It may always feel like gambling with high stakes to start a business venture in India, but the cost of the Amul franchise presents an enticing proposition on a strong foundation. Amul, a brand that rivals none when it comes to quality dairy products, has been a part of Indian families for generations. Its cooperative model, catering to crores of dairy farmers, has gained an unmatched amount of credibility and recall for the brand throughout the nation.
The dairy industry in India in 2025 is flourishing, with industry estimates valuing it at ₹30 trillion by 2028 at a CAGR of nearly 15%. This rapid expansion, coupled with Amul’s broader range of products, starting from pouch milk and butter to ice creams and pizzas, is making its franchise a lucrative and secure business proposition. With a provisional turnover of ₹72,000 crore in the last financial year and an estimated turnover of more than ₹1 lakh crore in FY 2025, the financial muscle and market share of Amul are assured.
The company’s value proposition is that it does not contain any revenue share or royalty, and thus, the franchisees retain all their earnings, making the price of the Amul franchise a wise and lucrative investment. Read on to see whether investing in the Amul franchise cost is a suitable business venture for you or not.
Overview of Amul’s Brand Strength and Cooperative Legacy
Amul, Anand Milk Union Limited, is not just a company; it’s a cooperative revolution that transformed the dairy industry of India. It is India’s largest food brand and the world’s leading vegetarian cheese brand. The company’s tagline, “The Taste of India,” is the best way to describe its strong association with the consumer base.
Amul’s win rests on a strong and smooth supply flow, with a non-stop feed of fresh, top-grade items. This high brand value and sharp supply web make the bet safe, making the Amul franchise a food franchise in India for new business folks.
| Feature | Description |
| Full Name | Anand Milk Union Limited |
| Managed By | Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) |
| Founded | 1946 |
| Founder (Key Figure) | Tribhuvandas Kishibhai Patel, Dr. Verghese Kurien |
| Headquarters | Anand, Gujarat, India |
| Ownership Model | Cooperative |
| Number of Milk Producers | 3.6 million (approx.) |
| Product Categories | Milk, Butter, Cheese, Ice Cream, Ghee, Chocolates, Beverages, Dairy Whitener, Paneer, Sweets, and more |
| Brand Recognition | Iconic Indian brand with very high brand recall |
| Market Position | India’s largest food brand, World’s largest vegetarian cheese brand |
| Tagline | “The Taste of India” |
| Turnover (2024) | $7 billion (₹59,545 crore) |
| Distribution Network | Pan-India, extensive network reaching millions of outlets |
| Global Presence | Exporting to over 50 countries |
What Is the Amul Franchise Model?
The business model of Amul is a straightforward and profitable way of being connected to the brand. The franchisee can sell the entire range of Amul products without incurring the cost of royalty or revenue share. The no-royalty feature is one of the most considerable differences and a significant part of calculating the overall Amul franchise cost. There are two fundamental types of franchises offered by Amul to suit different investment capacities and location categories:
- Amul Preferred Outlet (APO) / Amul Parlour / Amul Kiosk: The most basic type, focusing on selling the entire range of Amul products. This outlet is suitable for locations with frequent visitorship, like railway stations, bus stands, and main roads.
- Amul Ice-Cream Scooping Parlour (AISPP): This is a more refined format, which retails both pre-packaged Amul products as well as a variety of recipe-based offerings like sundaes, shakes, and pizzas. It contains a defined seating area for customers, hence it is a dine-in format.
Amul Franchise Cost in India: Upfront Investment Breakdown
The total Amul franchise price varies based on the model chosen and the place. Investment is primarily in establishing machinery and initial stock.
1. Amul Preferred Outlet / Railway Parlour / Kiosk(Amul Parlour Franchise)
This is the most expensive one. The investment Amul Franchise Cost for this model is approximately ₹2 lakhs. The following is a summary of the key components of the Amul Preferred Outlet franchise price:
- Non-refundable Brand Security: ₹25,000
- Renovation/Interiors: Approximately ₹1,00,000. This includes everything in civil work, lighting, and brand signage.
- Equipment (Deep Freezers, Visi Coolers, etc.): Approximately ₹70,000. These are needed to maintain the extensive range of Amul products at their optimal temperatures.
- First Stock: The Cost of the initial consignment of products is not included in the above and will depend upon the store size and expected demand.
Space required in this model is 100-150 sq. ft.
2. Amul Ice-Cream Scooping Parlour( Amul Ice Cream Franchise)
This category has greater investment as it includes an elaborate menu and greater space. The total Amul Franchise Cost investment in this kind of franchise is around ₹6 lakhs. Break-up of this Amul franchise investment is as follows:
- Non-refundable Brand Security: ₹50,000
- Renovation/Interiors: Approximately ₹4,00,000. This includes a more detailed setup, such as seating and a different counter for scooping.
