The market for franchising in India is booming with many international concepts making inroads. Deriving support from the buzz, the strong potential of Indian franchise concepts are now being taken seriously and brands are establishing their foothold in international markets.
Growth story: Homegrown restaurant chains like Kailash Parbat, Saravanaa Bhavan head abroad
Kailash Parbat is, quite literally, Mumbai in a kadhai. Chatpata, noisy and not all that fussed about niceties like super-hygiene. In fact, it is so inextricably linked with Mumai that it feels odd to spot a branch in even Surat or Bangalore. Which is why it’s necessary to fasten our seatbelts in order to make the next leap of imagination. For, believe it or not, this quintessentially Mumbai eatery is now sloshing its spicy pani and thunking its buttery bhaji in distant Wembley and Manhattan. Kailash Parbat is not alone. Over the last decade, an unexpectedly large number of Indian restaurant chains have ventured overseas. So when you sit at Rajdhani and order a Gujarati thali, piled high with makai pattice, jawari rotla and basundi, chances are high that someone is sitting across the Arabian Sea in Muscat and eating an almost identical meal. Or when you go to a Kobe restaurant in Patiala and happily order a Chicken Sizzler–that ultimate Indo-Japanese collaboration–somebody could be tuck ing into the same dish at the Kobe restaurant in New Zealand. Admittedly, none of these Indian chains are exactly McDonalds. But more and more restaurateurs are realizing that it might make sense to open their next branch in Abu Dhabi rather than Andheri. Even before the arrival of these new-age entrepreneurs with their business plans and jargon, however, a number of traditional, nofrills eateries did venture abroad. Their strategy was simple, as was their decor. They dished out the flavours of childhood to a nostalgic diaspora and mopped up profits in the process. So Saravanaa Bhavan -the most successful globetrotter of the Indian pack –whips up its dosas, idlis and South Indian meals in 12 countries, including Germany, Australia and Kenya. While Anjappar, a chain of rather basic eateries that serve fabulous Chettinad fare, has branches in places like the US, Canada and Malaysia.
At the other end of the spectrum are foodwalas inspired by all those Cheesecake Factories and TGIFs out there. They believe that if the Brazillian Giraffas or Japanese Ippudocan crack the formula and become truly international, then so can Indian chains. Ironically, it was neither market research nor business instinct that gave birth to the first Khazana in Dubai in 1998. Little wonder that so many Indian chains are getting itchy feet. Specialty Restaurants -which runs brands like Oh Calcutta and Mainland China -has announced that it will be establishing a dozen restaurants across the US, Canada and Africa while Lite Bite will soon be unveiling the first outlet of American Tandoor in Washington. Also, menus, recipes and decor have to be tweaked. Formulae have to be established. Local laws have to be followed. Nevertheless, Chef Kapoor maintains that homegrown restaurant chains have much more to offer than all those generic Balti restaurants and Indian takeaways that supply the world with its curry fix.(Source:http://m.economictimes.com/industry/services/hotels-/-restaurants/growth-story-homegrown-restaurant-chains-like-kailash-parbat-saravanaa-bhavan-head-abroad/articleshow/46330039.cms )
JSL Lifestyle to expand
JSL Lifestyle Ltd. (JSLLL), engaged in selling stainless steel modular kitchen, cookware and tableware products, plans retail expansion, entry into newer product segments and international foray this year. The company, a subsidiary of Jindal Stainless Ltd., is looking at retail expansion of Arttd’ionx, first 100 per cent stainless steel modular kitchen brand in the world. . It intends to double Arttd’ionx exclusive retail stores to 12 by this year end. It has just launched the store in Chennai and is planning to open such outlets in Hyderabad, Kochi, Jaipur, Indore, Pune and Ahmedabad. Backed by a strong own value chain, which includes design and manufacturing capabilities, the company is positioning itself as a premium brand in the modular kitchen segment and its products are priced three times more than that of local brands. It is also preparing to widen its product portfolio through entry into new segments. It recently launched modular railings in New Delhi and is looking to go pan-India soon. It is test-marketing stainless steel-based overhead water storage tanks. Also, the company is contemplating launching stainless steel-based modular furniture. The Rs.160 crore JSLLL is also preparing to go international and is expected to launch its modular kitchen in Jakarta, Indonesia around July. It is also planning to enter Middle East market by the end of the year.(Source: http://www.thehindu.com/business/jsl-lifestyle-to-expand/article6917223.ece )
