Amul has come out with two different type of formats of franchise, each having different working capital needs and margins.

India’s dairy giant Amul has come out with a new opportunity for those interested in starting a business. With this, entrepreneurs can take Amul franchise for earning a decent amount every month, which may go up to Rs 10 lakh per month. Interestingly, the franchisee will not have to pay any royalties or even share the profits with Amul.

What franchisee must bear

“The franchisee will have a prebuilt shop / space in a good location either owned or rented. The franchisee is expected to bear the entire cost (viz. interiors and equipment, excluding property cost) of setting up the store which is expected to be in the range of Rs. 1.50 lakh to Rs. 6.00 lacs depending upon the format,” Amul said on its website. Amul explained that wholesale dealers will supply stocks at the parlour and the franchisee will avail retail margin. Retail margins will vary from product to product, said the release.

Working capital needed

Amul has come out with two different type of formats, each having different working capital needs and margins.

Amul Preferred Outlet/Amul Railway Parlour/Amul Kiosk

For this type, the franchisee will have to invest approximately Rs 2 lakh, with Rs 25,000 going towards non-refundable brand security; Rs 1,00,000 toward renovation and Rs 70,000 (approx.) for equipment and other incidental costs. Amul has specified different margins from the different products. According to the details available on the website, the commission from sale is 2.5% for Pouch Milk, Milk Products – 10% and Ice Cream at 20%. The pre-built space required for the shop will be 100-150 square feet.

Amul Ice-Cream Scooping Parlour

In this format, the minimum required space is 300 square feet. The franchisee owner will have to invest Rs 6 lakh, with Rs 50,000 for non-refundable brand security; Rs 4,00,000 towards renovation and Rs 1,50,000 going towards equipment and incidental costs.The margins are higher in this format, with about 50% on recipe based ice cream scoops / sundaes / floats / shakes / baked pizzas / sandwiches / cheese slice burger / garlic bread / hot chocolate drink (Amul Pro). For pre-packed ice creams the margin would be about 20% approximately. These ice cream parlours will also sell other Amul products where the margins will be to the tune of 10%, the firm said on its website.