7 Most Profitable Dairy Franchise in India
Do you want to start a business in the dairy industry, and looking for profitable dairy franchise opportunities in your area? If yes, you are in the right place. Find here a list of the most lucrative dairy franchise business opportunities in India that are currently available.
Dairy is a very sunny industry in India. Currently, India is the highest milk producer in the world. In the industry, fluid milk holds the first position in production and sale. Some of the other popular items are Ghee, butter, curd, paneer, ice cream, milk powder, condensed milk, etc.
Nowadays, some of the value-added products are gaining popularity not only in the summer but throughout the year. These are Lassi, chocolate milk, flavoured milk, Misti Dahi, Canned Rasgulla, etc.
Table of Contents
Why Dairy Franchise?
We may begin by looking at the reasons why this area is worth investing in.
- Constant Market Demand: Every Indian home has its dairy product. Throughout the year, fresh quality milk, curd, paneer and butter are always in demand.
- Established Brand and Business Model: By franchising, one takes advantage of an established brand reputation and business model; thereby minimizing risks related to starting afresh on one’s own.
- Support and Training: For newbies in the dairy industry, most franchises provide comprehensive training programs coupled with continuous support.
- Multiple Franchise Format: A good dairy franchise is scalable such that it can be expanded with more outlets or products depending on how confident you feel within yourself as well as your customer base grows.
What are the Best Dairy Franchises in India to Start?
#1. Amul
Amul, the taste of India, is one of the most recognized and trusted dairy brands in the country. This iconic brand is managed by the Gujarat Cooperative Milk Marketing Federation (GCMMF). Besides producing milk, butter, cheese and other products; it also deals with ice creams. Currently, Amul has more than 6000 Franchisees in India and is planning to expand further in the forthcoming years.
Investment Required: Amul has a low-cost franchising model that allows an individual to run various types of outlets like Amul Preferred Outlet or Amul Railway Parlor or even establish a small kiosk at INR 2 lakhs – 10 Lakhs depending on the format chosen.
Support: Amul gives inventory management and operations training among other aspects of marketing. Franchisees enjoy the benefit of strong brand recall as well as a wide product range from Amul.
Why Choose Amul? Low risk, modest investment and association with credible brands make Amul ideal for first-time dairy entrepreneurs.
Learn More: How to Open an Amul Franchise
2. Mother Dairy
Established in 1974, Mother Dairy is a renowned dairy producer synonymous with good quality milk and other dairy products. It was an initiative under Operation Flood, the world’s biggest dairy development program launched to make India a milk-sufficient nation. Under the National Dairy Development Board (NDDB), the establishment has a wide range of products such as ghee, yoghurt, ice cream, and milk.
Investment Required: Milk Booths and Milk Shops are two franchise formats offered by Mother Dairy. The initial investment typically ranges from INR 5 to 10 lakhs. And the space requirement is around 100-200 square feet.
Support: Mother Dairy provides solid support to its franchisees. It includes assistance in site selection, training, marketing and supply chain management.
Why Choose Mother Dairy? If you’re looking to partner with a brand that emphasizes quality and customer trust, Mother Dairy is a strong contender with a well-structured franchise program.
Learn More: How to Open a Mother Dairy Franchise
3. Vadilal
Vadilal is another important player in the Indian dairy and ice cream market. The promoter of this dairy brand, Vadilal Industries is an Indian multinational company. It specializes in ice cream and frozen food products. The company was established in 1907 by Vadilal Gandhi in Ahmedabad.
Investment Required: Vadilal offers a franchise model with options for ice cream parlours and kiosks. The investment typically ranges from INR 5 to 10 lakhs, depending on the location and format.
Support: Vadilal provides franchisees with training, marketing support, and assistance in store setup. The brand’s established presence and loyal customer base offer a solid foundation for success.
Why Choose Vadilal? Vadilal has a long-standing reputation and focus on innovation. Hence, it is a reliable choice for entrepreneurs looking to enter the dairy and ice cream industry in India.
4. Gowardhan
Gowardhan is part of the Parag Milk Foods group. The company is based in Mumbai. This dairy brand is known for its fresh and natural dairy products, including milk, ghee, butter, and paneer. The company has a strong presence in both urban and rural areas, Gowardhan is a trusted name in the dairy industry.
Investment Required: Gowardhan offers distributorship opportunities mainly through retail outlets and distribution models. The investment ranges from INR 5 to 15 lakhs, depending on the scope of the business.
Support: Gowardhan provides extensive training and support. It includes supply chain management, inventory control, and marketing assistance. The brand’s focus on quality and health-conscious products is a major selling point.
Why Choose Gowardhan? If you’re interested in a brand that focuses on health and quality, Gowardhan’s diverse product line and strong market presence make it an attractive option.
