Amul’s franchise model drives local entrepreneurship with flexible formats and no royalty fees across India’s retail markets
India’s retail sector is undergoing a significant transformation, and at the forefront of this change is Amul’s innovative franchise model. This approach is redefining how retail profits are generated, offering a fresh perspective on entrepreneurship in the country.
Amul, a brand synonymous with quality dairy products, has introduced a commission-based franchise system that is both accessible and profitable. This model is not just about selling products; it’s about empowering individuals to become successful business owners with minimal investment and maximum returns.
A Transparent and Lucrative Commission Structure
Amul’s franchise model stands out for its clear and attractive commission rates across various product categories:
- Pouch Milk: Approximately 2.5% commission on MRP
- Milk Products: Around 10% commission
- Pre-packed Ice Cream: Approximately 20% commission
- Recipe-based Items: Up to 50% commission on products like ice cream scoops, shakes, pizzas, etc.
This transparent structure ensures that franchisees have a predictable and steady income stream, making it an attractive option for many aspiring entrepreneurs.
Low Investment, High Returns
One of the most appealing aspects of Amul’s franchise model is its affordability. Depending on the format, the initial investment ranges from ₹2 lakh to ₹6 lakh.
For instance, setting up an Amul Preferred Outlet, Kiosk, or Railway Parlour requires an investment of approximately ₹2 lakh, while an Ice Cream Scooping Parlour may need around ₹6 lakh. Importantly, there are no royalty or profit-sharing fees, allowing franchisees to retain 100% of their earnings.
Diverse Franchise Formats
Amul offers various franchise formats to cater to different market needs and investment capacities:
- Amul Preferred Outlet/Amul Railway Parlour/Amul Kiosk: These formats require a space of 100–150 sq. ft. and an investment of around ₹2 lakh. They offer products like pouch milk, milk products, and ice cream.
- Amul Ice-Cream Scooping Parlour: This format requires a larger space of over 300 sq. ft. and an investment of approximately ₹6 lakh. It offers a range of products, including recipe-based items with higher profit margins.
Support and Infrastructure
Amul provides comprehensive support to its franchisees, including:
- Supply of the entire product range directly from Amul
- Free branding and signage
- Equipment purchase support
- Store inauguration assistance
- Additional retail margins and exclusive consumer offers
This support system ensures that franchisees can focus on their retail operations without worrying about supply chain issues or marketing challenges.
Empowering Local Entrepreneurs
The franchise model of Amul especially empowered local entrepreneurs to set up and successfully run retail businesses in semi-urban and rural areas. With no royalties to remit and loads of support through the Amul command, an individual with very little money can now participate in the organised retail in India.
Conclusion
Commission-based franchises adopted by Amul turn retail on its head in India. They provide lucrative business opportunities wherein entrepreneurs can enjoy big earning margins, minimum investment, very good support, and a partnership. The chain is getting bigger and bigger by helping each retail be profitable and furthering economic empowerment across the country.