- Equipment (Scooping Units, Deep Freezers, etc.): Approximately ₹1,50,000. It involves specialized equipment like multiple deep freezers, scooping cabinets, blenders, and coffee machines.
- Initial Stock: The initial stock price of an Amul Ice-Cream Parlour franchise will be higher because of the broader variety of ingredients and packaged items.
This model requires a minimum area of 300 sq. ft.
Comparison Table: APO vs. AISPP
| Feature | Amul Preferred Outlet (APO) | Amul Ice-Cream Scooping Parlour (AISPP) |
| Primary Focus | Full range of Amul products | Ice cream scoops, shakes, pizzas, etc. |
| Space Requirement | 100-150 sq. ft. | 300+ sq. ft. |
| Amul Franchise Cost | Approx. ₹2 lakhs | Approx. ₹6 lakhs |
| Profit Margin | 2.5% to 20% (depending on product) | Up to 50% on recipe-based items |
Amul Franchise Cost vs. Profit: Is It Profitable?
One of the strongest attracting points of an Amul franchise is that it is profitable. The business model of Amul is designed to enable its franchisees to achieve high returns at a comparatively small initial investment. Due to the massive popularity of the brand and the long list of products, there are constant sales and healthy profit margins.
Monthly Sales Turnover
An established Amul franchise can achieve a huge monthly sales turnover, which is the key to a high-profit enterprise. Although the figures vary widely based on location, traffic, and type of franchise, an average outlet in a prominent location can record transactions of ₹5,000 to ₹20,000 per day.
This is likely to translate to a turnover of ₹1.5 lakhs to ₹ 6 lakhs or even more for successful outlets. Amul icecream parlours, in turn, may have still higher turnovers of ₹5 lakhs to ₹10 lakhs per month since they have a value-added menu and higher-margin products.
Profit Margins by Product Type
The profitability of an Amul franchise depends on the retail margins of its diversified product basket. Amul has a multi-tiered margin system with higher profits on value-added and recipe-based items.
- Pouch Milk: It’s a low-margin, high-turnover product with a margin of around 2.5% on the MRP. The margin isn’t high, but the enormous quantity of milk sold takes care of the turnover as a whole.
- Milk Products: Products like butter, cheese, ghee, and curd give a higher margin of around 10% on the MRP. They are daily needs, ensuring a steady stream of income.
- Pre-Packaged Ice Creams: Ice creams are a high-demand product, especially in a nation like India. Amul franchisees enjoy a reasonable margin of about 20% on pre-packaged ice creams.
- Recipe-based Products (for Scooping Parlour): Here is where the Amul Ice-Cream Scooping Parlour truly excels. Profit margins on products like ice cream scoops, sundaes, shakes, and other ready-to-consume food items can be up to 50%. This is a significant justification for the higher Amul franchise fee for this model since the profitability is much greater.
Income Estimates
Depending on the usual sales turnover and profit margins, a franchisee would expect a decent income. For an Amul Preferred Outlet, a net profit of ₹50,000 to ₹1.5 lakhs per month is a fair assumption after deducting all running costs like rent, electricity, and wages. For Amul Ice-Cream Scooping Parlour, an Amul Franchise Cost shop with higher margins and a value-added menu, monthly profit can be between ₹1.5 lakhs and ₹2.5 lakhs, and even more in metro cities and high-footfall areas.
Amul Franchise Monthly Income & Profit Per Month
The income and profit per month for Amul franchise are as follows:
- Average Monthly Revenue Range: As mentioned, a well-located Amul franchise can make between ₹1.5 lakhs and ₹10 lakhs per month. Actual revenue depends heavily on factors like location, traffic, seasonal demand, and type of franchise (Preferred Outlet vs. Amul Icecream Franchise).
- Profit Margins Per Product: The multi-level nature of profit ensures that even with large volumes of low-margin products like milk, profitability is maintained through high-margin products. Since there is no royalty or revenue-share fee, all such profits are transferred to the franchisee, thus making the business more profitable.
- Conclusion on Profitability With ROI Estimate: An Amul franchise is commonly considered to be a very profitable business. The low franchise cost of the Amul franchise and its high demand and no-royalty model guarantee a prompt return on investment. Most franchisees are able to attain their break-even point and start enjoying a full return on their initial investment within 18 to 6 months. This fast ROI makes the Amul franchise a very safe and attractive business venture, especially for first-time business entrepreneurs.
How to Apply for an Amul Franchise: Step-by-Step Guide
Below are the step-by-step procedures to apply for an Amul franchise:
- Visit the Official Website: Begin by visiting the official website of Amul. And Visit this Link.
- Fill in the Online Form: Fill in the online form with all your personal information, financial details, and preferred location details. This is step one of formalizing to convey your interest and present Amul with initial information to consider your application.