Being Human Clothing on expansion spree in India and Nepal for the FY14-15
Being Human Clothing a fast fashion brand that has made a strong hold all over the country with its massive presence in past few years is all set for an aggressive expansion. To capitalize on the brand’s surging popularity Being Human Clothing under its licensing partner Mandhana Industries Ltd is planning to open 8 stores which consist of 5 Franchise stores, 2 EBOS in India and 1 franchise store in Nepal by March 2015. The stores will be targeted in cities like Hyderabad, Kolhapur, Mohali, Noida, Lucknow, Pune and Jalandhar in India and Pokhra in Nepal. As part of their development strategy the brand has added 18 exclusive stores, including 6 franchises in the FY13-14 and 5 EBOS in FY12-13 to their expansion portfolio. The brand which propagates on the philosophy of fashion with a heart is known for its casual yet stylish clothing with effortless store decor. The vast collection boasts t-shirts, shirts, polos, denims, chinos, shorts, jackets, hoodies, flip flops and accessories for men and women. Being Human Clothing has also extended its women’s wear portfolio with fun and chic dresses, skirts and tops and blouses. Holding 29 exclusive stores including 6 franchises Being Human Clothing keeps its promise of offering global fashion and helping the twin causes of education and healthcare through the Being Human – The Salman Khan Foundation. Being Human Clothing’s target is to increase the number of stores to 50 by end of 2015. (Source:http://www.indiainfoline.com/article/news-sector-retail/being-human-clothing-on-expansion-spree-in-india-and-nepal-for-the-fy14-15-115012000358_1.html )
Anita Dongre Opens Store in Mauritius
Fashion designer Anita Dongre has opened her flagship store in Trianon Shopping Park, Mauritius. The store has all three brands available, AND, Global Desi and Anita Dongre. Sprawling over 2,357 sq. ft., the store is divided into three separate sections dedicated to a brand each that offers a holistic mix of style infused ensembles for every occasion, mood and personality. The designer planned to open a flagship store in Mauritius after seeing the success of Global Desi. (Source:http://www.indiaretailing.com/Fashion/7/1/6/12926/Anita-Dongre-Opens-Store-in-Mauritius )
Sanjeev Kapoor launches first Abu Dhabi restaurant
Ask celebrity chef Sanjeev Kapoor what his latest Abu Dhabi restaurant serves, and his answer is simple: “Joy and happiness”. Kapoor, who is famous for his signature Indian food around the world as well as his appearances on television cooking shows, launched Signature by Sanjeev Kapoor at the Nation Galleria on the Corniche on Wednesday. The restaurant is his first in the capital, and the second Signature in the UAE (there is one in Dubai at the Melia Hotel). Signature, one of many brands by Kapoor, includes all his signature dishes and personal favourites. If you’e visiting for the first time, we highly recommend the lalla mussa dal – a slow-cooked creamy black lentil stew, which is guaranteed to please vegetarians and carnivores alike. Follow that with some butter chicken, and thank us later, as this is not your everyday butter chicken; it’s not greasy at all, the sauce is not too heavy, and it is perfectly seasoned. Alternatively, you can take recommendations from Kapoor himself. But the restaurant is not all about the food. The staff is welcoming and knowledgeable about each dish, and there is outdoor seating where the view of the Corniche is absolutely scenic. With the launch of his first restaurant in the capital, Kapoor said he was considering bringing some of his other brands to Abu Dhabi. Kapoor added that he has already signed a master franchise to bring The Yellow Chilli to the UAE.(Source: http://gulfnews.com/life-style/food/features/sanjeev-kapoor-launches-first-abu-dhabi-restaurant-1.1439562 )
To conclude, we can say that having an international presence gives the company new markets which in turn will bring better returns on capital employed and improve the efficiency of working capital in the business.