There’s an excellent opportunity in the high-speed retail sector, specifically in the robust and ever-growing food industry. Mother Dairy Safal stands out as one of the Best Franchise in India, offering a particular business opportunity with the potential to partner with a well-established home brand renowned for its freshness and quality. As India’s largest organized retail chain of fruits and vegetables within the National Capital Region, Safal’s robust supply chain connects 50,000 large chain farmers and over 200 farmers’ associations, thus ensuring a consistent supply of farm-fresh produce. Having an established system along with a robust brand heritage builds a strong backbone for potential entrepreneurs.
Moreover, the Indian milk market is also likely to grow at a CAGR of 10% during the period 2024-2029, and the business of fresh produce is expected to increase by another ₹50,000 crore by the year 2027; thus, a Mother Dairy Safal franchise remains a good investment that can grow value-wise to a large extent. The brand’s phenomenal income of ₹11,500 crore for FY 2023-24, a growth of 21.5%, is a testament to its market standing and potential for profitability. This article is going to discuss everything you desire to learn about starting a Mother Dairy Safal franchise, from the prerequisites and cost to the benefits and the procedure for applying.
What is a Safal Franchise?
Safal store franchise is a business model that allows entrepreneurs to operate a retail shop in the branded and reputed name of Safal, which is a part of Mother Dairy. Such stores are specifically involved in providing fresh, high-quality food products directly from the farm to the customer. The model of franchising has been made ready to leverage the enormous supply chain of Mother Dairy along with brand value, which can provide a steady stream of customers and a constant supply of products.
Products sold at a Safal franchise are wide in variety and cater to everyday household needs. These include:
- Fresh Fruits: Wide varieties of seasonal and exotic fruits directly sourced from farmers.
- Fresh Vegetables: A variety of day-to-day vegetables, also directly sourced to ensure freshness.
- Dairy Products: The full range of Mother Dairy’s milk, curd, paneer, and other dairy items.
- Frozen Foods: Frozen vegetables, snacks, and ready-to-eat foodstuffs.
- Beverages and Juices: A variety of branded juices and other drinks.
- Other Daily Essentials: Other day-to-day essentials like spices, pulses, and processed food items.
The consumers have immense trust in the Safal outlets across India for the simple reason that the brand has a long legacy of quality, purity, and affordable prices, which the company has upheld over time. Plus, the direct farm supply chain and government assistance from the National Dairy Development Board (NDDB) build consumer confidence in product freshness and authenticity.
| Category | Details |
| Brand | Mother Dairy Safal |
| Founded | 1974 (Mother Dairy), 1988 (Safal) |
| Parent | NDDB (National Dairy Development Board) |
| USP | Farm-fresh supply (direct from farmers) and Affordable pricing (daily rate variations)l |
| Revenue Growth | FY 2023-24: ₹11,500 Cr (↑21.5%) |
| Market Demand | Dairy industry CAGR 10% (2024-2029) |
| Future Growth | Fresh produce market to grow by ₹50,000 Cr by 2027 |
Other Mother Dairy Franchise Models
Mother Dairy, apart from its best-known Safal franchise brand, has other franchise models catering to various market segments. These exist in multiple sizes and capacities of investment, along with various location requirements, so that entrepreneurs can choose the most suitable model based on their business goals.
- Mother Dairy Milk Booths: They are small, kiosk-style outlets that specialize in the retailing of milk and simple dairy products like curd, paneer, and butter. It is an excellent model for small business owners who would like to create low-investment, high-demand ventures in a small territory. Its exposure and visibility in residential neighborhoods guarantee an even supply of daily customers, and the business is safe and profitable with lower overhead.
- Mother Dairy Ice Cream Parlours: These are specialty retail stores intended for the sale of Mother Dairy’s bestseller and diversified ice cream brand, such as scoops, tubs, and frozen dessert products. This specialty model benefits from the humongous popularity of the brand’s ice cream, cherished by consumers across all age groups. An ice cream parlor makes a higher profit margin on its products and is an enjoyable, experiential business proposition with a limited product menu.