- Document Submission: Gather and organize all documents required, such as proof of address, identity, and property documents. You will also need business documents like an FSSAI license and a GST certificate, in addition to proof of funds to demonstrate your ability to finance the Amul franchise fee.
- Verification and Approval: Once you’ve submitted your application, Amul’s regional office will review your data. If you qualify, they’ll schedule a site visit to your proposed location to check its viability in terms of traffic and commercial viability.
- Agreement and Training: Following a successful site visit and clearance, you will execute the franchise agreement and receive thorough training. Every aspect of operating an Amul franchise, from handling products to customer service, is trained, preparing you to run your new business successfully.
Amul Franchise Contact Number, Official Details & Support
You can directly approach Amul for inquiries related to franchises.
- Official Amul Franchise Contact Number: 022-68526666
- Corporate Office: Gujarat Cooperative Milk Marketing Federation, PO Box 10, Amul Dairy Road, Anand 388 001, Gujarat, India.
Amul provides total assistance, starting with store design to guidance in buying equipment, marketing materials, and a solid supply chain to feed a steady stream of products. These are all included in the value you receive for the price of the Amul franchise.
Amul Franchise Review: Pros & Cons
Pros:
- Strong Brand Recognition: Amul is a well-established company with a long history of quality that has been built up over decades. This long brand recall from the past ensures you don’t need to spend much money or time advertising and building customer trust from scratch, so your business is more solid from day one.
- No Royalty/Revenue Sharing: Any profits belong to the franchisee, dramatically increasing earnings. In contrast to the majority of other franchises that charge you a percentage of your sales, Amul’s no-royalty concept means you get to keep a much higher rate of your monthly turnover, which reflects on your bottom line.
- Low Investment: Amul’s start-up franchise price is very low compared to most other franchises. It requires just a few lakhs of investment, making it within reach of more people who desire to become entrepreneurs, even for those with little money.
- High Profitability: Excellent margins on products, especially on added-value products. The margins are tiered, with higher paybacks on prepared food items like sundaes and shakes, enabling you to optimize profitability and get a high return on investment.
- Comprehensive Support: Amul provides support from setup to operations, including marketing and logistics. This support mechanism assists you in having a stable supply chain as well as the proper guidance to run your business, reducing operating risks.
Cons:
- High Competition: Since Amul is so popular, you might even be competing with other Amul outlets or even local shops. Since Amul is such a ubiquitous brand, you will need to exercise caution regarding where you set up your business and how you serve your customers in order to stand out and gain a loyal customer base.
- Location Dependent: Profitability depends almost totally on the location of the shop and the foot traffic. A poorly located franchise, even with the powerful Amul brand name, cannot possibly drive adequate sales and is a key success factor for site selection.
- Product Price Flexibility: You do not have any price control as an Amul product franchisee, which may be a disadvantage. You are committed to adopting the brand’s standard price, which may restrict your space to compete with local merchants who may have higher price freedom.
Conclusion: Should You Invest in an Amul Franchise in 2025?
With its low initial Amul Franchise Cost, strong brand name, and no-royalty method, it appears to be a solid business move to invest in an Amul franchise in 2025. The price of an Amul franchise is one of the lowest in the business, making it an ideal choice for new businesspeople. The massive demand for Amul’s extensive variety of products and the robust support system by the company further enhance its image as a secure and lucrative business opportunity.
Its rapid payback period, generally within 6 to 18 months, also makes it a viable option for investors who want to recoup their investment in a short span of time. Besides, by being an Amul franchisee, you’re part of a cooperative movement servicing millions of milk producers, adding that extra social responsibility dimension to your business venture.
FAQs
1. How much does the Amul franchise cost in India?
The investment in the Amul franchise ranges from approximately ₹2 lakhs for a Preferred Outlet to ₹ 6 lakhs for an Ice-Cream Scooping Parlour. This amount includes the brand security deposit, interior setup, and necessary equipment, and you are given an all-inclusive business package.
2. Is the Amul franchise profitable?
Yes, it is reported to be highly profitable, with franchisees earning a net profit between ₹50,000 and ₹2.5 lakhs every month. Profitability is based on where your store is located, the number of walk-ins, and what product mix you have.
3. Is there royalty or revenue sharing with Amul charged to its franchisees?
No, there is neither royalty nor revenue sharing charged by Amul to its franchisees. This is a one-of-a-kind aspect of their business model, as it lets you keep 100% of your profit once you have settled all the operational expenses.
4. What is the space area requirement of an Amul franchise?
The space required is 100-150 sq. ft. for a Preferred Outlet and 300 sq. ft. or more for a Scooping Parlour. You should own the commercial property or possess a legitimate rental deed to approach the franchise.
5. For how long does an Amul franchise agreement remain?
The franchisee agreement typically retains its validity for a period of five years. The contract can, however, be extended by mutual agreement of the franchisee and the company in order to provide for a longer association.
