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Franchise Policy/ Parameters

01. What is the offer? 
A wonderful opportunity for partnership with India’s largest chain of retail store dealing in high quality authentic traditional design handicrafts / handloom products from all over India. Further, the company is wholly owned by Govt. of India. 
 
02. CCIC’s profile and background. 
CCIC is in the retail business of fine Indian Handicrafts and Handlooms products since 1952. It operates retail showrooms (stores) in New Delhi, Kolkata, Bangalore, Chennai, Secunderabad, Patna, Varanasi (Airport & TFC Craft Museum) and Kevedia (Gujarat) . 
 
CCIC has a manpower strength of 229 employees. It has a supplier base of around 5,300 artisans, craftsperson, weavers from all over the country. The price competitiveness of CCIC is achieved by sourcing its merchandise directly from the supplier group. 
 
CCIC showrooms are frequently visited by Indian domestic customers as well as foreign tourists visiting India. Further, CCIC showrooms are also visited by dignitaries, delegates of Govt. delegations, diplomats, Heads of States of various countries etc. A visit to CCIC showroom is always included in the itinerary of any tourist group visiting the country. 
 
CCIC maintains a range of high quality, authentic Indian handicrafts products and the showrooms serve as a show window for showcasing the best Indian handicraft and handloom products from all over the country. The goodwill and brand image of CCIC has been achieved through its sheer hard work for leadership in its field of operation. 
 
03. Whom to contact? 
For any further information, please contact CMDE Mahendra Veer Singh Negi, NM(Retd.) Managing Director, CCIC of India Limited, Jawahar Vyapar Bhawan, Janpath, New Delhi – 110 001, Tel. No. 91-11-2332 3825  or Shri Pramod Nagpal, Chief General Manager, CCIC of India Limited, Jawahar Vyapar Bhawan, Janpath, New Delhi – 110 001, Tel. No. 91-11-2332 0554.
 
04. What is Ratio of Sales to stock in CCIC retail stores?
CCIC deals in Handicrafts / handlooms products. It has been observed that historically, CCIC has been able to operate its business with a turnover of three times the average inventory carried by it during a financial year. 
 
05. What is the look of the store? 
The main showroom of CCIC in New Delhi is housed in a complex specially designed for the purpose. The showroom is distributed in several levels : three on the east side and thee on the west side. One can have a complete view of the entire showroom from the upper levels. CCIC merchandise has been divided into 25 product groups. 3 to 4 related product groups have been laid in each level of the showroom. 
 
The entrance of the showroom is a grandeur atrium wherein the best of the handicraft items have been displayed. 
 
The sales invoices (cash-memos) for the purchases made by customers are computer generated at a number of convenient locations. The customers can pay at one go in any of the 4/5 cash counters and pick up the delivery of their products at one go near the exit door. 
 
CCIC has facility to accept payments in cash (INR), credit cards and Traveller cheques. CCIC also has a packing shipping facility for home delivery of items purchased by its customers all over the world. 
 
06. What is the minimum area required for a CCIC retail showroom? 
There is no fixed minimum / maximum requirement of space for undertaking franchise operation of CCIC. However, CCIC recommends a minimum of 5,000 Sq. Ft (500 Sq. Mtrs), of selling space so that a comprehensive range of Indian Handicrafts and Handloom products may be displayed so that the customers have a complete feeling. 
 
07. What is the expected sales / Profit in a CCIC Franchise showroom? 
The sales in the new showroom shall depend upon a number of factors such as its location, sales area, customer footfalls, profiles of customers etc. However, it is expected that the sales per Sq. Ft. should be around US$ 1,000 per annum. 
 
08. What is cost of fixtures per Sq. Ft. 
With a view to creating a traditional Indian ambience CCIC shall provide the specification for interiors of the proposed CCIC showroom. The franchisee may get the same executed as per his choice within his budget allocation. 
 
09. What will be the design of / display / of store? 
The layout of the store can be worked out as per space availability. Ideally, the entrance should have a large space for putting on display large size stone craft, bronzes, brass statues etc. The showroom can open with large areas for wood, brassware kinds of items, In contrast colourful Indian Textiles can be showcased on one side. CCIC has a design cell with qualified and experienced interior designers who can work on the available space and provide an initial plan, which can be fine tuned later on. 
 
10. Is there a business plan / Project Report? 
This can be worked out be the franchisee based on the showroom space proposed to be committed for the franchise operations. The prevailing rates of rental for such space, rates of electricity, waters, communication expenses and salaries / wages for sales staff and management of the showroom. Further, the location of the showroom and clientele will give a clue to the likely sales volumes. A growth rate of 15-20 % can be assumed for subsequent years. CCIC can also facilitate such a working by providing its expertise. 
 
11. Who will undertake advertisement / Publicity of the franchise store? 
CCIC in all its publicity material national as well as international will include the name location details of the franchise showroom. The franchisee will undertake publicity / advertisement of franchise showroom in the local media. CCIC, however, will provide limited copies of its promotional material, product catalogue, brochures etc. CCIC shall also provide art works of the publicity material made by it for use by the franchisee. 
 
12. What are the products / product range details? 
CCIC deals in handicraft / handloom products from all over the country. These products are ethnic, traditional weaves and designs. Sarees, Dress Fabrics, hand embroidered shawls and stoles, ready-to-wear for men, women and children, wool and silk carpets, hand crafted furniture, wood, brassware, bronzes, art objects, Home Furnishing, Table Linen, Bed Spreads, Accessories, Bags, lamps and lamp shades, Indian Teas, Candles, Herbal & Perfumes items, Pottery, Marble, etc. 
 
13. What happens to goods that are received in damaged condition? 
All shipments sent by CCIC are fully insured against all losses including breakages / damages. In case some articles in a shipment are received in a damaged condition, the franchisee may call the insurance agency for a survey and claim compensation for the value. 
 
14. Is there any ceiling with respect to fixing the Selling Price? 
CCIC shall order specially the merchandise required by the franchisee. For this purpose, CCIC shall charge a fixed percentage of gross margin on the merchandise. This margin is primarily to cover the cost of procurement such as travel costs, TA/DA of officials visiting craft centres in various parts of the country, inland taxes in India, packing, forwarding and other expenses. This also includes a component representing CCIC’s profits. 
 
The franchisee may work out his own selling price as per prevailing market conditions and based on the concept of ‘what the market can bear’. 
 
15. Who will make the selection of goods? 
CCIC or franchisee? There is no compulsion of buying the goods as per selection of CCIC alone. The choice of merchandise shall be done mutually by CCIC and franchisee. 
 
16. How the payments will be made? 
CCIC is a Govt. of India undertaking under Ministry of Textiles, Govt. of India. As a Govt. institution, all sales of merchandise shall be only against receipt of full payment either in advance, bank transfer or irrevocable Letter of Credit. 
 
17. What will be the branding? 
In whose brand name the store will be run? CCIC, under its overseas franchise policy allows use of its logo, brand name and goodwill by the franchisee in their retail outlet. CCIC shall also charge a percentage of the value of sales as Royalty for the use of its logo, brand name and goodwill and trademark by the franchisee.