Why Amul Is The Best Dairy Franchise Opportunity In India In 2024?
Written By: Shruti Agrawal
The Amul franchise opportunity stands out as a beacon of success and sustainability. Amul, an acronym for Anand Milk Union Limited, has not only engraved its name in the archives of the country's business history but has also earned a special place in the hearts of millions of consumers.
This exploration delves into the roots of Amul, tracing its inception back to the cooperative movement in the small town of Anand, Gujarat. The brand remarkable story of how with its unwavering commitment to quality, innovation, and inclusivity, it has become a formidable player in the dairy industry.
The Amul franchise opportunity has empowered countless individuals across India to join the dairy revolution, creating a network of entrepreneurs who benefit from the brand's sterling reputation.
About Amul Franchise
Located in Anand, Gujarat, Amul is an Indian cooperative society known as the Gujarat Milk Marketing Federation. Founded on December 14, 1946, as a response to the exploitation of small dairy farmers by traders and agents.
The cooperative is owned by over 3.6 million milk producers and is controlled by the Gujarat Cooperative Milk Marketing Federation Limited, Department of Cooperation, Government of Gujarat. It has helped India to emerge as the largest milk producer in the world.
The Amul Model of Dairy Development is a three-tiered structure that includes village-level dairy cooperative societies, district-level milk unions, and a state-level federation. Its model has been replicated across several Indian states, thereby helping increase the incomes of 80–100 million farmer families across the country.
The cooperative has ventured into overseas markets and has made cheese and baby food on a large commercial scale, processing buffalo milk and creating history in the world.
Amul's Franchise Model
Amul's franchise model is licensing, which allows franchisees (individuals and companies) to use the Amul brand name and sell Amul products under specific agreements and conditions.
The franchise model expands Amul's reach by leveraging the marketing and distribution capabilities of its franchisees. The franchise model includes:
Amul Preferred Outlet/Amul Railway Parlor/Amul Kiosk
These are exclusive Amul outlets that store and sell the entire range of Amul products. The outlets are spread over 100 to 150 square feet in markets, educational institutions, hospitals, railway stations, municipal gardens, etc.
The franchisee does not need to pay any royalties or share any revenue with Amul. The expected monthly sales turnover will vary from place to place, depending on the location of the parlor.
The investment by the franchisee would be around Rs 2.00 lakhs (approximately).
Amul Ice-Cream Scooping Parlour
These parlours are located in areas covering 250 to 400 square feet. The franchisee needs to pay a refundable security deposit of Rs. 50,000.
The franchisee will get about 50% off recipe-based ice cream scoops, sundaes/ floats/ shakes/ baked pizzas/ sandwiches/ hot chocolate drinks (Amul Pro). For pre-packed ice creams, it would be around 20%.
So, the establishment costs would vary from INR 1,50,000 to INR 6,00,000, depending on the type of franchise.
Amul's franchisee will get additional purchase discounts and special consumer offers and doesn't need to share the profit or royalty. The franchisee will also get a subsidy on all equipment and branding, a good business platform, and inauguration support.
The franchise model has helped increase the incomes of 80–100 million farmer families across the country.
Steps to Start The Amul Franchise In India
Here are the steps to start an Amul franchise in India:
Check the eligibility criteria
To become an Amul franchisee, one should have a minimum net worth of INRQ 25 lakhs, and your investment capacity should be between INR 2-6 lakhs depending on the type of franchise. One should also have a shop located in an active locality with a minimum space of 100 sq ft to 300 sq ft, depending on the type of franchise.
One can contact Amul through their official website or toll-free number or one can also contact a consultancy like FranchiseBAZAR to inquire about the process and the initial cost of buying the Amul product franchise. One can also fill up the required details, like name, contact number, store location, and address, and attach important photographs and other essential information. One will also need to submit documents like identity proof, address proof, and PAN card.
Evaluate the market availability
One has to look at the market availability for Amul franchises and see if there are available markets in your location of interest before proceeding with the franchising application.
