Considering doing business in India? You must have heard people say the Amul franchise. It is a tested and proven concept that can work and there is a reason why. Amul is more than a brand name, it is a household name, or as it is commonly referred to, The Taste of India, and has been so for many years. However, is the idea of starting an Amul parlour such a good opportunity in 2025? How much do you actually need? And above all, are you able to make a good profit?
Starting up a new business is daunting. The information is everywhere, and it is difficult to understand what to believe. That is why we have developed this ultimate, no-fluff guide to Amul franchise cost in 2025. We will deconstruct it all, the expenses, the possible gains, the step by step application procedure, the actual advantages as well as disadvantages in easy to understand words. You can imagine this is a cup of tea (or perhaps an Amul Lassi!) kind of conversation so you can make up your mind whether this is the right step to take.
Why Amul Franchise is a Popular Business in India
So big deal with Amul? You continue to hear the name with good reasons.
- Amul is a giant in the Indian dairy industry: To start with, Amul is a giant in the Indian dairy industry. India is the biggest milk producer in the world. By 2025, the dairy market there is projected to have reached 15 Lakh Crore. Amul, having a huge network, is one of the players in this market. The 2023-24 financial year turnover of the brand was simply amazing 72,000 crores (roughly 8.6 billion dollars) and it is the biggest food and FMCG brand in India. By going into partnership with a brand of this magnitude, you are harnessing decades of trust and market dominance.
- Brand recognition is off the charts: Second, brand recognition is through the roof. It was found in a survey that Amul is the most trusted brand in India year after year. Whether it is the legendary Amul Girl in her polka-dotted dress or its memorable tagline, the brand has been in the Indian life over 75 years. This implies that you do not need to invest a lot of money in advertising so that people can know what you are selling. Amul is already known and loved by people. Footfall is a result of instant recognition with millions of customers preferring Amul products every day.
- It’s built on a legacy of cooperation and trust: Amul is a food brand that was established in 1946. It was established on trust and collaboration. Amul does not belong to a small group of wealthy people. Rather, it is a cooperative movement operated by the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) owned by 3.6 million milk producers in Gujarat. It is in its DNA to cooperate. Amul franchise is open, friendly and equitable. By joining as a store owner, you join a big, trusted Indian family.
What Is the Amul Franchise Model?
You are interested in purchasing an Amul Franchise. What does that mean? You think it is easier than it is. Amul has one of the simplest models in India. They do not charge high royalty rates or share your profits which is fantastic to new business owners.
The concept is quite simple, as you open a store and Amul provides you with all its product line at wholesale. You then resell such products to customers at the retail price (MRP). The difference between the wholesale price and the selling price is your profit.
Amul has two main franchise models to suit different levels of investments and business purposes. Here is a brief overview of all of them:
1. Amul Preferred Outlet (APO) / Railway Parlour / Kiosk
This is the least expensive and the most popular. It is like a mini-exclusive Amul convenience shop. These are the small shops you mostly find in the busy market places, residential places, railway stations, or around the schools.
- Size: You require a small store that is normally 100 to 150 sq. ft.
- Products: You will be selling pre-packed Amul products such as milk pouches, butter, cheese, ghee, chocolates, ice cream tubs, lassi, and yogurt. You never cook or prepare anything here, it is retail sales.
- Best For: Entrepreneurs who want to start a low investment business that takes a short time to set up. It is ideal in places that are high footfall areas where individuals need to get their daily dairy staples in a hurry.
2. Amul Ice-Cream Scooping Parlour (AISPP)
This store is more costly and more concentrated on the whole experience. An Amul Scooping Parlour is a small cafe which deals in ice creams and other ready to eat snacks.
- Size: You will require 300 square feet (27 square metres) and above since customers must have a place to sit.
- Products: The greatest attraction is the variety of scooped ice creams. Milkshakes, sundaes, pizzas, sandwiches, garlic bread and coffee using Amul ingredients can also be purchased by the customers. Amul provides the ready-made pizza bases, sauce and cheese. You simply put them together and bake.
- Best For: Business people who would like to establish a destination or a hang out place. These perform well in shopping malls, high-street areas and at or around colleges or family entertainment areas. The Amul franchise cost of investment is greater, yet the profit per customer is greater as well.
The APO is a grab-and-go convenience, and the Scooping Parlour is a location where people can sit and relax and have freshly made treats.
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Amul Franchise Cost in India: Upfront Investment Breakdown
And this is what you have been waiting to know: how much money you need to actually spend? The positive point is that Amul follows a low-investment strategy. The following are the prices of the two kinds of franchises in 2025.
