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India Pepsi Franchisee set to secure franchise rights for Sri Lankan Bottling BusinessIndia Pepsi Franchisee set to secure franchise rights for Sri Lankan Bottling Business
| Guest post by: Dhawal Shah |
Article Overview: NEW DELHI: RJ Corp, the diversified conglomerate owned by serial entrepreneur Ravi Jaipuria, is about to clinch a deal that will in one stroke hand it all of PepsiCo's bottling operations in Sri Lanka and expand its global footprint further.
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Free Download - GordonMax, Creators of the World's Finest Diamond Simulants, expand their India Operations in 2011 By Dhawal Shah |
India Pepsi Franchisee set to secure franchise rights for Sri Lankan Bottling BusinessIndia Pepsi Franchisee set to secure franchise rights for Sri Lankan Bottling Business
RJ Corp is in advanced talks to buy the franchisee bottling rights of PepsiCo from Ole Springs Bottlers, the only bottler, distributor and marketer of the beverage and foods maker in the Lankan market, where Coca-Cola and local brand Elephant are also present. The deal gives RJ Corp access to the lucrative soft drink market in Sri Lanka, estimated at about Rs 1,200 crore and growing at over 30% annually.
"We expect to close the deal shortly," said Mr Jaipuria, who had no comment on the valuation of the deal and other financial details. RJ Corp, which owns PepsiCo India’s biggest franchisee bottling business and franchisee rights for Yum Restaurant International’s KFC and Pizza Hut restaurants, has been targeting a global spread for some time. Plans are afoot to set up dairy businesses in Rwanda by the yearend and in Tanzania by mid-2010 through buyouts or greenfield ventures.
The company has had a long relation with Pepsi-Co; it is the cola maker’s top franchisee bottler in India and owns the franchisee rights in Nepal and Africa too. RJ bought PepsiCo's bottling West Bengal operations last year, the first time a company plant went to a bottler, and a controlling stake in Pepsi’s Guwahati-based franchisee bottler, North East Pure Drinks, in 2008. PepsiCo, whose Sri Lanka operations fall under the Indian offshoot, had entered the island nation in 1986 by roping in stateowned Ceylon Cold Storage Co (CCS) as franchisee.
The association lasted only till 1988-89 after PepsiCo ended the deal blaming weak bottling operations. PepsiCo soon signed an exclusive bottling agreement with Ole, owned by Capital Maharaja Organisation, a private sector conglomerate with interests in pharmaceuticals, shipping, chemicals, etc.
India as a market for International Franchise Brands is fast picking up. Indian Master Franchisee's secure franchise rights']);"> master franchise rights not just for India, but also for the Indian Sub-Continent or South East Asia, although excluding its hostile neighbour, Pakistan. Gold's Gym, Helen O Grady and several other international companies have been doing so. The key advantages of this approach being that a franchisor would not have to worry much, as rest of the countries in the Indian subcontinent have a very similar consumption pattern, likes, customs and traditions and so forth, and secondly, with strong laws in place and a much liberal business environment, Indian companies are competent enough to cater to the needs.
Master Franchising is a huge and a very lucrative business opportunity for Indian companies, with their expertise in distribution and channel management, they would reap large dividends.
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Article Tags:
Bottling Plant,
Business Opportunity,
Capital Maharaja Organisation,
CocoCola,
Franchise India,
Franchise Sri Lanka,
KFC,
PepsiCo,
Pizza Hut,
Ravi Jaipuria,
RJ Corp,
Yum Foods
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Related Forum Posts
Re: Best Global Brands - Aim for THIS List!
- [quote="GT Bulmer":28gpal6q]In the Coke vs. Pepsi wars, I have always been a Coke fan. I could never stand the taste of Pepsi.[/quote:28gpal6q]
Hi GT,
I've heard that in a blind taste test, the reason why Pepsi typically beats out Coke is because Pepsi is sweeter.
But I'm with you GT... if given the choice, I'd pick Classic Coke over Pepsi any time.
By the way, when you mentioned the poor tasting Coke, were you referring to "New Coke"? I think it was Coca-Colas attempt in 1985 to introduce a sweeter formula to compete with Pepsi.
Re: 50 States - All Franchisees of the U.S. Government
- [quote="RussellWebb":1twrc65u]Is this common knowledge in the franchise arena?[/quote:1twrc65u]
This is not common knowledge in the franchise industry. I don't even see it this way. I don't think it's a franchisee/franchisor relationship at all.
By definition, a franchise is the agreement between 2 legally independent parties which gives:
- a person the right to market a product/service using the trademark or tradename of another business (franchisor)
- the franchisee the right to market a product/servuce using the operating methids of the franchisor
- the franchisee the obligation to pay the franchisor fees for these rights
- the franchisor the obligation to provide rights and support to franchisees.
The first 2 points don't apply to the federal/state relationship. The last 2 do.
Protecting IP
- Dear BigJim 22
Sure as long as it is in the Franchise agreement... ie wht you are offering as Francisor and what their obligations are as Franchisee
It is all in the agreement........
take care
Ian
Re: English TV Programme
- The example in the Apprentice was signing exclusive rights to a company that would ONLY have rights to sell there product even thou they didnt have permission and could generate more revenue from other companies - but to close the deal they guaranteed exclusive rights to a small company not looking at the bigger picture.
Again on TV show, just wanted results but in a real life scenario could of worked a better deal for the longterm.
Hello I am a franchise expert
- Hello,
I recruit franchise owners for successful franchise concepts based in the USA. Many of my franchises are looking to expand north to Canada in all major centers. I enjoy networking and answering questions about franchising. If anyone is interested in the franchise world or looking to buy a franchise then contact me. I have a wealth of information and like to help. Thanks for your time.
Michael Somer
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