Does Aavin Franchise only cost *₹1 Lakh*? – Apply, Cost, & Profit

Are you looking for one of India’s leading and most affordable dairy franchises? Have you recently passed an intermediate (+2 or higher secondary) exam and are seeking a good income from a little investment? Are you a small retailer and looking to venture into the dairy sector as well?

There could be so many questions popping up in your mind, but what if we tell you that you can start a small Aavin franchise (milk parlour) in a local neighborhood with a minimum investment of ₹1 lacs that may return a profit margin of ₹20,000 to ₹50,000 per month.

After the completion of this article, you’ll have clear knowledge on the following topic:

1. What’s the Aavin Dairy franchise?
2. How much would you need to put in to start this franchise?
3. How much profit should you expect from Aavin milk parlour franchise?
4. What’s the requirement and application procedure to partner with them?

Whether you are an experienced entrepreneur or have recently planned to start you own business with least investment, you should probably check out our best 5 food franchises under 2 lakh and where is Aavin ranked on the list.

• Company: Aavin
• Founded: 1958
• HQ: Chennai, TN, India
• Industry: Dairy
• No. of outlet: 1000+
• Model: Franchising
• Area served: Nationwide
• Franchise Fee: ~ ₹1 lacs
• Profit Margin: ~ 8-15%
• Area Required: Min. 120 sq ft
• Total Initial Investment: ₹1.5 lakh to ₹2 lakh

Overview of Aavin Franchise

Officially, established in 1958 as a dairy entity under the Tamil Nadu Cooperative Milk Producers’ Federation Limited, Aavin is the most popular and renowned dairy brand in India, which has its base in Tamil Nadu.

Having founded on the similar principle(under the cooperative model) as Amul, Nandini, and Mother Dairy, Aavin procures milk from the local farmers, processes and distributes the milk and its quality products to the consumers across the states.

The franchise is renowned for offering a wide array of milk and dairy products, such as Milk, Flavored milk, Paneer, curd, ice cream, chocolate, ghee, and much more at an affordable pricing.

According to the official information, The franchise procures about 40 lakh litres of milk per day, out of which 25 lakh litres are solely sold as milk and remaining are utilized for producing other dairy products.

According to Aavin, milk sales climbed from 34.78 crore to 41.15 crore per month in 2019–20, and the company reported an annual revenue of approximately 5,800 crore.

Recently, the respective federation has entered into agreements with six vendors for sale of milk and milk products to numerous foreign countries, including the United Arab Emirates, Ajman, Oman, Qatar, Canada, and the US. The exported products will be primarily produced in India and are expected to generate an annual revenue of approximately ₹6 crore.

Today, Aavin sells its complete dairy range through its wide network of over 1000 retailers, which makes it a highly lucrative opportunity for any aspiring entrepreneur.

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Aavin Dairy Franchise – The Journey

Started on a similar concept as Amul Corp., Aavin, which is a part of the Tamil Nadu Cooperative Milk Producers Federation, is renowned as Tamil Nadu’s largest milk procuring industry that controls the complete milk and dairy supplies across the states.

Its journey began in 1958, when it started expanding its operations and building a loyal customer base across the states.

Over the years, Aavin has positioned itself as a prominent brand, and its wide range of dairy products has helped them become a household name in Tamil Nadu.

Key Facts on Aavin

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Why Consider Owning an Aavin Franchise?

Becoming a franchise partner for an Aavin outlet may not require much of a reason. However, if you are super interested, you may consider reading further;

1. Low investment & high growth:
   • Owning an Aavin parlor requires only a few lacs that may return a healthy profit margin to its franchisee.
     • It may also help new franchisees explore the tremendous opportunity in the dairy sector.
2. Varieties in dairy products:
   • As an approved Aavin retail owner, you’ll cater a wide range of dairy products that are prepared with high safety measures and proper quality control, ultimately helps to build a better brand name among its consumers.
3. Flexible franchise model:
   • Aavin provides a flexible franchising model and a low-cost, low-risk option that could assist new and aspiring entrepreneurs in leveraging the brand’s successful business approach.
     • One can take up this franchise with an initial investment of ₹1 lakh and anticipate a net earning of over ₹20,000 per month.
4. Comprehensive Training Programs:
   • Aavin provides its franchisees with a comprehensive training and development program, marketing and advertising support, and access to the latest technology and equipment.
5. Government-entity:
   • As a franchisee, you may benefit from the reputation and recognition that Aavin has built over the years.
     • It eventually helps to contribute to long-term success and generate a consistent profit margin for your business.

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How much does Aavin Franchise Cost?

The franchise fee or total Initial setup cost for the Aavin Parlour will depend on the proposed geographical locations and available carpet area.

