How to Start Amul Franchise Business? Benefits and Agreement

Become a franchisee if you have a reasonable capital base and good business acumen, according to Amul. In order to earn a decent amount of income every month, one can take up a franchise of Amul.

Amul (you will have heard about it) is a brand that has already placed its footprints amongst the top brands in the country and soon in the world. Get a franchise and run a business where you can sell one of the best quality dairy products. ‘The Taste of India’ being the slogan, Amul has always produced the best quality milk products in the dairy industry.  Lets have a look at Amul Franchise Benefits, Costs.

Let us see a few Amul products below:

• Amul Milk
• Amul Butter Cookies
• Milk Bread
• Amul Butter
• Processed Cheese
• Amul Kool Cafe
• Amul Ice Creams
• Kool Milkshakes
• Amul Masti Dahi
• Amul Chocolate
• Pouch Buttermilk
  And lots more…

Milkman of India:

Verghese Kurien is called the Milkman of India. He was born on November 26th, 1921 in Kerala. Unfortunately, he passed away on September 9th, 2012. He is also known as the ‘Father of the White Revolution’ in India. Mr.Kurien was a social entrepreneur since he brought in the world’s largest self-sustaining dairy industry. Through the most significant agricultural dairy developments, he earned the ‘billion-litre idea’ to the world. He changed a little in the sectors of education, health, nutrition, food products, empowerment of agriculturists, caste barriers, and lots more.

The best dairy company of India is the world’s largest milk producer and it increased the demand for milk and milk products.

How & Why Amul Franchise?

AMUL or Anand Milk Union Limited is a milk product cooperative dairy company based out of Anand district in the state of Gujarat. Amul encouraged India’s White Revolution, which made the country the world’s most massive milk and milk products producer.

A dairy company has developed business overseas by marketing to other countries. Therefore, Amul milk products are known for their purity & customer satisfaction. A significant market share is held by the oldest and most famous Indian company. As a result of its wide range of milk and milk-related products, the company was successful. The Amul franchise contract agreement is unmistakably a good investment. Furthermore, it is cost-effective.

Area Plan:

The franchise exclusively markets all Amul products. They are the outlets of the entity, with an area covering between 100 to 300 square feet. Moreover, it is located in markets, educational institutions, hospitals, railway stations, municipal gardens, etc. which are potential areas in the locality. 

Investment:

The franchisee usually sets up the shop in the most demand area where public movements are more comparatively. In such cases, the space is set up in a very potential locality. Indeed, the financial aspects are quite reasonable for setting up the enterprise. Amul says that the franchise needs to handle the costs for the establishment of the entity. And so, the establishment costs would vary from ₹1,50,000 to ₹6,00,000. Additionally, the franchise should be handling all the operational costs as well. However, there is no profit-sharing or no royalty issued for the franchise. Therefore, the owner or the boss of the franchise could earn from ₹5,00,000 to ₹10,00,000 in revenue in a month, states Amul.

Product Delivery:

The wholesale agents of Amul will deliver the required products for the particular franchise entity. Therefore, the products delivered will be 100% produced/manufactured by the company. There are broad categories in Amul variants; namely dairy products, ice-creams, and pouch milk.

Margins:

The margin for each product in Amul varies accordingly. Therefore, the organisation has stipulated that the owner will profit with a margin of 2.5% on pouch milk, 20% on ice cream, 10% on milk products, and approximately 50% on recipe-based categories like ice cream scoops, baked pizza, sandwiches, hot chocolate drinks, etc.

Various Schemes Under the Establishment:

The ventures based on Amul franchise establishments vary according to the investment, deposit, products sold in the franchise, and so on. However, it is divided into four according to certain specifications.

