How to Get Campa Cola Franchise? – Cost, Fee, & Profit

Are you considering owning a renowned beverages franchise, which used to cater to a wider audience? Have you heard of news that Campa Cola is returning back in India that made you to search for its possible opportunity with them? Have you ever dreamt of partnering with a renowned beverages franchises?

Congratulations! You have indeed arrived at the best place. In this comprehensive article, we’ll explore about the Campa Cola Franchise and along with its cost, fee, and profit margin – we’ll also answer some of the most asked questions on this chain.

For those who grew up in the 70’s or 80’s, the taste of India’s beloved soft drink brand, Campa Cola, is sure to bring back cherished memories.

The soft drink used to be a market leader in the 1970s but couldn’t withstand the rise of foreign players like Pepsi and Coca-Cola and was later banned by the indian government in 2006.

And now, the exciting news of Campa Cola’s relaunch in the Indian market has undoubtedly sparked a wave of nostalgia. Let’s dive further to the exciting world of Campa Cold, and its franchise/dealership prospects.

Did you know:

The India’s Soft Drink market is growing at exceptional pace, which currently amounts to US 8.85 Billion in 2023. It is certainly to expand further, exhibiting a CAGR growth of 5.40% for the period 2023 – 2027.

Source: Statista

• Company: Campa Cola
• Founded: 1977, India
• Industry: Beverages
• No. of distributor: NA
• Model: Distributorship/Franchise
• Area served: Countrywide
• Franchise Fee: NA
• Area Required: Min. 2000 sq ft
• Total Initial Investment: ₹10 Lakhs to 20 Lakhs

Overview of Campa Cola Franchise

Founded in 1977 under the banner of Pure Drinks Group, Campa Cold used to be a prominent player in the refreshing world of carbonated beverages. The name “Campa Cold” was primarily named after a fusion of “Campbell” (inspired by the American company Campbell Soup Company) and “Cola.”

In a time when no international players had entered the market, this chain boldly introduced its delectable range of beverages to the Indian customers.

With their expertise and early breakthrough in the domestic market, Campa Cola swiftly garnered a loyal following and achieved widespread popularity. The brand soon became synonymous with cherished memories and moments of pure joy.

It was all going good for the brand till 1990 and began to fizzle out after the then finance minister, Manmohan Singh, introduced reforms to liberalize India’s economy. In 2000-2001, the brand had to closed its Delhi’ offices and bottling plant.

Soon after the re-entry of International brand like Coca-cola, The chain had to shut down its complete operations. It is also worthy to mention that Campa was also banned by the Indian government due to allegations of excessive levels of pesticides in its drinks in 2006.

And Guess what? Campa Cold is re-entering the Indian beverages market with a bang!

In a significant move, Reliance Retail Ventures acquired the Campa Cold Brand from Pure Drinks in August 2022, reportedly for Rs 22 crore. This acquisition has opened up a new opportunity for the soft drink to once again compete against its old rival Coca-Cola and other brands, now with a much stronger backing from Reliance

According to the verified sources, the chain will roll out Campa Cola, Campa Lemon and Campa Orange in phases starting with Andhra Pradesh and Telangana and then across the country.

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The Journey of Campa Cola

The humble beginning of India’s beloved soft drink brand started in 1977 under the brand of Pure Drinks Group. The chain saw quite an ups and down, it was the early 70’s to 80’s, when Campa Cold experienced a significant growth.

But, later due to entry of international brand, created a competition for them and the chain also faced some legal notices, which made them to shut down its operations in 2006.

After almost 16 years in August 2022, Campa saw a ray of hope, when India’s leading retail conglomerate extended its arm to acquire the brand from its makers for a valuation of Rs. 22 Crore.

Indeed, it is highly likely that you will first encounter Campa Cola and its delightful flavors at Reliance’s self-owned stores such as Reliance Bazaar and Reliance Smart Point.

And later the firm may extend its reach through multiple channels including the franchising and distributorship model.

So, are you ready for it? Read further to get more insight on this franchise.

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Why consider owning a Campa Cola Franchise?

