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If you want to start a reliable and stable business with less capital, then Amul Store can be a good option. Amul’s franchise model comes without royalty and requires an investment of only Rs 2 to 6 lakh. With the right location and product mix, it is possible to earn Rs 40 thousand to Rs 1.5 lakh every month.
New Delhi. Amul has emerged as an attractive option for people dreaming of starting a reliable business with low capital. Amul’s no-frills franchise model can be started with an investment of just Rs 2 to 6 lakh, with no royalty or revenue sharing. With the right location and product mix, it is said that it is possible to earn Rs 40 thousand to Rs 1.5 lakh every month from an Amul store.
Easy franchise model without royalty
Amul franchise is different from other brands. Here work is done on stock-and-sell model, that is, the franchisee buys the product from the authorized distributor and sells it at MRP. There is no monthly fee, royalty or profit sharing. Whatever profit remains after deducting the expenses, belongs entirely to the store operator. This is the reason why this model is becoming increasingly popular among small investors and new entrepreneurs.
Two types of stores, according to investment need
Amul gives the option of opening stores in two major formats. The first is Preferred Outlet, Kiosk or Railway Parlour, for which 100 to 150 square feet space is sufficient. It is usually opened in markets, stations or residential areas and sells milk, curd, butter, cheese, ghee, cheese and packed ice cream. The investment in this format is around Rs 2 lakh. The second format is Amul Ice Cream Scooping Parlor, which is opened in a space of 300 square feet or more and sells high-margin products like shakes and desserts. Investment in this can range from Rs 5 to 6 lakh.
Mathematics of Margin and Earnings
Profit in Amul stores varies depending on the product. Margin is around 2.5 percent on milk, 10 to 20 percent on packaged dairy products and up to 20 percent on packed ice cream. The highest revenue comes from recipe-based items like thick shakes and floats, where margins can reach up to 50 percent. This is the reason why the possibility of profit is considered higher in larger parlor formats.
Application Process and Requirements
For Amul franchise, the applicant must be an Indian citizen and the age should generally be above 18 years. Also, it is mandatory to have space at a commercial and visible location. PAN card, Aadhaar, GST registration and documents related to property or lease have to be provided. The Site is monitored by Amul or its distributors. After approval, the process of interior, equipment, stock and training is completed. It is not allowed to sell anything other than Amul branded products. With proper footfall and operation, this business can become a source of stable and reliable income with low investment.