Benefits of owning a Mother Dairy Safal Franchise
Owner-membership of a Mother Dairy Safal franchise has several advantages, varying from riding on a strong brand name to benefiting from abundant business support. The most significant benefits are:
- Imprint Brand Recognition: Mother Dairy is a household name in India, and its brand recognition further reduces the marketing effort needed to attract customers. Such a deep-seated trust and familiarity enable a new outlet to create popularity and a customer base in no time without vast amounts of promotional expenditures.
- Strong Supply Chain: The franchisees have a robust and effective supply chain that provides a consistent flow of fresh fruits and vegetables, along with produce and dairy products, which reduce procurement-related issues. With such an efficient system in place, there is certainly full-shelf inventory of quality products at all times, and hence the likelihood of lost sales due to stockouts is very small.
- Considerable Business Support: Mother Dairy provides large-scale training and support on a day-to-day basis to its franchisees, including recommendations on inventory management, marketing strategies, and handling customers. This entire support mechanism provides new entrepreneurs with the insights and tools necessary to run their outlet profitably and successfully.
- Reduced Marketing Costs: As part of a national brand umbrella, the franchisees benefit from reduced marketing costs through Mother Dairy’s national promotional activities and thereby limit their individual marketing budgets. These high-pitched promotional exercises bring brand awareness and create foot traffic at all franchises in the network, providing the network with a significant competitive edge.
- Delightfully High Customer Loyalty: Reputation for quality and freshness helps build a loyal customer base, ensuring repeat business and consistent income. By offering continuous reliable and fresh products, a Mother Dairy Safal franchise establishes long-term customer relationships required for long-term business growth.
Mother Dairy Safal Franchise Cost & Investment
The initial investment of a Mother Dairy Safal franchise would be based on the location, store size, and city. The total amount would range between ₹30 lakhs and ₹50 lakhs. This amount is broken down into several prime components, which are given below:
- Franchise Fee/Deposit: A lump sum paid to the company to operate the brand name and business model, which is usually between ₹2 lakhs and ₹3 lakhs. The payment keeps the right to conduct business under the well-known Mother Dairy Safal franchise name and benefit from its established business format.
- Infrastructure & Setup Cost: This is alongside costs on interior development, civil build, and branding according to company requirements varying from ₹3 lakhs to ₹7.5 lakhs. These costs ensure that the store’s layout and design are in tandem with the brand image to offer a professional and friendly space for customers.
- Equipment and Fixtures: The cost of required equipment, like refrigeration equipment, billing machines, display shelves, and weighing machines, is a substantial chunk of investment, ranging from ₹8 lakhs to ₹12 lakhs. Investment in good-quality equipment is required in order to keep the products fresh as well as ensure hassle-free day-to-day operations.
- Working Capital: An important portion of the investment, it consists of initial stock, working expenses, and wages for employees for a couple of months, usually between ₹10 lakhs to ₹15 lakhs. The capital is a financial cushion, enabling the company to keep running in a smooth manner without being self-sustaining and profitable.
Additionally, the price of a Mother Dairy Safal franchise is fixed depending on location-based rent, the size of the store (approximately 200-300 sq. ft.), and specific city rules.
Requirements to Start a Safal Franchise
In order to obtain a Mother Dairy Safal franchise, the prospective owner must meet some requirements in order to successfully establish the outlet. They are:
- Financial Capability: The potential franchisee needs to have the capability to meet the initial investment and operational costs. Showing financial capability is a crucial requirement, which makes the franchisor believe in the company’s success during its initial years.
- Ideal Location: A good retail location with reasonable traffic and access is a must, usually 200-300 sq. ft. A good location is a magic ingredient for success since it directly impacts customer traffic as well as sales volume.
- Business Acumen: The franchisee should possess basic business management acumen and be obligated to adhere to the operations policies of the company. Entrepreneurial orientation and loyalty to the franchise system are critical in upholding brand standards and efficiency.
- Licenses and Permits Required: The applicant must be able to obtain all local business permits, food licenses, and registrations. It is necessary that all legal prerequisites are met to maintain a compliant and seamless operation.
