Anand Milk Union Limited, better known by its brand name Amul, is a household name in India. Established in 1946, the brand has been serving a wide range of milk and other dairy products to consumers throughout the country for nearly 8 decades. The iconic Amul brand is now synonymous with high quality and affordability. Its strong reputation, efficient distribution network\ and innovative marketing campaigns have earned it a loyal customer base.
Of late, franchise partnerships have been gaining popularity. They are one of the most efficient ways to establish a business without the risks associated with building a brand from scratch. By investing in a franchise business, you get access to a proven model, established brand recognition and operational support. This makes it a favourable choice for aspiring entrepreneurs, especially first-time business owners.
If you plan to open a franchise business in India, partnering with Amul, which is the largest dairy cooperative in the country, is the best way forward. For most Amul franchises, monthly incomes can be quite attractive, especially if the location is favourable. Combined with low operational franchise costs, an Amul franchise’s profit per month can far exceed most expectations.
In this article, we will explore everything you need to know about starting an Amul parlour franchise in 2025. Whether you’re looking to invest in a kiosk, a scooping parlour or a full-scale outlet, this guide will help you make informed decisions.
Why Choose Amul for Franchising?
Instead of looking for franchises for sale, partnering with Amul is a better option that can open up a world of growth opportunities. Let us explore some compelling reasons why you should opt to set up a franchise establishment with Amul.
- Strong Brand Value and Trust
Over the years, Amul has cultivated a strong trust among Indian households. In fact, it is a highly recognisable brand that many associate with high-quality products at affordable prices. By signing up for the franchise program with Amul, you get to leverage the strong brand value and trust that Amul commands in India. Furthermore, you do not have to work as hard to establish credibility, which is a significant advantage for small business owners.
- Wide Product Range
Amul’s product portfolio is quite extensive and includes milk, curd, paneer, butter, ice creams, chocolates and even frozen foods. Such a wide variety ensures that you can cater to a diverse customer base throughout the year and helps you maintain a steady stream of revenue.
- Minimal Investment and High Returns
Minimal initial investment is one of the key reasons why you should consider entering into a franchise agreement with Amul. You can start an Amul parlour franchise with an initial investment of anywhere from ₹1.5 lakh to ₹5 lakh (including refundable security deposit and equipment cost).
Additionally, since Amul follows a no-royalty model, you do not have to pay any ongoing fees from your earnings. Thanks to the low investment and high brand recall, your chances of earning a good return are quite strong.
- Support and Training
Amul offers full support to its franchise partners, from outlet design and business planning to training staff on product handling and sales. You also receive marketing support in the form of branding, promotional materials and seasonal offers.
Types of Amul Franchises
Amul offers multiple franchise formats, each with its own set of advantages. In this section, we will look at the various types in detail so that you can decide which among them is the best franchise to own. Now, it is important to note that the franchise guidelines may vary depending on the type you choose.
- Amul Preferred Outlet (APO)
An Amul Preferred Outlet (APO) is a retail franchise format that is ideal for high-footfall areas like markets, residential complexes or malls. APOs are authorised to sell the entire range of Amul products, such as milk, dairy items, beverages and frozen snacks. One of the highlights of this franchise format is that it requires limited space and investment, which makes them ideal options for small business entrepreneurs.
- Amul Scooping Parlour Franchise
The Amul scooping parlour franchise format focuses on offering premium ice cream offerings in a cafe-like experience. Unlike an APO, this particular format requires more space and decor investment but offers higher Amul franchise profit per month. This dairy franchise is ideal for high-density locations with a predominantly young population, such as schools, malls and entertainment zones.
- Amul Railway Station Parlour
As the name implies, these kiosks are located at railway stations and are designed to cater to daily commuters and travellers. Although this franchise format is also permitted to sell the entire range of Amul products, it primarily focuses on quick-selling products like milk, ice-creams, snacks and beverages. Due to high foot traffic, this type of Amul franchise’s monthly income-generating ability is often much higher compared to the other types. That said, since these parlours are within railway stations, the space and operational licenses are managed in collaboration with Indian Railways.
- Amul Parlour at a Centre of Excellence (COE)
Amul Parlours at Centres of Excellence are exclusive outlets set up at institutions like universities, corporate campuses or training centres in collaboration with government or educational entities. These outlets serve a fixed community and can offer both dairy essentials and ready-to-eat items. However, it is important to note that the franchise cost in India for these types of parlours is often much higher due to them being set up in exclusive centres of excellence.
