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HomeFood & BeveragesWhy Mother Dairy Franchise WORTH Investing | Cost & Profit

Why Mother Dairy Franchise WORTH Investing | Cost & Profit

Do you intend to open a dairy franchise in your town? Did the presence of several dairy stores nearby prompt you to look for a profitable dairy franchise in India? Does your instinct compels you to partner with one of India’s lucrative and affordable franchise?

If “yes,” you have undoubtedly found the best article on the internet, which will provide a complete insight on starting a successful dairy chain in the city by partnering – with Mother Dairy Franchise.

Note: We have been covering several articles on multiple franchises, and with our article, we always tries to put up a clear and transparent picture of the chain that focus primarily on its cost, profit, and reasons to start it. For any queries, you can follow us on Instagram or can use the provided comment section.

The dairy sector is expanding quickly in India, and some of the oldest franchises have developed a strong brand image among Indians that has unquestionably assisted them in gaining a sizable market share and a devoted following. However, we have highlighted a few major reasons supporting our statement;

  1. One of the leading agriculture based economy
  2. Largest milk producer in the world
  3. Affordable pricing
  4. Varieties in offering

In this blog, we’ll be covering a comprehensive article on starting a Mother Dairy Franchise in your city with its capital required, cost, profitexpansion strategies, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.

Mother Dairy Franchise Opportunity
  • Company: Mother Dairy
  • Founded: 1974
  • HQ: Noida, UP, India
  • Industry: Dairy
  • No. of outlet: 1800+
  • Model: Franchising
  • Area served: Worldwide
  • Franchise Fee: ₹1-2 lacs
  • Profit Margin: 10-15%
  • Area Required: Min. 300 sq ft
  • Total Initial Investment: ₹ 15 lacs to 20 lacs

Overview of Mother Dairy Franchise

Overview of Mother Dairy Franchise

Incepted in 1974 as a subsidiary unit of National Dairy Development Board (NDDB), Mother Dairy is one of the India’s successful daily brand that provides an organized market for milk producers in the country.

Over the year, and with the board mission to provide safe, healthy, and affordable dairy products, Mother Dairy has become one of the most popular and trusted brands in India.

The chains offers a wide range of dairy products, such as milk, curd, butter, cheese, paneer, ice cream, and many more. They are also one of the second largest milk producers in India, next to Amul.

The chain is certainly equipped with modern technology and equipment to ensure the quality and safety of its products, which helps them offering dairy products produced with the highest standards of hygiene and safety measures.

Mother Dairy operates a milk processing facility in Delhi and has a sizable distribution network of more than 1,500 retail locations and 1,800 exclusive locations in many cities. The chain has increased its presence in tier 3 and tier 4 cities by collaborating with several retail outlets and supermarkets.

Often their successes are attributed to their focus on quality, affordability, and customer satisfaction, which allowed them to establish a sizable customer base over the years.

According to its official website, the chain has invested significant capital in advertising and marketing campaigns that helped them to create general brand awareness and visibility in the market.

Now, does this little snippet on Mother Dairy excite you to become their partner? Hold on, we have more to cover on this, which will help you in making an informed decision on same.

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Mother Dairy Franchise Opportunity – The Journey

Their humble beginning also started like Amul franchise that focused on primarily on Gujarat. But, Mother Dairy was launched to provide a stable and organized milk market for Indian farmers by focusing primarily on Delhi and NCR Region.

It offers consumers a wide variety of items, including dairy, through a strong network of franchise outlets and more than 400 Safal stores.

Key Facts on Mother Dairy

Sr. NoTypeGovt-Subsidiary Entity
1Trade NameMother Dairy
2IndustryDairy Industry
3Founded1974
4Founders Or Parent CompanySubsidiary of NDDB
5HeadquartersNoida, UP
6Number of locations1,500 retail locations
and 1,800 exclusive locations
7Area servedCountrywide
8ModelFranchise
9Menu offeringMilk, curd, butter, cheese, paneer,
ice cream, and many more
10Revenue₹12,583.40 crore in FY22
11Websitehttps://www.motherdairy.com/

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Benefits of Owning a Mother Dairy Franchise

Owning a Mother Dairy Franchise

There are several benefit in owning a Mother Dairy location, and some of them are listed for your reference.

