The business domain in our country is taking the leap toward glory, thanks to its improved economy, which is evident from the lifestyle of the citizens. Small-scale franchisees have emerged as a productive avenue for entrepreneurs. The country has witnessed the like of massive business houses reaching out for smaller establishments known as kiosks. Amul Franchisee is one such platform that rules the dairy sector in India. This well-known organization is helping out small firms by providing an opportunity to join them through a franchise agreement. This article will shed some light on the Amul Franchise agreement along with its viable benefits.
Amul franchises, as the name suggests, are the entities that exclusively market the dairy products of the parent organization, i.e., Amul. One can find these franchises in well-managed space of an area ranging between 100-300 square/feet located in posh areas of metropolitan cities.
Financial Requirements for setting up Amul Outlet
As per the Amul India Website, the applicant seeking the company’s franchise needs to bear the costs incurred during the establishment. The total cost for opening such an establishment falls under the range of 1.5-6 lakhs. Besides, the cost for executing the operation needs to be addressed by the applicant/ franchisees. With Amul Franchise under the belt, the small owner can earn up to the revenue of Rs. 5-10 lakhs on a monthly basis.
Delivery of Products & Margin under Amul Franchise
- The wholesale agents of Amul are responsible for delivering the entire portfolio of products manufactured by the company. The products of Amul are basically classified into three broad categories, viz dairy products, pouch milk, and ice-creams.
- The margin on all products is not the same. The company has provided that the business owner will be able to avail a margin of 2.5% on pouch milk, 20% on ice cream, 10% on milk products, and 50% on recipe based categories such as sandwiches, ice cream scoops, hot chocolate drinks, and baked pizza, etc.
Type of Establishments under Amul Franchise
Amul presently deals with the following kinds of franchises:
Amul Preferred Outlet/Amul Kiosk/ Amul Railway Parlour
Such a category of the establishment can be set up with an investment of Rs 2 lakhs (approx). To break it up, the business owner shall be needed to remit brand security (non-refundable) of Rs 25,000, followed by the investment for infrastructure, which would cost around Rs 1,00,000 & Rs 70,000, respectively. The products traded in such establishments are milk products, milk, and ice cream. The venture can set up in an area ranging from 100-150 square feet.
Amul Ice-Cream Scooping Parlour
A scooping parlor can be established with an investment of Rs 6 lakhs. The said amount of investment is comprised of the following expenditures:
- Non-refundable brand security: Rs 50,000
- Renovation: Rs 4 Lakhs
- Incidental: Rs 1,50,000
Such outlets sell the products like recipe based ice cream scoops, sandwiches, sundaes, pre-packed ice-creams, sundaes, baked pizzas, hot chocolate drinks, cheese slice burgers, and garlic bread. The business owner needs to reserve an area of 300 square feet to set up such an outlet.
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How to Apply for Amul Franchise in India?
Go through the following steps to be a part of the Amul franchise in India.
Step 1:- Go to the Official website
Head over to the Amul official website by entering the following URL. http://www.amul.com/
Step 2:- Explore the option- Amul parlor
On the home page, navigate to the bottom right corner to select the “Amul Parlours option. This option contains the important details regarding the initiatives.
Step 3:- Select option: Online Form
Go ahead and select the “Online Form for Amul Parlour.” Option.
Step 4:- Fill up the e-form
Completes the e-form by entering the request information and then select “Submit.”
That is all about the registration procedure.
Amul Franchise Format
| GCMMF (The taste of India) | APO | SCOOPING PARLOUR | PARLOUR AT RAILWAY STATION | PARLOUR AT COE |
| Refundable security deposit | INR 25,000 | INR 50,000 | INR 1,00,000 | INR 50,000 |
| Area (Own/Rent) | 100 Square Feet– 150 Square Feet | 250 Square Feet– 400 Square Feet | – | – |
| Deposit | – | – | Kiosk Installation or Stall deposit (Refundable) | Kiosk Installation or Stall deposit (Refundable) |
| Renovation of shop | As per standard design | As per standard design | – | – |
| Approx. cost | INR 80,000 | INR 3,00,000 | INR 2,50,000 – INR 4,00,000 | INR 2,50,000 – INR 4,00,000 |
| Equipment (Approx.) | INR 80,000 | INR 1,50,000 | INR 50,000 | INR 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 related to security deposit license fees 2. To railways on behalf of GCMMF 3. Payment related to other operating expenses | 1. Payment related to security deposit license fees 2. To respective company on behalf of GCMMF 3. Payment related to other operating expenses |
| Other requirements | – | 1. Scooping cabinet along with SS bowls 2. Mixer/Grinder 3. Waffle cone machine 4. cone holder/Topping tray used for placing sauces 5. POS machine | – | – |
Growth Prospect of Dairy-Amul Franchise in India
Demand for dairy based commodities in our country is likely to thrive in years to come. The demand would be triggered due to more consumers, higher incomes & customer inclination towards a healthy lifestyle. The demand for dairy product is escalating every passing day, which boosts the production volume in developing nations. Consumption of packaged and processed dairy products is proliferating, particularly in the urban sector of the country. Due to fierce competition from the private sector, various local and overseas brands have stepped into the market & expanded customer’s expectations of quality.
Customer demand for quality commodities is thriving & this is being evident from their spending patterns. As per the recent study, 74% of customers give importance to the products’ nutritional content rather than anything else. Today’s consumers have become health conscious, and for this reason, they are not afraid to spend an extra buck for purchasing a quality product.
The dairy sector is poised to leverage this opportunity, owing to the increasing use of protein for weight management, and training. Moreover, there is a growing demand for ‘functional foods’ that offer specific health benefits. Dairy is playing a crucial role in this sector through innovative product lines such as pro-biotic yogurts and cholesterol-lowering butter.
Conclusion
Amul’s success had an immense impact on the Indian Dairy industry. Amul is now creating opportunities for entrepreneurs by providing franchisees without revenue share or royalty. The enthusiast, however, has to spend between Rs 1.5 lakh to Rs 6 lakh for establishing an Amul outlet. They will ensure a sustainable source of income for aspiring entrepreneurs and stimulate growth in the Indian Dairy Sector.
In the current scenario, Franchising is emerging as a healthy form of business that incurred marginal losses and long-term growth. Bigger companies are now leveraging Franchising to ensure their widespread reach within the nationwide market. In coordination with these firms, the small firms are reaping healthy rewards alongside with stable profit margin.
All in all, Franchising seems to be a profitable business model for someone having low investment and high growth aspirations. Among all franchisee businesses in India, Amul[1] India offers minimal risk and good return to the business owner.
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