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June 6, 2025

Amul Franchise Cost in India: Everything You Need to Know Before Starting

If you’re looking to step into the world of business with a trusted Indian brand, the Amul franchise might just be your golden opportunity. Known for its iconic dairy products and massive consumer trust, Amul offers franchise models that are both affordable and promising for aspiring entrepreneurs across India.

Why Choose an Amul Franchise?

Amul Parlours are exclusive retail outlets that sell the entire range of Amul products — from milk, butter, and cheese to ice creams and baked snacks. These stores are commonly found in high-footfall areas such as railway stations, bus terminals, hospitals, markets, and near schools or colleges, ensuring steady customer traffic throughout the day.

One of the biggest advantages? Amul doesn’t charge any royalty or revenue-sharing fees. That means whatever you earn after deducting your costs is yours to keep.

Amul Franchise Investment Cost Breakdown

Depending on the format and location, your investment in an Amul franchise will vary. Here’s a look at the two popular models:

1. Amul Preferred Outlet / Kiosk / Railway Parlour

  • Space Required: 100–150 sq. ft (either owned or rented)
  • Total Investment: Around ₹2 Lakhs
    • Refundable brand security: ₹25,000
    • Interior setup and renovation: ₹1,00,000 (approx.)
    • Equipment cost: ₹70,000 (approx.)
  • Return on MRP:
    • Pouch Milk: 2.5%
    • Milk Products: 10%
    • Ice Creams: 20%

This format is perfect for those looking to start with a small capital and a compact outlet in a high-traffic zone.

2. Amul Ice Cream Scooping Parlour

  • Space Required: More than 300 sq. ft
  • Total Investment: Around ₹6 Lakhs
    • Brand security (non-refundable): ₹50,000
    • Renovation & interiors: ₹4,00,000 (approx.)
    • Equipment: ₹1,50,000 (approx.)
  • Return on MRP:
    • Recipe-based products like scoops, sundaes, floats, and baked goods: Up to 50%
    • Pre-packed ice creams: Around 20%
    • Other Amul products: 10%

These parlours offer a more elaborate setup and higher margins, especially on freshly prepared items like sundaes, sandwiches, and beverages such as Amul Pro hot chocolate.

What You’ll Need to Get Started

  • A prebuilt shop in a well-located area — owned or rented
  • Initial capital ranging between ₹1.5 to ₹6 lakhs (depending on format)
  • Basic documentation: PAN card, Aadhaar, GST certificate, shop lease or ownership proof, etc.
  • Monthly working capital to manage inventory and expenses (₹5 to ₹10 lakhs turnover potential per month)
  • Equipment like visi-coolers and branded deep freezers (must be Amul-branded)

Support from Amul

Amul provides solid backend support to its franchisees:

  • Supply of stock via wholesale dealers
  • Free brand signage
  • Assistance with store inauguration
  • Attractive consumer offers
  • Equipment purchase support (for branded cooling units)

All operational expenses — from electricity and staffing to rentals — are borne by the franchisee, but since there are no ongoing royalty payments, the margins can still be very healthy.

Is the Amul Franchise Worth It?

Absolutely — especially if you’re looking for a low-risk business backed by a household name. With relatively low startup costs and high demand for dairy and frozen products, Amul franchises continue to be a preferred choice for first-time business owners as well as seasoned entrepreneurs.

Whether you opt for a compact kiosk or a larger scooping parlour, investing in an Amul franchise is a smart move — offering solid returns, a proven business model, and the power of a brand every Indian trusts.

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