Initial Investment

An applicant will need prebuilt shop or space either rented or self-owned at a good location. The entire cost of setting up the shop like interiors and equipment will have to be borne by the individual. The expenses to set up the shop can be anywhere between Rs 1.50 lakh to Rs 6 lakh depending on the type of franchisee.

Amul is offering different kinds of franchisees. If you choose an Amul Outlet, Amul Railway Parlor or an Amul Koisk, the investment would be Rs 2 lakh, which includes Rs 25,000 non-refundable brand security, Rs 1 lakh on renovation and Rs 75,000 on equipment.

An Amul scooping parlor, on the other hand, could cost Rs 5 lakh, where the non-refundable brand security would be Rs 50,000.

Business model

The products will be supplied to the shop through Amul wholesale dealers and the franchise will get a retail margin. The margin varies from product to product and this revenue is not needed to be shared with Amul.

Depending on the sales volume, your working capital may vary too.

Earnings

Depending upon the location of your store, Amul says one can earn a revenue of around Rs 5 to 10 lakhs.

The shop will also get a commission on minimum retail price (MRP):

• 2.5 percent on milk pouches
• 10 percent on milk products
• 20 percent on pre-packed ice cream
• 50 percent on recipe-based products sold at Amul Ice-Cream Scooping Parlour