Franchising as a Market entry strategy. A win-win for Eric LifeSciences and Strides Shasun

Written by Sparkleminds

Franchising as a market entry strategy

Franchising as a market entry strategy.

Selling your brand as a franchise can enable your business to realize its full potential. Such a deal can be focused on a particular market alone. Partnerships with the well-established business in a new market can be a great strategy for entry into that market.

A win-win for Eric life sciences and Strides Shasun.

Sashank Sinnha, Managing Director of Strides Shasun said that their focus always has been building a B2B portfolio. Strides Shasun, he said has scaled up its operations in Australia as one of the top two players. As their international operations scaled up, they decided that Strides Shasun in India will achieve its full potential under an India focused company.

Eris life sciences entered into a definitive agreement to acquire marketing and distribution rights of Strides Shasun in India. It acquired the rights along with the employees of the business at an aggregate cash consideration of RS 500 crores.
Amit Bakshi, Managing Director of Eric life sciences intends to expand it as more of a franchise. This could help build a number of brands. He said that the gross margins of Strides Shanun will increase from 70% to 75% in the next three to four quarters because of the deal.

Your interests in continuing your business can be protected even while you sell your brand away. Contact us at Sparkleminds to know the expansion strategy that best suits your business.

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