New Delhi: Bucking the current economic downturn, India’s franchise market is expected to treble to reach $20 billion by 2013, a study says.
“The Indian franchising sector is growing at a rate of 38% with a market size of $7.2 billion and is expected to reach $20 billion by 2013,” the FICCI-CIFTI (Confederation of Indian Food Trade and Industry) Franchising India Holding Ltd study said.
The trend indicates that franchise system can grow strongly in the times of recession, the study pointed out.
“While other industries are constrained to lay off, franchisers are having a busy time as they are recruiting new franchisees,” it said.
Over one lakh franchisees with 1,200 franchise concepts in India provides employment to about 9.5 lakh people.
Indian food service entrepreneur is ready with massive expansion plans, which provide thrust to the sector to grow at 48% in the next two years, it said adding 51% of the consumer wallet share is dedicated to food.
The report said that over 30 % of the new food outlets which are coming up are based on franchisee system.
There are about 18,000 franchised restaurants in the country as compared to 2,500 run by company owned by these 150 food franchise companies, it said.
Besides food, other important sectors using franchising business model are beauty salons and cosmetics, apparel and tours and travel, the CIFTI Franchising India Holding Ltd study said.
It further said franchising has been acknowledged for organising and stimulating the growth in service sector.
However, it said lack of laws and government policies is an impediment in the growth of the sector which has a huge potential.