Written By Kiran James

Ever wondered while striking things from your grocery list like toothpaste and other products you are contributing to one of the biggest franchise businesses in India that has over 12.8 million stores across India in the form of grocery retail that has a combined worth of over 19.9 lakh crore.

The supermarket franchise in India according to various reports is expected to hit 10.5 billion dollars by 2023. It is without a doubt one of the best business opportunities in recent times in this we will look into every aspect that is required for running the supermarket business.

Why Is Supermarket Franchise A Great Business Opportunity

Indians spend more than 50% of their monthly income on groceries, by far the largest consumer segment. There is no doubt that franchisors must capitalize on this opportunity. With such enormous market potential, various brands, both national and international, are competing for market share. 

The grocery shop franchise is traditionally the most demanded business concept. And it is easily explained. The number of people is constantly growing and the amount of food consumption is increasing. As a result, supermarket franchises are facing new demands. Entrepreneurs who want to buy a business in this segment should choose a brand with a well-known name, powerful marketing, and a well-selected product range. More than 60% of India's retail market is devoted to groceries. Grocery players are attracted to the market not only because of its size but also because of its high buying rate. It is a household necessity to purchase groceries (along with vegetables and fruits). There is a high repeat purchase rate and they are frequently bought.

These days, the grocery industry in India has been highly fragmented, unorganized, and predominantly small and family-owned companies due to bad get rights of entry to capital, technology, and guidelines.  With converting scenarios like demographics, excessive monetary growth, and increasing incomes, the proliferation of manufacturers, customer focus, and so on are boosting the organized grocery industry.

The emergence of grocery chains like BigBazaar, extra Megastore, and others has efficiently paved their manner into the industry and are all at once turning into clients’ favors due to their rate-effectiveness. Globally, India is the 6th-largest grocery marketplace and has a humongous capability for boom because of the rising population as well as disposable earnings. The Indian grocery marketplace, which debts for sixty nine% of India's popular retail marketplace, offers lots of opportunities to grocery and grocery shop franchises.

What Is The Cost Of Setting Up A Supermarket Franchise?

The principal price of putting in a grocery store franchise is within the first stock purchase. Preliminary stock purchase may be a big investment starting from ₹ 20 - to 30 lakhs. Pre-opening fees also encompass lease for the primary nonoperational month as the first month can be used for putting in the franchise, coverage fees for the franchise, and additionally the charges that include the running of the franchise's electric and water payments.

The initial investment will even cover the licensing fee and all of the hurdles that come with acquiring the license even though the grocery franchise constitutes about 69% of the retail franchise in India it may also be very tough to accrue a license similar to there are some very strict legal guidelines and guidelines concerning the protection and excellent on the gadgets bought this makes the licensing procedure equally tough and steeply-priced.

In brief, the preliminary funding required for establishing a supermarket franchise along with the initial inventory buys and all the other prices can come everywhere among ₹ 40-60 lakhs.

Top 10 Supermarket Franchises In India

1. Big Bazaar

2. D- mart

3. More Retail

4. Reliance Fresh

5. Reliance Smart 

6. Hypercity 

7. MV Mart

8. Pangea Gourmet

9. Food world

10. 7 eleven

Below are the franchise requirements for the mentioned brands

1. Big Bazaar

Big bazaar offers a big variety and volume of grocery items, packed food, clothes, and other retail items under one roof. The big bazaar chain of supermarkets is one of the largest chains of supermarkets in India.

With a big range of products in every category, Big bazaar offers multiple renowned brands at an affordable rate to its customers making it one of the most loved supermarket franchises for the middle class in India. The company has performed tremendously in the past years and has been able to bring in large amounts of profits.

Founded: 2001

Franchising Since: 2008

Investment Required: 10 - 20 lakhs

Franchising Fee: 3 - 15 commission of sales

Space: 2000 - 5000 sq.ft

2. D- mart

Often regarded as the king in the retail franchise market, d - mart was started with the idea of bringing everything that is required to run an everyday household into one place.

With a presence of 196 stores in 72 cities spread across 11 states, this supermarket chain has managed to become the 11th most valued Indian firm by market valuation, with the company’s market capitalization standing at ₹ 1,58,902.37 crore on the BSE. 