Nonetheless, to start an Aavin franchise, one will at least require an initial investment of ₹1.5 lakhs to ₹ 2 lakhs and a dedicated floor area of at least 120 square feet to set up a brick-and-mortar retail space.

How much is the Aavin Franchise Fee?

Unlike other franchises that charges over ₹2-3 lakhs as only a franchisee fee, Aavin only requires a deposit fee of ₹25,000 and ₹ 1 Lakhs for interior decor, setup charges, and equipment.

Additional Cost for Aavin

Typically, to run and maintain a milk parlor of any brand, one must adhere to their standards and be liable to pay a few additional costs, such as a royalty fee, an advertisement fee, a maintenance fee, and a few other investments.

However, Aavin stands out from other franchise systems as it does not impose any royalty or marketing fees. Its unique approach helps to offer a greater level of freedom and flexibility for franchisees to generate extra income.

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How much is Aavin Franchise Profit Margin?

The profitability of an Aavin parlour can vary depending on several factors, such as location, overhead costs, supply chain, varieties of product served, market conditions & demand, and much more.

Additionally, Considering the Aavin’s significant presence across the TN, a wide range of dairy products, competitive pricing, backing from Government entity, low-cost & low-risk opportunities, high growth & profit potential may help new franchisee to utilize Aavin’s customer base in local neighbourhood, and eventually allow the partner to expect a net profit margin of over ₹20,000 from a store size of 120 sq feet.

Space Required for Aavin Milk Parlour Franchise

To own an operate an Aavin Milk parlour, one should be capable of owning a store size of at least 120 sq feet(Owned/leased/rented), which should be at least 500 meter apart from another Aavin Store.

Moreover, before opening a store, FranchiseGoal advises you to perform a detailed market research and area growth potential. The store should be highly accessible to local consumers.

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Is the Aavin franchise worth the investment?

A franchise investment of merely ₹1.5 lakh to ₹2 lakh, a carpet space of at least 120 square feet, a growing customer base, a prominent brand name, and overall an approximate monthly earning of ₹20,000—Now what better deal could one ask for? At least we don’t think so.

Given its estimated profit margin, it could certainly take approximately 1 year or less to recover the initial investment made in the business.

Hence, certainly, every penny investment for Aavin business is worth, given the location is chosen wisely and the franchise owner is capable enough to operate an outlet.

What are the requirements to Start an Aavin Franchise?

1. Interested candidates should should possess the necessary funding amounting to ₹1.5 lakhs to ₹2 lakhs with a proper retail space of minimum 120 sq feet.
2. Interested applicants are advised to dedicate themselves to the Aavin business and follow the company standards and maintain their legacy.
3. Interested franchisees should have passion to work in the Food & Dairy industry and should possess the leadership and financial skills to operate an Aavin Milk Parlour.
4. The franchisee must pass the Intermediate exam(+2 or higher secondary), resident of India, and he/she will be required to verify its personal documents.

List of Documents and license required to operate an Aavin Parlor

1. Personal documents;
   • Aadhar Card, PAN Card, Voter ID Card
2. Passport Size photographs
3. Shop Agreement document
4. GST License
5. FSSAI or other necessary local government license required for trading.
6. Proper electricity and water connection
7. BANK Account details and at least last six months of bank statement.

How to Get Aavin Franchise?

To become an approved Aavin parlour owner may require a relatively low investment that may offers an impressive gross profit margin.

Additionally, the Aavin chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.

One can avail this franchise using below mentioned steps;

1. Visit its official website and navigate to the franchise/partner page;
   • You will find the details to contact them at local address or email them your business proposal.

Official Address of Aavin

General Manager (Mkg)
TCMPF Ltd.
3A. Chamiers Road
Nandanam
Chennai 600035

Phone: 23464565 / 23464578

or

Mail us your interest to aavinmarketing@gmail.com

Wrap up

Aavin is the most popular and leading dairy chain, which was established under a milk procurement federation in 1958. It has a wide distribution network with over 1000+ retailers across the states.

With an initial setup cost of ₹1.5 lakhs to ₹2 lakhs, Aavin may provide entrepreneurs its proven business model that may allow them to tap into the growing demand of its dairy products. The franchise provides a flexible business model and an outlet holder may anticipate a net profit of over ₹20,000 per month.

The Bottom Line: Overall, Aavin Parlour may prove lucrative opportunity for entrepreneurs looking to venture into a dairy market. With its proven business concept, competitive pricing, robust supply chain, and extensive training support, Aavin outlet holder may gain a significant market share, leading to a profitable investment for a franchisee.

Good Luck!! Happy Franchising!!

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