Submit the application
The application will be reviewed by the Amul franchise team. One will be mailed a confirmation receipt upon reception of the online application, where they will additionally provide the contact details of the franchise owner.
Receive approval and open an Amul franchise
One will receive franchise approval once the financial and background checks are completed. Only applicants who fully satisfy the standards of franchise owners will be granted approval.
Once approved, you can start your Amul franchise by setting up the shop, renovating it, and purchasing the necessary equipment. One will also need to stock up on Amul products, which will be supplied by Amul's wholesale dealers.
Market Trends of Dairy Franchise In India
The India dairy market size is estimated to be USD 24.77 billion in 2023 and is expected to reach USD 35.96 billion by 2029, i.e. growing at a rate of 6.41% compounded annually, during the period between 2023-2029.
India's growing organized retail sector is driving the sales of value-added products at the rate of 15-20 % annually and about 35–40% of India's dairy market is value-added products.
There is an increasing demand for dairy-based recipes from food service channels, which is further boosting the market growth. Dairy sales on the point of sales platform are anticipated to grow by USD 2206 million in 2025.
The major players are growing their businesses by building stores in new markets, constructing several manufacturing sites, and introducing new items.
The National Dairy Programme was launched by the Indian government in an effort to boost output and give dairy farmers more options. This is anticipated to be a major trend driving the market's expansion.
Overall, the dairy franchise market in India is expected to grow at a CAGR of around 15.4% in the forecast period of 2024-2032, reaching a value of USD 472.7 billion by 2032. This indicates that the franchise model is profitable, easy to operate, and has a strong presence in the Indian market, making it an attractive option for entrepreneurs and companies looking to start a business.
Benefits of Investing in Amul Franchise In India
Investing in an Amul franchise in India offers several benefits, making it an attractive business opportunity. Here are some of the key advantages of investing in an Amul franchise:
- Amul is a highly recognized and trusted dairy brand in India, offering immediate brand value to franchisees.
- The franchise covers a wide range of dairy products, enabling franchisees to cater to a broad customer base.
- Dairy products are considered essential items, ensuring a consistent and reliable demand for Amul's offerings.
- Amul provides a well-established and tested franchise model, reducing startup risks.
- Amul offers end-to-end support, including setting up new outlets, decorating them, and inaugurating them.
- Comprehensive training is offered to franchisees and staff, ensuring efficient operations and high-quality standards.
- Amul offers marketing and promotional support, helping attract and retain customers and build brand awareness.
- Amul franchises typically offer a good return on investment due to the brand's popularity and consistent demand.
- The Amul franchise has a no-royalty and no-profit-sharing model, which makes it an attractive option for individuals and companies looking to start a business.
- Regional offices and field staff provide valuable insights into local markets and preferences.
- Amul's cooperative model empowers rural dairy farmers and supports sustainable business practices.
- Various types of franchise outlets are available, accommodating different budgets and locations.
- Amul maintains a reliable supply chain, ensuring timely product deliveries and minimizing disruptions.
- Amul is renowned for its commitment to quality, hygiene, and safety standards, bolstering customer trust.
As we conclude our exploration of the Amul franchise opportunity in India in 2024, it becomes abundantly clear that this venture is a journey towards entrepreneurial success deeply rooted in the dairy heritage of the nation.
Amul, a brand that has been woven into the fabric of our lives for decades, continues to offer a compelling pathway for aspiring entrepreneurs, business enthusiasts, and those seeking to be part of a sustainable and thriving business model.
Take the first step towards your entrepreneurial journey today by visiting FranchiseBAZAR. Discover the Amul franchise opportunities waiting for you in 2024. Embrace this iconic brand, tap into the thriving dairy market, and secure your place in India's entrepreneurial success story.
Visit FranchiseBAZAR now and seize the Amul franchise opportunity before it's too late. Your journey towards success begins here!
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.
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