Over the years, there have been many upcoming businesses, several of which have thrived in various domains. These businesses have brought revenue to the country. Apart from the giants, there are minor players, including street vendors and small business owners.
Owing to this, owning franchises like an Amul milk or ice-cream parlour seems like a profitable business. The dairy company has provided several opportunities, especially for young entrepreneurs.
Established in 1946 by Tribuvandas Patel, today, Anand Milk Union Limited or Amul offers a host of opportunities to business people. So, if you are looking for a business opportunity, then owning and operating an Amul franchise or outlet could just be the thing for you. Here, in this article, we have mentioned all details on setting up an Amul franchise along with its cost, requirements, benefits and much more.
Amul has thrived in the Indian dairy space, owing to many factors. The dairy giant caters to almost every business and consumer sector, offering a wide range of quality milk products at highly affordable prices. It has established a name for itself.
So, what is the Amul parlour business all about? The Amul franchise business consists of four distinct selling points.
Amul, through its franchises, offers incredible value to business people, with its excellent support and significant outreach, at nominal costs.
2. Target Customers
The dairy giant has customers in various business sectors, primarily in the food and hospitality industry, including restaurants, cafes, canteens, street food and tea stalls, grocery stores, ice-cream shops, sweet shops, and fast-food chains, supermarkets, and so on. Apart from this, the company has also expanded into the online space in recent times.
Since Amul primarily deals with milk and its products, competitors mostly come from this sector. Other well-known companies selling dairy products include Vadilal, Kwality Walls and Mother Dairy.
The brand’s marketing strategies align with contemporary operators in the space with its advertising and promotions storming across channels, including social media, newspapers, TV ads and more. Also, the company has collaborated with other popular brands for various initiatives in order to expand.
Benefits of Owning an Amul Franchise
Amul is no doubt one of the most popular dairy brands in India. So, you have several benefits from owning an Amul franchise or parlour, with the most obvious ones coming from the brand name itself. Likewise, here’s how you can benefit from starting an Amul parlour business.
1. The Brand
Amul has proved to be a successful brand in the Indian dairy industry. The dairy giant has been around for 75 years and has built a solid reputation by offering high-quality milk products. Though you have other such successful brands, Amul’s reputation is indeed matchless.
One of the most noteworthy aspects of starting an Amul milk or ice cream parlour is that you don’t need to pay royalties to the company. So, this means your profit margins are higher than the competition’s, although what you get varies, depending on the product.
However, the dairy organisation sets aside different margins for its wide array of products, including 2.5% for pouch milk and 20% for ice cream. Similarly, Amul offers 50% margins for some of its other products, including pizzas and chocolates.
Amul offers several opportunities for those looking to own a franchise. For instance, you could start an Amul ice-cream parlour or a standard milk outlet. You could own a railway outlet or even a COE or Center of Excellence parlour. So, there’s plenty to explore as far as starting an Amul franchise is concerned.
Also Read: Best Milk Brands in India
Requirements for Starting an Amul Franchise
To start an Amul franchise business, you will need to consider three crucial elements carefully.
1. Land Requirements
Different Amul outlets have different space requirements. For example, while you will need 100 to 150 square feet for a standard outlet, an ice-cream parlour requires 250 to 400 square feet of space. Similarly, you will need anywhere between 50 and 100 square feet of space to set up a railway parlour, whereas the space required for a COE or Center of Excellence parlour is 500 to 700 square feet.
So, now you know how much space you will need to set up different types of Amul parlours. However, land alone will not do you any good in starting a franchise as you also need the right tools for offering different products to your customers.
As part of your equipment inventory, you will need refrigerators or deep freezers, milk coolers, pizza ovens, mixers, cone handlers and POS machines and various other tools.
Amul Franchise Cost in India
The cost of setting up an Amul franchise varies depending on the outlet. For instance, to start a preferred milk outlet, you will need to deposit at least Rs. 25,000. Also, the land costs can go as high as Rs. 80,000, while the equipment will cost about the same.
Similarly, for setting up an ice-cream parlour, you will need Rs. 50,000 as a security deposit, Rs. 3 lakhs to purchase the land required and Rs. 1.5 lakhs for the equipment.
If you are looking to own and operate a railway parlour, then you may need Rs. 1,00,000 for a security deposit, between Rs. 2.5 lakhs and Rs. 4 lakhs for land and Rs. 50,000 for equipment.
COE or Center of Excellence parlours cost between Rs. 2.5 and Rs. 4 Lakhs for the space and Rs. 50,000 each for security deposit and equipment, respectively.
As for revenue and profitability, you can earn between Rs. 5 lakhs and Rs. 10 lakhs from an Amul franchise or outlet.
The Application Process
To apply for an Amul franchise or outlet, you will need to follow the steps below:
1. Visit the official Amul portal.
2. From the list of options that you find there, select ‘Amul parlours’. You can find this option at the bottom right of the page.
3. From another list that you will get here, choose ‘Online Form for Amul parlour’.
4. Fill in the details and press ‘Submit’ to complete the registration.
Owning and running an Amul franchise or outlet is simple enough if you know how to go about it. As far as Amul franchise cost is concerned, you will need at least Rs. 6 Lakhs to establish an Amul outlet. So, make sure that you have the required capital before you set up your parlour. Also, note the steps you must follow to register yourself and get the rights to establish your business. If you don’t have the required capital, you can always consider getting a business loan.
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Q. What is the Cheapest Amul Franchise That I can Start?
Ans. As far as the cheapest Amul franchise or outlet you can start is concerned, you could always run a standard milk parlour since the startup and land requirement costs are lower than their ice-cream or railway parlour counterparts.
Q. What are the Space Requirements for Opening an Amul Kiosk parlour or Preferred Outlet?
Ans. To open an Amul Kiosk parlour, you will need at least 300 square feet of space.
Q. Do I Need to Take Out a Loan for Starting an Amul Franchise Business?
Ans. The answer to this question depends on your financial situation since starting an Amul franchise business can cost up to Rs. 6 lakhs. So, you may need to take out a business loan to start an Amul outlet if you don’t have or cannot raise the required capital.
Q. What is the Size of Amul?
Ans. Amul today sells over 15 lakh litres of milk and operates an Rs. 6,000 crore business.