Investment and Financial Requirements
The investment and financial requirements may vary depending on the type of Amul franchise registration you opt for. Here is a quick overview of the cost breakdown and profitability expectations.
- Breakdown of Costs
The table below showcases the various franchise costs that you will have to bear, depending on the type of parlour you opt for.
| Type of Amul Franchise Business | Franchise Costs |
| Amul Preferred Outlet (APO) | Refundable Security Deposit: ₹25,000Stall Cost: ₹80,000Equipment Cost: ₹80,000 (approximately) Total Cost: ₹1,85,000 (approximately) |
| Amul Scooping Parlour Franchise | Refundable Security Deposit: ₹50,000Stall Cost: ₹3,00,000 (approximately)Equipment Cost: ₹1,50,000 (approximately) Total Cost: ₹5,00,000 (approximately) |
| Amul Railway Station Parlour | Refundable Security Deposit: ₹1,00,000Stall Cost: ₹2,50,000 to ₹4,00,000 (approximately)Equipment Cost: ₹50,000 (approximately) Total Cost: ₹4,00,000 to ₹5,50,000 (approximately) |
| Amul Parlour at a Centre of Excellence (COE) | Refundable Security Deposit: ₹50,000Stall Cost: ₹2,50,000 to ₹4,00,000 (approximately)Equipment Cost: ₹50,000 (approximately) Total Cost: ₹3,50,000 to ₹5,00,000 (approximately) |
- Profitability and Return on Investment
An Amul franchise’s monthly income and profit per month are highly dependent on multiple factors, which include the location and number of footfalls. The monthly sales turnover, in most cases, may range anywhere from ₹5 lakh to ₹10 lakh.
According to Amul, the average profit margins on the maximum retail price (MRP) are as follows:
- Pouch Milk – 2.5%
- Milk Products – 10%
- Ice Cream – 20% (pre-packaged) and 50% (recipe-based)
With consistent sales and strategic placement, you can recover your investment within a few years. The no-royalty model and regular customer base ensure that most operating franchise costs are easily covered, which can further boost your profitability.
Steps to Apply for an Amul Franchise
If you are planning to enter into a franchise agreement with Amul, here is a step-by-step guide to take you through the registration process.
- Eligibility Criteria
Before you start the franchise registration process, make sure you meet the eligibility criteria. According to Amul, the only criteria you must meet is the area for the shop or stall.
The minimum shop size requirements for Amul Preferred Outlets, Amul Railway Parlours and Amul Kiosks at COEs are 100 to 150 square feet. Meanwhile, the minimum shop size requirement for Amul Ice Cream Scooping Parlours is 300 square feet.
Other than the shop size requirements, you must also ensure that you have adequate capital required for establishing an Amul dairy or milk franchise.
- Application Process
Now that you are aware of the eligibility criteria, let us now explore the franchise registration process. Here is a quick overview of how you can apply for an Amul franchise business.
- Step 1: Visit the official Amul website.
- Step 2: Navigate to the “Amul Parlours” section and you will find an online form for establishing an Amul parlour franchise.
- Step 3: Fill out the franchise enquiry form with your personal, financial and shop location details.
- Step 4: Attach scanned copies of all the specified documents required for the Amul franchise.
- Step 5: Submit the form and wait for a response from Amul’s regional office.
If you meet the eligibility criteria, an Amul representative will visit your site for inspection. Once your application is approved, you will be guided through franchise contract signing, the shop decor and signage requirements and the stock procurement process.
Alternatively, if you prefer to apply for franchise registration offline, all you need to do is call the official Amul franchise contact number – (022) 68526666. The channel care representative will guide you through the entire franchise registration process. You may also send an email with your Amul franchise business ideas to retail@amul.coop.
Support and Benefits Provided by Amul
Amul offers a plethora of franchise benefits to those who partner with the brand to establish their own business. Here is a quick overview of the comprehensive support that you are likely to enjoy for your business when you become a franchise partner of Amul.
- Amul will provide the complete design and specifications for setting up the outlet. The franchise guidelines concerning design and specifications will vary depending on the type of parlour you opt for. Additionally, the brand will also provide consultancy and contractor work inspection services to ensure that the outlet is as per the specifications.
- Amul will conduct a comprehensive assessment of the business potential of your proposed franchise business. You will also receive assistance in preparing a detailed business plan, which you can use to apply for SME loans and business loans.