How to Apply for Mother Dairy Safal Franchise
It is simple to apply for a Mother Dairy Safal franchise and can be done legally. The process is as follows:
- First Contact: The first step is to visit the official Mother Dairy website and fill in the franchise application form. The first submission here provides your basic information and business interest to the company.
More Deatils: Visit Official Website - Contact & Documentation: After the initial application is submitted, a representative from Mother Dairy will make a call to the applicant to present the opportunity and request the documentation needed. This is where an assessment of the potential franchisee begins on a more in-depth level.
- Site Evaluation: The staff of the company will conduct a site visit to evaluate the proposed site in order to confirm that it meets their requirements. The on-site assessment is a critical part of the process, guaranteeing store viability and adherence to brand standards.
- Agreement & Training: Once the location is approved, the franchise agreement is signed, and full training of the franchisee and employees is completed. The new staff is equipped with adequate knowledge to manage daily chores, from inventory to customers.
- Store Setup: The final step involves the setup of the store in accordance with the layout and design principles of the brand, and thereafter the grand opening. The meticulous setup process enables the store to prepare itself to provide a quality experience to its first customers.
Profitability & ROI
ROI and profitability of a Mother Dairy Safal franchise are highly promising from the stable demand for day-to-day needs and the market standing of the brand. The possible ROI and profitability model is as follows:
- Profit Margins: Indian grocery stores can maintain 10% to 20% profit margins, as market studies indicate, to which a well-executed Mother Dairy Safal franchise can aspire. Efficient inventory management and a solid supply chain enable the franchisee to be as profitable as possible for this margin.
- Breakeven Point & ROI Timeline: The breakeven period of the initial investment usually is 18-24 months. The total ROI timeline, for complete payback of the investment, is expected to be between 3 and 5 years, making it a good long-term investment with determinable payback.
- Yearly Return Rate: Once the business stabilizes, a healthy annual return rate of 20-30% is a reasonable expectation. That strong rate of return demonstrates the fiscal viability and high degree of potential for vast amounts of wealth creation under the franchise.
- Revenues: Franchisees derive revenues by selling a diversified range of products like milk, fruits and vegetables, juices, and other commodities with varying royalties on each. This multi-product line is able to provide a constant revenue stream and makes them less vulnerable to any single product type.
Conclusion
Mother Dairy Safal franchise business is the right choice for those investors who are looking for investing in a high-growth and secure enterprise. Having a dependable supply base, unmatched brand reputation, and business support integration, a Mother Dairy Safal franchise provides a clearly established route to profitability.
The high return on investment opportunity coupled with the brand positioning in a steadily growing market makes this business very desirable. Moreover, the growing demand for fresh fruits and vegetables and dairy products, coupled with the steadily growing brand, offers a bright future for any businessperson who is willing to open a Mother Dairy Safal franchise.
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FAQs
1. How much is the initial investment in a Mother Dairy Safal franchise?
Initial investment can vary from ₹30 lakhs to ₹50 lakhs, depending upon the store size and location. It includes the franchise fee, the setup cost, equipment, and working capital.
2. Can a Mother Dairy Safal franchise be profitable?
Yes, a Mother Dairy Safal franchise is generally profitable. With stable and high demand for its products and a well-established brand name, the franchisee can reasonably expect a good return on investment, with a breakeven period typically between 18 to 24 months.
3. What is the required space for a Safal outlet?
One of the Safal franchise stores would require a store space of approximately 200-300 square feet. The area should be exposed to people and well-equipped for visitors, as pedestrian traffic is of utmost importance to its success.
4. Does Mother Dairy provide support to new franchisees?
Yes, Mother Dairy provides full support to its franchisees. This includes training in the operations, inventory, and marketing strategy, and constant support to ensure smooth functioning of the business.
5. How long does it take to get a Mother Dairy Safal franchise?
It takes weeks to months to apply for a Mother Dairy Safal franchise and get approval. It includes filing the application, site evaluation, and execution of the final contract and store opening.