India’s Food and Beverage (F&B) sector is witnessing strong growth, propelled by changing lifestyles, growing disposable incomes, and urbanization. Worth around ₹58.85 trillion in 2024, the Indian F&B industry is expected to grow to a whopping ₹96.03 trillion by 2030, with a Compound Annual Growth Rate (CAGR) of 8.57% from 2024 to 2030. The Indian dairy industry is estimated to be worth more than ₹18 trillion in 2023 and is likely to grow at a CAGR of about 15% to reach ₹30 trillion by 2028.  This growth is driven by rising demand for milk and milk products, along with government support for dairy farming and processing.

The Indian franchise sector is also growing, with the market valued at $100 billion in 2024 and likely to reach $140-150 billion by the year 2028. The growth is due to the rising demand for franchising as a business model between the franchisors and the franchisees. Investment in the Indian franchise market is also rising, with investments estimated at over $25 billion in 2023, and more growth forecasted in the following years.

Among the many franchise options that can be pursued in India, Amul franchise is a highly viable one.  This article takes a deep dive into the Amul franchise cost and offers a complete guide to enable prospective franchisees to make informed choices in 2025. We shall look at the different cost factors, profit margins, ROI analysis, and other vital aspects of investing in an Amul franchise.

About Amul: The Taste of India

Amul Franchise Cost

Amul, which stands for Anand Milk Union Limited, is not just a dairy company; it’s a part of India’s socio-economic fabric. It was born from the cooperative movement in 1946 in Anand, Gujarat. Amul was created as a solution to the exploitation of local milk producers. Under the visionary management of Tribhuvandas Kishibhai Patel and inspired by Dr. Verghese Kurien, the “Father of the White Revolution” in India, the small cooperative grew to become an Amul which became a national symbol. 

Amul is currently owned by the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which is jointly held by 3.6 million dairy farmers in Gujarat.12  It is India’s biggest food brand and the global largest vegetarian cheese brand.Amul’s product range is remarkably diverse, from milk and butter to cheese, ice cream, chocolates, and an extensive range of dairy-based products.The brand’s focus on quality, affordability, and empowering farmers has established Amul as a household name all over India and in a few global markets. Amul’s tagline, “The Taste of India,” indeed symbolizes its strong affinity towards Indian consumers and its contribution in moulding the nation’s taste buds.

Amul: Key Highlights (2025)

Unique Selling Propositions (USP)

Amul’s long-term success and brand leadership are supported by a number of distinct selling propositions (USPs) that differentiate it from others and render its franchise opportunities extremely desirable:

  • Unmatched Brand Recall and Trust: Amul has a nearly unmatched position of brand recall and trust in India. Indians have grown up with Amul products over generations, remembering and trusting the brand as a synonym for value, purity, and quality. 
  • Diversified and Large Product Portfolio: The product portfolio of Amul is extremely large, covering almost every dairy and dairy-related category. From humble milk and butter to rich chocolates and ice creams, Amul has a product for each segment of consumer and occasion of consumption.
  • Strong Cooperative Base and Ethical Sourcing: Amul’s cooperative base is a special source of strength. It arranges that a big chunk of the profits goes back to the milk producers, creating a sustainable and ethical supply chain. Consumers are more and more aware of ethical sourcing and fair trade, and Amul’s cooperative model finds very strong appeal in this.
  • Pan-India Distribution Network: Amul has developed a strong and vast distribution network which extends to even the remotest parts of India. This slick logistics system is responsible for having a steady availability of products nationwide, an absolute necessity for a successful franchise.
  • Affordability and Value for Money: Amul products are affordable and value for money. While keeping high quality standards, Amul tactfully prices its products to reach a large base of consumers. This value equation is especially critical in the price-conscious Indian market. Amul franchisees are able to tap into this affordability to acquire a large number of customers and enjoy high sales volumes.

Revenue Growth in India

Amul’s financial performance indicates its brand power and market leadership. The Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which is the company marketing Amul products, has year after year posted remarkable revenue growth.