  1. Leverage its Established brand:
    • As a Mother Dairy outlet owner, you may have access to their proven and established business model that have been helping them to grow and expand their location and business extensively.
  2. Training and Support:
    • The franchise provides an extensive training and support program to its franchisees, which includes assistance with store layout, product placement, and marketing
  3. Affordability and Variety:
    • Mother Dairy offers a wide range of affordable products, such as Milk, Curd, Fruits, and Vegetables, that makes them serve items for all category.
  4. Marketing Support:
    • The chain has been investing heavily on its marketing campaigns and does provides marketing support to its franchisees, which includes advertising campaigns, promotional offers, and discounts.
  5. Low startup cost with high profit margin:
    • Interested applicants can take up the franchise with the initial investment of rupees 5 to 10 lacs that may return a hefty profit margin to its outlet owner.
  6. Countrywide presence & expansion:
    • Mother Dairy already has strong network of its franchisees across the country, and it has also partnered with several retailers and shopping centers to sell their products. More outlets planned to release in upcoming years will create tremendous opportunities for aspiring entrepreneurs.

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How much does a Mother Dairy Franchise Cost?

Mother Dairy Franchise Cost

The chain offers a wide range of Dairy products and its cost for starting a single outlet may depend on several factors, including outlet’s geographical location, chosen model, and many more.

Nevertheless, To start a Mother Dairy franchise, one would at least require an initial investment of ₹ 15 lacs to ₹ 20 lacs and a dedicated floor area of over 300 square feet.

This initial investment does cover the franchise fee, marketing fee, and other necessary expenses, but not the cost involved in construction the outlet.

Mother Dairy Franchise Fee

The franchise fee/deposit fee for the Mother Dairy is between Rs. 1 lacs – Rs. 2 lacs(Depends on chosen model). Furthermore, to qualify financially, franchise candidates and their partners/investors must have minimum net worth of Rs. 50 lacs with available liquidity of Rs. 20 lacs.

Additional Cost for Mother Dairy

Typically, to run and maintain a Mother Dairy outlet, 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, like Amul, Mother Dairy also doesn’t charges any royalty fee from its franchisees, ultimately offering extra freedom to its outlet owner to earn a few extra margin.

Name of FeeCost and Other Details
Initial Franchise FeeRs. 1 – 2 lacs
Floor areaMin 300 sq. ft
Royalty FeeNA
Ad royalty FeeNA
Agreement Period2 Years
Planning and Development
and Design Costs
Rs. 5-7 lacs
Initial InventoryRs. 3- 4 lacs
Additional FundsRs. 5 lacs
Net WorthRs. 50 Lacs
Available LiquidityRs. 20 Lacs
Total Initial InvestmentRs. 15 lacs – 20 lacs

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How much does a Mother Dairy Safal Franchise Cost?

Safal is one of most affordable franchising model offered by Mother Dairy. Certainly, to start a franchise like this doesn’t hit franchisee’s pocket.

It is one of the popular franchising model where Mother Dairy provides all kind of supports, including Store setup, Display arrangement, electronic weighing machine, visi cooler, and much more.

It requires a minimum investment of ₹2 lacs, which consists of 1 lacs as refundable security deposit, and remaining amount for working capital for a Mother Dairy Safal franchise outlet.


How much is Mother Dairy Franchise Profit Margin?

Mother Dairy Franchise Profit Margin

The chain does support in finding a suitable location that may generate a immense profit margin to its outlet holder. And with its extensive training program and best-in-class marketing strategy, one may anticipate a good profit margin with Mother dairy outlet.

