Are you interested in starting a business with a strong brand presence and a wide range of products? Look no further than Amul, a well-established dairy brand with a loyal customer base. In this article, we will explore the investment details, profit margins, and requirements to open an Amul franchise.
Anyone with a very small capital base and good business acumen can become an Amul brand franchisee. It requires very little investment and working capital.
Franchise Brand Profile
| Brand Name: Amul |
| Founder Name: Verghese Kurien, Tribhuvandas Kishibhai Patel |
| Founder Year: 1946 |
| Total Outlets: Over 100,000 |
| Last Year Revenue: ₹10,000 crores (Approx) |
| Number of employees: 1,000 (officers and employees) |
| Milk Producers: 3.6 million+ |
Amul Franchise Investment Details:
Amul offers various franchise opportunities, each with its own investment requirements and profit margins. Here are the details of two of the most popular formats:
| Types of the formats | Shops Sqft Required | Investments by franchisee | Profits percentages | Royalty |
| Amul Preferred Outlet, Amul Railway Parlour, Amul Kiosk | 100 to 150 Sqfts | Approx 2,00,000 Break Ups: Refundable Brand Security – Rs 25,000 Renovation – Rs 100,000 (approx.) Equipment – Rs 70,000 (approx.) plus incidental cost. | Pouch Milk – 2.5%, Milk Products – 10%, Ice Cream – 20% | No royalty fee |
| Amul Ice-Cream Scooping Parlour | 800 Sqfts | Approx 6,00,000 Break Ups: Non-Refundable Brand Security – Rs 50,000 Renovation – Rs 4,00,000 (approx.) Equipment – Rs 1,50,000 (approx.) plus incidental cost. All Visicoolers and Deep Freezers should be Amul Branded to avail equipment purchase support amount. | About 50% on recipe based ice cream scoops / sundaes / floats / shakes / baked pizzas / sandwiches / cheese slice burger / garlic bread / hot chocolate drink (Amul Pro). | No royalty fee |
Amul Preferred Outlet (APO): The APO investment breakdown includes a refundable brand security of ₹25,000, renovation costs of ₹100,000 (approx.), and equipment costs of ₹70,000 (approx.) plus incidental expenses. The profit margins for this franchise are relatively modest, with 2.5% for pouch milk, 10% for milk products, and 20% for ice cream. One of the significant advantages of this franchise is that Amul does not charge any royalty fee or commission.
Amul Ice-Cream Scooping Parlour: The Ice-Cream Scooping Parlour requires a significantly higher investment of approximately ₹6,00,000. The breakdown includes a non-refundable brand security of ₹50,000, renovation costs of ₹4,00,000 (approx.), and equipment costs of ₹1,50,000 (approx.) plus incidental expenses. This franchise offers higher profit margins, with about 50% on recipe-based ice cream scoops, sundaes, floats, shakes, baked pizzas, sandwiches, cheese slice burgers, garlic bread, and hot chocolate drinks (Amul Pro). Like the APO, this franchise also does not charge any royalty fee or commission.
The franchisee will have a prebuilt shop / space in a good location either owned or rented. The franchisee is expected to bear the entire cost (viz. interiors and equipment, excluding property cost) of setting up the store which is expected to be in the range of Rs 1.50 lakhs to Rs. 6.00 lakhs depending upon the format.
Our wholesale dealers will supply stocks at the parlour and the franchisee will avail retail margin. Retail margins will vary from product to product.
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Documents Required for Amul franchise
To apply for an Amul franchise, you will need to provide the following documents:
- Valid trade licence
- Good credit rating
- Minimum investment of ₹2 lakhs (for Amul Preferred Outlet) or ₹5 lakhs (for Amul Ice-Cream Scooping Parlour)
- Proof of identity and address
How to Open Amul Franchise
- To open an Amul franchise, follow these steps:
- Visit the official Amul website and click on the “Amul Preferred Outlet (APO)” link.
- Fill in the online application form with the necessary details.
- Submit the application form and wait for a response from the Amul team.
- Attend an orientation session to learn about the Amul franchise business model and products.
- Sign an agreement with Amul and pay the franchise fee.
- Receive the franchise kit and training to start your business.
Is Amul Franchise Worth the Investment?
Amul franchise offers several advantages, including:
- Established Brand: Amul is a well-established brand with a loyal customer base.
- Wide Range of Products: Amul offers a diverse range of dairy products, which means you can cater to various consumer preferences.
- Low Investment: The investment required to start an Amul franchise is relatively low compared to other businesses.
- Training and Support: Amul provides comprehensive training and support to its franchisees, which can help you run your business efficiently.
However, there are some potential disadvantages to consider:
- High Initial Investment: While the investment is relatively low, it can still be a significant upfront cost.
- Competition: The dairy industry is competitive, and you will need to work hard to establish your franchise and maintain customer loyalty.
Amul franchise Media
To become an Amul brand franchisee, you need to meet the eligibility criteria, fill out the application form, submit the required documents, attend an interview, and sign the agreement with Amul
In conclusion, an Amul franchise can be a profitable and sustainable business opportunity for entrepreneurs who are passionate about dairy products and willing to invest time and resources in building a successful franchise.
FAQ:
The investment requirements vary depending on the type of franchise. For the Amul Preferred Outlet (APO), the investment is approximately ₹2,00,000, while the Amul Ice-Cream Scooping Parlour requires around ₹6,00,000.
For the APO, the breakdown includes a refundable brand security of ₹25,000, renovation costs of ₹100,000 (approx.), and equipment costs of ₹70,000 (approx.) plus incidental expenses. For the Ice-Cream Scooping Parlour, the breakdown includes a non-refundable brand security of ₹50,000, renovation costs of ₹4,00,000 (approx.), and equipment costs of ₹1,50,000 (approx.) plus incidental expenses.
No, Amul does not charge any royalty fee or commission for either franchise option.
The eligibility criteria include being an Indian citizen above 18 years of age, having a suitable retail space, and having the necessary financial resources to invest in the business.
Are there any other costs associated with running an Amul franchise?
Yes, there may be additional costs associated with running an Amul franchise, such as marketing expenses, employee salaries, and utility bills.
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