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Amul, a brand of the Gujarat Cooperative Milk Marketing Federation (GCMMF), offers
various franchise opportunities through its Amul Parlour model, allowing individuals to sell a
wide range of its dairy products like milk, ice creams, cheese, butter, and more. The brand is
recognized globally and offers a solid business opportunity due to its massive market
presence and trusted reputation.
Here’s an expanded explanation on Amul’s franchise model, including investment
breakdown, revenue potential, profit margins, and other essential details.
1. Types of Amul Franchise Models:
Amul offers different types of franchise models based on the size of the outlet and the
product offering. Some of the most common ones include:
• Amul Preferred Outlet: This is the basic franchise model where the franchisee
sells Amul’s core products such as milk, ice cream, cheese, and butter.
• Amul Ice Cream Scooping Parlour: A more advanced model, which focuses
primarily on selling Amul ice creams. It requires a larger investment due to additional
equipment and space needed for ice cream scooping.
• Amul Parlour Kiosk/Small Amul Kiosk: These kiosks are placed in high
foot-traffic areas like malls, railway stations, and shopping complexes. The focus is primarily
on selling milk and a few select dairy products.
2. Investment Breakdown:
The investment cost varies depending on the type of franchise and the scale of operations.
Below are approximate figures for each franchise model:
a) Amul Preferred Outlet (Regular Outlet):
• Brand Security: Rs. 25,000 (Refundable)
• Renovation Costs: Rs. 1,00,000 (Approximate)
• Equipment & Setup: Rs. 70,000 (Approximate)
• Total Initial Investment: Rs. 2,00,000 (Approximate)
b) Amul Ice Cream Scooping Parlour:
• Brand Security: Rs. 50,000 (Non-Refundable)
• Renovation Costs: Rs. 4,00,000 (Approximate)
• Equipment Setup: Rs. 1,50,000 (Approximate)
• Total Investment: Rs. 6,00,000 (Approximate)
c) Amul Kiosk/Small Kiosk:
• Initial Investment: Rs. 50,000 to Rs. 1,00,000 (Approximate depending on
size)
Note: These investments are approximate and can vary based on location, store size, and
other factors.
Source: Amul Franchise Details (amul.com)
3. Revenue and Profit Margins:
Franchisees can expect steady revenue from the sale of popular dairy products. Here’s a
breakdown of revenue expectations and profit margins:
• Revenue Potential:
• Monthly Revenue: Franchisees can expect a monthly turnover ranging from
Rs. 5 lakh to Rs. 10 lakh, depending on factors like location, foot traffic, and sales efforts.
High-demand locations like malls and city centers can lead to higher revenues.
• Profit Margins:
• Milk & Dairy Products: Profit margins are relatively lower for basic dairy
products, typically 2-5% for milk, depending on the cost of procurement and the franchisee’s
operational efficiency.
• Ice Cream Sales: Ice cream scooping parlours have higher margins—typically
15-20% due to higher sales prices and demand in popular regions.
• Premium Products: Products like cheese and processed dairy items yield
better margins in the range of 10-15%.
• Potential Earnings:
• Annual Earnings: Based on a monthly turnover of Rs. 5 lakh to Rs. 10 lakh,
franchisees could potentially earn anywhere from Rs. 1 lakh to Rs. 2 lakh per month,
depending on sales and operational costs.
Source: Vakilsearch
4. Key Benefits:
• Low Royalty Fee: Unlike many other franchises, Amul does not charge royalty
fees or profit-sharing commissions. Franchisees retain the full profit from their sales, which
can significantly improve their earnings.
• Strong Brand Recognition: Amul is one of the most recognized and trusted
dairy brands in India, ensuring a consistent demand for products.
• Support from Amul:
• Training: Franchisees are provided with training on store management,
product handling, and customer service.
• Marketing Support: Amul provides signage, promotional materials, and digital
content to help franchisees market their outlets effectively.
• Supply Chain: Being a cooperative model, Amul’s well-established supply
chain ensures steady product supply at competitive prices.
5. Other Important Factors:
• Location: Amul outlets should ideally be situated in high footfall areas like
busy marketplaces, shopping malls, near educational institutes, and transport hubs (railway
stations, bus terminals).
• Profitability and Break-Even: Based on initial investment and location, many
franchisees start seeing break-even within 1-2 years. High foot traffic areas with products
like ice creams can lead to a quicker ROI.
• Risk Factors:
• The main risk involves seasonality. For instance, ice cream parlours see
higher sales in summer, but demand dips during colder months.
• The franchisee’s success depends on inventory management, local
marketing, and operational efficiency.
Conclusion:
The Amul franchise model presents a lucrative opportunity for entrepreneurs seeking a
reliable and low-risk business in the food and beverage sector. The absence of high royalty
fees and the backing of a reputable brand like Amul makes it an attractive option. However,
like any business, success depends on the franchisee’s ability to manage costs, market
effectively, and ensure a smooth operational process.
For further details, you can visit the official Amul franchise website: Amul Franchise
Opportunities
Disclaimer:
This content is provided strictly for entertainment and informational purposes and should not
be interpreted as professional, financial, legal, or business advice. I make no representations
or warranties regarding the accuracy, reliability, or completeness of this information.
Under no circumstances shall I be liable for any direct, indirect, incidental, consequential, or
special damages resulting from the use of this content. By accessing or using this
information, you agree that you do so at your own risk and that I am not responsible for any
decisions or actions you take based on it.
For accurate and up-to-date information, always consult official sources and qualified
professionals before making any financial or business decisions.
