Do you want to start an Amul products business in India? Find here a detailed guide on how to apply for the Amul franchise with the application process, eligibility, benefits, cost, investment, profit margin, and contact details.
Amul started the journey in 1946 under the Gujarat Co-operative Milk Marketing Federation Ltd. Currently, the cooperative is jointly owned by 3.6 million milk producers in Gujarat. The company currently has more than 85% market share in produced butter and over 66% in the Cheese market. Furthermore, Amul connects more than 15 million milk producers across the country.
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Is Amul Franchise Profitable?
Amul is India’s largest dairy brand backed by more than 3.6 million milk producers across the country. India is the largest milk producer in the world, and Amul has played a major role in shaping the white revolution for the country. With its wide line of dairy products, Amul is also the largest food brand in India. This iconic dairy brand is owned by Anand Milk Producers Union Limited.
Being the oldest and one of the most trusted brands in India, Amul has established itself successfully as the biggest food brand in the country. The company that brought in a milk revolution in the country has held up to expectations since 1932.
It is without saying, becoming an Amul franchise is not only profitable but also rewarding.
Here are the 7 Steps to Open Amul Franchise in India
1. Why Amul Franchise?
Being the largest dairy brand in the country, Amul has held up the exquisite traditional food culture all through these years. You as a franchise will be able to collaborate with the biggest dairy brand which will help you to add your own brand value. Indians love Amul and its products are preferred first by most consumers.
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The company has maintained its standard and quality and thus you will automatically gain the trust of your customers.
With more than 6,000 franchises in the country, Amul is considered one of the best QSR options in India. The company has roughly ten thousand crores of turnover. The success of Amul as a brand will help you to run your franchise successfully.
2. Amul Franchise Cost in India
Someone with an Amul franchise does not have to pay any royalty. You no need to pay any share or revenue to Amul. The owner has to invest between Rs 1.5 lakh to Rs 6 lakh to set up an Amul Shop. The investment depends on the franchise format, where the minimum investment is Rs 1.5 lakh. This will differ from location to location.
Amul claims that an owner can easily see sales worth more than Rs 5 lakh to Rs 10 lakh per month.
Amul’s franchise is quite cheap compared to other international dairy brands. Anyone with short capital can start his or her own Amul franchise. Also, you don’t have to pay any share or royalty, or commission to Amul. You only have to bear the costs related to the setup. This will include interiors, equipment, and inventory.
3. Eligibility & Types of Business Formats
The company offers a number of franchise options to choose from. You can pick your category according to your requirements and investment potential.
a) Amul Kiosk
Also known as Amul Preferred Outlet, the Amul Kiosk is basically a small Amul parlor with space between 100 to 150 sq ft. You have to make an investment of around Rs 1.5 lakh here including Rs 25,000 non-refundable brand security and equipment worth Rs 70,000.
b) Amul Ice Cream Scooping Parlour
The Amul Ice Cream Scooping Parlour has to have a space of around 300 sq ft. You need to invest up to Rs 6 lakh including a refundable security deposit of Rs 25,000 in form of a cheque or demand draft issued in the name of GCMMF Ltd. In addition, you need to invest in buying various types of equipment.
c) Amul Cafe
An Amul Cafe will cost you around 30 Lakhs. This will include 11 lakhs for kitchen and equipment, 16 lakhs for premises and set up, and the other 3 lakhs as a brand deposit. You need to have a space of at least 1,000 to 1500 sq ft to be eligible.
4. Benefits & Support to the Amul Franchise Owners
Some of the important benefits of owning an Amul franchise business are the following:
- Amul will supply the entire range of products.
- GCMMF will provide backlit signage
- You will get a subsidy on all equipment and branding.
- Amul will provide inauguration support.
- The franchise will get an additional purchase discount
- Amul will offer special consumer offers
- No profit-sharing/no royalty.
5. Requirements to Become an Amul Franchise Owner
- You will need to deposit refundable security money of Rs 1,00,000
- Additionally, you have to deposit money for a stall or kiosk installation. It is refundable. The amount is approximately 2.5 to 4 Lakh
- You will need to buy equipment which will cost approximately Rs 50,000. These are the deep freezer for ice cream, Visi-cooler for dairy products, the milk cooler for fresh products, and the pizza oven.
- Also, you will need a POS, mixer grinder, waffle cone machine, cone holder, etc.
- You will need to pay the security deposit, license fee, and other operating expenses.
In conclusion, you need a shop area of 100 to 300 Sq Ft and a willingness to invest Rs 2 to 2.5 Lakh. However, you can establish the parlor in the open area also.
Basically, the company offers three different types of business models to entrepreneurs looking to buy an Amul franchise business. These are Amul Railway Parlor, Scooping Parlor, and the Amul Garden Parlor.
6. Amul Franchise Profit Margin
The Amul franchise model works on a commission-on-sales model. So, you will make a profit over the MRP. The company will sell you the product at a cheaper price than listed, and you will make a profit over the MRP.
The commission is based on the product you sell and varies from product to product. The retail profit margin offered by Amul to its franchise partners ranges from 2.5% to 50% depending on the product. The lowest happens to be in pouch milk and the highest for ice creams, and chocolates.
7. Amul Franchise Contact Number & Details
You can contact directly to their Head Office at the address mentioned below:
- Gujarat Cooperative Milk Marketing Federation,
PO Box 10, Amul Dairy Road, Anand 388 001, Gujarat, India
- You can also directly visit their official website for further details.
Amul holds a very special place in the Indian food market and is often preferred over other brands. You can run it successfully given the brand equity of Amul. With a diversified product line, the company today is more than just a milk brand. Amul will help your business to attract customers by pushing you further toward profitability.