If you live in India and you don’t know about Amul, in that case, you could be straight-up lying or maybe living under a rock or something. Amul is literally the most famous brand when it comes to dairy products in the country, and to be honest, no other brand has even come close to gaining popularity as Amul has in the country. And that’s even better for you if you are looking forward to starting a franchise of some famous brand because Amul could be the one. That’s why today we will be talking about Amul franchise cost in India, profit margins, and a few other things. Here we go now.
Types of Amul Franchises
There are many different kinds of franchises that Amul has, and they cater to different needs, requirements, and budgets, thus, making it easy for anyone who wants to start a business, interested thus, to start.
1. Amul Preferred Outlet/Amul Railway Parlour/Amul Kiosk:
The first one is the Amul Preferred Outlet or Amul Kiosk, and yes, this may also include Railway Parlours. These are the first outlets where consumers will find all basic products from Amul, like milk, butter, and ice cream, you know? These are fixed in high business areas such as markets, schools, hospitals, or railway stations. You need around 100 to 150 sq. ft. of area and around ₹2,00,000 for the setup of the mini outlet. This includes a ₹25,000 security deposit, renovation costs of ₹1,00,000, and about ₹70,000 in equipment costs. That’s all!
2. Amul Ice-Cream Scooping Parlour:
If you want a bigger store, then you can opt for the Amul Ice-Cream Scooping Parlour. Such parlors will sell a wider spectrum of products than just dairy ones but will also offer ice cream scoops, sundaes, pizzas, and sandwiches with various recipes, you know? Just so you know though, such a shop must occupy a space of around 300-400 sq. ft, which is a medium-sized shop. The investment is about ₹6 lakhs. This includes a non-refundable security deposit of ₹50,000, ₹4,00,000 renovation, and ₹1,50,000 equipment costs.
Sure, each and every type of franchise has its unique features, which give the potential business owners the choice to select one based on the size, location, and type of products they wish to sell in a regular shop, and that’s precisely what you can do with an Amul Franchise in India.
Detailed Financial Requirements and Other Investment Details
If you’re planning to become an Amul franchise, opening a shop of any kind is not that expensive in the beginning at least. It can be as low as ₹1.5 lakhs or as high as ₹6 lakhs. This will cover security deposit and renovation as well as marketing expenses & equipment costs.
- Amul Preferred Outlet: About ₹2 lakhs
- Ice-Cream Scooping Parlour: Almost ₹6 lakhs
No Royalty Fees
Amul is different from other franchises in that it does not charge any royalty fees. This indicates that you can solely benefit from your business without sharing with the brand. Hence, it becomes more convenient to realize the profits of your activity.
Monthly Revenue Potential
After launching an Amul franchise, one can expect around ₹5 lakhs to ₹10 lakhs monthly profit, which will depend on the type and location of the franchise you have opted for. The higher the number of customers you have visiting your store, the higher your return will be.
Detailed Cost Breakdown for Each Franchise Type
Security Deposit:
- Amul Preferred Outlet: ₹25,000
- Ice Cream Scooping Parlour: ₹50,000
Renovation Cost:
- Preferred Outlet: Around ₹1,00,000
- Scooping Parlour: Around ₹4,00,000
Equipment Cost:
- Preferred Outlet: ₹70,000
- Scooping Parlour: ₹1,50,000
Profit Margins and Revenue Potential
The first thing that comes to mind more than anything else is the profit margins on the products that you sell, and with an Amul franchise, you can make good money through them, you know? An excellent example of this is Amul pouch milk, which enables you to earn 2.5% from each sale. The other dairy products like butter, cheese, and yogurt, which Amul also sells, give a tremendous profit of 10%. On top of that, when it comes to ice cream sales, they are even more remarkable, as they give you a turnover of 20%, did you know that already? If you sell some of the products that are primarily assembled using specific recipes such as ice-cream scoops, baked pizzas, sandwiches, and Hot Chocolate drinks, you can get a super margin of 50%.
Just so you know though, your total revenue primarily revolves around your shop’s location, the customer’s traffic, and so on. The shops that are close to schools, hospitals, or markets will simply have many customers so that kind of shop will likely earn more, simple as that! To really make the maximum money, you need to take control of operational costs like the electricity bill or the staff payment; if those are controlled effectively, you will end up with a larger share of your earnings.
