How to Start an Amul Franchise – Cost, Fee & Profit

Are you looking for a dairy franchise that offers a variety of products including Milk, Ice cream, Butter, Ghee, and Chocolate? Have you dreamed of starting a profitable dairy franchise in India that may require a low investment but can return a great profit? Starting an Amul franchise will end your franchise research.

The article will assist you in comprehending the Amul business model with its Cost requirements, Fee, Profit margin, and complete guidelines to set up this franchise in your locality – and answer most of the common questions about the chain.

Starting a food chain like Amul may certainly benefit its unit holders and undoubtedly, after reading this complete article you would be in a position to choose the BEST AVAILABLE FOOD franchise and start your entrepreneurial journey in this industry with the Amul chain.

• Security Fee(Refundable) – INR 25000 – INR 1 Lacs(depending on model)
• Renovation & Interior Décor – INR 80,000 – INR 3 lakh
• Equipment – INR 50,000 – 1.5 Lakh
• Royalty and Profit sharing fee – Nil
• Total Investment – INR 2- INR 6 Lakh
• Other recurring Expenses – INR 5 – INR 10 lakh

In India, More than 50% of the population is still involved in the agriculture sector, including dairying, farming, and animal husbandry, which plays a significant role in economic development. Dairy is the single largest agricultural commodity contributing around 5% of total GDP growth. 

As per International Journal of Livestock Research, More than 60% of all livestock produced is milk, which also makes up roughly 67.69% of the livestock industry’s output in terms of its contribution to the nation’s GDP.

According to Imarc Research, the Indian dairy market will grow from INR 13,174 Billion in 2021 to INR 30,840 Billion by 2027, representing a CAGR of 14.98% during 2022-2027.

Amul is one of the oldest and most renowned dairy brands in India, known for offering quality dairy products like milk, butter, ghee, cheese, paneer, curd, ice cream and many other dairy and bakery products.

The journey from acquiring milk from neighborhood farmers and stopping intermediary exploitation in 1946 to creating an organization that will generate Rs. 38,600 crores in revenue (through 2020) is inspiring.

Please continue reading if you are looking for an Amul chain, and this little snippet of information thrills you.

Overview of Amul Franchise

AMUL or Anand Milk Union Limited, was started in 1946 under the leadership of Anand Trinity ( Verghese Kurien, Tribhuvandas Kishibhai Patel, and Harichand Megha Dalaya) with the aim of stopping intermediary exploitation and illegal trade practices to offer proper procurement channels and pricing.

Its sheer experience, affordable pricing, and countrywide presence have helped Amul become the largest renowned dairy brand in India, ultimately making the country one of the largest milk producers in the world.

It’s no wonder that their aggressive pricing, worldwide presence, and, more importantly, accessible and affordable franchise investment cost have made them one of the top food franchises in India (do check out their ranking).

You name it, they have it on their menu.

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Key Facts on Amul

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Why choose an Amul franchise?

Considering its brand value, starting this franchise would not require much analysis or market research, as this has developed itself as a monopoly brand in the dairy sector for a long time.

Recently, on August 10, Amul’s MD announced that the chain is planning to introduce its D2C (direct-to-customer) platform, which will further strengthen the brand’s presence and demand for its products among customers.

1. Expanding beyond its competition:
   • Being one of the oldest milk procurers and proper channel providers has helped this franchise grow beyond its competition, enabling franchisee unitholders to start the business without issue.
2. Flexible franchise model:
   • One can invest in this franchise according to one’s financial strength, including Amul preferred outlets, railway kiosks, and ice cream scooping parlors.
3. End-to-end support program:
   • Amul offers end-to-end support, including setting up new outlets, decorating them, and inaugurating them.
   • Additionally, they offer additional retail margins, exclusive customer offers, store inauguration support, equipment purchase support, and free brand signage.
4. Low startup cost:
   • The franchise offers low-cost investment with high profit margin, enabling them in making a impressive profit margin.
5. Countrywide presence:
   • Amul has strong presence in Indian media, which will also help the unit holder in making a quick progress in short span of time.
6. Royalty-free business model:
   • Amul franchising has no fees associated with royalties or profit sharing, allowing franchisee owners to increase their profit margin.

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How Much Does An Amul Franchise Cost?

The cost for opening an Amul outlet may vary depending on the model chosen and city. However, an aspiring entrepreneur can take up this franchise from just a basic kiosk level and can take this further up to a Ice cream scooping parlor.

The cost of opening the franchise will include several expenses, such as interior, property, and equipment charges. Even though one can efficiently operate an Amul outlet hassle-freely, one should understand the business and franchise fundamentals.

The primary model Amul uses for franchising is shown below.

