Learn how to apply for Amul Ice Cream Franchise to get started.Follow the complete tutorial step by step.
Milk, butter, Curd, Lassi, Cottage Cheese – one cannot imagine their food without at least one of these items in India where milk and milk products are an essential part of goods in different parts of the country. India, a nation of 1.25 billion people, is a place where many dairy products are consumed.
If there is one brand that has undermined its roots in India, yes Amul. Whether it be milk, butter, cheese or ice cream, Amul is the first brand name to come into most Indian ones.
Today, ice creams made their way into every Indian household. It’s become a habit to eat ice cream as a dessert after a family dinner. Everybody’s favorite – some like the chocolate flavor, some vanilla and some butterscotch. There is also no set season. People eat it in winter and summers. People of all age groups eat ice cream. Amul provides a wide range of ice cream options with as many products for children as for the elderly.
If there is any brand in India that has become a household name, it is Amul. The word ‘Amul’ itself is synonymous with dairy. The name ‘Amul’ is derived from the Sanskrit word ‘Highlight which translates into valuable or valuable. It is an Indian co-operative dairy company whose name is known to every child, adult and senior citizen in the country.
Anand Milk Union Limited aka Amul was registered in December 1946 in the state of Gujarat, also the birthplace of Mahatma Gandhi, known as the father of the nation. Local company leader Tribhuvandas K. Patel started the company on the advice of the ‘Iron Man of India’, Sardar Vallabhbhai Patel. Traders or agents used to unfairly exploit marginal milk producers. So the company was started to protect farmers from exploitation by middle men. Amul also played a major role in the success of the White Revolution. Amul’s contribution to the White Revolution was so significant that it helped to place India in the highest ranking of all milk producing countries in the world.
Dr. Verghese Kurien, also known as Milkman of India, was the founder – chairman of GCMMF (Gujarat Cooperative Milk Marketing Federation Limited) for 30 years (from 1973 to 2006). He is considered the man behind Amul’s marketing success. A major contributor to the growth of the Amul brand is H.M. Dalaya. He was the man who came up with the idea to make a pure milk powder from buffalo milk which later helped Amul reach new heights in the market.
Apart from the tasty dairy products and finger licking, one of Amul’s main successes is its creative advertising and marketing strategies. Here we refer to the ‘Amul girl’ and the catchy tagline ‘Utterly Butterly Delicious’. ‘Amul girl’ was soon a nationwide sensation, which emerged as the brainchild of Sylvester daCunha, managing director of advertising agency AS. Amul’s mascot came upon a chubby little girl wearing a polka dot dress. The ads involved her and the everyday issues in the country. To date, it is widely regarded as one of the best advertising campaigns in the country. Amul’s famous slogan ‘Amul, Taste of India’ was put together to highlight Amul’s intention to make its products available to ordinary people, who would not normally be able to afford them.
Amul was also presented with various awards such as the Rajiv Gandhi “Best of All” National Quality Award in 1999, Golden Trophy for Outstanding Export Performance 2009-10, Best Marketing Campaign 2014 and Global Dairy Innovation.
According to 2015 data, Amul’s milk production is about 14.85 million liters per day. According to the same data, Amul is expected to have more than 3.6 million milk producers around the country. Amul is constantly innovating with its products and marketing strategies. Today, with the help of a diverse portfolio of products and creative award-winning advertising campaigns such as the ‘girl Amul’, Amul has grown into a huge company drawing billions of dollars in revenue year after year and has no intention of slowing down.
The type of business model that a company follows is essential to determine its success. A business model can make or break a business. A wrong business model can cause a company to close before it even starts. A company must have a clear vision of how it wants to run its operations. A plan is needed on how to deliver the product to consumers, how to make money out of the business and how to sustain growth.
As Amul has been running its operations since the 1940s, it can be safely said that they are following a sound business model. Amul’s business model is designed to protect the interests of farmers who produce milk while providing consumers with value-for-money products.