Note: Amul does not levy any royalty or profit sharing. It is an enormous benefit over other franchise models. All that you require is the initial investment.
1. Amul Preferred Outlet (APO) / Railway Parlour / Kiosk Cost
The overall expense of establishing an APO is quite minimal and within the range of a number of new entrepreneurs.
- Brand Security Deposit non-refundable: This is a one off payment that Amul will charge to use its brand name. An APO will cost 25,000 only.
- Interiors and Renovation: You have to make your shop appear as a formal Amul store. This includes branding, painting and simple fixtures. Amul provides specific design instructions. It costs around 80,000 to 1,00,000.
- Equipment: You require a deep freezer on ice creams, a visi-cooler on drinks and dairy products and a milk cooler. This equipment costs 70,000 to 80,000 rupees all in all.
- Initial Stock: The initial run of products that stock the shelves is a variable Amul franchise cost. One can start with around 25,000.
Approximate cost of Amul Preferred Outlet: 2 Lakhs to 6.5 Lakhs
2. Amul Ice-Cream Scooping Parlour (AISPP) Cost
This investment is larger and more complex.
- Brand Security Deposit Non-refundable: An individual opening a Scooping Parlour has to pay a brand security fee of 50,000 rupees.
- Renovation & Interiors: The space is bigger and requires seating, thus the cost of renovation is more. You should anticipate roughly 3,00,000 to 4,00,000 in flooring, ceiling, branding, furniture (tables and chairs) and air conditioning.
- Equipment: This constitutes the largest part of the investment. You’ll need:
- Ice cream tub Deep Freezers.
- Scooping Cabinet with glass show.
- Visi-Cooler of beverages.
- Pizza Oven.
- Cone Handler, Waffle Cone Machine.
- Milk shake mixer/Blender.
- Billing using POS (Point of Sale) machine. The equipment cost will fall in the range of 1,50,000 to 1,75,000.
- Initial Stock: You will require a greater stock of ice cream flavours, pizza bases, cheese, sauces, etc. The first investment would be about 50,000 rupees.
Total Estimated Investment for Amul Ice-Cream Scooping Parlour: ₹5.5 Lakhs to ₹10 Lakhs
Comparison Table: APO vs. AISPP (2025 Estimates)
Here’s a simple table to help you compare the two models side-by-side:
| Feature | Amul Preferred Outlet (APO) | Amul Ice-Cream Scooping Parlour (AISPP) |
| Main Business | Retail sale of packed Amul products | Serving scooped ice creams & freshly made snacks |
| Ideal Location | Residential areas, markets, stations | Malls, high-streets, near colleges |
| Area Required | 100 – 150 sq. ft. | 300+ sq. ft. |
| Brand Security Deposit | ₹25,000 (Non-refundable) | ₹50,000 (Non-refundable) |
| Renovation Cost | ₹80,000 – ₹1,00,000 | ₹3,00,000 – ₹4,00,000 |
| Equipment Cost | ₹70,000 – ₹80,000 | ₹1,50,000 – ₹1,75,000 |
| Total Estimated Investment | ₹2 Lakhs – ₹6.5 Lakhs | ₹5.5 Lakhs – ₹10 Lakhs |
| Profit Margin | Lower margin per item, high volume | Higher margin per item, value-added service |
| Royalty/Profit Sharing | ZERO | ZERO |
Amul Franchise Cost vs. Profit: Is It Profitable?
Franchises of Amul can make good money. The amount you earn is determined by three things which include location, management and product mix.
In case your Amul parlour is located in a busy city mall, the business will be different compared to a kiosk located in a quiet residential lane.
Your earnings are based on the profit margin each product you sell. Amul fixes the MRP (Maximum Retail Price) and you purchase it at a lesser price through a distributor. Your gross profit is the difference.
Profit Margins by Product Type
Amul has clearly indicated its source of money. It is estimated as follows:
- Milk Pouches: These products are in large quantities but the profit margin is low. The margin is approximately 2.5 percent. You make a little per sale.
- Other dairy products (butter, ghee, cheese etc.): These products are more profitable with margins of about 10 percent.
- Ice cream (packs and tubs): It is a good profit generator. The pre-packaged ice cream margin is approximately 20 percent.
- Scooping parlour products (ice-cream scoops, shakes, pizzas): This is the most profitable of Amul products. Since the firm is a value-added firm (scooping, blending, baking), the margins are significantly high, up to 50 percent. The pizza that you may be selling at 200 rupees may be costing you only 100 rupees in terms of ingredients.
Income Estimates
So what does this look like in the real world? Let us do some numbers. These are mere estimates to get you an idea.
