Franchising industry in India can reach $50 billion by 2017 and create 11 million additional jobs, according to PepsiCo India Chairman and CEO D Shivakumar. The industry, estimated to be around $30 billion currently with an annual growth of 30 per cent, could create 47,000 new companies by 2017 as India has a new breed of entrepreneurs, he said.
“By 2017, the opportunities for franchise business model in India would be $50 billion and the big ones would be in sectors such as apparels, consumer deliverables, electronics and mobile,” Shivakumar said here at the World Franchise Congress 2015.
“Franchising industry is expected to contribute almost 4 per cent of India GDP in 2017,” he added.
Elaborating on sectors which would contribute majorly, he singled out apparels, with $11 billion, followed by consumer deliverables, electronics and mobile ($11 billion), furniture and furnishings ($5.3 billion), and pharmacy and jewellery with $4 billion and $3 billion, respectively.
Shivakumar said for over 100 years, franchising has been a fundamental driver of PepsiCo’s success, which today covers more than 120 countries. It has build strong partners across the country in the last 25 years. “PepsiCo India’s north operations are franchisee operated and the company works closely with various beverage bottlers to build a strong footprint of brands which are the first choice of consumers,” he said.