5. Keventer
Keventer is a well-known FMCG brand, based in Kolkata. The company, Keventer Agro Limited was established in 1986. It is particularly famous for the Keventer Metro Dairy brand. The company is looking for distributors to expand their Keventer milk and Keventer Ice Creams verticals.
Investment Required: Keventers offers distribution opportunities with an investment of INR 15 to 20 lakhs, focusing on outlets in malls, high streets, and food courts.
Support: Keventers provides comprehensive training, marketing support, and operational guidance. The brand’s strong brand identity and innovative marketing campaigns help drive customer engagement.
Why Choose Keventers? For entrepreneurs interested in a trendy and youthful brand with a strong marketing appeal, Keventers offers a unique and profitable franchise opportunity.
6. Godrej Jersey
Godrej Jersey is one of the most trusted dairy brands in South India. Jersey has been catering to customers for the last 35 years. Recently this dairy brand has tied up with the iconic industry group Godrej. It offers a wide variety of dairy products including milk, curd, butter, and ghee. The brand is known for its consistent quality and has a robust distribution network.
Investment Required: The initial investment needed to open a Godrej Jersey franchise is estimated to be around Rs. 10 to 15 Lakhs. The franchise fee will vary by location and franchise format.
Support: Comprehensive training, marketing support, and robust supply chain management
Why Choose Godrej Jersey? It has a strong brand presence in South India and boasts a wide product range, including fresh milk, ghee, curd, and more. The company is backed by the Godrej brand, offering reliability and trust
7. Chhaswala
Chhaswala is a unique dairy franchise business opportunity focusing on buttermilk (chhas) and other traditional Indian beverages. Founded in Gujarat in the year 1994, Chhaswala has expanded across India due to its unique product offering that caters to the Indian palate. The company offers 99 plus dairy products to customers.
Investment Required: Chhaswala is expanding its presence by appointing retail franchise partners. The initial investment is expected to be around Rs. 5 to Rs. 7 lakhs. Franchise fee varies based on location and format.
Support: Comprehensive training, marketing support, and supply chain management for fresh dairy beverages
Why Chhaswala? The brand focuses on traditional Indian beverages, tapping into the nostalgia and preference for local flavours. With fewer players in the buttermilk segment, Chhaswala has carved a niche.
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Frequently Asked Questions
What is the capital needed for a dairy franchise in India?
The capital needed for a dairy franchise in India usually ranges from INR 2 to 20 lakhs, based on the brand, location and format (like kiosk, retail or parlour).
How long will it take to break even with a dairy franchise?
The break-even period can vary based on location, market demand, operational efficiency and specific franchise. On average, many dairy franchises in India can break even within 12-18 months.
Do I need experience in the dairy industry to operate a franchise?
Experience in the dairy industry is not normally required to successfully operate the franchise. Most franchisors will provide as much training and assistance as is available from a franchisor, making it accessible to different backgrounds. While experience is not a requirement, some basic business and customer service skills will be beneficial.
How do I identify the best location for my dairy franchise?
The best location for the franchise is critical to the success of the franchise. There are many opportunities in high-foot traffic areas, like:
- Residential Areas: Where the consistent demand for daily dairy products is typically high, if you are in proximity to Home Owner Associations or apartment complexes.
- Commercial Zones: Busy markets, malls, or business districts for brands with value-added products that require brand synergy with traditional flavours like ice creams and milkshakes.
- Educational Institutions: Schools, colleges and coaching centers are also good options for an ice cream parlour and daily service kiosk.
What are some challenges when operating a dairy franchise?
Some of the challenges when operating a dairy franchise are:
- Perishable Products: Dairy products have limited shelf life which requires efficient management of the level of inventory before the expiration and turnover of the dairy product.
- Competition: The dairy industry has numerous local/national competing products.
- Operational efficiencies: Ensuring constant continuity of quality and customer service can be demanding at peak times
What are the steps to applying for a Dairy Franchise?
Applying for a dairy franchise usually involves the following steps:
- First Inquiry: This may consist of visiting the franchisor’s website or reaching out to a consultant.
- Application: After a preliminary inquiry, you will fill out detailed application data on your ownership background, family or agribusiness financial capabilities, and designated sites for the franchise.
- Interview and Meeting: Participate in an interview and possibly a meeting with the franchisor so that the franchisor can evaluate your intended business plan and expectations.
- Agreement: Following a successful contract arrangement, you will sign a franchise agreement and pay associated fees to allow for franchise initiation.
Is it possible to develop the dairy franchise business in additional locations?
Yes. After successfully operating the first single location and fulfilling the opening criteria of that dairy franchise, many dairy franchises consider allowing additional growth to one or more properties. This can be a significant step in growing your business revenue.
