Amul Franchise Cost in India 2025 – Profit & ROI Explained

Starting a business in India can be very much like a gamble with tremendous risks, but an Amul franchise presents a compelling case built on a solid foundation. Amul is a household name in India for generations, synonymous with quality milk products. Its cooperative model favoring millions of farmers supplying milk has accorded the brand an unmatched degree of credibility and recall across the nation.

India’s dairy industry is already thriving, with the value projected to grow to ₹30 trillion by 2028. Amul’s continuously diversifying portfolio of products ranging from milk and butter to ice creams and pizzas is, together with this growth spurt, making its franchise a very profitable and secure investment. Amul’s market position and financial strength are ensured, with an interim turnover of ₹72,000 crore in the last financial year. One of the biggest advantages of the Amul franchise model is that there is no royalty or revenue-sharing fee, so franchisees retain all their earnings, which makes the Amul franchise cost a lucrative and profitable business venture. Keep reading to learn if an Amul franchise business venture is suitable for you.

Overview of Amul’s Brand Strength and Cooperative Legacy

Amul is India’s most trusted and well-known brand, associated with dairy excellence. It was formed in 1946 by Tribhuvandas Patel with the help of Sardar Vallabhbhai Patel as a cooperative to empower farmers from the region against exploitative traders. Dr. Verghese Kurien, the “Father of the White Revolution,” has largely made the brand a success, turning Amul into the national power and world’s largest milk producer it is today. 

Amul operates on a unique cooperative model, where farmers remain the owners, thereby offering a continuous supply of quality products. This strong support, coupled with a wide range of products including milk, butter, cheese, ice cream, and other food items, makes an Amul franchise a safe and lucrative business opportunity in India‘s growing dairy industry. The model is especially attractive because of its no-royalty fee option, which enables franchisees to keep all their earnings, making the Amul franchise a good investment.

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?

Prior to application, it’s important to know the various franchise models to ensure your business matches your financial resources and geographical location.

Amul has a simple business model with two major franchise types:

1. Amul Preferred Outlet (APO) / Amul Kiosk / Railway Parlour: A compact retailing format for high-traffic areas. It is involved with retailing the entire basket of Amul items – milk, butter, cheese, and drinks – in a single dedicated shop. The area to be developed would normally be small, hence a low-investment, high-turnover business.

2. Amul Ice-Cream Scooping Parlour (AISPP): This is a more advanced model. In addition to selling the whole range of Amul products, it also focuses on recipe-based items like sundaes, shakes, and pizzas. This store requires a larger space to fit a seating arrangement for the customers. The higher margins on the freshly prepared products make this a very lucrative business.

Amul Franchise Cost in India: Investment Breakdown

The initial cost of setting up an Amul franchise is minimal compared to other brands, and therefore it is a popular business among numerous aspiring entrepreneurs. The fee is one-time payment with no periodic royalty fees, which is a major positive point.

Investment for APO, Kiosk & Railway Parlour

You would need an approximate investment of ₹2 lakhs to set up an APO. The facility is broken down into three main components:

• Non-refundable Brand Security: ₹25,000. This is a one-time fee for securing the franchise rights and backing of the brand.
• Renovation and Interiors: Approximately ₹1,00,000. This comprises the civil work, painting, electrical fixtures, and branding as per Amul’s uniform design.
• Equipment: Approximately ₹70,000. The franchise model comes with required equipment like deep freezers, visi coolers, and milk coolers, which are mandatory for product quality maintenance.

The space required for this model is usually 100-150 sq. ft., which is suitable for small, high-traffic locations.

