By Sabyasachi Samajdar, FoodBizDaily.com Bureau Chief – New Delhi
June 17, 2009 – Food franchising has come of age in India. Northern India boast of having 70% brands of 408 brand franchisors, Western India with 386 brands, Southern India with 250 brands and the Eastern India with 58 brands.
Over 30% of new food outlets which are coming up in almost all the cities across the country are through franchise system, 17% share of food and beverages in the organized sector is operated by franchisors in the country. There are 1200 franchisors at present, out of which 150 are exclusively dealing in food and beverage retail 75% of which are of Indian origin and rest are international. There are around 18,000 franchised restaurants in the country as compared to only 2500 run by company owned by these 150 food franchise companies, according to a survey carried out recently by Confederation of Indian Food Trade and Industry (CIFTI) food wing of Federation of Indian Chambers of Commerce and Industry (FICCI) in association with Franchising India Holding Ltd.
Report states that the Indian franchising sector is growing at the rate of 38% per annum with a market size of US$ 7.2 billion and is expected to reach US$ 20 billion by 2013. There are 1200 active franchise concepts in India and over 100,000 franchisees.
It forecasts that 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. International Food Service brands are gazing Indian markets as a profitable investment destination and many among them have already started their operations.
The report gives insights of food service sector in India. It has calculated that size of India’s food service sector is $11 billion but organized players enjoy less than 8 per cent of the market share. There are 10 million street vendors in India, of which six million sell ready to eat food. Consumer foodservice value sales grew at a strong 20% in 2007-2008 in India, second only to that of Vietnam and Indonesia
There are 200 food and beverage franchises concepts across the country forming 17% of the total pie. 51% of the consumer wallet share is dedicated to food (54% in rural areas and 42% in urban areas), the report says.
FoodBizIntel®
Federation of Indian Chambers of Commerce & Industry
Address: Federation House Tansen Marg New Delhi 110001 India
Telephone: 011-23738760-70
Fax: 011-23721504
About Federation of Indian Chambers of Commerce & Industry
FICCI is the rallying point for free enterprises in India. It has empowered Indian businesses, in the changing times, to shore up their competitiveness and enhance their global reach. With a nationwide membership of over 1500 corporates and over 500 chambers of commerce and business associations, FICCI espouses the shared vision of Indian businesses and speaks directly and indirectly for over 2,50,000 business units.
It has an expanding direct membership of enterprises drawn from large, medium, small and tiny segments of manufacturing, distributive trade and services. FICCI maintains the lead as the proactive business solution provider through research, interactions at the highest political level and global networking.
Set up in 1927, on the advice of Mahatma Gandhi, FICCI is the largest and oldest apex business organization of Indian business. Its history is very closely interwoven with the freedom movement. FICCI inspired economic nationalism as a political tool to fight against discriminatory economic policies. That commitment, drive and mission continue in the ever-changing economic landscape of India, chasing always newer agenda.
In the knowledge-driven globalized economy, FICCI stands for quality, competitiveness, transparency, accountability and business-government-civil society partnership to spread ethics-based business practices and to enhance the quality of life of the common people