Amol AroraAfter successfully completing 20 years of franchising in India, Shemrock and Shemford Group (SSG) of Schools crossed borders for expansion. In an interaction Amol Arora, Managing Director, Shemrock and Shemford Group (SSG) of Schools talks about brands’ recent foray into the Middle East region.
Namita Bhagat (NB): How has been ’SSG’ journey in India so far? What were the motivating factors for expansion in Middle East?
Amol Arora (AA): After 20 years of franchising successfully, we believe that we are ready to cross the boundaries. The core system has been well documented and now we have the setup in place to make changes for local customisations. After opening our first International branch in Nepal, we have now started our school in Doha, Qatar. We see major growth potentials in these markets in the Middle East as there is a sizeable Indian population who are looking for good Indian education for their children. Further, the geographical location and the dynamic environment are ideal for our international presence.
NB: How many owned/franchise schools do you have in Middle East at present and how many are expected in the coming years
AA: We have one school operational in Doha but have a number of queries from other countries and talks are going on with the number of investors.
NB: What were the initial challenges that the company faced while expanding in Middle East especially in terms of government regulations and authorities?
AA: Opening a school in the Middle East requires not only adherence to CBSE standards but to local government laws as well. These laws are stricter than those imposed by state governments in India hence the system has to work carefully within these guidelines. We had to carefully work with our local partners in understanding government regulations and operations and customise our school system to account for regional sensibilities as well.
Further the supplies department had to look at foreign exchange, transportation, customs, and logistics issues.
NB: How different is the franchise system of ‘SSG’ in Middle East to that in India?
AA: In terms of pure franchising terms – the system remains the same. However, greater localisation of material and products was permitted keeping in mind the cost and time of delivery from India.
NB: What is the start up cost of franchisees in Middle East and what training and support is given to them?
AA: The start up cost of school in the Middle East is much higher in rupee terms due to higher land, construction and salaries. The system depends more on online and tele-training rather than face to face trainings due to the cost structures involved.
NB: How responsive is the market of Middle East for Indian brands and what is the scope of expansion via franchising in the education sector there?
AA: Even among other nationalities ‘brand India’ has a good reputation for high quality education at terrific value for money. Through franchising any education company can quickly expand in the Middle East with lower capital investment and lower risk.