Brand Licensing: A Strategic Growth Lever

So what exactly is brand licensing, and why should you care?

 

Brand licensing is when your business obtains the rights to manufacture and sell products under another company’s established brand name. You provide manufacturing and supply chain expertise; the brand owner provides intellectual property. This means you can leverage your production strengths while tapping into the instant recognition, trust, and marketing power of a global or national brand. That’s the power of licensing: instead of spending years (and crores) building your own brand in a new category or price segment, you ride on the credibility and demand that already exists—all while focusing on what you do best.

 

SPPL’s Journey: From Manufacturer to Brand Powerhouse via Licensing

SPPL is a powerful case of how next-gen leadership can transform a legacy manufacturing company through licensing. Noida-based Super Plastronics Pvt. Ltd. (SPPL) was founded by Mr. Amarjeet Singh Marwah in 1990, initially focusing on plastic injection moulding before evolving into a TV manufacturer. For years, SPPL operated as a traditional OEM supplier.

 

The game changed when the next generation stepped in. Avneet Singh Marwah, Mr. Amarjeet’s son, took over as CEO and brought a fresh vision and global mindset to the business. He identified brand licensing as a transformative growth strategy, enabling SPPL to leverage its manufacturing expertise while tapping into the established trust and recognition of global brands. Under his leadership, SPPL secured exclusive licensing agreements with international giants such as Kodak and Thomson. In 2017, SPPL became the exclusive licensee to manufacture and sell Kodak-branded TVs in India, and in 2018, the company brought the iconic French brand Thomson back to the Indian market after a 15-year absence. Within a short span, Thomson climbed into the top five selling smart TV brands online in India.

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This strategic shift became a catalyst for a remarkable business transformation. SPPL’s revenues soared from ₹220 crore in 2018 to ₹900 crore in 2023, driven by its licensing-led growth. Its market share in the smart TV segment expanded rapidly - SPPL sold 450,000 smart TV units in FY2022-23 and as part of this growth trajectory, SPPL is targeting sales of 1 million TV units annually by end of 2025. The company has expanded its manufacturing footprint— operating multiple plants across India and investing in new, fully automated facilities, with plans to reach 6–7 plants by 2027. With a robust portfolio of global brands and plans to add licensing rights for two more international brands shortly, SPPL continues to diversify into product categories like home appliances, aiming to become one of the largest consumer electronics companies in India.

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Avneet’s embrace of brand licensing didn’t just modernise SPPL—it fundamentally changed the trajectory of his family’s manufacturing business.

 

The Real Benefits: Why Brand Licensing Works 

Brand licensing is more than a strategy—it’s a toolkit for growth, offering these key benefits:

 

1. Global Credibility

Associating with a well-known brand brings instant trust and recognition among consumers, retailers, and even your existing customers—accelerating market acceptance and growth. For example, a textile manufacturer licensing an international fashion brand instantly shifts from being a “supplier” to a “premium product partner.”

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2. Market Access

Licensing opens doors to retail channels or geographic regions that were previously out of reach.

 

3. Speed to Market

With the brand’s reputation and consumer demand already established, family businesses can accelerate diversification immediately. You skip brand building and go straight to market.

 

4. Cost Savings

Licensors often provide access to established marketing materials, product designs, and brand guidelines—reducing the upfront investment needed to launch new products. This allows you to focus your resources on manufacturing and distribution, rather than costly brand-building from scratch.

 

5. Revenue Growth

Products under a licensed brand command higher prices and better margins, driving profitability.

 

6. Portfolio Expansion

Family businesses can license multiple brands to build a ‘house of brands’—serving diverse consumer segments while consolidating their overall market position. This approach not only diversifies risk but also creates synergies across product lines, unlocking new revenue streams and competitive advantages.

 

7. Building Brand Capabilities

Licensing is more than a commercial transaction; it’s a learning lab. Over time, it helps you build both:

Asset-related capabilities- brand equity, reputation, and production standards.

Knowledge-related capabilities- marketing expertise, distribution networks, and design innovation.

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8. A Pathway to Sustainable Brand Equity

Perhaps the most overlooked benefit of brand licensing is how it sets you up to expand your existing own brand in the long run. Most licensees start by acquiring licensing rights to one brand as a strategic move. Over time, they begin managing multiple licensed brands, learning from licensors, and growing market presence, retail partnerships and distribution network. Eventually, these learnings and capabilities acquired are reinvested into strengthening in-house brands. Licensing, then, is not a shortcut—it’s a strategic pathway to building sustainable, long-term brand equity and competitive advantage.

 

Action Plan: How to Build a Licensing Growth Strategy

1. Choose the Right Brand Partner: Align with a brand that complements the company’s strengths and market ambitions. Additionally, consider how the licensed brand fits into the larger vision of creating a portfolio or a ‘house of brands.’

 

2. Leverage Manufacturing Excellence: Deliver the licensed brand’s promise through exceptional quality and reliability. You can always outsource production for select product segments if they are not in line with your existing production setup.

 

3. Expand Strategically: Use the brand credibility and market insights to enter new markets or premium categories, ensuring that each addition to the portfolio strengthens the overall business ecosystem.

 

Looking Ahead: Reimagining Your Family Business Legacy

As a next-generation entrepreneur, your role isn’t just to preserve what’s been built—it’s to rethink, reimagine, and reshape your family business for what’s next. Brand licensing gives you the tools to unlock global partnerships, accelerate diversification, and build new capabilities from within, ultimately creating a business that’s as forward-looking as it is rooted in legacy.

 

Today, global brands are actively seeking agile, high-quality manufacturing and distribution partners—making licensing a strategy that’s accessible and rewarding for manufacturing entrepreneurs of every scale. It’s a capability-building advantage that strengthens your core and sharpens your future.

 

The most successful family businesses are those that adapt and evolve, leveraging global opportunities without losing sight of where they came from. Whether your goal is to scale up, diversify, or build a powerhouse portfolio, licensing can be the strategic edge that sets your leadership apart.

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At LicenseWorks, we specialize in helping next-generation family businesses transform legacy into leadership through brand licensing and strategic partnerships. To know more, visit www.licenseworks.co.

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Also published at: Economic Times