Thinking about starting your own business? The Amul franchise is one of the most talked-about opportunities in India, and for good reason. It offers a chance to partner with a brand that has been a part of Indian life for generations.
This blog post will walk you through everything you need to know, from the brand's incredible story to the specific costs and steps involved in becoming a franchise owner.
As of now, Amul is India's largest single-brand retailer with over 8,300 outlets, and more than 10,000 individuals have chosen to partner with the company to pursue their entrepreneurial dreams.
The Taste of India: A Story of Trust and Community
Amul’s journey began long before it became a household name. It all started with a group of small dairy farmers in Anand, Gujarat, who were being exploited by middlemen who set arbitrary milk prices.
To fight this injustice, they formed a cooperative on December 14, 1946, known as the Kaira District Milk Producers Cooperative Union Limited (KDCMPUL).
This cooperative model was the brainchild of Dr. Verghese Kurien, often called the "Milkman of India."
He built a three-tiered system, managed by the Gujarat Cooperative Milk Marketing Federation (GCMMF), that put control back in the hands of millions of farmers.
This initiative eventually made India the world's largest milk producer in what became known as the "White Revolution." This history of empowering farmers and focusing on ethical sourcing is the bedrock of Amul's success.
It’s why the brand is so deeply trusted. You aren't just selling products; you are part of a national movement. This foundation of trust is a powerful asset that new businesses spend years trying to build.
And who could forget the Amul Girl? Since 1966, this cheeky, polka-dotted mascot has been commenting on everything from politics to pop culture with witty, timely ads.
Created by adman Sylvester da Cunha and artist Eustace Fernandes, the mascot was designed to be easy to draw and memorable, serving as a cost-effective alternative to celebrity endorsements.
The Amul Girl’s consistency and relatability have made her a cultural icon, and she helps keep the brand relevant and in the public eye without any effort on your part.
Understanding the Two Types of Amul Franchises
Amul offers two main franchise models, each with a different investment level and focus. Choosing the right one depends on your budget and business goals.
- Amul Preferred Outlet (APO)/Kiosk: This is a compact, low-investment model, perfect for high-traffic areas like markets, bus stops, or railway stations. It typically requires a space of about 100-150 sq. ft.
The investment for this type of outlet is approximately ₹2 lakhs. The products sold here are a wide range of Amul’s staples, including pouch milk, milk products, and prepackaged ice cream.
- Amul Ice-Cream Scooping Parlour: If you have a larger space, this model offers a higher profit potential. It requires a minimum space of over 300 sq. ft. and a more significant investment of around ₹6 lakhs.
Here, you sell prepackaged products but also high-margin, recipe-based items like sundaes, shakes, and even pizzas.
Breaking Down the Amul Franchise Cost and Other Expenses
The total investment for an Amul franchise is composed of several key parts. Here’s a detailed breakdown of what your money goes toward
| Cost Component | Amul Preferred Outlet (APO) | Amul Ice-Cream Scooping Parlour |
| Brand Security | ₹25,000 (Refundable) | ₹50,000 (Non-refundable) |
| Renovation/Interiors | Approx. ₹1,00,000 | Approx. ₹4,00,000 |
| Equipment | Approx. ₹70,000 | Approx. ₹1,50,000 |
| Total Approximate Investment | ₹2,00,000 | ₹6,00,000 |
- Brand Security Deposit: This is a one-time fee to partner with the brand. It’s a refundable deposit of ₹25,000 for the APO but a non-refundable one of ₹50,000 for the Ice-Cream Scooping Parlour.
- Renovation and Interior Design: The cost for setting up the shop varies greatly. For an APO, it's roughly ₹1,00,000, while the more elaborate Scooping Parlour can cost around ₹4,00,000. This covers furniture, fixtures, and overall setup.
- Equipment: This includes essentials like visi-coolers and deep freezers to store products. Equipment costs are about ₹70,000 for an APO and ₹1,50,000 for a scooping parlour. All Visi-coolers and deep freezers must be Amul-branded to get equipment purchase support.
- Operational Costs: As a franchisee, you are responsible for all day-to-day expenses. This includes:
- Rent: Varies based on location.
- Electricity: This is a major cost, as freezers must run 24/7 to prevent spoilage. A franchisee on Reddit reported that their daily sales of ₹2,000 were barely enough to cover the electricity bill for their four freezers.