Scenario 1: Amul Preferred Outlet (APO)
- Assumption: A good location of APO in a good market.
- Projected Monthly Sales: Assume you are able to sell goods in the amount of 5,00,000 in a month. It is a realistic goal of a good location.
- Average Blended Margin: Your sales will consist of low margin milk and high margin ice cream. Suppose a typical profit margin of 8 percent on all products.
Gross Monthly Profit: 500000×8%=40000
- Rent: ₹10,000 (for a small shop)
- Electricity: ₹5,000
- Staff Salary (1 person): ₹10,000
- Total Monthly Expenses: ₹25,000
Estimated Net Monthly Profit (APO): ₹40,000−₹25,000=₹15,000
Scenario 2: Amul Ice-Cream Scooping Parlour (AISPP)
- Assumption: A well-managed parlour in a busy place such as high street or mall.
- Projected Monthly Sales: We can take it 6,00,000 per month.
- Average Blended Margin: Since you will be selling high margin products such as scoops, sundaes and pizzas, your average margin will be very high. Suppose we will use a conservative average of 35%.
Gross Monthly Profit: 6,00,000 x 35% = 2,10,000
Your costs are also increased now:
- Rent: 40,000 (of a bigger store in a better place)
- Electricity (A/C, ovens, etc.): 15,000
- Salary of Staff (2-3 people): 35,000
- Miscellaneous: 10,000
- Monthly Expenditure: 1,00,000
Estimated Net Monthly Profit (AISPP): 2,10,000 100,000= 1,10,000
As you can imagine, the profit potential of a Scooping Parlour is much greater, however, it also has greater investment and operating expenses.
Amul Franchise Monthly Income & Profit Per Month
The Amul franchise profit varies with the type of store and its running. Amul Preferred Outlets could generate 3 lakh to 10 lakh rupees monthly and Amul Scooping Parlours could make 4 lakh to 12 lakh.
The profit margin on:
- milk products is 2.5 percent,
- dairy products 10 percent,
- packed ice cream 20 percent and
- scooped items and food 50 percent.
Conclusion on Profitability & ROI
It is possible to make money by running an Amul parlour. You should keep an eye on Amul Franchise costs and sell high margin products to make money.
Consider pizzas and milk shakes. A single pizza may generate the same amount of revenue as 20 milk shakes, an ice-cream or a few toppings. High margin products enable you to make more on each sale.
Return on Investment (ROI) is used to indicate how soon you will make enough money in order to recover the initial amount you invested.
- In case of an APO: A store that has an original price of ~ 2.5 Lakhs and is making a profit of 25,000 every month will recover the original Amul franchise cost in 10 months.
- In case of an AISPP: A shop that has an original cost of approximately 7 Lakhs and monthly profit of 1, 10, 000 could recover the investment within a period of 6-7 months. This is even quicker.
Despite the fact that you may want to calculate lower profits, an Amul franchise might provide one of the shortest ROI periods on the Indian franchise market in 2025.
How to Apply for an Amul Franchise: Step-by-Step Guide
Could this be the right thing to do? The process of application is quite open and transparent. Amul deals with it on its own so you do not need to deal with agents.
Step 1: Visit the Official Amul Website
All the questions regarding parlours should be directed to the official Amul site. All the official information is in the section of “Amul Parlours” or “Franchise”.
Step 2: Show Your Interest
You may show your interest by sending an email or by completing their online inquiry form. The official email address to be used in enquiries is usually given as retail@amul.coop.
Step 3: Fill in the Application Form
In the form, you will be required to give simple information such as:
- Your Name and Address and Contact Details
- Data about your intended shop (address, square footage, kind of ownership – rented or owned)
- The pictures of the proposed store (inside and outside)
- Your reasons as to why you feel your location would be ideal to have an Amul parlour
Step 4: Await a Response from Amul
Once you make your inquiry, you will receive a call back by a representative of the relevant Amul Zonal Office. This can last a few days to couple of weeks, be patient. The representative will negotiate your proposal and determine its feasibility.
Step 5: Site Verification
In case the proposal is promising, an Amul representative will visit your proposed site. They will look at good potential footfall and the shop, which should be to their requirements.
Step 6: Concurrence and Final Release
Assuming that your location is accepted, you will go through the legal formalities. You will enter into a typical franchise agreement. This is where you will be requested to make a non-refundable brand security deposit by way of a demand draft (DD) in favor of GCMMF Ltd.
Step 7: Outlet Installation and Training
After signing the agreement, you will be able to begin the renovation work based on the guidelines of Amul. Amul will provide you with branding materials and introduce you to their list of approved suppliers of equipment. They will also help you make your first order of products via their network of wholesale dealers.