There is not doubt that a Campa Cola can be an exciting as well as rewarding opportunity for its aspiring candidates, and some of them are listed down for reference;

1. Established brand image:
   • Despite its operational shut down for a brief period, Campa Cola still holds a special place in the heart of its indian consumers.
     • Its nostalgic appeal may help the brand to draw in customers and build a strong source of revenue generation.
2. Backing from India’s leading conglomerate:
   • There is no denying in that fact that, it is certainly hard to compete with a brand that itself got backing from Reliance Retails, India’s leading retail conglomerate.
     • As a franchisee, you can leverage the support, wide presence, and expertise of successful retail giant.
3. Proper Supply chain and diverse product portfolio:
   • As a Campa Cold dealer, you shouldn’t be worried about supply chain, marketing, branding, and promotional activities.
     • The brand also offers a diverse range of soft drink flavors that can cater to different tastes and preferences, which eventually helps to increase sales consistently and get repeated business.
4. Affordable Startup cost:
   • To become an approved Campa Cola Dealer, you may not require a significant investment. One can certainly become its dealer and distributor with an initial investment of ₹3-4 lakhs and ₹10-20 lakhs respectively.
5. Growing Market:
   • Undoubtedly, India’s soft drink market is here to stay and will surely grow further in upcoming years.
     • And, Partnering with a renowned brand like Campa Cola can help you tap into this growing industry and make the most of the advantages it offers.

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How much does Campa Cola Franchise Cost?

The initial investment to start a Campa Cola business in India may vary depending on the several factors such as locations, infrastructure requirements, storage facilities, inventory, promotional activities, working capital, and delivery vehicles.

Nevertheless, to be an approved Campa Cola distributor in your area, One may need to invest at least ₹10 Lakhs to 20 lakhs, which may include a deposit fee of ~2 lakh.

Though the franchise hasn’t disclosed anything related to its cost breakup, but considering its brand value, one may need to have a Net Worth of ₹ 50 Lakhs and at least ₹30 Lakhs in liquid assets.

What are the cost involved in setting up a Campa Cola Franchise?

The cost breakup for an initial investment may look like;

1. Go down/Inventory Space Cost:
   • A Campa Cola channel partner is expected to have a minimum space of 2000 sq ft that may help them to cater to the dealers/sub-dealers demand in the local neighbourhood.
2. Vehicle cost:
   • One can start a Campa cold business with a rented vehicle but later on with the margin grows they can opt for their own delivery vans or vehicles. The cost for vehicle may range between 3,00,000 to 6,00,000.
3. Employee expenses:
   • A Campa Cola business owner should be capable of hiring and maintaining 4 to 5 employees with the single manager. The cost may vary between ₹50,000 to ₹70,000.

While the above listed are major expenses but one may need to fund the expenses like Electricity, fuel, and miscellaneous expenses.

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How much is Campa Cola Distributorship Profit Margin? | Campa Cola Franchise Profit

The entire chain is operated, owned, and managed by Reliance Retail, a subsidiary unit of Reliance Limited. As such, quoting a specific net profit margin is challenging.

However, taking into account Campa’s strong brand image, a larger customer base, the backing of a leading conglomerate, low startup costs, and high profit potential, approved distributors/franchise owners can reasonably expect to earn a profit margin of 5-10% from the sale of each bottle.

Eligibility Criteria for Campa Cola Franchise

1. First and most important – One should have the required funding to partner with Campa Cola brand, and one should be ready to invest between ₹ 10 Lakhs to ₹ 20 Lakhs to become its official distributor.
2. The franchise is expected to acquire a space of minimum of 2000 sq feet(owned/leased space) for inventory procurement with a plenty of parking space at a highly accessible location in the city.
3. Campa Cola prospects are also expected to drill down to study the local market condition and should have strong bonding with local retailers.

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Space Requirements for Campa Cola Distributorship?

To become an approved Campa Cola Distributor, one has to meet the humongous or growing demand for its diverse range of beverages.

Therefore, to cater to its demand, Campa Cola channel owner may need to have a go down space of at least 2000 sq feet with a necessary space for vehicle loading and unloading.

How to Get Campa Cola Distributorship?

Becoming a Campa Cola Distributor requires a relatively low capital that may offers an impressive gross profit margin. Additionally, the Campa Cola 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. To get Campa Cola’s franchise or distributorship, one may need to visit Reliance’ official website and submit your business proposal;
   • Or call them at : Customer Care: 1800 891 0001 / 1800 102 7382
   • Email ID: Customer Service e-mail: customerservice@ril.com

Final Takeaway – Conclusion

Campa Cola, operated under the Pure Drinks group, was once one of India’s most beloved soft drink brands, known for its diverse range of cold beverages and delightful flavors.

Having been a favorite in the 70s and 80s, the brand experienced a decline in demand over the years, largely attributed to the entry of international competitors like Coca Cola. However, in August 2022, a significant turn of events occurred when Reliance Retail, the FMCG arm of Reliance Group, acquired Campa Cola from its maker, Pure Drinks.

Though it is unclear whether Campa Cola offers its franchising program or not, there are indications that Reliance Retail has planned to introduce three flavors: Campa Cola, Campa Lemon, and Campa Oranges in phases through its own channels.

The company can gradually expand its humongous retail network by offering franchising/distributorship opportunities to aspiring entrepreneurs, as per reliable sources.

Good Luck!! Happy Franchising!!

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