Vrinda Oberai: How do you see the future of licensing with respect to FMCG products and how it can help retailers explore various non-core categories in conjunction with reaching a variety of audiences?
Ms Nidhi Modi This will depend on critical mass volumes. If the volumes are large enough only then will it be viable to license rather than just import from foreign countries.
Vrinda Oberai: What percentage of the total revenue generated is contributed by your licensing ventures?
Ms Nidhi Modi: Currently, less than 5 per cent, but we aim to make it 25 per cent in the next two to three years.
Vrinda Oberai: When it comes to drafting a licensing agreement with the parent companies, which are the highlighting points for both the licensor (parent company) and the licensee (in this case-your company
Ms Nidhi Modi: For both the companies, it is very important to follow and verify certain things like duration of the agreement, royalties attached and exclusivity.
Vrinda Oberai: How do you perceive the current and the future market scenario with respect to licensing?
Ms Nidhi Modi: Currently the market size is not that big but as costs are increasing globally, more and more companies are moving to licensing. Licensing for any company helps to get the products at a cheaper price as the importing costs are not involved. Thus, licensing benefits not only the licensor and licensee but also the customer, which thereby increase the sales of the products.