Key Revenue Growth Drivers:

  • Healthy CAGR: Amul has had a sustainable Compound Annual Growth Rate (CAGR) in its revenue for the last decade. Although individual CAGR rates might vary narrowly year to year, depending on the circumstances in the market and the overall economy, Amul’s revenue growth has typically been in the range of 10-15% over the long term.
  • Recent Revenue Performance (FY 2023-24): During the financial year 2023-24, GCMMF has recorded a provisional turnover of ₹72,000 crore (approx. $8.6 billion USD). This is a noteworthy increase over the last financial year and further strengthens Amul’s position as a market leader in the Indian F&B sector. News reports point out that Amul Dairy (Kaira District Co-operative Milk Producers’ Union Ltd), which is part of GCMMF, reported a turnover of ₹12,880 crore in FY 2023-24, up by 9% from the earlier year, which again reflects the overall upward revenue trend for the Amul brand.
  • Projected Revenue Growth (FY 2025-26): With the Indian dairy industry continuing to grow, increasing disposable incomes, and Amul continuing to expand and diversify products, the brand is set to continue its revenue growth in financial year 2025-26 and in subsequent years. Industry experts estimate GCMMF’s turnover at ₹1 lakh crore or more in FY 2025. The estimate is arrived at on the basis of existing market trends, Amul’s past performance, and projected demand growth for dairy products.

Why Choose the Amul Franchise?

Purchasing a franchise is a serious commitment, and selecting the correct brand is crucial. An Amul franchise has some very strong points that make it an excellent option for budding entrepreneurs:

  • With a Powerhouse Brand: As noted above, Amul’s brand name and trust are unmatched in India. The franchisees get an instant benefit from this existing brand equity. This saves them theBrand trust and recognition are priceless assets that take years and a lot of investment to establish from scratch.
  • Lesser Risk and Better Success Rate: Franchising, in a way, presents a lesser-risk route to becoming an entrepreneur as opposed to operating an independent enterprise. Amul’s successful business model, operating systems, and constant support mechanism also reduce risk factors and maximize the success possibilities.
  • Attractive Profit Margins: Though individual profit margins may differ according to franchise format, location, and operating efficiency, Amul franchises in general provide attractive profit opportunities. High sales volumes due to brand popularity and value-for-money pricing strategy help ensure healthy profitability.
  • Socially Responsible Business: By becoming a member of the Amul family, franchisees indirectly help support millions of milk producers and the cooperative movement. This dimension of social responsibility can be self-satisfying and appeals to many customers in a positive way.
  • Evergreen Industry: The food and dairy industry is comparatively immune to economic changes. Dairy products are staple foods with constant demand, so an Amul franchise is a secure business undertaking even in times of economic crisis.

Understanding the Amul Franchise Model

Amul has mainly two types of franchise models: the Amul Preferred Outlet (APO) and the Amul Ice Cream Scooping Parlour (AISPP). The Amul franchise cost for both the models vary. It is essential for prospective franchisees to know the intricacies of each model so that they can select the one that best suits their investment potential, location, and business goals.

1. Amul Preferred Outlet (APO):

  • Concept: APOs are retail outlets that carry and sell the complete range of Amul products except bulk ones such as milk in cans. They include milk, butter, cheese, ghee, paneer, chocolates, sweets, drinks, and ice cream (pre-packed). Amul dairy franchise cost range from ₹1 lakh to ₹10 lakhs.
  • Product Focus: Full range of Amul products (except bulk milk).
  • Space Requirement: At least 100-150 sq. ft.
  • Location Suitability: High-traffic areas, residential areas, markets, shopping malls, areas near educational institutions, and transport centers.
  • Infrastructure: Simple retail arrangement, with a display freezer, storage freezer, milk chilling facilities (wherever applicable and based on product mix), billing counter, and minimal furniture.
  • Staffing: Usually needs 1-2 people for operations and sales.

