Amul Franchise Cost In India

Amul Franchise in India

Amul is well known all over India for its dairy products, for being one of the largest FMCG entities in India, and also for creating a lasting impression on our minds through brilliant product strategies and advert campaigns.

Here are the pertinent details to become a part of this movement as a franchisee.

• Overview: Amul’s product range, in addition to milk, includes a whole host of milk derivatives. It makes and sells beverages such as flavored milk, lassi, buttermilk, etc.
  
  Amul also has cheese, butter, curds, fresh cream, condensed milk, and other milk products. There’s a range of ice creams, sweets, bakery products, cattle feed, and fertilizers too.
  
  These products, togethe,r earned GCMMF a turnover of 3.5 billion USD in 2020-21. The other contender in the milk distribution market in India is Mother Dairy, which, in addition to milk and milk products,
  
  Also sells vegetables and fruits under the brand name “Safal” and edible oils under the name of “Dhara”. Amul also faces competition from local milk vendors or co-operatives and foreign companies in the ice cream and chocolate sellers space.
   
• Types of Amul franchises: Prospective franchisees can either set up Amul parlors/kiosks or exclusive Amul ice cream scooping parlors.
  
  These are separate from dealership opportunities. The requirements will vary slightly based on the type of franchise.
  
  
• Benefits to Amul franchises: The brand is well known, so franchisees can expect good footfall. It is most definitely a profitable venture.
  
  GCMMF will provide LED signage and subsidy on equipment, branding costs as well as supply of a pre-packaged range of products. There is no royalty fee or profit-sharing expected from the franchises.
   
• Options and expected returns: These are as follows for the different arrangements.

Here we have provided the information for how to get the Amul franchise, If you want to get it must fulfill these requirements given below.

1. Amul preferred outlet franchisee or APO

Requisites and equipment:

• The applicant should have either an own or rented shop that is 100 to 150 square feet in size. The shop will need to be renovated if required to meet Amul’s standards
   
• The shop will also require a deep freezer, visicooler, milk cooler, and oven for the different products.

Cost:

• Costs will include a refundable deposit of 25,000/-INR that is collected by Amul
   
• The equipment needed for product storage will approximately need 80,000/- INR
  
  
• Additional costs for renovation, etc. can be approximated to another 80,000/- INR
  
  
• These costs do not include premises rent and deposit
  
  
• Applicants can avail MSME or other loans if financial assistance is needed

Amul franchise profit & Expected returns: 

• The average return on MRP will range between 2.5% to 20% based
  on different products.

2. Scooping parlor franchise requirements

Requisites and equipment:

• The applicant should have either an own or rented shop that is of 250 to 400 square feet in size. The shop will need to be renovated if required to meet Amul’s standards
   
• The shop will also require a scooping cabinet with bowls, deep freezer, visicooler, oven for pizzas, mixer/grinder, waffle cone machine, cone holder & topping tray, and POS machine.
  

Cost:

• Costs will include a refundable deposit of 55,000/-INR that is collected by Amul
   
• The equipment needed for product storage will approximately need 1,50,000/- INR
  
  
• Additional costs for renovation can be approximated to another 3,00,000/- INR
  
  
• These costs do not include premises rent and deposit
  
  
• Applicants can avail MSME or other loans if financial assistance is needed.

Amul franchise profit & Expected returns: 

• The average return on MRP will be anywhere between 20% for  pre-packaged products to about 50% for recipe-based food items.

3. Amul parlor at railway stations

Requisites and equipment:

• A stall or kiosk installation by Amul will happen after getting an allotment from the railways. The franchisees will be the operators of such stalls or kiosks
  
  
• The shop will also require a deep freezer and visicooler for the different products.

 cost:

• Costs will include a refundable deposit of 1,00,000/-INR that is collected by Amul
   
• The cost for setting up of stall will be between 2.5 lakhs to 4 lakhs
  
  
• The equipment needed for product storage will approximately need 50,000/- INR
  
  
• Franchisees will also incur additional costs such as payment of security deposit fees for licenses. This is to be paid on behalf of GCMMF to the railways.
  
  
• The above costs do not include operating expenses. Applicants can avail MSME or other loans if financial assistance is needed.

Amul franchise profit & Expected returns

• The average return on MRP will range between 2.5% to 20% based on different products.

4. Amul parlor at centers of Excellence (CoE)

Requisites and equipment:

• A stall or kiosk installation by Amul will happen after getting an allotment from important government or private institutions and/or municipal corporations. The franchisees will be the operators of such stalls or kiosks
  
  
• The parlor will also require a deep freezer, visicooler, milk cooler, and oven for the different products.
  

Cost:

• Costs will include a refundable deposit of 50,000/-INR that is collected by Amul
   
• The cost for setting up the stall will be between 2.5 lakhs to 4 lakhs
  
  
• The equipment needed for product storage will approximately need 50,000/- INR
  
  
• Franchisees will also incur additional costs such as payment of security deposit and fees for licenses. This is to be paid on behalf of GCMMF to the respective institutions.
  
  
• The above costs do not include operating expenses. Applicants can avail MSME or other loans if financial assistance is needed.

Amul franchise profit & Expected returns:

• The average return on MRP will range between 2.5% to 20% for different
  products.
  
  
• To avail of these business opportunities, applicants can send an email, call or apply online through Amul’s website to start the application process.
  
  
• To obtain funds for initial investment, an MSME loan can be availed. Applicants will need to register, and fulfill the qualifying criteria, and then the loan will be sanctioned. These loans are available to individuals as well as entities.
  
  
• Documents such as business registration proof as applicable, ID proof, bank statements, and IT returns might need to be furnished. 

Concluding thoughts

Amul was created to cut out the middlemen between milk producers and consumers. It is apt then that they work directly with people looking for good business opportunities and support them through the process.

The insights provided here should give anyone a comprehensive idea of Amul and its franchise benefits. I hope you liked our article on amul franchise cost in india, if you have any comments or suggestions do share them in the comments below.

Frequently Asked Questions

1. What is the cheapest Amul Franchise that I can start?

The franchise option that costs the least among the various models is APO or Amul’s preferred outlet. The benefits are more or less the same as opting for other models, but the setup costs are lower.

It is, therefore, a good choice for people without too much start-up capital.

2. What are the Space Requirements for Opening an Amul Kiosk parlor or Preferred Outlet?

Applicant should either own or be able to rent premises with 100 to 150 square feet of space as a minimum. The space, as well as investment requirement, goes up if the parlor is at a railway station or a center of excellence.

3. What are the types of equipment needed for opening an Amul store franchise?

Depending on whether prepackaged items are being stored and sold or recipe-based preparations are involved, the equipment varies. For e.g. If a scooping parlor where sundae, shake or garlic bread, etc.

Are also served to customers, then in addition to a deep freezer or oven, a mixer-grinder, waffle cone machine, etc. will also be required.