Nuetech Solar is India’s largest solar water heater manufacturer, and it is interesting to know that it is geared up to spread out its presence across India through franchising route as a mode of expansion, with the expertise of Francorp. Francorp is a part of Franchise India Group, which is Asia’s largest integrated Franchise and Retail Solutions Company that specializes in providing innovative solutions to its global clientele. (source)
Incorporated in 1992, Nuetech has become the market leader in solar energy products in India. They are a BIS certified company maintaining ISO 9001-2000 standards. Nuetech is the largest OEM supplier in India and 3rd largest manufacturer in Indian solar water heater industries.
With this partnership, Nuetech intends to aggressively scale up its operations over the next five years. As a solar water heater manufacturing and marketing company with turnover of over INR 240 million in the last financial year and an expected turnover of INR 320 million for this financial year, NSSPL has realized the large potential of the solar water heater industry, which is growing at a rate of 25-30%. Franchisees will not only benefit being associated with such acclaimed brand but also get knowledge and industry understanding from the top most players in such competitive market. They target to expand further in Karnataka, Maharashtra, Gujarat, Andhra Pradesh, Jharkhand, with over 50 outlets.
That’s an interesting model, having a franchise model for solar water heaters. It is undeniable that solar water heaters are going to have high rates of growth given their excellent payback period (just about 4 years), the increasing amount of government incentives, and recent government mandates that require many public buildings to compulsorily have solar water heaters. And I think a franchise model might indeed work well for this segment. Let’s wait and watch…
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