Initial investment for Ice-Cream Scooping Parlour

Since this model is bigger in size, there is a larger investment of around ₹6 lakhs. The breakdown is as follows:

• Non-refundable Brand Security: ₹50,000. This is a slightly larger security deposit keeping in view the larger-scale business and inclusion of more specialized products.
• Renovation and Interiors: Approximately ₹4,00,000. This is a significant share of the cost and includes a complete parlour setup with seating, a scooping counter dedicated to the task, and enhanced branding.
• Equipment: Approximately ₹1,50,000. The higher equipment cost includes specialty items like scooping units, blenders, and possibly a pizza oven, all of which are needed for the larger menu.

This setup takes up more space of 300 sq. ft. and more, with ample space for product display as well as seating for customers.

Comparison Table: APO vs. AISPP Costs

Feature	Amul Preferred Outlet (APO)	Amul Ice-Cream Scooping Parlour (AISPP)
Space Required	100-150 sq. ft.	300+ sq. ft.
Initial Investment	Approx. ₹2 lakhs	Approx. ₹6 lakhs
Products Sold	Packaged products	Packaged & recipe-based products
Profit Margins	2.5% to 20%	Up to 50% on certain items

Amul Franchise Profitability: Costs vs. Returns

One of the most significant aspects of the viability of a business is its ability to make profits, and the Amul franchise business model can achieve high returns with no royalty fees.

Estimates of monthly sales turnover

An efficiently run Amul Preferred Outlet can obtain a monthly sales turnover of between ₹1.5 lakhs and ₹6 lakhs, and a Scooping Parlour can get a turnover of ₹5 lakhs to ₹10 lakhs a month or more, subject to location and footfalls.

Profit margins by product category

The profit margins are graded based on the product category:

• Pouch Milk: Low 2.5% margin
• Milk Products (Ghee, Butter, Cheese): Margin of about 10%
• Pre-packaged Ice Creams: Margin of about 20%
• Recipe-based Items: Highest margin of up to 50%, making the Ice-Cream Scooping Parlour highly profitable.

Estimated income & ROI

Without royalty fees, the franchisee keeps all the profit. A Preferred Outlet can achieve a net monthly return of ₹50,000 to ₹1.5 lakhs, while a Scooping Parlour can achieve ₹1.5 lakhs to ₹2.5 lakhs. Most franchisees are in a position to achieve a full ROI within 18 months or even 6 months, bearing witness to the efficiency of the business model.

How to Apply for an Amul Franchise: Step-by-Step Guide

Applying for an Amul franchise is a hassle-free, step-by-step process that can be initiated online. Here is a step-by-step guide:

1. Online Application: Start with the website of Amul and locate the “Amul Parlours” page. There will be an online application form where you need to enter your personal, financial, and proposed location details.

2. Document Submission: You will need to submit a number of documents to support your application. These usually are:

• Personal ID Proof: Aadhaar Card, PAN Card, Voter ID.
• Address Proof: Electricity bill or ration card.
• Property Documents: Sale deed, shop agreement, or a real rent agreement of the premises where the proposed outlet will be located.
• Business Documents: GST registration certificate and FSSAI license.

3. Verification and Site Inspection: After you’ve submitted your application, an Amul representative will review it. Assuming that you qualify on the initial criteria, they will arrange a visit to your proposed location to assess its potential based on foot traffic, commercial viability, and overall potential.

4. Franchise Agreement and Payment: Once your website is accredited, you will be required to sign a binding franchise agreement and pay the initial investment payment, like the non-refundable brand security deposit.

5. Training & Setup: Post-agreement, Amul provides thorough training in store operations, product handling, and customer service. They also facilitate the setup of the store design, branding, and equipment installation. Your franchise is now set to launch officially after this.

Amul Franchise Support & Contact Details

Amul offers robust backend support to its franchisees for a smooth operating experience.

Amul provides assistance in several forms, including signage branding, equipment purchase assistance, marketing material, and an extensive supply chain network. In the event that you want to get answers to any of your questions, you can call the office of the franchise desk on 022-68526666 or send an email to retail@amul.coop. The headquarters office is located at Gujarat Cooperative Milk Marketing Federation, PO Box 10, Amul Dairy Road, Anand 388 001, Gujarat, India.

