U.S. Franchise Trade Mission to India Mumbai, Hyderabad, and New Delhi, 58361-58363 [2010-23963]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Adminitration

[Federal Register Volume 75, Number 185 (Friday, September 24, 2010)]
[Notices]
[Pages 58361-58363]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-23963]


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DEPARTMENT OF COMMERCE

International Trade Adminitration


U.S. Franchise Trade Mission to India Mumbai, Hyderabad, and New 
Delhi

Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service (CS) is organizing a Franchise 
Trade Mission to India (Mumbai, Hyderabad, and New Delhi) from April 
10-15, 2011. The mission will be led by a senior official and will 
focus on assisting U.S. franchise companies to launch or increase their 
business in the Indian market. The mission will help participating 
firms gain market insight, make industry contacts, solidify business 
strategies, and advance specific projects, with the goal of increasing 
U.S. business in India.
    India is witnessing an unprecedented consumption boom. While the 
rest of the world still faces the impact of the economic slowdown, 
India is growing at approximately 8% per year, the second fastest 
growing economy in the world. This rapidly growing economy has led to a 
population of over 300-350 million middle-income Indians with high 
disposable incomes. This group continues to fuel the consumption demand 
in India. Mission participants will have a first-hand opportunity to 
assess the market potential in India and meet with key partners. The 
mission will include business-to-business matchmaking appointments with 
potential master and regional investors, networking events and meetings 
with potential investors. The delegation will be comprised of U.S. 
franchise representatives in various industry sectors with the 
potential to open or increase operations in India.

Commercial Setting

    India is a rapidly changing country. The many factors that 
contribute to increasing consumption there include the emergence of a 
young urban elite population with increasing disposable income, 
changing lifestyles, mounting aspirations, penetration of satellite TV, 
increasing appetite for western goods, international exposure, options 
for quality retail space, and greater product choice and availability. 
The greater demand for goods in India is in turn generating a greater 
demand for franchises.
    The franchise market in India has the potential to grow to $20 
billion by 2020. Franchising in India is growing at an impressive rate 
of approximately 30% per year. Presently, there are 1,200 franchisors 
in India, of which 25% are of international origin, with U.S. companies 
the most prevalent. The top prospects for franchising include: Food, 
education, retail, beauty salons/cosmetics, business services, apparel 
and travel/tourism. Based on these market trends and previous successes 
at post, we will focus on food, health/wellness, and services 
franchisors, as these represent the largest growth areas for U.S. 
firms.
     Food Franchising: The Indian food franchise sector is on 
fast-track growth in India. The organized food and beverage retail 
sector is worth approximately $280 million and is growing at 25-30% 
annually, with franchises constituting approximately 17% of this 
growth. Food chains such as Yum Brands, McDonalds, Dominos, and 
Caf[eacute] Coffee Day have aggressive expansion plans for India. Yum 
Brands, the parent company of the Kentucky Fried Chicken and Pizza Hut 
fast-food chains, plans to add 40-60 restaurants in the next 12-18 
months. Dominos Pizza India has announced an investment of $55-58 
million in India over the next three years for expanding its retail 
fast food chain and manufacturing capacities.
     Services: Contributing over 50% to India's GDP during FY 
2009 (April 2008 to March 2009), the services sector holds the key for 
India's rapid economic growth. Education and training services, 
professional services, and hospitality services tops the list of 
growing subsectors in the services franchise sector.
     Health & Wellness: The $520 million Indian fitness market 
is growing at 40% annually. The Indian population, particularly young 
Indians, support the demand for personal fitness products. Middle class 
Indians are increasingly spending their disposable income on spa 
treatments, health clubs, and wellness programs due to a growing 
awareness to lifestyle diseases, peer-influence and exposure to media 
and advertising.
    Now is the time for U.S. franchises to enter the Indian market. 
After years of advocacy efforts, in December 2009 the Government of 
India announced a liberalized policy that royalty payments/franchise 
fees (both one time and ongoing) will not need prior approval from 
Government authorities, including the Reserve Bank of India. In 
addition, the caps of $2 million on one time fees and 5% on ongoing 
fees have now been removed. With these hurdles cleared, more U.S. 
franchises will seek opportunities in India.

Mission Goals

    The goals of the U.S. Franchise Trade Mission to India are to: (1) 
Introduce U.S. mission participants to the vibrant Indian market, 
especially in the three main metropolitan cities of Mumbai, Hyderabad 
and New Delhi; (2) assess current and future business prospects by 
establishing valuable contacts with prospective investors, franchisors, 
and franchisees; and (3) develop market knowledge and relationships 
leading to U.S. export sales.

[[Page 58362]]

