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Jul, 25 2018

Amul offers business model for entrepreneurs to earn Rs 5-10L monthly

Amul's wholesale dealers will supply stocks at the parlour and the franchisee will avail retail margin.

The country’s leading dairy brand, Amul is helping individuals with a penchant for entrepreneurship to establish their own business by offering franchises to them at the cost of some investment. Outlining the model, Amul in its release said, "Anyone with a very small capital base and good business acumen can become our franchisee. It requires very little investment and working capital."

Without paying any royalties or profit sharing for the franchisee, one can take up Amul’s franchisee for earning a decent amount every month.

The Amul provides franchises to the people with prebuilt shop or space in a good location either owned or rented. The franchisee is expected to bear the entire cost (viz. interiors and equipment, excluding property cost) of setting up the store which is expected to be in the range of Rs. 1.50 lakh to Rs. 6.00 lakh depending upon the format.

Amul's wholesale dealers will supply stocks at the parlour and the franchisee will avail retail margin. Retail margins will vary from product to product. Franchisee need not pay any royalty or share any revenue with Amul.

Working capital requirement would be extra depending upon sales volume. Expected monthly sales turnover will vary from place to place depending on location of the parlour. It may be in the range of Rs. 5 lac to Rs 10 lac per month, stated Amul in its official release.

Various types of franchisees are available for the interested new entrepreneurs.  For Amul Outlet, Amul Railway Parlor or Amul Kiosk, one has to invest about Rs 2 lakhs. Out of this, Rs 25,000 is non-refundable brand security, Rs 1 lakh is spent on renovation and 75,000 rupees is spent on equipments.

For the second franchisee- Amul Ice Cream Scooping Parlor- there is an investment of Rs 5 lakh. It includes brand security 50,000, renovations Rs 4 lakh, Rs 1.5 lakh for equipments.

The expected profit from a franchise is around Rs 5 to 10 lakhs per month depending on the location of business.

As per the business model, the sellers will also be paid commission of 2.5 per cent on a milk pouch, 10 per cent on milk products and 20 per cent commission on ice cream on their MRP. On receiving franchisees of Amul Ice Cream Scooping Parlor, a revenue of 50 per cent is available on recipes based ice cream, shake, pizza, sandwich, hot chocolate drink. At the same time, 20 per cent on pre-packed ice cream and 10 per cent commission on Amul products.

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