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Safal Franchise Investment

Mother Dairy Safal Franchise – Investment, Process & FAQ Guide

India’s demand for fresh, hygienic, and affordable fruits and vegetables has grown significantly over the past decade. To meet this need, Mother Dairy’s Safal brand has emerged as a trusted retail chain for fresh produce and grocery staples. Backed by Mother Dairy Fruit & Vegetable Pvt. Ltd., a wholly owned subsidiary of NDDB (National Dairy Development Board), Safal franchise outlets are now available as an entrepreneurship opportunity especially for Ex-Servicemen (ESM) through collaboration with the Army Welfare Placement Organisation (AWPO).

This blog explains how to become an entrepreneur with the Safal franchise, including the step-by-step process, investment required, infrastructure support, and frequently asked questions.

Franchise Brand details

Franchise Brand Name: Mother Dairy Safal
Founded Year: 1974 (Mother Dairy), 1988 (Safal)
Parent Company: NDDB (National Dairy Development Board)
Headquarters: Noida
Managing Director: Manish Bandlish
Owner of the company: National Dairy Development Board, Ministry of Fisheries, Animal Husbandry and Dairying, Government of India
Revenue: ₹15000 crore ($1.8 Billion) 2024

About Mother Dairy Safal

Safal is India’s leading organized retail chain for fresh fruits, vegetables, pulses, frozen food, dairy products, and groceries. With its network of modern outlets across Delhi NCR and other cities, Safal ensures quality, transparency in pricing, and consistent supply—creating a trusted brand in the minds of Indian consumers.

How to Become a Safal Franchise Entrepreneur

Safal provides a structured, low-investment retail opportunity designed for aspiring small-scale entrepreneurs and retired defense personnel (via AWPO).

Step-by-Step Process to Join Safal Franchise

  1. Application Submission
    Apply through the AWPO (Army Welfare Placement Organisation) by filling out the prescribed Safal entrepreneurship form.
  2. Interview
    Appear for an interview jointly conducted by Safal and AWPO, where your suitability and location preference will be assessed.
  3. Agreement & Deposit
    Upon selection:
    • Submit ₹2 lakh as investment:
      • ₹1 lakh as refundable security deposit
      • ₹1 lakh as working capital
    • You will sign a franchise agreement, co-signed by two government officials as guarantors.
  4. Training & Outlet Allotment
    Safal will assign you an outlet (typically within 10 km of your residence) and provide training on operations, sales practices, and software (if any).
  5. Daily Operations Under Guidance
    You’ll work under the day-to-day supervision of Safal’s sales team, who will offer on-the-job advice to maximize your outlet’s earnings.

What You Get as a Safal Franchise Partner

Safal provides all infrastructure and support necessary to run a successful outlet. This includes:

Facilities Provided by SafalDetails
Outlet BoothFully built & branded
Display RacksFor fresh fruits, vegetables & groceries
Electronic Weighing MachinesIncluded
Deep Freezer & Visi CoolerFor frozen & perishable items
Crates and Storage ToolsIncluded
Promotional MaterialPosters, branding, banners
Daily Inventory DeliveryTo your outlet doorstep
No Rent or Utility ChargesHandled by Safal

Safal Franchise Investment Breakdown

The Safal model is designed to be affordable and low-risk, especially for first-time entrepreneurs.

ExpenseAmount
Refundable Security₹1,00,000
Working Capital₹1,00,000
Total Initial Investment₹2,00,000

No setup cost, rent, electricity, or maintenance is charged from the franchisee.

How Safal Outlets Function

  • Daily Supply: Safal delivers all SKUs (stock keeping units) daily to your outlet.
  • Payments: Franchisees provide a cheque for the current day’s invoice and submit the demand for the next day during delivery.
  • Rate List: Safal sends a daily price list with fixed MRPs for all items—franchisees are not allowed to alter pricing.
  • Sales Limitation: Only items supplied by Safal may be sold at the outlet; outside products are not permitted.

Also Read this: 10+ Profitable B2B Manufacturing Business Ideas 2025

Earnings & Commission Structure

The gross commission earned includes a component for handling losses, so no return of unsold inventory is allowed. Profitability depends on:

  • Sales volume
  • Product mix (perishable vs. packaged)
  • Efficient inventory management

🧾 Commission is built into the invoice pricing and varies by product category.

Staffing & Operations

  • The franchisee (ESM) must personally manage the outlet, especially during the first 2 years.
  • Depending on sales, the outlet may require 1–2 assistants, to be arranged by the franchisee at their own cost and responsibility.

Safal Franchise Agreement Details

ClauseDetails
Agreement Tenure2 Years
Renewal TermsBased on performance evaluation
Outlet Location CriteriaWithin 10 km radius of your home
Unsold InventoryNot accepted back
Rent, Utility & MaintenanceCovered by Safal

Skills Required to Run a Safal Franchise

You don’t need prior business experience, but you should have:

  • Basic understanding of retail operations
  • Good communication and customer handling
  • Interest in managing inventory and maintaining hygiene
  • Discipline to work as per Safal’s SOPs

Conclusion

The Mother Dairy Safal franchise is an excellent low-investment opportunity for entrepreneurs especially Ex-Servicemen who want to run a stable retail business in India’s growing fresh food and grocery market. With minimal capital, no rent burden, full infrastructure support, and strong brand backing, Safal offers a path to self-employment with dignity and financial sustainability.

If you’re looking to start small, grow steadily, and make a difference in your community, a Safal franchise could be your perfect next step.

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Safal Franchise FAQs

Who provides the shop and setup?

Safal provides the outlet and full infrastructure including racks, weighing machines, refrigerators, and display materials.

What’s the minimum investment to start a Safal outlet?

₹2 lakh total — ₹1 lakh as refundable security + ₹1 lakh as working capital.

How are goods supplied to my outlet?

All SKUs are delivered daily at your booth. Payments and next-day orders are processed during delivery.

Do I have to pay rent or utility bills?

No. Safal bears all rent, electricity, and maintenance charges.

Will Safal take back unsold products?

No. Unsold inventory is not returnable. Loss handling is factored into the daily invoice commission.

What’s the franchise agreement duration?

2 years, renewable based on your outlet’s performance.

Who hires the assistants or helpers for the store?

The franchisee is responsible for hiring and paying assistants, if needed.

Can I sell other products from the booth?

No. Only Safal-supplied items may be sold at the outlet.

How are selling prices decided?

Safal provides a daily rate list with fixed MRPs for each SKU.

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