New Delhi: Seco Global View (SGV), a division of the Rs 240-crore Seco Advance Equipments Ltd, is making moves to entrench itself in the video conferencing market with a network of franchisee video conferencing centres across the country.After two years of R&D efforts, it has already set up 22 such centres in the major metros since April 2000 and another 150 are under installation. With an initial planned investment of Rs 100 crore till March 2002, the company has chalked out a detailed marketing plan for the video conferencing centres. Of this amount, Rs 14 crore has already been spent on setting up infrastructure, providing software and hardware.
With the video conferencing market estimated to see a 30 per cent annual growth, Seco Global View (SGV) sees great potential in the business, on the lines of PCO growth. Currently there are around 7 lakh PCOs in the country. Says Mr Mohan Mehra, managing director, SGV, ``We are looking at a network of 50,000 VC centres by 2001. We have already received 83,000 applications in response to our advertisements for franchisees, of which we have selected 20,000. With voice and video convergence, these centres would make face-to- face interaction possible, cutting travel costs and helping speed up decision-making.''
With plans to eventually have a global network of VC centres with video conferencing systems installed in different countries, SGV has set up one office in UK and is close to finalising a tie-up in Canada. This will offer interaction at economical rates, says the company. VSNL studios, which offer the service at present, charge exorbitant rates beginning from Rs 12,000 for the US.
The company's marketing plan visualises a multiple-level franchisee model for the VC centres: star franchisees, master franchisees and super master franchisees, of which the revenue earners are the franchisees and star franchisees. Master franchisees function as service and technology providers, while the super master franchisees would be responsible for overall control and supervision with regard to proper functioning, timely royalty payments etc.
The Star Franchisee Centres will be patterned on the lines of a premium restaurant or club, where celebrities may come in for video conferencing. The rates here would be premium compared to rates at other centres. ``The application possibilities are endless and the bigger centres can function as clubs, recreation centres or restaurants,'' says Mr Mehra.
The prerequisites for the franchisee are: a minimum of 50 sq ft area, proper lighting, an ISDN line connection or VSAT, an advance royalty payment and a minimum investment of Rs 3.5 lakh. The company in turn would provide the equipment, upgradation operations training, technical support and advertising and promotion services at national and international level.
Regarding costs, a franchisee would charge the customer 5 times the communication line charges, with the minimum being Rs 100. The break-up would be: 20 per cent to the communication provider, 20 per cent royalty to SGV and the remaining 60 per cent to the franchisee.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.