Amul Franchise Review: Pros & Cons

An Amul franchise is a great business venture for the entrepreneur, but it’s important to weigh both the advantages and disadvantages before investing. The strong position of the company in the market and established business model are the biggest draws, but it can be overly dependent on factors like location and competition.

Pros:

• Brand Worth: You leverage decades of brand recall and trust. Amul is an India brand name, so you don’t need to spend time and money building customer credibility anew.
• No Royalty Fees: One very substantial economic advantage is that you get to keep 100% of your profit after expenses. This is a unique feature that sets the Amul franchise apart from most other franchise ideas.
• Low Investment: The up-front Amul franchise price is low, with models beginning at as low as ₹2 lakhs. This provides a wonderful launch pad into business ownership for budding entrepreneurs who have limited capital.
• High Demand: Milk and dairy products are a daily staple of most Indian families. This means a steady stream of customers and a year-round income stream, no matter the season.
• Complete Support: Amul offers complete support to its franchisees, ranging from assistance in store layout and design to provision of products and marketing assistance. This strong system reduces the risks of operation and enables you to manage the business effortlessly.

Cons:

• Location Dependency: Profitability is mostly tied to getting a high-traffic location. A poor location selection, even with the support of the Amul brand, leads to poor sales and inability to break even on working costs such as electricity and rent.
• Competition: You can have direct competition not only from other Amul stores in the neighboring areas but also from local super markets and milk shops. Even here, some planning and better-than-average customer service are required to differentiate oneself and achieve a loyal clientele.
• Fixed Pricing: As an Amul franchisee, you will be required to maintain the company’s fixed retail prices. This limits your price flexibility and can undermine your competition with local retailers who could be offering discounts.
• Low Margins on High-Grossing Products: While recipe products in scooping parlours have high margins, every day products like pouch milk are typified by very low margins. This means profitability is highly reliant on huge volumes of sales of the product to generate sufficient revenue.
• Limited Customization: The homogenized business model and brand do not provide much room for creativity or customizing of the business. You are required to follow the parameters established by Amul, which is a downside for businessmen who prefer to have more control over the image of their company.

Conclusion: Is Investing in an Amul Franchise Worth It in 2025

Given the minimal initial investment, absence of royalty fees, and high brand value of Amul, franchising is a prudent business step for 2025. The in-built profitability of the business model and the comprehensive support system by Amul minimize risks to nil, making it an excellent choice for both new and seasoned business owners seeking a safe and profitable venture. 

The brand’s immense faith and pan-India acceptability assure a steady flow of customers from day one, facilitating prompt return on investment. Having its product range diversified from day-to-day essentials like milk to high-margin ice cream scoops, an Amul franchise collects numerous streams of revenues that can support the business during any period of the year. Also, the brand’s penetration and growth to further geographies, such as tier-2 and tier-3 cities, are excellent long-term profit-making opportunities.

Discover More Franchise Opportunities:

• Pizza Hut Franchise
• Burger King Franchise

FAQs

1. How much does an Amul franchise cost in India?

An Amul franchise costs anywhere between ₹2 lakhs for an Amul Preferred Outlet and ₹6 lakhs for an Amul Ice-Cream Scooping Parlour.

2. Is the franchise profitable?

Yes, it is extremely profitable. The franchisees have the potential to earn a net monthly profit of ₹50,000 to ₹2.5 lakhs or more depending on the location and kind of outlet.

3. Is there a revenue-sharing fee or royalty?

No, there isn’t a revenue-sharing fee or royalty. The franchisees keep all their profits.

4. How much area does an Amul franchise need?

An Amul Preferred Outlet needs 100-150 sq. ft. area, whereas for a Scooping Parlour, a minimum area of 300 sq. ft. is needed.

5. How long does the agreement last?

The franchise agreement typically lasts five years and can be extended.