Amul, the iconic dairy brand, is synonymous with quality and trust in India. With a vast product range that includes milk, butter, cheese, and ice cream, Amul is a household name. For entrepreneurs, owning an Amul franchise is a lucrative business opportunity, thanks to its high demand and low investment requirements. This blog outlines the cost, profit potential, and steps to start an Amul franchise in 2025.
Why Choose Amul?
Amul is one of the most successful cooperatives in India, with an extensive distribution network and a loyal customer base. Here’s why an Amul franchise is a smart choice:
- Strong Brand Recognition: Trusted for over 75 years.
- Wide Product Range: Includes dairy, snacks, beverages, and frozen items.
- Low Risk: Amul operates on a no-royalty model, meaning higher profits for franchise owners.
- High Demand: Amul products are staple items with consistent demand throughout the year.
Amul Franchise Cost in India 2025
Amul offers two franchise models: Amul Preferred Outlet (APO) and Amul Ice Cream Parlour, each with different investment requirements.
1. Amul Preferred Outlet (APO)
This is a retail shop selling Amul’s dairy products, snacks, and beverages.
- Setup Cost: ₹2–4 Lakhs
- Space Requirement: 100–300 sq. ft.
- Security Deposit: ₹25,000–₹50,000 (refundable).
- Average Monthly Revenue: ₹5–10 Lakhs.
2. Amul Ice Cream Parlour
A dedicated outlet for Amul’s ice cream products and beverages.
- Setup Cost: ₹5–8 Lakhs
This includes interiors, equipment, and branding. - Space Requirement: 300–500 sq. ft.
- Security Deposit: ₹50,000 (refundable).
- Average Monthly Revenue: ₹8–12 Lakhs.
Profit Potential of an Amul Franchise
Amul’s franchise model is designed for profitability, with zero royalty fees. Instead, you earn commissions on the sale of products.
- Commission Structure:
- Dairy Products: 2.5%
- Pouches: ₹1.5/liter
- Ice Cream: 20%
- Other Products: 10%–15%
Average Monthly Profit:
Depending on location and sales volume:
- Amul Preferred Outlet: ₹50,000–₹1,00,000.
- Amul Ice Cream Parlour: ₹75,000–₹1,50,000.
Break-Even Point:
Most franchise owners recover their investment within 12–18 months.
How to Start an Amul Franchise in 2025
1. Choose the Right Location
Identify a high-footfall area such as shopping complexes, residential areas, or near schools and colleges.
2. Apply for the Franchise
Visit Amul’s official website and fill out the franchise application form. Provide details about your preferred location, financial capability, and experience (if any).
3. Approval and Agreement
Once your application is reviewed, Amul’s team will approve the location and draft a franchise agreement.
4. Store Setup
Amul will guide you through the store setup, including interior design, branding, and equipment installation.
5. Stock and Training
Amul provides initial stock and training on inventory management, customer service, and operations.
6. Grand Opening
Launch your outlet with local promotions and exclusive offers to attract customers.
Challenges and Tips for Success
Challenges
- Location-Dependent Sales: Choose an area with high demand for dairy and ice cream products.
- Competition: Be prepared to compete with other dairy brands and local retailers.
- Inventory Management: Dairy products are perishable and require careful handling.
Tips for Success
- Focus on Customer Service: Polite staff and a clean environment boost customer retention.
- Offer Combos: Attract customers with combo deals and discounts on bulk purchases.
- Engage in Local Marketing: Use flyers, banners, and social media to promote your store.
- Leverage Seasonal Demand: Capitalize on festivals and summers with special ice cream promotions.
Conclusion
Starting an Amul franchise in 2025 is a low-risk, high-reward business opportunity. With its affordable investment, strong brand reputation, and consistent demand, it’s an excellent choice for aspiring entrepreneurs. By selecting the right location, maintaining high operational standards, and effectively marketing your outlet, you can enjoy a profitable venture with Amul.
Take the first step today and join one of India’s most trusted and beloved brands!