Amul’s business model consists of three layers, also known as Anand Pattern. Cooperatives come first at the business level. This is followed by diaries and warehousing unions at the district level and the third is a federation at the state level.
Farmers have the option of shipping their produce to village co-ops, local restaurants and other milk-related businesses or selling it directly to the village and local residents. If they choose to sell it to the restaurants or local residents, the supply chain only ends there. To come under the Amul business model, the farmers must be part of the village cooperatives.
The way Amul’s business model works is that dairy farmers become members of the village co-operatives and then send their produce there. These cooperatives are of two types – with and without cooling units. If the product is shipped to cooperatives that have cooling units, then the next step is to ship it to the dairy unions and warehouses at the district levels. In case, farmers choose to ship their products to co-operatives without cooling units, then the product has to go through a cooling plant before it can be shipped to the dairy unions and warehouses.
Village cooperatives without cooling units also receive network services such as veterinary services, animal husbandry services, rural health schemes, trucking facilities, etc.
From state milk unions, milk and milk products are sent to state milk federations such as the GCMMF for distribution. The state milk federations assist in the distribution of products through wholesalers and retailers so that the products can reach all consumers around the country.
These state milk federations then return the sales revenue to member producers through the chain of district level unions and village co-operatives.
Diversification is essential to running a successful business or company. Often the whole company cannot be fed on a single product. Those who understand this, who survive and perhaps thrive and those who do not, are left behind.
This is exactly what Amul has done to stay on top of their game and keep ahead of their competition. In terms of dairy products, Amul is India’s largest choice by long shot. No other brand is worth a close second.
Amul only makes products for one section of society. It has served the needs of children, adults and older people for many years. The following is a list of some of the products Amul has sold:
The list does not end here. Just as a successful company should, Amul keeps innovating and keeps up with new products and new marketing strategies to help the brand reach new heights.
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Ice cream is a year-round business. People eat them in summer, spring and winter. So, it’s a good idea to invest in an ice cream franchise and if you combine that with the Amul brand, you may have something special in your hands.
An outlet that has an area of approximately 300 square feet or rents out at a prominent place like markets, railway stations, hospitals, etc., needs an outlet seeking an Amul franchise. All in-house costs and recurring costs are similar to the cost of electricity, payment to employees and shop rent will come out of the franchisee’s pocket.
The Amul Ice Cream Scoop Parlor franchise requires an investment of around 6 lakh. The following points illustrate how the investment will be used:
GCMMF or Amul provide benefits such as LED signage, additional purchase support, parlor boy training, navigational support and special offers to consumers. The franchisee does not have to share any profits or pay any kind of royalty or fees to the company.
Amul currently has over 6000 franchises spread across the country. The capital requirement to acquire an Amul vendor can be considered quite reasonable as it is between 2 Lakh and 6 Lakh. No one has to pay royalty or any fees to the company to own an Amul franchise. Amul provides facilities and services such as additional retail margins, store installation support, equipment purchase support, free brand signage for franchise owners. The wholesale dealers supply supplies for Amul products.
Certain requirements must be met to acquire an Amul seller. A person applying for an Amul franchisee is required to have an outlet or space in a good area so that there are high numbers of people. The franchisee can rent or own the outlet. All interior and equipment costs are borne by the owner i.e. the person applying for a franchise.
There are two formats for the Amul franchise. One is the Amul Select Outlet also known as the Amul Rail Parlor or Amul Mistake that requires an area of between 100 and 150 square feet. The other is Amul’s Ice Cream Scoop Parlor which requires an area of approximately 300 square feet.
For this article, we will focus on the format of the Ice Amul Ice Cream Scoop Parlor and how to franchise it.
It is always good to be associated with a brand like Amul and numbers like Amul’s distribution margin prove to be just that. For the Amul Ice Cream Scooping Parade, the profit margin is estimated at about 50 percent on recipe-based ice cream scoops, sundaes, floats, shakes, baked pizza, sandwiches, cheese slice burger, garlic bread, hot chocolate drink ( Amul Pro). The margin is 20 percent for pre-packaged ice cream and other Amul products sold in these parlors can get returns of around 10 percent.