- Amul will provide guidance for purchasing the various equipment you need for the parlour franchise. Depending on whether you opt for a milk franchise or an ice cream franchise, the equipment you need will vary. Amul will help you choose the right kind of equipment for your business.
- Amul will provide signage and glow signs according to its specifications to your franchise outlet free of cost.
- Amul will help with locally promoting your franchise establishment to help you get started on your business journey.
- Amul will also provide exclusive consumer offers that allow you to purchase its products at highly discounted prices. By leveraging these offers, you can significantly enhance your Amul franchise’s monthly income.
Legal and Compliance Considerations
Depending on the state and location of your small business franchise with Amul, you might have to follow certain rules and legal procedures. Before you apply for a business franchise with Amul, you must ensure that you are legally compliant with all of the rules below.
- Business Registration
Registering your franchise establishment under the appropriate structure gives your business a legal identity. A separate legal identity is essential to open a bank account, sign agreements and carry out operations smoothly. You can register your parlour franchise as a sole proprietorship, partnership, Limited Liability Partnership (LLP), private limited company or public limited company.
- Food Licence
As an Amul franchise owner, you will be selling various edible foods and products. To legally be able to sell such products in India, you must have an FSSAI license. This license is issued by the Food Safety and Standards Authority of India after a thorough inspection to ensure that food safety and hygiene standards are met. An FSSAI license is crucial for avoiding legal issues and penalties and gaining customer trust.
- Registration Under the Shops and Establishments Act
In India, commercial establishments are governed by the Shops and Establishments Act of the respective states. The act governs working hours, wages, employee rights and workplace conditions. Registering under the Shops and Establishments Act of your state is compulsory for operating in commercial spaces.
- GST Registration
If your turnover exceeds ₹40 lakh in a financial year, franchise registration under the Goods and Services Tax (GST) Act becomes mandatory. Once you are registered, you must start collecting GST on all the sales you make and comply with the various tax regulations. Even if your annual turnover is not likely to exceed ₹40 lakh in a financial year, you can still choose to voluntarily register your franchise establishment under GST.
- Trade Licence
A trade licence is issued by the local municipal authority and is mandatory to legally operate your business within the city limits. The license essentially confirms that your franchise establishment meets safety, health and civic requirements. You must apply for this before launching your Amul franchise to avoid penalties or forced closure by local authorities.
Challenges and Considerations
Although Amul offers some of the best franchise opportunities that can be highly rewarding, there are specific challenges that you must keep in mind.
- Location
For any franchise business in India, finding the right location is critical. Consider setting up your parlour franchise amidst high footfall areas, such as near schools, markets or transport hubs. This way, you can attract a large number of customers and boost your Amul franchise’s profit per month. Choosing a poorly located outlet with low footfalls may lead to low sales and reduced profits.
- Perishable Goods
As an Amul franchise owner, you will be selling milk, dairy and other food products, which are highly perishable. Furthermore, they require consistent refrigeration to avoid spoilage. Managing these perishable goods can be highly challenging and requires effective strategies like regular inventory monitoring and stock rotation to prevent waste and ensure customers always get fresh and safe products.
- Reliable Staff
Managing the day-to-day operations by yourself may not always be feasible. Therefore, it is important to hire reliable staff who can handle various aspects of the business. The staff must be trained in customer service, product handling and basic hygiene. Trustworthy employees ensure smooth operations, reduce the risk of theft or mismanagement and help maintain consistent service quality in your absence.
- Competition
While Amul has strong brand recognition, local competitors may offer lower prices or regional favourites that appeal to customers. To succeed in the long run, you must focus on customer engagement, product variety and promotions to stay competitive, especially in locations with multiple dairy franchises or established ice cream outlets.
- Cleanliness
As you would be dealing in food and edible products, your Amul franchise outlet must maintain high standards of hygiene and service at all times. A single instance of poor cleanliness or rude behaviour can drive customers away and harm your local reputation. You must ensure that you clean the premises regularly, provide courteous service and resolve complaints quickly to build a loyal and satisfied customer base.
Conclusion
If you are looking to set up a small franchise business, Amul offers some of the best solutions. Starting an Amul parlour franchise in 2025 can be a smart and profitable business decision, especially with India’s growing demand for quality dairy products.
With a well-established brand name, minimal investment requirements and strong operational support, Amul offers the best small franchise opportunities in India. By following the steps mentioned in this franchise guide, you can set yourself up for a rewarding entrepreneurial journey backed by one of India’s most trusted brands.
