Whenever you hear Amul, many positive things come to mind: purity, trust, the best dairy products company in India, and much more. Amul has earned this by delivering good quality products that people can trust blindly.
From a business point of view, having a franchise with a strong brand reputation and a considerably low-investment business is a profitable business opportunity that you should not miss out on.
It is for everyone, whether a beginner or an experienced businessman. Investing in Amul will give you the steady income you want.
Why is Amul growing faster than other brands?
As you all know, Amul has become a familiar name in the houses because of its consistent delivery of excellent-quality goods, diversity, organized supply chain, and pricing strategy.
Moreover, they became successful because they made an impact in rural areas, where they captured the market more than any other brand.
Now let’s know in detail about the success mantra of the Amul brand.
1.It belongs to farmers, not a private company.
You will be surprised, just like I was, when I came to know that Amul is run by a cooperative model, which means it is not a private company, as farmers own it
- Their profits go directly to the farmers
- Farmers get prices which is fair
- Helps the Milk producers get their brand boost through Amul.
A co-operative system ensures that the supply of Amul will run consistently.
2. Affordable pricing with high quality
People in India prefer quality products at reasonable prices. However, brands sometimes compromise quality to offer cheaper products. But with Amul, you won’t associate a low-quality product because it is the only dairy company people trust blindly, and the best part is that the price is very affordable.
3. Wide range of products
Amul has expanded its product variety to the next level. It is not limited to bread and butter. It has built a massive portfolio of FMCG products such as:
- Cheese, paneer, ghee, and milk powders.
- Chocolates, Ice cream, and beverages too
By offering people a variety of edible items, it becomes the top choice regarding trust and quality.
4. Strong distribution network
Amul’s organized distribution network is one of the company’s strongest assets. The company has established a system that has reached those villages where people living nearby in cities have not heard the name.
Its products are available in over 1,500 towns and cities through Amul Preferred Outlets (APOs), parlors, supermarkets, small retail shops, and online platforms.
The brand’s perishable products, such as milk and ice cream, have a good cold storage chain to keep the products fresh.
Such a broad network of Amul assists the brand in continuously meeting people’s demands. It’s an amazing, strong distribution network strategy that always beats competitors.
You May Also Like: McDonald’s Franchise Cost in India
5. Easy and effective Marketing
Unlike other brands, Amul does not spend crores on advertising and never hires celebrities to advertise its products. Amul believes in keeping it simple and follows the band tone, which is a farmer’s style and shows the culture of India.
For decades, it has used a billboard strategy featuring the iconic girl.
Apart from that, their catchy, topical, and comic advertisements have helped Amul remain in touch with the masses over the last several decades. The cost-effective and high-impact advertising strategy has created good brand recall.
People will probably wait for which advertisement Amul’s next ad will be. Word-of-mouth publicity also works in its favor, with satisfied customers giving their testimonies and contributing to its popularity even more naturally.
Now, they’re at that stage where they don’t need any introduction; whatever product they introduce will be a big hit in the market.
6. Fast Product Development
The brand that can change according to the time will never face failure, just like Amul has continuously showcased its capability to introduce new products on time, depending on consumer requirements.
During the COVID-19 pandemic, Amul released products such as turmeric milk or tulsi-flavored beverages when immunity became a priority. At that time, people lost trust in so-called immunity booster powders, and Amul continuously won their trust even more.
It also became the first company in India to introduce camel milk and lactose-free milk to those with special needs.
The brand intended to improve customers’ health, such as young people striving to be healthy (the millennials) and more conservative families.
7. Good Strong Customer Trust
Trust does not come overnight. Amul has managed to build trust over 75+ years. Indian consumers see Amul as the brand that fulfils its guarantees of pure, fresh, and trustworthy dairy products. It is regarded as the “Taste of India”.
Its high quality, hygiene, and reasonable prices have made the brand a part of Indian homes’ daily lives.
Even my family prefers Amul milk packets over directly visiting a dairy and taking milk from a dairy owner. Dairy milk can be adulterated, but the Amul brand offers a quality product.
This credibility is critical in an industry like dairy, where food freshness and safety are essential.
As more customers become loyal to a particular brand, it is challenging to outperform its competitors, so Amul has been growing steadily.
8. Growth is Out of the Profits
Unlike other companies, which usually share the profit money with their shareholders or investors, Amul invests its returns in itself.
