Book of World Records, Pampered Girls, Beverly Hills Country Club and many more.

The SME sector contributes to a major part of our economy and is a great potential for retailing and franchising. With the burgeoning retail sectors in India, franchising is now becoming more and more popular with small entrepreneurs who want to start their own business because of its ?almost? risk-free business nature. SMEs are also responsible for driving innovation and competition in the industry. Globally, SMEs account for 99% of business numbers and 40% to 50% of GDP.

Would you look at inorganic growth? Are you planning to diversify into other service offerings?

Yes. We definitely would be looking at the inorganic way to grow by exploring international acquisition capitalising on competitive and efficiency advantage. There is an immense potential that exists in Australia and Europe where operating costs are too high. With so much of competition, India is most sufficient in providing best cost effective methods. We would also look at acquisitions in other developed countries like South East Asia and Africa this year.