2. Amul Ice Cream Scooping Parlour (AISPP):

  • Concept: AISPPs are ice cream parlours with a focus on Amul’s ice cream, sundaes, floats, milkshakes, and other frozen desserts. They can carry a limited selection of other Amul products such as pre-packaged ice cream, chocolates, and drinks, but the emphasis is on scooped ice cream and related products. Amul parlour franchise cost range around ₹1.5 lakhs to ₹6 lakhs.
  • Product Focus: Ice cream (scooped and pre-packaged), sundaes, milkshakes, floats, frozen desserts, and limited other Amul products.
  • Space Requirement: Minimum 300 sq. ft.
  • Location Suitability: High-traffic locations, shopping complexes, markets, entertainment areas, tourist locations, educational institution proximity, high youth population areas.
  • Infrastructure: This sophisticated setup consists of ice cream freezers (scooping and storage), display counters, milkshake machines, a soda fountain (optional), cozy seating arrangements, beautiful interiors, a billing counter, and a storage area.
  • Staffing: Needs 3-4 employees or more, based on parlour size and customer traffic, for scooping, service, and operations.

Comparison Table: APO vs. AISPP

Amul Franchise Cost Breakdown (2025 Estimates)

Here’s a detailed breakdown of the estimated Amul franchise costs involved in 2025:

  1. Amul Preferred Outlet (APO) – Estimated Cost Breakdown:

2. Amul Ice Cream Scooping Parlour (AISPP) – Estimated Amul Franchise Cost Breakdown:

Region Wise Costs:

  1. Amul franchise cost in Ahmedabad​: ₹1.5 lakhs to ₹6 lakhs.
  2. Amul franchise cost in Chennai​: ₹1.5 lakhs to ₹6 lakhs
  3. Amul franchise cost in Vadodara​: Approx INR 4.5 Lakhs
  4. Amul franchise cost in Hyderabad​: ₹2 lakhs to ₹6 lakhs
  5. Amul franchise cost in Kolkata​: ₹1.5 lakhs to ₹6 lakhs

Profit Margins Analysis

Here is a general overview of profit margins on Amul franchise cost in 2025:

Profit Margins:

  • Gross Profit Margin: The gross profit margin of Amul franchise cost is generally between 15% and 25%. The gross margin is the percentage of revenue after subtracting the Amul franchise cost of goods sold (chiefly the cost of the Amul products bought from the company). The gross margin may vary depending on product category, with ice cream and value-added products generally tending to have higher margins than commodity products like milk.
  • Net Profit Margin: Once operating expenses (rent, wages, electricity, marketing, etc.) are accounted for, the net profit margin for an Amul franchise will normally be between 5% to 10%. This is how much of revenue goes into actual profit for the Amul franchise cost. Effective control over operating expenses is essential in maximizing net profit margins.

Space and Location Requirements

High Footfall Locations: Visibility and accessibility are essential. Most suitable locations are busy pedestrian and/or vehicle traffic spots. These include: Shopping and Market Places, Residential Places, Near Schools and Colleges, Transport Stops, Tourist Places and Entertainment Places, Shopping Malls and Shopping Complexes.

Surrounding Businesses and Synergy: Think about the surrounding businesses. Having complementary businesses nearby (e.g., grocery stores, restaurants, fast food establishments) can sometimes be a good thing. But direct competition from similar dairy or ice cream stores in very close proximity needs to be evaluated.

Catchment Area Demographics: Familiarize yourself with the demographics of the catchment area. Family residential areas are suitable for APOs. Youth-dominated areas are best for AISPPs. Evaluate the income levels and consumer tastes of the local populace to customize product offerings and marketing strategies.

Lease Terms and Costs: Negotiate a good lease term with landlords. Rental expenses are one of the major operating expenses, so make sure that the rent is reasonable considering the location’s potential and sales forecasts. Know lease duration, renewals terms, and any rent escalation provisions.

Specific Space Requirements

  • Amul Preferred Outlet (APO): Minimum 100-150 sq. ft. A small but well-designed area is adequate for an APO. Effort should be to create maximum display and storage space in the available area.
  • Amul Ice Cream Scooping Parlour (AISPP): At least 300 sq. ft. or more. AISPPs need much greater space to have scooping counters, display freezers, seating configuration, customer traffic, and even a small preparation section. Larger parlours (500+ sq. ft.) can have more comfortable seating and more offerings.

