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Franchise India to launch online platform for M&As of small units

About 98% of the businesses are small business and they face the succession challenges

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BS Reporter Bhubaneswar
Last Updated : Jun 10 2014 | 9:17 PM IST
Franchise India, Asia's leading integrated franchise solution company, will launch an online platform for mergers and acquisitions for small business units.

"We will be creating a network where small business units can post their business online for mergers and acquisitions. It will be launched pan-India on July 1," Gaurav Marya, chairman, Franchise India told media persons.

About 98 per cent of the businesses are small business and they face the succession challenges. After due diligence, we will help them to sell their business units, he added.

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He, however, said that it is difficult to assess the market size of merger acquisition of MSME (micro, small & medium) business units.

"It (online platform) will be a revolution," said the chairman of the company that offer services in business brokerage, business consulting, valuation services, mergers and acquisitions, capital services, real estate services and legal services. "The platform will be the first of its kind in the country," claimed the company official.

The market size of franchising business in India was pegged at Rs 110,000 crore in 2013 and is likely to grow 30 per cent per annum.

"There is ample scope for growth of franchise business in Tier-II and Tier- III cities," he stated. According to KPMG India estimates, the franchising industry is expected to quadruple between 2012 and 2017. KPMG in its report has said that there is scope for franchising industry to contribute almost four per cent to the country's GDP (gross domestic product) in 2017 (assuming six per cent year-on-year GDP growth between 2012 and 2017), growing from a current estimated contribution of 1.4 percent of GDP. Franchise industry is expected to create job opportunities (including both direct and indirect) for an additional 11 million people by 2017. Franchise India today opened its 17th office at Bhubaneswar to offer its services. "In Bhubaneswar, our focus will be for all consumption linked sectors like retail, education, health care, health and beauty wellness," he added.

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First Published: Jun 10 2014 | 8:15 PM IST

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