- Salaries: A small kiosk might need 1-2 staff, while a scooping parlor could require 3-4. You are responsible for paying these employees yourself. An average retail sales associate in India earns approximately ₹2.96 lakhs per year, which is a more realistic figure than Amul's corporate salaries, which are much higher.
The Secret to Success: How Ice Cream Drives Profit
Ice cream is not just a product for an Amul franchise; it's a primary profit engine. Amul is the clear market leader in the Indian ice cream industry, with a 12.8% market share.
A key reason for this success is their strategic branding of their ice cream as a "Real Milk, Real Ice Cream" product, which sets them apart from competitors who sell "frozen desserts" made from vegetable oil.
The profit margins on products vary significantly
| Product Category | Average Commission on MRP |
| Pouch Milk | 2.5% |
| Milk Products | 10% |
| Pre-packed Ice Cream | 20% |
| Recipe-based Items | Up to 50% |
Note: Recipe-based items include ice cream scoops, sundaes, shakes, baked pizzas, and hot chocolate drinks.
This commission-based model means you keep 100% of your earnings after covering operational costs, as there are no royalties or profit-sharing fees to pay to Amul.
By focusing on high-margin ice cream and recipe-based items, you can significantly boost your revenue and profitability.
Your Step-by-Step Guide to the Application Process
Ready to get started? The process is designed to be straightforward and accessible.
- Check Your Eligibility: The criteria are not overly strict. You should be at least 18 years old and have a minimum educational qualification of 10th standard for rural areas and 12th for urban areas.
You must also have a pre-built commercial space in a good location, which can be either owned or rented. While prior experience in the FMCG sector is often preferred, it is not always mandatory, which lowers the barrier to entry for first-time business owners.
- Gather Your Documents: You'll need a comprehensive set of personal, property, and business documents.
- Personal Documents: Aadhaar Card, PAN Card, Voter Card, Qualification Certificate, Photograph, Email ID, Mobile Number, Current A/C, and Cancelled Cheque.
- Property Documents: Shop agreement/sale deed, rent agreement, and No Objection Certificate (NOC).
- Business Documents: GST Number, Outlet Trade License, and Food License.
- Apply Online: The first step is to visit the official Amul website and find the "Amul Parlours" section. From there, you can fill out the detailed online form with your personal, financial, and location details and submit it.
- Wait for the Site Visit: After submitting your application, Amul’s regional team will review it. If your application is promising, a representative will conduct a site visit to verify your proposed location and assess its feasibility, which is a critical step to ensure a high-footfall area.
- Sign the Agreement: Once everything is approved, you will sign a franchise agreement and pay the security deposit. After this, Amul provides full support. including the supply of branded equipment, signage, and initial stock, along with training sessions on product handling and customer service.
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What to Expect: ROI and Profitability
Amul projects a monthly sales turnover of ₹5 lakhs to ₹10 lakhs, though this depends heavily on your location and footfall.
Some high-performing franchisees have reported net profits of up to ₹2 lakhs a month, showing the potential for significant returns.
The estimated break-even period for a franchise is typically between one to two years. This shows that while the business has great potential, its success relies on smart management and a good location.
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Beyond the Numbers: Key Considerations and Challenges
While the Amul franchise offers a powerful opportunity, it's important to understand the broader market and potential challenges.
- Intense Competition: The dairy industry is highly competitive, with strong players from both the organized and unorganized sectors. While Amul has a significant market share in the organized dairy market (40%), franchisees must be prepared to compete with other brands and local players.
- Supply Chain Logistics: Because Amul's products are perishable, maintaining an efficient and robust supply chain is critical to prevent spoilage and wastage.
- Evolving Consumer Preferences: The market is dynamic, with a growing demand for health-conscious, organic, and plant-based alternatives. Amul must continually innovate to meet these changing consumer preferences and maintain its market position.
- Adaptability: A franchisee's success is heavily dependent on their ability to manage fixed costs like rent and electricity and to adapt to local market needs.
Discover the best franchise business opportunities in India for 2025. From investment to profits, explore your roadmap to success with top-performing franchises.
The Amul franchise offers a low-risk, high-potential business model built on decades of brand trust.
By leveraging a timeless brand, a profitable product mix, and a straightforward application process, you can tap into a proven system.
With its low initial investment and no royalty fees, it’s a powerful opportunity to build a successful and sustainable business.
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