Mission Scenario

    The trade mission will be a springboard for U.S. companies planning 
to enter the Indian market. Besides learning first-hand about the 
market and its potential, the trade mission will help U.S. franchisors 
to initiate or expand their business in India by providing business-to-
business introductions and market access information. The mission will 
also provide networking opportunities for participating companies. The 
trade mission participants will have the opportunity to participate in 
briefings, one-on-one matchmaking meetings, site visits, and networking 
receptions.
    The first stop on the mission itinerary is Mumbai, the business and 
financial center of India, to participate in matchmaking meetings, 
briefings with industry associations, and a networking reception. CS 
Mumbai will arrange matchmaking meetings with potential franchisees as 
well as investors. CS Mumbai will seize opportunities to tap into the 
wealth of industry contacts and offer matchmaking, and networking 
opportunities for the mission members.
    Then the group will travel to Hyderabad, a booming organized 
franchise market in India and a destination of many global franchise 
brands. Hyderabad is the capital of the state of Andhra Pradesh and has 
a population of 7 million. Hyderabad is India's 5th largest metropolis 
and is gaining recognition as a dynamic trade and franchise investment 
destination for many U.S. franchisors, such as Church's Chicken (the 
first outlet in India) Hard Rock Caf[eacute], Curves, and more. The 
trade mission participants will have the opportunity to participate in 
briefings, a networking reception, and one-on-one meetings.
    Finally, the delegation will visit New Delhi, the capital city of 
India. New Delhi is the largest commercial center of North India and is 
one of the fastest growing cities in Asia. Along with its satellite 
towns, New Delhi is the sixth largest metropolitan region in the world, 
with an estimated population of 20 million, and has a buoyant private 
sector. With more than 160 embassies and an ever-growing expatriate 
population, New Delhi is a cosmopolitan city, with its own multi-ethnic 
and multi-cultural presence.
    Participation in the mission will include the following:
     Pre-travel briefings/webinars;
     Embassy/Consulate, and Industry briefings;
     Pre-scheduled meetings with potential partners, investors, 
and franchisors in Mumbai, Hyderabad, and New Delhi;
     Airport transfers in Mumbai, Hyderabad, and New Delhi;
     Participation in industry receptions in Mumbai, Hyderabad 
and New Delhi;
     Site visits in Mumbai and New Delhi;
     Newspaper advertisements in the three cities featuring the 
participating companies.
    The precise schedule will depend on the specific goals and 
objectives of the mission participants.

Proposed Mission Timetable--April 10-15, 2011

Mumbai--April 10-12, 2011

Sunday--April 10, 2011
--Arrive in Mumbai

Monday, April 11, 2011
--Briefing
--One-on-one matchmaking meetings
--Evening Networking reception hosted by the Mumbai Consul General

Tuesday, April 12, 2011
--Morning Site Visit
--Afternoon/Evening departure for Hyderabad

Hyderabad--April 12-13, 2011

Arrive in Hyderabad and check into hotel
--Evening Networking reception hosted by the Hyderabad Consul General

Wednesday--April 13, 2011
--One-on-one matchmaking meetings
--Late Evening depart for New Delhi
--Arrive in New Delhi and check into hotel

New Delhi--April 14-15, 2011

Thursday--April 14, 2011
--Morning--Site visit to Select City Walk, an upscale mall located in 
South Delhi that houses numerous franchisee outlets. Site visit 
followed by hosted lunch.
--Evening Networking reception hosted by the Minister Consular for 
Commercial Affairs
Friday--April 15, 2011
--One-on-one matchmaking meetings
--Late evening/early morning (Saturday) flight back to the United 
States

Participation Requirements

    All parties interested in participating in the Trade Mission to 
India must complete and submit an application for consideration by the 
Department of Commerce. All applicants will be evaluated on their 
ability to meet certain conditions and best satisfy the selection 
criteria as outlined below. This mission is designed for a minimum of 
12 companies to participate in the mission from the applicant pool.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required. The participation fee will be $4,885 for large firms 
and $4185 for a small or medium-sized enterprise (SME),* which includes 
one representative. The fee for each additional firm representative 
(large firm or SME) is $750.

    * An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see https://www.sba.gov/services/contractingopportunities/sizestandardstopics/). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing schedule reflects the Commercial Service's user fee 
schedule that became effective May 1, 2008 (for additional 
information see https://www.export.gov/newsletter/march2008/initiatives.html).

    Expenses for lodging, some meals, incidentals, and travel (except 
for transportation to and from airports in-country) will be the 
responsibility of each mission participant.

Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the U.S. Department of 
Commerce receives an incomplete application, the Department may reject 
the application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least fifty-one percent U.S. content.

Selection Criteria for Participation

     Suitability of the company's products or services to the 
mission goals.
     Applicant's potential for business in India, including 
likelihood of exports resulting from the mission.
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission.
     Additional factors, such as diversity of company size, 
type, location, and demographics, may also be considered during the 
review process.
    Referrals from political organizations and any documents containing

[[Page 58363]]

references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar (https://www.ita.doc.gov/doctm/tmcal.html) and other Internet web sites, press releases to general and 
trade media, direct mail, notices by industry trade associations and 
other multiplier groups, and publicity at industry meetings, symposia, 
conferences, and trade shows. Recruitment for the mission will begin 
immediately and conclude no later than February 18, 2011. We will 
inform applicants of selection decision as soon as possible after 
February 18, 2011. Applications received after that date will be 
considered only if space and scheduling constraints permit.

Contact Information

Newport, CA U.S. Export Assistance Center

Kristin Houston, Senior International Trade Specialist & CS Global 
Franchise Team Leader, Tel: 949-660-1688, ext. 314, E-mail: 
Kristin.Houston@trade.gov.

U.S. Commercial Service in India

Mala Venkat, Commercial Specialist, Chennai, Tel: (91-44) 2857 4293, E-
mail: Mala.Venkat@trade.gov.

Aliasgar Motiwala, Commercial Specialist, Mumbai, Tel: (91-22) 2265 
2511, E-mail: Aliasgar.Motiwala@trade.gov.

Sathya Prabha, Commercial Assistant, Hyderabad, Tel: (91-40) 2330 4025, 
Sathya.prabha@trade.gov.

Smita Joshi, Commercial Assistant, New Delhi, Tel: (91-11) 2347 2226, 
E-Mail: smita.joshi@trade.gov.

Karen A. Dubin,
Global Trade Programs, U.S. Commercial Service, Office of Trade 
Missions.
[FR Doc. 2010-23963 Filed 9-23-10; 8:45 am]
BILLING CODE 3510-FP-P