Do you consider becoming an entrepreneur and starting your own business? Have you thought about an Amul franchise? These are some major milk brands (Amul) . It is India based dairy product company founded in 1946. In particular it is famous for milk and ice cream that are its main products. If you are interested in having an Amul franchise then this article will help you to get all the necessary information about the Amul franchise in India.
If you have aspirations of having a small milk booth, a giant ice cream parlour or anything in between, then this guide is for you!
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What is Amul?
Now let us get into the details of this discussion about franchising, we need to get an insight into Amul. Amul was launched in 1946 by Tribhuvandas Patel when he formed Anand Milk Union Limited or AMUL for short. Originally it began with the cooperative organization for the upliftment of dairy farmers of Gujarat.
Today Amul is one of the most identifiable brands of India. It has an array of products in the dairy products and these include milk, butter, ice cream and chocolates.
Why Choose an Amul Franchise?
1. Strong Brand Recognition: Amul is yet another brand which needs no introduction in Indian households. When you engage in the Amul franchise, you are choosing to work with a name people already have in mind that they can purchase from.
2. Wide Product Range: Amul has many products which it sells to the public. If you get your local market’s requirements right, you can decide what you want to sell because you are independent.
3. No Royalty Fees: What sets Amul different from numerous other franchise players is that Amul does not take a royalty from its outlets.
4. Good Profit Margins: Of course depending on the product you are selling, the margins can range from as low as 2. 5%-50% (concerning milk to bakery items and chocolates and so on).
5. Support from Amul: The company offers advice and at times can assist in the process of acquiring loans for your business.
Types of Amul Franchises
Amul currently has various types of franchise strategies which includes.
Here are the main ones:
1. Amul Milk Booth: This is the easiest and least costly method of operationalizing a business internally. It is a small shop which primarily centres on the sale of milk and other simple by-products of milk.
2. Amul Ice Cream Parlor: This is strictly a shop which deals in the sale of ice cream from Amul. It can turn out to be an excellent place where people can go and indulge in different treats.
3. Amul Railway Parlor: These are shops which are situated at railway stations. They are involved in selling various merchandise with emphasis on such merchandise which would attract travellers.
4. Amul Centre of Excellence (COE) Parlor: This is a bigger store, in this store, consumers can purchase almost all the available Amul products.
5. Amul Cafe: This is like a small restaurant that offers merchandise like pizzas and other breakables which are affiliated to Amul.
Basic Requirements for an Amul franchise
1. Space: To establish a specific franchise, you will require a shop or some space in which to do so.
The size depends on the type of franchise:
– Milk Booth: It takes between 100-150 square feet.
– Ice Cream Parlor or Cafe: 300- 500 sq ft.
– COE Parlor: 500- 1000 square feet.
2. Location: It is advisable that your shop be located in an area with a lot of traffic most importantly during the evening hours. Some of the good areas are markets, near school or hospitals or any train stations for instance.
3. Infrastructure: Some of the requirements that you will need include; power supply, water supply, and proper air circulation.
4. Equipment: Depending on the type of products that you are going to sell, you may require refrigerators, freezers or other equipment.
5. Licenses: Local business authorities will provide you with all that is needed in terms of licenses and permits for running a business.
6. Investment: Ideally, you should be able to inject the required startup capital to cater for the initial expenses that we are about to look at next.
Amul Franchise Cost In India
The cost of an Amul franchise depends on whether you want to open a Metro/Urban outlet, a Semi-Urban outlet or a Rural outlet.
Here’s a breakdown:
1. Amul Milk Booth:
– Security Deposit: ₹25,000
– Equipment Cost: It costs almost 60000 INR.
– Total Investment: ₹1. 5 lakhs rupees to ₹2 lakhs rupees
2. Amul Ice Cream Parlor:
– Security Deposit: ₹50,000
– Equipment Cost: To a near of ₹1. 5 lakhs
– Total Investment: ranging from 3 lakhs to 6 lakhs rupees
3. Amul Railway Parlor:
– Security Deposit: $ 2000 or the equivalent or one lakh rupees.
– Equipment Cost: Around ₹ 50000
– Total Investment: ₹2. 5 cr to ₹ 4 cr
4. Amul COE Parlor:
– Security Deposit: ₹50,000
– Equipment Cost: About ₹50,000
– Total Investment: ₹2.5 lakhs to ₹4 lakhs
How to Get an Amul Franchise: Step-by-Step Guide
Now that you know the basics, let’s go through the process of getting an Amul franchise:
Step 1: There will be a general visiting of the official Amul Website.