1. Amul Preferred Outlet
2. Railway Parlour/Kiosk
3. COE Parlour
4. Ice-Cream Scooping Parlour

Amul Franchise Format:

GCMMF (The Taste of India)	APO	SCOOPING PARLOUR	PARLOUR AT RAILWAY STATION	PARLOUR AT COE
Refundable Security Deposit	₹25,000	₹50,000	₹1,00,000	₹50,000
Area (Own/Rent)	100 Sq.ft. – 150 Sq.ft.	250 Sq.ft. – 400 Sq.ft.	–	–
Deposit	–	–	Stall deposit (Refundable) or Kiosk Installation	Stall deposit (Refundable) or Kiosk Installation
Renovation of Shop	As per standard design	As per standard design	–	–
Approx. cost	₹80,000	₹3,00,000	₹2,50,000 – ₹4,00,000	₹2,50,000 – ₹4,00,000
Equipment (Approx.)	₹80,000	₹1,50,000	₹50,000	₹50,000
Deep Freezer for Ice-cream		✓	✓
Visicooler for dairy products		✓	✓
Milk cooler for fresh products
Pizza oven for frozen pizza		✓
Operator’s liability	–	–	1. Payment of security deposit license fees 2. To railways on behalf of GCMMF 3. Payment of other operating expenses	1. Payment of security deposit license fees 2. To respective organisation on behalf of GCMMF 3. Payment of other operating expenses
Other requirements	–	1. Scooping cabinet with SS bowls 2. Mixer/Grinder 3. Waffle cone machine 4. cone holder/Topping tray for placing sauces 5. POS machine	–	–

Requirements to Set an Amul Store Franchise

To set up an Amul franchise, specific requirements and qualifications need to be met. Here’s a breakdown:

Equipment and Infrastructure Requirements:

1. Deep Freezer: Required for storing bulk quantities of ice cream.
2. Visicooler: To display and store chilled dairy products.
3. Milk Cooler: Necessary for storing and maintaining the freshness of milk.
4. Pizza Oven: For franchises offering pizzas.
5. Other Equipment: Mixer, Cone Handler Machine, and any additional equipment as specified by Amul.
6. POS Machine: Point of Sale machine for transactions.

Space Requirements:

1. Amul Preferred Outlet:

• Space Requirement: 100-150 sq ft

2. Ice Cream Scooping Parlour:

• Space Requirement: 250-400 sq ft

3. Amul Unit at Railway Stations:

• Space Requirement: 50-100 sq ft

4. Parlours at Centre of Excellence (COE):

• Space Requirement: 500-700 sq ft

Qualification Requirements: Documents Required for Amul Franchise

To qualify as an Amul franchise owner, certain documents are required:

1. Aadhar Card: As a proof of identity.
2. PAN Card: For taxation purposes.
3. Bank Details: To facilitate financial transactions.

It’s essential to note that meeting these requirements and qualifications is a preliminary step. Additionally, potential franchisees may need to undergo a screening process by Amul, which could involve an assessment of business acumen, financial stability, and adherence to Amul’s standards.

Prospective franchisees should also be prepared to follow Amul’s guidelines and standards for operations, branding and product quality to maintain consistency across the franchise network. Regular communication and cooperation with the franchisor will likely be expected to ensure the success of the franchise partnership.

Amul Franchise Cost in India: 

To set up an Amul franchise, the investment required varies depending on the type of franchise. Here’s a breakdown of the security deposit, approximate cost, and equipment expenses for each type:

1. Amul Preferred Outlet:

• Security Deposit: ₹25,000
• Approximate Cost: ₹80,000
• Equipment Expenses: ₹80,000

2. Ice Cream Scooping Parlour:

• Security Deposit: ₹50,000
• Approximate Cost: ₹3,00,000
• Equipment Expenses: ₹1,50,000

3. Amul Unit at Railway Stations:

• Security Deposit: ₹1,00,000
• Approximate Cost: ₹2.5-4 lakhs
• Equipment Expenses: ₹50,000

4. Parlours at Centre of Excellence (COE):

• Security Deposit: ₹50,000
• Approximate Cost: ₹2.5-4 lakhs
• Equipment Expenses: ₹50,000

These figures provide a general overview, and actual costs may vary based on factors such as location, size, and specific requirements of individual franchises. Prospective franchisees are advised to contact Amul directly for detailed and up-to-date information on the Amul franchise product list, Amul franchise monthly income, Amul franchise cost and profit for the type of franchise they are interested in.