Moreover, it is always advisable to perform extensive market research and area analysis that may help you in understanding the future growth potential for its outlets.

Nevertheless, considering its expertise of over five decades, affordable menu range, low startup cost, varieties in menu, extensive training and marketing program may help new outlet holder to expect a net profit margin of 10-15%.

Additionally, profit margins vary amongst items, with some even offering profit margins of 20% or higher.

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What does it require to become a Mother Dairy Franchisee?

Generally, the requirements for owning a Mother Dairy location are pretty much similar to other dairy chain. But to ease your research, we have highlighted a few major reasons;

  1. First and most important – One should be financially well-qualified and have good credit to start a Mother Dairy location, and should be ready to invest minimum 15 lacs – 25 lacs.
  2. Interested applicants are advised to dedicate themselves to the Mother Dairy business and follow the company standards and maintain their legacy.
  3. Interested prospects must undergo and complete the necessary training program offered by Mother Dairy’s team.
  4. Interested franchisees should have a passion to work in the Dairy industry and should possess the leadership and financial skills to operate a Mother Dairy outlet.
  5. Applicants are advised to secure a suitable location that meet Mother Dairy franchise requirements, such as high visibility and easy accessibility with a min floor space of min 300 sq feet.

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How to Get Mother Dairy Franchise?

For starting a Mother Dairy location will require a relatively minimal investment that may offer an impressive gross profit margin. Additionally, the Mother Dairy chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.

  1. Visit its official website and fill in the necessary details like Name, Address, Phone number, City, and State.
  2. Or, you can follow these steps; – Brand Details
  • Fill an application form with AWPO Army Welfare Placement Organization.
  • Appear for an interview jointly conducted by Safal & AWPO.
  • Deposit Security & Working Capital Draft under Agreement with two Govt. Officials as your Guarantors
  • Safal provides training & assistance to operationalize the allotted outlet
  • Work under the guidelines & on the job advice of Safal’s Sales Team on day to day basis to maximize your earnings

Final Takeaway – Summary

Undoubtedly, Mother Dairy is one of second largest dairy brand in India, next to Amul. It offers a wide range of Dairy products, such as Ghee, Milk, Curd, Frozen Items, Ice Cream, and much more. In a span of 50 plus years, the chain has grown into a more than 1800 exclusive outlets.

To become a Mother Dairy outlet owner, one may require an investment of Rs. 15 lacs to 25 lacs and a floor space of min 300 sq. ft. and can start your entrepreneurial journey. Nevertheless, if you too keen about profitability, then Mother Dairy offers an interesting program for its franchisee owner, and one can certainly expect to earn 10-15% of net profit margin.

The bottom line – Overall, owning a Mother Dairy outlet can be a lucrative business opportunity for entrepreneurs who are interested in the dairy industry.

Additionally, We also advises interested prospects to perform extensive market research and growth potential for a given location, and should be prepared to make a sizable financial commitment to grow future in the industry.

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

Good Luck!! Happy Franchising!!

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

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FAQ

  1. How much does it cost to Start a Mother Dairy Franchise in India?

    Ans: The cost of starting a Mother Dairy location depends on several factors, such as location and chosen model. Moreover, starting a Mother Dairy outlet price in India will be around ₹15 lacs to 25 lacs for a floor area of min. 300 sq feet.

  2. Is Mother Dairy Franchise Profitable?

    Ans: The profitability of Mother Dairy outlet may depend on numerous factors, and considering the Mother Dairy’s expertise, subsidiary of Govt entity, varieties in offering, and competitive pricing may help franchisee to anticipate a net profit margin of 10-15%.

  3. How much does a Mother Dairy Franchise owner make?

    Ans: It certainly varies and depends on location and owner’s capabilities to maintain their expenses. Moreover, An average Mother dairy outlets can generate a monthly sales of over ₹4-5 lacs and can return a net profit of average 12%. That means, a franchise can certainly expect a monthly income of over 50,000 easily.

FranchiseGoal India
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