Overall, monthly returns from the Amul Ice Cream Scoping Parade can range from 5 lakh to 10 lakh depending on the location of the parlor.
The first requirement that must be met to acquire an Amul ice cream franchise is that one must have an outlet or space around 300 square feet. The outlet must be in a prominent area where many people come and go so that the owner can sell the product effectively.
The next step is to go to the Amul website online and fill out an application form, applying for a franchise of the Amul Ice Cream Scoping Parlor. Details such as name, contact information, shop address will be requested in the form.
Then comes the cost of the investment. One will need around 6 Lakh rupees if he wants to become an Amul franchisee. 50,000 rupees will be used as non-refundable brand security. The refurbishment of the outlet will cost about 4 lakh rupees and the cost of the equipment will be around 1.50 lakh rupees. Equipment such as visi coolers and deep freezers need Amul branding. All internal costs and recurring costs such as electricity charges and shop rent will come out of the franchisee’s pocket. A franchisee does not have to pay any royalty or fees to the company.
As mentioned before, the dairy product that is ice cream, when combined with the Amul brand, is a sure recipe for success. Ice cream never goes out of season. One can get returns in the range of 5 lakh to 10 lakh per month from the Amul Ice Cream Scoping Parade depending on where the outlet is located. This is all because of the spectacular distribution margins that Amul offers. For items like prescription-based ice cream scoops, sundaes, gravy, shakes, baked pizza, sandwiches, cheese slice burger, garlic bread, hot chocolate drink (Amul Pro), the average MRP yield is around 50 percent. For pre-packaged ice cream, the margin is around 20 percent and for all the other Amul products sold in the parlor, the yield on MRP comes in at about 10 percent.
By the numbers above, it is clear that investing is not just a safe choice but a mastery of business. It is a case of least risk and reward.
Amul offers two types of franchises for investment. One is Amul’s Favorite Outlet also known as the Amul Rail Parlor or Amul Mistake. This requires an investment of about 2 lakh rupees and a 150 sq ft outlet or space. The other is Amul’s Ice Cream Scooping Parlor. For a franchise of this kind, about 6 lakh rupees is required along with an outlet or a 300 sq ft space.
The details of the Amul Ice Cream Scoping Parlor have already been discussed in the first two questions. So for this question, let’s focus on the format of the Amul Select Outlet also known as the Amul or Amul Kiosk Railway Parlor. The shop size requirement for Amul Kiosk is 150 sq ft and it requires an investment of around 2 lakh rupees to become a franchisee. The breakdown of the investment is as follows:
Now, it is not enough to say that investing in a particular business is a good decision. There must be numbers or statistics to support that claim and Amul has those numbers. Amul’s distribution margin for pouch milk is 2.5 percent. The average MRP yield for milk products is 10 per cent and for ice cream, it is around 20 per cent.
So, suffice to say that Amul Parlor’s business is a good investment. It would be safe to say that investing in milk and products is a sound decision because people in India will always eat dairy. And if you combine that claim with the prestige of the Amul brand, you might have something special on hand.
In today’s time, franchising has emerged as a popular business option. Big companies like fast food restaurants get distribution of their products through affiliate dealers called franchisees. If a brand or company wants to go global, franchising is a good choice. Fast food chains such as Mcdonalds and KFC have become popular around the world with the help of this business model.
There are many benefits to franchising. Lower capital requirements, high growth speed, motivated and effective management are just some of them. One of the main advantages is that the products are usually well-established, making it easier for franchisees to sell.
If you want to invest in a franchise, Amul is a great option as it requires a smaller amount of investment and can get attractive returns. Amul needs only the investment and business expertise to become a successful franchisee.
Be part of India's leading dairy brand by starting an Amul ice cream franchise. Apply now for a sweet and successful business opportunity.