McDonald’s franchise in India Essay
McDonald’s started its franchise in India in 1995. McDonald’s signed a 25-year joint venture agreement with two partners named Amit Jatia and Vikram Bakshi. Vikram Bakshi has been the corporate face of McDonald’s in India last 18 years. Amit Jatia, vicechairman of Westlife Development Company that now controls Hardcastle, . Bakshi was given north and east, Jatia west and south part of india.
Both of them work completely in opposite direction. If Bakshi is all outrage, Jatia is all poise. If Bakshi speaks of McDonald’s with acrimony, Jatia speaks of amiability. If Bakshi accuses Jatia of instigating McDonald’s, Jatia politely declines comment. If Bakshi is counting the wealth he could lose because of the hostilities with McDonald’s,
McDonald does not like to operate their business by themselves. Its preferred mode risk and hassle free by given license to local partner by charging fee for its royalty. By this process McDonald’s makes more money. Now It has 34,000 outlets in 118 countries among them 80% are franchise.It entered developing countries like India in 1995, with two 50:50 joint ventures.It was not a hot market at the beginning. Both the partner had an experience in real estate. But they don’t have knowledge of business
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the Jatia venture, till May 2010, only Rs 16 crore of its total capital of Rs 124 crore came from Jatia. Now In India the growth potential is huge and also the contribution of Indian market to McDonald’s global revenue is minimal. It can be a strong business pathway for McDonald’s in the coming years