Individuals holding shop of a minimum size of 100 square feet can apply for an Amul franchise to earn margins up to 20% on retailing of Amul products.
Have Rs. 2 lakh-Rs. 2.5 lakh to invest in a business? Gujarat Cooperative Milk Marketing Federation (GCMMF), the food product marketing company that owns milk brand Amul, offers a franchise business opportunity at a starting investment of Rs. 2 lakh. Individuals holding a shop of a minimum size of 100 square feet can apply for an Amul franchise to earn margins up to 20 per cent on retail of a range of products, according to Amul’s website – amul.com. Anyone with a shop of 100-300 square feet of area and the “willingness to invest Rs. 2-2.5 lakh” can apply for an Amul parlour, according to the Amul website.
Here are five things to know about this business opportunity from Amul:
1. Eligibility: Amul parlours, or Amul exclusive outlets, sell Amul-branded products. The outlets are required to be spread over 100 to 300 square feet of area. The outlet can be located “in markets, premier educational institutes, hospitals, railway stations, bus stations, municipal corporation gardens etc. where there are high footfalls”, according to the Amul website. The shop can be either owned or rented by the applicant of Amul franchise. Costs towards interiors and equipment are to be borne by the franchisee, or the shop owner applying for the Amul franchise.
2. Supplies: Amul wholesale dealers provide supplies from the entire range of Amul products at the shop. Amul’s product portfolio is divided into three broad categories: Dairy Products, ice-creams and pouch milk, according to Amul.
3. Margin: Retail margins vary from product to product. Amul has indicated a margin of 2.5 per cent on pouch milk, 10 per cent on mlk products, 20 per cent on ice cream and about 50 per cent on recipe-based items such as ice cream scoops, sundaes, baked pizzas, sandwiches and cheese slice burgers. Franchisee need not pay any royalty or share any revenue with Amul, according to the company’s website. The franchisee can expect a monthly sales turnover of Rs. 5 lakh to Rs. 10 lakh per month depending on the location of the parlour, according to Amul.
| Dairy Products | Ice Cream | Total | |
|---|---|---|---|
| Sales(In Rs. per month) | 90,000 | 60,000 | 150,000 |
| Gross Margins Earned | 9000 | 12000 | 21,000 |
| Less: Electricity Charges | 2,000 | ||
| Less: Rentals | 5,000 | ||
| Less: Misc Expenses | 2,000 | ||
| Net Margins Earned | 12,000 | ||
| (Source: amul.com) | |||
4. Formats: Amul offers two formats for setting up a franchise business: preferred outlet and ice-cream scooping parlour. While the Amul preferred outlet, also known as Amul railway parlour or Amul kiosk, requires an area of 100-150 square feet, the space requirement for the ice cream scooping parlour is a minimum of 300 square feet.
| Type of format; | Prebuilt shop size requirement (in square feet) | Investment by franchisee | Investment break-up | Average return on MRP |
|---|---|---|---|---|
| Amul Preferred Outlet/Amul Railway Parlour/Amul Kiosk | 100-150 | Rs. 2.00 lakh (approx) | Break up = Non-Refundable Brand Security – Rs. 25,000 / Renovation – Rs. 100,000 (approx.) / Equipments – Rs. 70,000 (approx.) plus incidental cost. | 2.5% on pouch milk; 10% on milk products; 20% on ice cream |
| Amul Ice-Cream Scooping Parlour | 300 | Rs. 6.00 lakh (approx) | Break up = Non-Refundable Brand Security – Rs. 50,000 Renovation – Rs. 4,00,000 (approx.) Equipments – Rs. 1,50,000 (approx.) plus incidental cost. | About 50% on recipe-based ice cream scoops/sundaes/floats/shakes/baked pizzas/sandwiches/cheese slice burger/garlic bread/hot chocolate drink (Amul Pro); 20% on pre-packed ice cream; 10% on other Amul products |
| (Source: amul.com) | ||||
5. Cost: For Amul preferred outlets, railway parlours or kiosks, an investment of Rs. 2 lakh is required. This includes a non-refundable brand security amount of Rs. 25,000 and renovation cost of Rs. 1 lakh approximately, according to the Amul website. For the ice cream scooping parlours, an investment of Rs. 6 lakh is required. Recurring expenses such as employee cost, electricity charges and shop rentals are borne by the franchisee out of the gross retail margins earned, according to the company.
How to apply for Amul franchise online
Applications can be submitted using an online form available on the Amul website. Applicants are required to provide details such as name, mobile/email, address and area of the shop along with digital copies of a demand draft and a cancelled cheque, according to the Amul website.
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