TARA BKF Rural Technology Pvt. Ltd.

S K Lamba

The mission of the DA Group is to create sustainable livelihoods through mass dissemination of its technologies.  In this direction franchising of production and marketing of products may lead to widespread dissemination in a short time.  In its corporate plan, DA group has adopted franchising as one of  its key strategies.

TARA-BKF Rural Technology Pvt. Ltd. (TBRT), a joint venture between TARA and the Bureau of Knowledge and Finance(BKF) of Holland is dedicated to large scale promotion of DA’s technologies through franchising .  TBRT operates in predetermined geographical zones, establishes enterprises in the zones under  franchising arrangements.  TBRT often buys back products from the enterprises (franchisee) besides encouraging them to sell directly in the open market created by TBRT and provides them with support services.  By doing so TBRT ensures long term sustainability of its franchisees.  TBRT, in a real sense, is ideally positioned on the path to achieve DA’s mission.  It not only ensures the availability of technology and equipment to an entrepreneur but also guarantees  long term demand in the market .

Although TBRT was incorporated in Oct. 1996, the process of its formal structuring for business purposes began  in April this year.  In the first phase, of its business plan TBRT selected MCR technology for its franchise oprations because of its proven profitability at the enterprise elvel and acceptability amongst users. With the objective of establishing a self sustainable franchising network for MCR within  geographically identified zones, TBRT is all set to evolve a replicable franchising system for various technologies of  the DA group. 

ABOUT THE FRANCHISING SYSTEM

A franchising network is successful if the  product or technology has  very strong brand presence in the market.  The principal organisation, a market leader, lends its goodwill (to produce or market or both) to a franchisee  who intends to encash upon it by deploying its infrastructure in the market created by the principal organisation.  In lieu of goodwill the  franchisee pays either a predetermined franchisee fee or royalty or both to the principal organisation.  By creating a network of franchisees, the principal organisation not only expands the size of its operations through networking with partners, it also attains higher, faster and profitable growth rate, and sustains its franchisee.

FRANCHISING SYSTEM IN TBRT

PRE FRANCHISING STAGE TBRT  takes up a  zone which has potential demand for roofing material.  But in such zones  MCR  tiles neither enjoy market leadership nor brand image.  Therefore, pre-franchising activities are taken up by TBRT where emphasis is laid on attaining  market presence by appropriately positioning  MCR tiles among other roofing materials in the zone.  Creating market demand for MCR tiles and establishing a brand image of TARAcrete tiles are primary  activities during the pre-franchising stage.

FRANCHISING STAGE The main elements of franchise management are activated by the zonal team in the franchising stage. A Franchisee Network Zone (FNZ) of TBRT operates the franchising system by setting up a network of MCR enterprises.  FNZ, through its professionalised services buys back MCR tiles, installs roofs and undertakes promotional activities that make it easier for franchisees to sell tiles. TBRT is at present committed to develop a replicable FRANCHISING MANUAL for DA to help disseminate all other technologies through franchising system.

PROGRESS THUS FAR

In the direction of  large scale dissemination of MCR technology, considerable amount of Technology promotion has been doneby DA/TARA in different geographical locations.  During TARA-SDC MCR project period (April ‘96 to Dec. ‘97) 90 MCR units were sold by TARA to entrepreneurs and organisations in different geographical locations.  Most of the enterpreneurs however, while being profitable, have not been able to operate to full capacity or expand due to lack of marketing capability.  TBRT has set out to eradicate this problem for its franchisees through market development in its zones.  From May ‘98 onward both above zones of TBRT have been structured to effectively promote MCR tiles on large scale as per the predetermined market strategy of TBRT.  In this process, prospective entrepreneurs are coming forward to set up MCR units on the strength of technology and market support from TBRT.  Further zones will be gradually added as per TBRT’s business plan.  As of now TBRT is operating on a seed business plan due to nonavailability of planned funds.  However, due to the dedicated efforts of recently constituted TBRT teams, both the zones are close to self reliant stage.  Five MRC franchisee units will be established in this year in each zone.  Activation of our original business plan (large scale) will be initiated after receipt of a Dutch Loan through our collaborators.   q

TBRT has established two MCR franchisee units in Dehradun during August and September.

The first two MCR Roman tile equipments developed by DA and
TARA were sold and established through TBRT in Dehradun zone.

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