This money is used to improve infrastructure, enhance product quality, fund farmers’ training, strengthen distribution, and buy new products. This is a reinvestment that drives long-term and sustainable growth.
It also indicates Amul’s belief in making a difference in life and not being greedy to earn only money.
This strategy will allow the company to expand year by year without losing its values of quality and sense of social responsibility.
You May Also Like: Burger King Franchise Cost in India 2025
How to start an Amul franchise?
Starting an Amul franchise with low investment is like a cherry on top because an excellent company does not back you. You will also get loyal customers; no matter where you’re located, customers will reach out to you.
1. Understand the franchise types
Amul offers two types of franchise models based on the location and budget.
(i). Amul preferred outlet
- Your investment will be Rs 2-2.5 lakhs
- You should have 100-150 sq ft of area
- You can sell packaged milk, cheese, ice cream, chocolates, sweets, and bakery products.
- Ideal for beginners who want to start with a low investment.
- You can open this outlet where you think footfall is high, such as busy market areas, residential colonies, nearby colleges/schools, railway stations, or metro stations.
(ii). Amul ice cream scooping parlor
- Premium model of the Amul franchise
- You need to have 300 square feet of area
- Investment will be Rs 6-10 lakh approx
- You can sell all types of Ice cream, Amul pizzas, hot chocolate drinks, snacks, and brownies with ice cream and cold coffees.
2. Check your eligibility
To start an Amul franchise, you must:
- You should be at least 18 years old
- Should have the eagerness to learn and have business knowledge
- You should meet the investment criteria
- You need to rent or own a space in a good location
- You must hire people for your store, or if you can manage independently, you must dedicate full time.
3. Arranged the required capital
You need to invest in
- Security deposit: You need to deposit Rs 25000-Rs 50,000, which is non-refundable
- Shop interior: Depending on your chosen outlet, it will cost you around Rs 50,000- Rs 5,00,000.
- Equipment: Refrigerators, Ovens, Pos systems, freezers, etc
- Working capital: You need at least 1-2 months of working capital, where you must pay salaries, bills, stocks, and rent.
4. Choose a suitable location
The success of a business depends on the location you choose. So, here are the preferred locations:
- Near schools, colleges, and hospitals
- Famous markets in the city
- Public stations include bus stations, railway stations, and terminals.
5. Prepared the required documents
Documents that you need to submit are:
- Adhar card and Pan card
- Passport-Sized photo
- If you rent a space, you must show the rent agreement, or if you own it, you must show the property documents.
- GST registration and local municipal license
- Your bank account details
6. Apply online on the Amul website
You need to apply officially:
- You need to type Amul franchise business opportunity into Google
- For enquiries regarding the investment, you need to email retail@amul.coop or call 02268526666
- Make sure you email them with all the relevant information
- Must mention your name, store size, contact details, preferred location, and budget.
FAQS
Does Amul charge any royalty or a monthly fee?
No. Amul does not charge royalty or commission on your monthly turnover. The best part is that you keep whatever you make, less product costs.
Is there any need to have any business or retail experience?
Not necessarily. While necessary business experience is welcome, Amul provides training and support so that even a beginner can operate the outlet successfully.
What are the profit margins for the Amul franchise?
- On milk pouches: Approx. 2.5-10 %
- On other products (ice cream, beverages, paneer, etc.): 20%–35%
As per the product, profit margins differ according to your sales volume.
What size space will I require for the Amul franchise?
- Amul Preferred Outlet/Kiosk: 100 sq. ft. -150 sq ft.
- Scooping Parlour: at least 300 sq. ft.
It must be in the right place; high-footfall areas are favored. If you have less investment, I also recommend going for the Amul preferred outlet.
What is the review time?
Typically, it occurs after 2-4 weeks of the application’s submission. It will involve a site visit, document inspection, and contract signing.
Does Amul help me in setting up of store and training?
Yes, Amul gives support in:
- Outlet Design Plan
- Selection, installation of equipment
- Training and product handling of staff
Conclusion
In conclusion, if you are looking for a franchise that provides stable returns, loyal customers, and a good investment, then I don’t think you will find a better company than an Amul franchise.
No matter where you’re located in the city or a village, people will come to your store because the Amul brand does not need an introduction.
Provided that people are living in good numbers, so that your sales remain consistent.