• Amul Preferred Outlet
• Scooping Parlour
• Amul Parlour at Railway station
• Amul Parlour at CoE (Center of Excellence)

let’s discuss about them one by one,

Amul Preferred Outlet

Currently, Amul has more than 8000 APO across the India, and below is the cost associated with it.

Scooping Parlour

Currently, Amul has more than 1500 scooping parlour franchise across the India, and below is the cost associated with it.

Amul Parlour at Railway station

A growing number of passengers using trains for their journey will indeed result in an impressive profit margin for the outlet holder.

Amul Parlour at CoE (Center of Excellence)

Typically, the CoE’s Parlours open after receiving approval for their allocation from the Institutions, Municipality, and other significant government entities.

• Above mentioned costs are the essential cost involved in setting up a franchise. One should also need to have some cash( Approx. 7-10 Lakh) for the below expenses.
  • Deep freezer ( For Ice cream)
  • Visi Cooler ( For Dairy Products)
  • Milk Cooler ( For fresh products)
  • Pizza Oven ( For frozen pizza)
  • Mixer/Grinder
  • Waffle cone Machine
  • Cone Holder/ Topping Tray
  • POS Machine

Overall, To become an approved Amul Franchise owner, one would at least need to have an initial investment of at least ₹ 2lakhs to ₹6 lakhs and a retail space of minimum of 100 sq feet.

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How much is Amul Franchise Profit Margin?

The profitability of Amul outlets are widely dependent on the outlet’s geographical presence, market conditions, customer’s footfall at the outlet, and overall customer’s experience.

Taking several factors into consideration, such as its nationwide presence, affordable and flexible startup costs, innovative approach for customer acquisition, diverse range in offerings, and significant market share in the industry, an interested franchisee can certainly anticipate an earning of at least ₹30,000, which can potentially growing beyond ₹ 1 lakh per month.

Overall, Amul offers an extensive range of dairy products and bakery items, therefore the profitability will certainly vary based on that, which can range between 20% and 50% (Gross Profit).

Below is the gross profit margin from different products,

• Pre-packed Ice cream: 20%
• Recipe Based on Ice cream scoops, sundaes, and other frozen items: 50%
• Pouch Milk: 2.5%
• Milk Products: 10%

*Do note that the above number represent only gross margin( Excluding other expenses such as Rent, employee salary, electricity, and other immediate expenses).

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What are the requirement to start an Amul Franchise?

Amul Kiosk holders may not need a large investment, but considering its demand, they may need to meet certain requirements;

• The applicants must meet the financial and site requirements, i.e., an initial investment of 5-15 lakhs and a shop area of 100-500 square feet.
• Franchisee unit holders must possess a strong team leadership quality and should actively participate in the daily operation of the business.
• The owner is expected to invest in this franchise based on their sales volume.
• Franchise unitholders must adhere to the guidelines suggested by the brand. Any irregularities discovered by Amul will result in the suspension of the your franchise agreement.
• In addition to the initial deposit fee, franchise owners will be responsible for paying all recurring costs, such as shop rental, electricity, and employee salaries.
• Interested applicants are advised to contact the concerned team on their legitimate website, which we have mentioned above in our article.

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How to apply for Amul Franchise | How to Get Amul Franchise?

Once you are ready with the Amul’s financial and site requirements and prepared to take up this franchise, you need to visit the official website franchise form. The highlighted link will navigate you to the Amul parlour form page.

You should fill up the required details like Name, Email ID, Contact Number, Store location(Road Facing or not with frontage details), Address(Including State and City), attach important photographs, and other essential information.

Document required for AMUL Franchise

One need to attach the important photographs of below mentioned documents, such as;

• Owner’s passport size image
• Far view and near view of shop
• Resident proof
• Cancelled Cheque
• FSSAI Registration Certificate
• DD of Rs.25000 – 50000(Depending on the chosen concept)
• APO Undertaking

After the form submission, somebody from the Amul sales team would reach out to you via Call or Email.

Important Notice:

There are several fake website and telephone number available over internet – Click here for additional information.

How to Get Amul Distributorship?

To get a Amul distributorship, one can email the necessary details at distribution@amul.coop or can call them at – 022-68526666

Good Luck!! Happy Franchising!!

Conclusion

Friends, I sincerely believe that my guide on “Start an Amul chain in 2022- Cost, Fee & Profit” was helpful and educational, but if you’d need more details, you can comment down below or check out the franchise’s official website.

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Want to explore more? Then check out below franchising opportunities.

Tea & Café Franchise, Ice Cream Franchise, Food & Beverages, Delivery, Dealership/Distributorship, Business Ideas, and Apparel Franchise

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