Training and Support from Amul

The training and support system involves all the aspects of the business:

  • Initial Franchise Training Program: Amul gives a thorough initial training program for new franchisees before they initiate their operations. The duration of the initial training program may vary for various formats of franchises but is typically 3-5 days long.
  • Operational Support on Ongoing Basis: Each franchisee has a dedicated franchise support manager, who is a key point of contact for day-to-day advice and assistance. Support managers visit the franchisee outlets on a regular basis for the monitoring of the operations, providing on-site help, identifying areas for improvement.
  • Technology and Systems Support: Amul can recommend or guide billing and Point-of-Sale (POS) mechanisms suitable for streamlined transactions and inventory management. The franchisees could be permitted the use of websites or portals to access training content, marketing documents, and getting in touch with the Amul franchise support desk.
  • Continuous Improvement and Updates: Amul regularly updates and trains franchisee outlets on new product launches, product reforms, and any change in operating procedures. Amul also analyses the performance of franchisee outlets and provides feedback and recommendations for continuous improvement.

How to Apply for an Amul Franchise

The procedure for obtaining an Amul franchise is fairly simple. Below are the broad steps followed in 2025:

Express Interest and Obtain Information:

The official GCMMF (Amul) website (www.amul.com) is the main source of information. Search for the “Franchise” or “Business Opportunities” page. Download the franchise brochure or detailed information document, if it is available on the website.

Initial Application and Eligibility Verification:

You can be asked to complete an online application form on the website or provide a physical application form. Amul will verify your initial application to determine your preliminary eligibility on the basis of considerations such as location appropriateness, financial viability, and entrepreneurial potential.

Detailed Application and Document Submission:

Once your initial application is shortlisted, you will be given a detailed application form. Complete this form correctly and elaborately. You will have to submit supporting documents, which usually are: Identity Proof, Address Proof, Photographs, Financial Documents, etc.

Location Assessment and Site Visit:

You will have to suggest a particular location for your franchise outlet. Give details about the address, location, footfall, and businesses in the vicinity. Amul representatives will visit the site to assess whether your suggested location meets their requirements or not.

Franchise Fee and Signing of Agreement:

After being chosen and agreeing to the conditions, you will have to pay the brand deposit (refundable) according to the franchise agreement. Read the franchise agreement thoroughly with legal experts if necessary. After being content, sign the franchise agreement with Amul.

Outlet Setup, Training, and Launch:

Continue with the setup of your Amul franchise outlet according to the guidelines and specifications of Amul. This includes interior work, equipment installation, furniture, and signage. Join the compulsory first-time franchisee training program held by Amul. Launch your Amul franchise outlet officially and start operations. Amul may assist in launch event support.

Conclusion

An Amul franchise cost provides a value and relatively secure business opportunity within India’s burgeoning Food and Beverage sector. Lying in wait is the advantage of the unmatched recognition of the brand, large product portfolio, and robust support system, such that franchisees can tap a vast customer base and reap decent returns on investment. While the initial investment, ranging from roughly ₹2.7 Lakhs in the case of an Amul Preferred Outlet to ₹7.5 Lakhs in the case of an Ice Cream Scooping Parlour, would require careful financial planning, possibilities of profitability as well as viability are fairly high.

For those who dream of establishing their own business venture in an established brand name, business model with successful history, and a taste of “The Taste of India,” an Amul franchise cost is the most promising route to entrepreneurial prosperity in 2025 and beyond.

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FAQs

What is the Amul franchise cost?

The franchise cost of Amul varies between 2.7-5.5 lakhs.

What is the profit margin for the Amul franchise?

The gross profit margin of Amul franchise cost is generally between 15% and 25%.

What is the initial investment of Amul?

The initial investment can range from ₹2-6 lakhs based on the franchise model.

What is the monthly income of the Amul franchise owner?

The franchise owner can earn between ₹5-10 lakhs monthly.