Written By: Gouri Ghosh

Do you think of investing in a new franchise in 2025? Franchise of Amul Ice Cream Parlour could well be your golden ticket to success.

For more than 75 years, Amul has been the well-known brand of India's largest dairy company. 

In the ice cream sector, Amul alone holds a 45% market share.And then, of course, here is the exciting part - It expands its reach to every nook and corner of India with its franchise model, and now, it stands proudly at more than 10,000+ franchises.

Why is this the perfect time to invest? 

As stated in recent reports, the Indian ice cream market is to grow from 2023 to 2028 with a CAGR of 13.8%. Premium ice cream demand is also gaining momentum in Tier-2 and Tier-3 cities. And Amul, with its wide variety of products and people's loyalty towards the brand is at the top. To read more,.

Owning an Amul ice cream parlour is like riding on Amul's brand power with high returns and low investment. The franchise doesn't charge royalty, and since Amul has its marketing strategy and supports it, it is an excellent opportunity for budding entrepreneurs.

Why Amul Is the Best Dairy Franchise Opportunity in India in 2025?

• Growing Demand: The dairy products and ice cream market is growing rapidly. In terms of industry trends, the demand will surge in 2025, particularly for the Amul ice cream parlour in India.
• Strong Brand Reputation: Consumers find its products instantly recognizable and lovable.
• Consumer Trust: The customer loyalty ensures walk-ins consistently, making it a safe investment for new franchisees.
• Durable Dairy Business: No matter the market and economic conditions, the dairy business is always very resilient. Amul's vast product range helps it cushion against negative market movements.
• Best of Time for 2025: Given the projected 13.8% CAGR of the Indian ice cream market, investing in an Amul ice cream parlour in India in 2025 is a smart move, especially due to the rising demand in Tier-2 and Tier-3 cities.

What are an Amul franchise's selling points? 

• Low Investment, High Returns:It's cheap to set up an Amul ice cream parlour. You'll get high profit margins against a small investment.
• Established Brand:Amul is a brand trusted by every Indian household. Customers already love the brand and thus selling is easy.
• Diverse Product Range:You can provide a number of choices—ice creams, milkshakes, sundaes, etc. Such a place attracts customers of all ages.
• Continuous Support:Amul provides strong marketing and operational support. 

How to Get a Franchise of Amul Ice Cream Parlour in India in 2025

If you are interested to start an Amul ice cream parlour, then this is how you can go about doing it:

1. Eligibility Criteria

• Age Eligibility: The applicant must be at least 21 years of age to apply for a franchise of Amul ice cream parlour.
• Financial Capacity: The required investment to begin is around ₹5-10 lakhs. This will include the initial setup costs, such as interior shop design and equipment, as well as operational expenses.
• Space Requirements: An ideal space to operate in would range from 150-300 sq. ft. It will have an easy accessibility location by customers.
• Location: Target areas such as shopping malls, crowded roads, or business hubs. These areas attract a large crowd-thus, ideal for business.

2. Location Site Selection

• High-Traffic Places: Target areas with walking people-such as a market, shopping malls, or places near schools and colleges. 
• Demography: Identify those areas where families, young people, and children spend their time. These are your target customers-ice cream being an absolute favorite among these groups.
• Accessibility: The store needs to be accessible by having ample car-parking space as well as by having clear visibility from the main road, which would attract customers walking by and drivers-by.

3. Documentation

Basic Documents:

• Maintain your ID proof (Aadhar, PAN).
• Hold address proof (electricity bill, bank statement).
• Passport-sized photographs.

Business Plan:

• Describe your marketing strategy, setup expenses, and location.

Property Agreement:

• If renting, share the lease agreement.

Financial Proof:

• Present your bank statement or any other evidence of your financial stability.

4. Approval Process

Step 1: Online Application

Go through Amul's authentic website. Fill up the form with your details that may include your name, location, and capacity in finance.

Step 2: Franchise Review

Amul shall scrutinize your application. They may contact you for more details and interview.

Step 3: Site Inspection

If selected Amul shall visit the selected location to check its suitability.