Type in Amul’s home page address in the browser. Find the piece of information about franchises or Amul parlours.
Step 2: Search for the Application Form
On the main page of the Amul you should be able to spot the link which says online application for Amul parlours. Click on this link.
Step 3: Submit the Application
All the details must be filled in properly. This leaves you to make certain that the information you provide is accurate in terms of contact information.
The last step-Foldage Form has to be filled and scanned and sent to the client.
Once the customer has filled in the form, he/she can upload it on the internet.
Step 4: Get a Response
In a simple statement telling the applicant that Amul will consider her or his application. If they are interested they will send you an email confirmation along with further details of the process that is to follow.
Step 5: Follow-Up
About contact details: Amul’s office might contact you for more details or might want to discuss your application further.
If you succeed in your application, then you have got to decorate your shop or space in the way the Amul wants it.
Step 6: Get Training
Amul might not offer you any training on how to effectively manage this franchise of yours.
Step 7: Start Your Business
After getting everything in place and getting the approval you can then embark on your Amul franchise business.
Profit Potentials that can be generated from an Amul Franchise
Well, you are probably asking yourself a question like, ‘how much money am I likely to make from franchising with Amul’.
While exact figures can vary widely depending on many factors, here’s a general idea:
– It is also important to know the profit from an Amul outlet or franchise store, Amul gets between ₹5 lakhs to ₹ 10 lakhs per year.
Of course, this is just an estimate, but you should keep this in mind for now. Your actual earnings will depend on factors like:
1. Location of your shop
2. The type of products which you sell
3. Local competition
4. These factors therefore define how well a business is managed.
5. Seasonal factors Examples: Ice-cream may be consumed more throughout the summer season than any other season.
Must Read: Best Ice Cream Franchises in India
Guidelines for Operating Amul Franchise
Franchising is not just about getting the franchise.
Here are some tips to help make your Amul business successful:
1. Choose the Right Location: This is important because it enables an assessment of the existing literature for the respective research period to be made. A shop located at a strategic place in a busy area does attract more customers.
2. Maintain Cleanliness: Admire your shop cleanliness by washing the counters, equipment and utensils. This is particularly true especially when dealing with food products.
3. Provide Good Customer Service: Be friendly and polite to your clients in your working station.
4. Manage Your Stock Well: Learn what moves from the shelves and what doesn’t, how often the products are consumed etc. You must always have some best selling products in your inventory.
5. Follow Amul’s Guidelines: The results have shown that Amul has a good product quality policy. For this reason, ensure that you adhere to all of their policies and regulatory frameworks to the latter.
6. Market Your Business: But here again the fact is that Amul is a popular brand and still you have to educate people about your particular store. Try marketing incentives that include,; social media, local advertising, or special promotions to get clients.
7. Diversify Your Products: The more Amul products one can have in the shop, the better for the sales, so if possible one should order as many as possible of them. The latter can be in handy in attracting various kinds of customers.
8. Keep Learning: New product developments and business approaches from Amul. Knowledge is power and the more you have the better your business is going to be run.
Challenges of running an Amul franchise
While an Amul franchise can be a great business opportunity, it’s important to be aware of potential challenges:
1. Competition: There might be competition from other brands of dairy products and other retail shops located in the society.
2. Perishable Products: Dairy products are usually perishable products, this means that most of them have a very short shelf life. You will have to monitor your stock well in order not to end up with spoilt products.
3. Price Fluctuations: The cost of dairy products may fluctuate depending on one thing or the other. It may impact your profitability because More to the point, this might influence your profits.
4. Seasonal Demand: Some of the items may be seasonal, for example, ice cream is usually demanded more during summer.
5. Equipment Maintenance: It means you will have to ensure that your refrigerators and other equipment are in perfect condition and this is not cheap.
6. Long Hours: You might need to keep your shop open for long hours, especially if you’re in a busy area.
Conclusion
Starting an Amul franchise can be an exciting and potentially profitable venture. With its strong brand recognition and wide range of products, Amul offers a solid foundation for your business. The cost of starting an Amul franchise in India can range from about ₹1.5 lakhs for a small milk booth to ₹6 lakhs or more for a larger parlour or cafe.
Remember, success in any business requires hard work, good management, and a bit of luck. Before you start, make sure you understand all the requirements and costs involved. Do your research about the local market and competition. And most importantly, be prepared to put in the effort to make your Amul franchise a success.