Founded: 2000

Franchising Since: 2002

Investment Required: 1.5 - 2 crores

Franchising Fee: 5 lakhs

Space: 4000 sq.ft

3. More Retail

Very similar to the business strategy adopted by big bazaars, more retail franchises offer a wide range of products in food, clothing, and grocery items.  The franchise is currently the 4 largest supermarket chain in India with over 600 stores around the nation. Apart from being the 4 largest supermarkets in India on market valuation the franchise also has the highest number of stores in the country with a store in almost every city.

Founded: 2007

Franchising Since: 2007

Investment Required: 15 - 30 lakhs

Franchise Fee: not Disclosed

Space: 1000 - 2000 sq.ft

4. Reliance Fresh

Reliance Fresh operated by Reliance Industries is one of the best supermarket franchise chains in India. The franchise provides fresh vegetables and other dairy products to its customers at an affordable rate.

One of the main things that keep them different from local grocery stores is their ability to ensure 100% fresh and quality products, recently the franchise has started home delivery services to adapt to changing shopping habits after the pandemic.

Founded: 2006

Franchising Since: 2006

Investment Required: 15 - 30 lakhs

Franchising Fee: No Fee

Space: 1000 - 1300 sq.ft

5.  Reliance Smart

Reliance Retail is an Indian retail company and a subsidiary of Reliance Industries Limited. Founded in 2006, it is the largest retailer in India in terms of revenue.[4] Its retail outlets offer foods, groceries, apparel, footwear, toys, home improvement products, electronic goods, and farm implements and inputs. Apart from physical outlets, the company also sells products on its e-commerce channels.

Founded: 2006

Franchising Since: 2006

Investment Required: 20 - 50 lakhs

Franchising Fee: Not Disclosed

Space: 1500 - 2000 sq.ft

6.  Hypercity 

Hyper Supermarket Retail follows the best industry practices to unlock the full potential of its staff through our world-class learning institutes. Every day, Hypercity Supermarkets brings multiple products, opportunities, and services to millions of customers in India. Through more than over 22 million square feet of retail space, we serve customers in more than 250 cities across the country. Most of all hyper city helps India shop, save and realize dreams and aspirations to live a better quality of life every day.

Founded: 2006

Franchising Since: 2008

Investment Required: 5 - 10 lakhs

Franchising Fee: 1 - 2 lakhs

Space: 1000 - 1500 sq.ft

7.  MV Mart

The MV Mart is a startup supermarket franchise that is currently based and working in Mumbai. The primary focus of the franchise is to provide the best quality grocery items at an affordable rate to its customers.

Founded: 2021

Franchising Since: 2022

Investment Required: 5 - 10 lakhs

Franchising Fee: 1 - 2 lakhs

Space: 700 - 1200 sq.ft

8. Pangea Gourmet

Pangea Gourmet Franchise is a retail mart with high-quality products for cooking and groceries. Global-made locals pride themselves in Pangea. With groceries from all over the world, this supermart is a one-stop shop for all your needs. Fruits, vegetables, meats, cheeses, and everything that you need in your pantry. They even have a healthy range that includes vegan, gluten-free, sugar-free, organic, and protein foodstuffs and beverages.

Founded: 2018

Franchising Since: 2022

Investment Required: 50 - 70 lakhs

Franchising Fee: Not Revealed

Space: 700 - 1000 sq.ft

9.  Food world

The food world is another famous supermarket franchise that was able to get into the hearts of its customers within just a few years of commencing its operations. Unlike other supermarket franchises that give sole attention to grocery items, the food world also focuses on providing its customers with packed food and bakery items.

Founded: 1996

Franchising Since: 2000

Investment Required: 10 - 20 lakhs

Franchising Fee: 2 - 5 lakhs

Space: 500 - 1000 sq.ft  

10. 7 eleven

7-Eleven, Inc is an American multinational chain of retail convenience stores, headquartered in Dallas, Texas. The chain was founded in 1927 as an ice house storefront in Dallas. It was named Tote'm Stores between 1928 and 1946. After 70% of the company was acquired by an affiliate Ito-Yokado in 1991, it was reorganized as a wholly-owned subsidiary of Seven & I Holdings.

7-Eleven operates, franchises, and licenses 78,029 stores in 19 countries and territories as of November 2021.

Founded: 1927

Franchising Since: Not Revealed

Investment Required: 50 lakhs - 1 crore

Franchising Fee: 10 - 15 lakhs

Space: 1000 - 2000 sq.ft

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