Having one’s own business is the ultimate dream for everyone. It gives you the luxury to build and grow something and take it to new heights. It also gives you the power to control all aspects of your work and career. But starting a business is not a cakewalk. It requires immense brainwork – from what business to venture into, to the procs and cons of the industry, there are various things one has to be aware of first. Hence, we bring you this article to discuss a possible business opportunity in the form an opening an Amul Parlour franchise. Read on to figure out if this is the ideal business venture for you!
Why should one open an Amul Parlour franchise?
- Amul is a mass brand in India. Every household uses Amul products such as butter, curd, milk, etc. Thus, the brand name holds a lot of value. This means that you will not even have to go overboard with marketing your products. Since there is already a demand for the brand’s premium products, your marketing costs can be low.
- Secondly, Amul does not charge any royalty fee. Thus, you do not have to share any margin of your profits with the franchise.
- The brand provides full support in setting up the Amul Parlour franchise. They help with the construction and designing of the parlour. Furthermore, they help in researching and finding the ideal location for the Amul parlour. They also help with the business strategy and what products to stock for your location. Amul helps with marketing too, planning initial launch events and providing free billboards. Additionally, all parlour equipments are referred and brought as well.
What is the profitability of opening an Amul Parlour franchise?
The official Amul website states that one cannot expect an average turnover from Rs 5 lakh to Rs 10 lakh in a month. This means that this is the average turnover sale seen across all Amul Parlour franchises. But in reality, your monthly turnover could be anywhere from Rs 1 lakh to Rs 20 lakh. This monthly turnover is different from your profit margin.
Amul has two types of products on sale. Firstly, there are dairy products like milk, butter, ghee, buttermilk, curd, cheese, etc. The dairy products have a profit margin of 10% except pouch milk packets with a profit of 2.5%. Secondly, there are frozen products such as ice creams, frozen yoghurts, etc. These frozen products have a profit margin of 20%.
Therefore, if we assume that you make a monthly sale of Rs 5 lakh in your Amul Parlour franchise, of both dairy and frozen products, then your profits can range between Rs 60,000 to 1.2 lakh. This is a hypothetical situation of an Amul Parlour in an ideal location, with a 100-150 sq ft area. For such outlets, you can go up to 20% profit margin. But in the case of having an ice cream parlour where you make fresh recipes and serve to customers, your profit margin can go as high as 50%. Additionally,, you will also have to pay the parlour’s rent, electricity, manpower salary, etc.
What are the necessary requirements to open an Amul parlour franchise?
- A space of 100-150 sq ft is necessary for a preferred Amul parlour franchise. Having this will make Amul agree to give you franchise easily.
- An investment of Rs 2-2.5 lakh is required for a preferred Amul Parlour franchise. This investment will primarily go towards the renovation of the Amul Parlour, where the brand will also lend its services, and the buying of equipment like freezers, mixer grinder, oven, etc. Renovation costs lie between Rs 50,000 to 1 lakh. Equipment costs lie between Rs 80,000 to 1 lakh. Lastly, a security deposit of Rs 25,000 goes to Amul.
- For an Amul ice cream parlour franchise, an investment of Rs 6 lakh is required. This includes Rs 50,000 for the security deposit, Rs 4 lakh for renovations and equipment costs and Rs 1.5 lakh for incidental cost. Additionally, you need a space of more than 300 sq ft to provide seating for the customers.
Even though the investment for an Amul ice cream parlour is more, the profit margin for it is also double than the regular preferred Amul parlour franchise.
How to start an Amul Parlour franchise?
- Visit the official Amul website.
- This will open an application form where you must fill in your credentials and banking details.
- Once you submit this application form, you will receive a call from an Amul representative. The representative will guide you through the next steps. You just need to keep your location and investment amount ready for this purpose.
- Beware of any other fake websites which ask you to make any payments in advance.
Watch a detailed video on Amul parlour franchise below.
Learn more on franchise business opportunities in our segment Franchise Analysis.
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