For everyone having one’s own business is the ultimate dream. It gives you the power to control all aspects of your work and career also gives you the luxury to build and grow something and take it to new heights. Starting a business is not a cakewalk. From what business to venture into, to the pros and cons of the industry, there are various things one has to be aware of first, it requires immense brainwork. Hence, in the form an opening an Amul Parlour franchise, we bring you this article to discuss a possible business opportunity.
Advantages of an Amul Parlour franchise?
Every household uses Amul products such as butter, curd, milk, etc. Thus, the brand name holds a lot of value because Amul is a mass brand in India. With marketing your products you will not even have to go overboard. Your marketing costs can be low since there is already a demand for the brand’s premium products.
Secondly, you do not have to share any margin of your profits with the franchise and Amul does not charge any royalty fee.
In setting up the Amul Parlour franchise the brand provides full support and they also help with the construction and designing of the parlour. Furthermore, the Amul parlour helps in researching and finding the ideal location. What products to stock for your location and also help with the business strategy. Planning initial launch events and providing free billboards, Amul helps with marketing and all parlour equipment are referred and brought as well.
What is the profitability of opening an Amul Parlour franchise?
One cannot expect an average turnover from Rs 5 lakh to Rs 10 lakh in a month; the official Amul website states that. Across all Amul Parlour franchises, this means that this is the average turnover sale seen. But in reality, from Rs 1 lakh to Rs 20 lakh your monthly turnover could be anywhere.
Firstly, like milk, butter, ghee, buttermilk, curd, cheese, etc, there are dairy products. Except for pouch milk packets with a profit of 2.5%the dairy products have a profit margin of 10%. Secondly, such as ice creams, frozen yoghurts, etc there are frozen products. These frozen products have a profit margin of 20%, Amul has two types of products on sale.
Therefore, for both dairy and frozen products, then your profits can range between Rs 60,000 to 1.2 lakh if we assume that you make a monthly sale of Rs 5 lakh in your Amul Parlour franchise. With a 100-150 sq ft area, this is a hypothetical situation of an Amul Parlour in an ideal location. You can go up to 20% profit margin, for such outlets. Where you make fresh recipes and services to customers, your profit margin can go as high as 50%, But in the case of having an ice cream parlour. Additionally, the parlour’s rent, electricity, manpower salary, etc you will also have to pay.
To open an Amul parlour franchise what are the necessary requirements?
For a preferred Amul parlour franchise a space of 100-150 sq ft is necessary. To give you franchise easily having this will make Amul agree.
For a preferred Amul Parlour franchise investment of Rs 2-2.5 lakh is required. Where the brand will also lend its services and the buying of equipment like freezers, mixer grinder, oven, etc, this investment will primarily go towards the renovation of the Amul Parlour. Between Rs, 50,000 to 1 lakh Renovation costs lie. Equipment costs lie between Rs 80,000 to 1 lakh. Lastly, Rs 25,000 a security deposit goes to Amul.
An investment of Rs 6 lakh is required, For an Amul ice cream parlour franchise. Rs 4 lakh for renovations and equipment costs and Rs 1.5 lakh for incidental cost, this includes Rs 50,000 for the security deposit. Additionally, to provide seating for the customers you need a space of more than 300 sq ft.
The profit margin for it is also double than the regular preferred Amul parlour franchise, Even though the investment for an Amul ice cream parlour is more.