Indian Retailer

India's retail market is expected to reach $535 billion by 2013, says a report on fashion and lifestyle franchises released here on Thursday.

"With anticipated $30 billion fresh investment over the next five years, modern retail will show impressive compound annual growth rate of 40 percent," said the Fashion and Lifestyle Franchise Report 2009-10.

"With this growth rate, the market is expected to reach $535 billion by 2013," added the report compiled by Franchise India Holding Ltd, a franchise solutions provider.

"The growth of organised retail will be driven by the franchise model in future," said company president Gaurav Marya while releasing the report at the two-day Franchise India summit on retail trade that began here Thursday. "In fact, that is the reason that many big companies going into retail mode are adopting it," Marya said, adding that he expected business deals worth Rs.150 crore would be struck at the summit.

About 250 firms including 30 foreign brands are participating. India's franchise segment is growing at 38 percent annually with the market size, currently valued at $7.2 billion, expected to reach $20 billion by 2013, the report said.

There are 1,200 active franchise concepts and over 110,000 franchisees in India, it added, and identified apparel retail, education and food leading the pack.