Tuesday, October 3, 2023
HomeFood & BeveragesDoes Aavin Franchise only cost *₹1 Lakh*? - Apply, Cost, & Profit

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

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

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

Yes, you correctly read it. Starting an Aavin Milk Parlor can be an enticing opportunity for you.

In this exciting blog series, we’ll dive further to understand more about the Aavin Franchise, along with its capital requirement, cost, profit marginand step-by-step guidelines to get this franchise – and answer some common questions about the chain.

Aavin Franchise Opportunity
  • 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

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 United Arab Emirates, Ajman, Oman, Qatar, Canada and US. The exported products will be primarily produced in India and are expected to generate an annual revenue of approximately ₹6 Crores.

Today, Aavin sells its complete dairy range from its wide network of over 1000+ retailers that makes them one of the highly lucrative opportunity for any aspiring entrepreneurs.

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Aavin Dairy Franchise – The Journey

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

Its journey began in 1958 that started expanding its operations and built a loyal customer base across the states.

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

Key Facts on Aavin

Sr No.TypeCooperative Society
1Trade NameAavin
4Founders Or Parent CompanyTamil Nadu Cooperative Milk
Producers’ Federation Limited
5Corporate HeadquartersChennai, Tamil Nadu
6Number of locationsOver 1000 retailers
7Area servedPAN India
9Menu OfferingMilk, Curd, Ghee, Paneer, Ice cream,
and many more
10Revenue₹5800 Crore

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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 parlour requires only a few lacs that may return a healthy profit margin to its franchisee.
      • It may also help new franchisee to 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 Lakhs and anticipate a net earning of over ₹20,000 per month.
  4. Comprehensive Training Programs:
    • Aavin provides its franchisees a comprehensive training and development program, marketing and advertising support, and access to the latest technology and equipment.
  5. Government-entity:
    • As a franchise, 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?

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 min 120 square feet to set up a brick-and-mortar retail space.

Additionally, The above-mentioned initial investment for Aavin Milk Booth does cover the expenses or fee such as Franchise fees, Marketing Fees, Equipment, and other necessary fees.

How much is 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 Parlour of any brand, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, 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 greater level of freedom and flexibility for franchisees to generate extra income.

Type of FeeCost & Other details
Deposit Fee₹25,000
Required SpaceMin. 120 sq ft
Setup cost~₹ 1 lakhs
Royalty FeeNA
Ad Royalty FeeNA
Required liquid capital₹5 lakh
Inventory₹25,000 – ₹50,000
Total Initial Investment₹1.5 lakh – ₹2 lakh

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How much is Aavin Franchise Profit Margin?

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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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 Franchise

  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.
Aavin Franchise Contact Number044 23464565 / 23464578
Email IDaavinmarketing@gmail.com 

Official Address of Aavin

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

Phone: 23464565 / 23464578


Mail us your interest to aavinmarketing@gmail.com

Final Takeaway – Conclusion

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.

Then, what are you waiting for? Go and grab this opportunity and start your entrepreneurship journey with Aavin.

Good Luck!! Happy Franchising!!

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  1. How much does it cost to Start an Aavin Franchise?

    Ans: The cost for Aavin Parlour will be around ₹1.5 lakhs to ₹2 lakhs for a floor area of min. 120 sq feet.

  2. Is Aavin Franchise Profitable?

    Ans: Certainly, Yes. With an initial investment of less than ₹2 lakhs, min space requirement, and robust supply chain for its signature dairy products should drive the franchisee’s retail store success. It eventually helps the business partner to earn a consistent profit margin.

FranchiseGoal India
FranchiseGoal Indiahttps://in.franchisegoal.com
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