Benefits of Owning Amul Franchise:

Owning an Amul franchise comes with a plethora of advantages that make it an attractive business opportunity:

1. Strong brand presence: Amul is a renowned brand with a dedicated customer base. As an Amul franchise, you’ll leverage the brand’s credibility and marketing initiatives, giving your business a head start in the market.
2. Wide range of products: With a diverse portfolio of dairy products, Amul offers franchisees the opportunity to cater to various consumer preferences. From milk and butter to ice cream and cheese, there’s something for everyone, ensuring steady demand and sales.
3. Low investment: Compared to other business ventures, the initial investment required for an Amul franchise is relatively affordable. This accessibility makes it an ideal option for aspiring entrepreneurs looking to start their own business without breaking the bank.
4. Training and support: Amul prioritises the success of its franchisees and provides comprehensive training and ongoing support. From operational guidance to marketing strategies, you’ll receive the necessary tools and resources to manage your franchise efficiently and effectively.
5. Profitable business model: Amul’s proven business model ensures profitability for franchisees. In addition to competitive pricing and quality products, the company offers regular incentives and bonuses to incentivize growth and success. With Amul, you’re not just running a business – you’re part of a thriving network dedicated to mutual prosperity.

Conclusion

Embracing an Amul franchise means aligning with a legacy of quality, innovation, and community impact. With a rich history dating back to India’s White Revolution, Amul has solidified its position as the Milkman of India, symbolising trust, excellence, and progress.

As you embark on this entrepreneurial journey, remember that you’re not just joining a franchise network – you’re becoming part of a movement that revolutionised the dairy industry and transformed countless lives.

At Vakilsearch, we understand the importance of legal compliance and protection in franchising ventures. Our franchise agreement services ensure that your rights, obligations, and interests are safeguarded, providing peace of mind as you navigate the intricacies of franchising.

FAQs

What tools are required to set up an Amul parlour in India?

Setting up an Amul parlour requires basic equipment like freezers, display counters, and branding materials to showcase Amul products effectively.

Is the Amul franchise business profitable?

Yes, the Amul franchise business is known for its profitability due to the strong brand reputation and high demand for Amul products across India.

What are the requirements for an Amul franchise in India?

To become an Amul franchise, you need a suitable location, initial investment capital, and a willingness to adhere to Amul's franchise guidelines and standards.

What is the cost of setting up an Amul ice cream parlour in India?

The cost of setting up an Amul ice cream parlour varies depending on factors like location, size, and equipment, but it typically ranges from a few lakhs to a few crores.

What is an Amul franchise?

An Amul franchise allows individuals to operate a retail outlet or parlour selling a wide range of Amul dairy and dairy-related products under the brand's established name and quality standards.

How can I start an Amul franchise?

To start an Amul franchise, you need to apply through the official Amul website or contact their franchise department directly to inquire about available opportunities and the application process.

What are the eligibility criteria for an Amul franchise?

Eligibility criteria for an Amul franchise include having a suitable location, sufficient investment capital, and a commitment to following Amul's franchise guidelines and standards.

What is the investment required to start an Amul franchise?

The investment required to start an Amul franchise varies depending on factors like location, size of the outlet, and local market conditions, but it typically ranges from a few lakhs to a few crores.

What support does Amul provide to its franchisees?

Amul provides comprehensive support to its franchisees, including training, marketing assistance, product supply, and ongoing guidance to ensure the success of the franchise.

How much royalty fee do I have to pay to Amul as a franchisee?

The royalty fee paid to Amul as a franchisee is typically a percentage of the sales revenue generated by the franchise outlet, as per the terms of the franchise agreement.

Can I own multiple Amul franchises?

Yes, subject to approval and availability of franchise opportunities, individuals can own and operate multiple Amul franchises across different locations.

How long is the franchise agreement valid for?

The franchise agreement with Amul is typically valid for a predetermined period, after which it can be renewed based on mutual agreement between the franchisee and Amul.

What are the benefits of owning an Amul franchise?

Owning an Amul franchise offers benefits such as strong brand recognition, established market presence, extensive product range, ongoing support from the company, and the potential for high profitability.