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Franchising is definitely flourishing with a lot more established players are now exploring this idea. In India, previously, it was only the small cash strapped retailers that were considering the option, now even the larger ones like Westside are doing that. Some other Indian companies are exploring this idea as well, this time it is United Spirits, the second largest spirits company in the world and the largest in India.
Beverage companies (Alcohol, Non Alcoholic and Water) have always considered franchising for their expansion plans, especially bottling plants. Some popular examples are Coke, Pepsi and even the once independent Cadbury Schweppes explored this option. These are large investment business opportunities, the investment required is typically upwards of Rs. 5 to 20 Crores (USD 1 Million to 5 Million).
This is definitely a much better idea, than establishing manufacturing plans globally. Let us understand the Coke and Pepsi Beverage Plants. Coke and Pepsi only produce syrup concentrate which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise rights with their respective territories. Coca-Cola and Pepsi bottling franchises, who hold contracts with the company, produce finished product in cans and bottles from the concentrate. Their bottling partners are local companies so they are rooted in their communities, thinking and acting locally. They are employers, purchasers of local goods and services, good neighbors, and, of course, producers of the world’s most popular beverages.
On a similar note, other Indian companies that have similar plans in the beverage franchise business is Eureka Forbes, Eureka Forbes is looking for smart entrepreneurs that are interested in the bottled water retailing business. The Eureka Forbes Franchisee would establish a retail distribution network, apartfrom manufacturing bottled water. Those retail stores would cater to the Home and Office Delivery customers as well.
United Spirits is looking to franchise not just in Middle East, but also in Singapore and other major markets. It will aim at connecting with entrepreneurs looking at business opportunities in the spirits / beverages segment. We believe United Spirits if they aggressively franchise their bottling franchises worldwide, they could soon take the #1 position Worldwide in the spirit’s business. We wish them luck. Cheers to Indian Franchising.
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