Step 4: Agreement & Payment

After being accepted, pay the setup fee and sign the franchise agreement. This covers the initial support on setting up and marketing materials provided.

Step 5: Training & Setup

Amul will train in operations and customer service. They will also establish the initial stock for the parlour.

How Much Does an Amul Ice Cream Franchise Cost?

An Amul ice cream parlour franchise costs varies according to the type of outlet you wish to start.

Amul Ice Cream Franchise Fee

The initial franchise price is estimated at ₹2-5 lakhs.. This depends on the franchise model chosen for your business. For example,

• Amul Preferred Outlet: ₹2 lakhs
• Scooping Parlour: ₹5 lakhs
• Amul Parlour at CoE: ₹7-10 lakhs

Setup Cost

The setup costs encompass renovation, interior decor, equipment, and initial stock. These would vary according to the size and location of the outlet:

• The setup costs for a larger outlet (250-400 sq. ft.) could reach ₹3,00,000 for equipment and interior work.

Ongoing Expenses

Monthly running costs will include rent, salary of staff, and utilities. These will vary with the size of your outlet and locality, but for a small to medium-sized parlour, will range between ₹50,000 and ₹1 lakh per month.

Expected ROI

The profit margin for an Amul ice cream parlour franchise is great. On average, you can break even within 12 to 18 months. The ROI timeline may vary based on the location and sales but usually offers a stable profit when established.

What are the Benefits of Amul Franchise

Brand Loyalty

Tap into the vast consumer base and goodwill of Amul as a brand.

All Season Sales

Experience constant demand with all-year sales of Amul ice creams and dairy products.

Low Risk, High Demand

Avail a time-tested business model with low financial risk and strong market demand.

Flexibility

Single outlet and easy addition of more or conversion to Amul Preferred Outlets.

Market Trends Driving India's Dairy Franchise Industry

The dairy franchise business in India is gaining momentum rapidly, as Indian consumers' preferences and market dynamics evolve.

• Rapid Demand: Consumers prefer branded dairy products to loose dairy more and more. Organized dairy business is growing at a 15% CAGR, which shows great potential for franchises like Amul.
• Increasing Market for Ice Cream: Through 2025, the market for ice cream will grow at a CAGR of 12%.  Quality, branded ice creams command a premium price in India and the Amul ice cream parlour franchise is going to be a business gold mine.
• Health Consciousness: This is the era of healthier ice creams, be it low-fat or sugar-free. Innovative flavors by Amul are tapping into this very demand, thereby increasing the appeal with customers.
• Emerging Markets: With growing free to spend incomes, Tier-2 and Tier-3 cities will be the places of the future. These areas offer an untapped potential for dairy franchises, especially with Amul's trusted brand.

Conclusion

Starting an Amul ice cream parlour in 2025 is a great business opportunity. With the brand having a reputation for integrity, investments being low, and the market demand is strong, Amul provides a great base for franchise success. The dairy and ice cream market is growing in India mainly due to the increasing customer preference for branded products and high appetite for premium ice creams in the country.

An Amul franchise investment opens up an already established supply chain to you, the benefit of their extensive marketing support, and the flexibility to scale. And no royalty fees mean you break even much faster.

Increasing demand in Tier-2 and Tier-3 cities is also opening up additional avenues for growth, especially for first-time franchisees looking to enter untapped markets. Diversified products and year-round sales potential will also further the appeal of Amul as a resilient investment even in adverse economies.

This is the right time to invest, as the market is surely rising. Amul has very effectively shown the business model, and its brand loyalty has been extremely strong. Its support never fades, and till date, it is the best franchise opportunity in India. An Amul ice cream parlour franchise would be a good start with an excellent reliable partner to generate profits.

FAQs

1. What is the cost of an Amul ice cream franchise?

A basic Amul parlour ice cream shop has an initial investment of ₹2 lakhs, while a CoE outlet can be as expensive as ₹10 lakhs to set up. The investment also considers the estimated cost of equipment and initial stock.

2. How much is the profit margin on an Amul ice cream parlour?

Typically, the profit margin is between 20% and 35%. Most outlets break even within 12-18 months.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.