Required Documents
These are the things you will require to start a sweet shop:
- One of the following identity proofs: Aadhaar Card, PAN Card, Voter ID
- Address proof (one of): Electricity Bill, Ration Card
- Shop documents:
- In case it is a shop that is owned, carry the property documents.
- In case it is on rent, carry the rent or lease agreement.
- Bank information: Take some cancelled cheques in order to establish the accounts.
- FSSAI License: You will require applying to FSSAI license to conduct a food business. Amul can tell you how.
The entire procedure of applying and opening your parlour may take between 1 to 2 months depending on the speed at which you do the setup.
Amul Franchise Contact Number, Official Details & Support
In case of genuine questions, communicate with official sources.
- The main number to ask questions is Official Amul Franchise Enquiry Number: 022-68526666.
- Official Email: Send detailed proposals and inquiries to retail@amul.coop.
- Website: The official Amul web site is the principal source of information. Enter the address to ensure that it is the actual address.
- Regional Offices: Amul has Zonal and Branch offices in India. Once you apply, your local office will work with you, and will provide you with all the support you need.
Amul provides great support to its franchisees, which include:
- LED signages and branding materials of your outlet
- Entry level product and operation training
- Links you with the closest wholesale distributor to have an easy supply chain
- National- level advertising that will be beneficial to all the outlets
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Amul Franchise Review: Pros & Cons
No company can be ideal. When making a good choice, you have to consider both sides of an idea.
Pros (The Good Stuff)
- Wonderful Brand Awareness: You are selling a brand that every Indian knows and believes in. The sales are made already.
- Low Investment: It has one of the lowest investments in the F&B industry with an initial investment of only 2 Lakhs.
- No Royalty, No Profit Sharing: This is enormous. You keep all the net profit that you make.
- Large variety of products: You will sell a large portfolio of products, including milk, ice cream, pizza, and many other products serving a large customer base.
- Full Service: Amul assists in set up, branding and supply chains.
- Fast ROI: The possibility of recouping your investment within a year is very high as had been calculated above.
Cons (The Challenges)
- Location is Everything: Where you are located determines a great deal of your success. The poor location may result in very low sales and even losses.
- Low Profits on some of the major products: The profit on milk pouches, a daily requirement, is very low (2.5 percent). It requires a lot of volume to be worthwhile.
- High Competition: You do not only compete with other brands but also with thousands of other general stores that sell Amul products.
- Inventory Management: Dairy products are perishable. You must maintain your stock well and prevent spoilage and loss.
- Tough Branding Rules: You can do very little or nothing to design your store or what you sell. You have to stick to the rules of Amul.
Conclusion: Should You Invest in an Amul Franchise in 2025?
Having researched this problem, we can confidently state that an Amul franchise will be a good investment of yours in 2025- provided you plan in advance.
Amul franchise is also one of the risk-free and highest paying options in India. It is unique in that the brand is iconic, the entrance is cheap and there are no royalty payments. The collaborative spirit of the firm actually hopes you to win.
It is not a quick-get-rich scheme. How well you do will be determined by the quality of location you find with high foot traffic. Begin searching a spot weeks, or even months, before applying. Research the competition in the area and figure out the number of customers you could serve.
Amul Preferred Outlet (APO) is ideal to the new owners who have limited capital. It is a straight forward, simple retail store that can provide you with constant income.
The Amul Ice-Cream Scooping Parlour (AISPP) suits individuals with greater disposable income and who are interested in the food service business. It costs more to invest, however the profit margins and possible monthly earnings are much larger so you can achieve a good rate sooner.
In a word, an Amul franchise may turn you into a successful entrepreneur provided you make the effort to secure the proper location and operate the business successfully. It allows you to join an Indian legend and begin a sweet future of your own.
FAQs
1. Does Amul pay to open a franchise?
No. Amul does not give out money. The money has to be raised by yourself through the use of your own money or through taking a business loan with a bank.
2. Am I allowed to sell other brands products in my Amul parlour?
No. Amul parlours stock only those products manufactured or endorsed by Amul. The sale of other brands violates the franchise agreement.
3. How much space is needed to start an Amul franchise?
In a case of an Amul Preferred Outlet (kiosk model), you require at least 100-150 sq. ft. In case of an Amul Ice-Cream Scooping Parlour, the space required is more than 300 sq. ft.
4. What is the duration of the whole procedure of approval of Amul franchise?
The process of opening a parlour normally takes around 1 to 2 months starting with the initial application, to the grand opening of the parlour, provided you already have the location and money in place.