Amul, India’s largest dairy cooperative, plans to take advantage of the current entrepreneurial spirit in India by offering franchises to aspiring businessmen and women. In the press release, the company stated “anyone with a very small capital base and good business acumen can become our franchisee. It requires very little investment and working capital.”
According to Amul, the franchisee business will have two models. The smaller Kiosk shop will cost approximately Rs. 2 lakh to set up, including a Rs. 25,000 brand deposit, Rs. 1 lakh on renovation, and around Rs. 75,000 on equipment. The larger Ice Cream Scooping Parlour will cost around Rs. 6 lakh, with a Rs. 50,000 brand deposit, renovations costs of Rs. 4 lakh, and equipment costs of Rs. 1.5 lakhs plus incidentals.
The franchisees are predict to make between Rs 5 to 10 lakh a month, although this is dependent on location as well. This money will largely come from sales commission, with Kiosk franchises granted under 20% for specific products. Ice Cream Scooping Parlours will avail up to 50% commission fees on some products, and will also have a large range of inventory.
This franchisee model will be run by Amul directly. They will either sell or rent out locations to potential franchisee owners. Franchisees need not pay any revenue or share royalties with the dairy giant. All details on this opportunity are available at the Amul site here.
Amul are not the first company to make use of the individual entrepreneurial spirit in this way. Large multinational corporations like McDonald’s also run their company in this manner. In fact, according to their financial reports, McDonald’s actually has a better rate of return on profits in franchisee outlets rather than their owned-and-managed restaurants.