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Rediff.com  » Business » Companies to adopt franchisee model

Companies to adopt franchisee model

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August 26, 2004 10:01 IST

After the information technology sector and food retailers, it is the turn of the construction sector to learn and implement the famed McDonald's franchisee model of expansion.

Addressing the first day of the two-day Confederation of Indian Industry Construction Summit 2004, Fred Moavenzadeh, director (industrial development), Massachusetts Institute of Technology, said the sector is in a transition phase globally and could no longer afford to focus on the domestic market alone.

"In the US and Europe, bigger firms are tying up with smaller companies to leverage brand equity and financial abilities of established firms. Also, as there is not much infrastructure activity happening in the US, companies are setting up franchisees in other countries like how McDonald's do," he said.

Taking a cue from this, companies like Hindustan Construction Company are also entering into such ventures to provide finance and insurance and in return get technical assistance and manpower.

German firms like Hochtief are also forming joint ventures to provide technical manpower with Indian companies.
BS Corporate Bureau in New Delhi
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