Amul is one of India’s most trusted and widely consumed dairy brands. Established in 1946 and managed by the Gujarat Cooperative Milk Marketing Federation (GCMMF), Amul has become a household name for milk, butter, ice cream, cheese, curd, chocolates, and frozen foods. In a city like Mumbai—where population density, daily consumption, and brand trust are extremely high—many entrepreneurs look at the Amul franchise cost in Mumbai as a low-risk and stable business option. This article explains Amul’s franchise models, exact investment range, earnings potential, and whether this opportunity makes sense in Mumbai in 2025.
About the Amul Franchise Concept
Amul’s franchise system is very different from private brands. It is designed to promote self-employment and wide product availability rather than extract high franchise fees. Amul does not charge royalty, does not take revenue share, and keeps entry costs relatively low. Franchise partners earn through fixed margins on products sold. Because of this, Amul franchises are considered among the safest and most transparent franchise businesses in India.
Amul Franchise Models Available in Mumbai
Amul offers multiple outlet formats, and Mumbai supports almost all of them due to high footfall and demand.
Common formats include:
- Amul Kiosk / Railway & Street Booth
- Amul Preferred Outlet (APO)
- Amul Ice Cream Parlour
- Amul Milk Distribution Point
Each format has a different investment level and earning potential.
Amul Kiosk Franchise Cost in Mumbai
This is the smallest and most common format, suitable for streets, near stations, offices, and residential areas.
Estimated total investment ranges between ₹2 lakh and ₹4 lakh.
This includes a refundable security deposit of around ₹25,000, basic kiosk setup, freezer, branding, and initial stock. Space requirement is minimal, usually 50–100 sq ft.
Amul Preferred Outlet (APO) Franchise Cost in Mumbai
APOs are larger neighborhood stores selling the full Amul product range including fresh milk, frozen foods, and packaged items. Estimated total investment ranges between ₹6 lakh and ₹10 lakh.
This includes deposit, refrigeration units, racks, billing counter, branding, and opening inventory. Space requirement is typically 150–300 sq ft. APOs work very well in housing societies, market roads, and mixed residential-commercial areas in Mumbai.
Amul Ice Cream Parlour Franchise Cost in Mumbai
This format focuses on ice creams, sundaes, milkshakes, and frozen desserts.
Estimated total investment ranges between ₹6 lakh and ₹15 lakh, depending on location and interior quality.
Mall locations and premium high-street areas fall toward the higher end. Space requirement is usually 150–300 sq ft.
Detailed Cost Breakdown (Average APO / Parlour)
- Refundable security deposit: ₹25,000 – ₹50,000
- Freezers & refrigeration: ₹2 lakh – ₹4 lakh
- Interior & branding: ₹1.5 lakh – ₹3 lakh
- Initial stock & consumables: ₹1.5 lakh – ₹3 lakh
- Licenses & utilities: ₹50,000 – ₹1 lakh
- Working capital: ₹1 lakh – ₹2 lakh
- Rental deposit is extra and varies widely in Mumbai.
Royalty & Profit Sharing
Amul charges zero royalty and no revenue share.
Franchise partners earn fixed margins, usually:
- Milk & basic dairy products: 2% – 6%
- Ice creams & frozen products: 15% – 25%
- Value-added products (cheese, chocolates, beverages): 8% – 20%
- Margins are predefined and transparent.
Profit Margin & Monthly Earnings in Mumbai
Mumbai’s high daily consumption makes Amul outlets volume-driven.
Typical performance figures:
- Daily sales: ₹8,000 – ₹35,000
- Monthly turnover: ₹2.5 lakh – ₹10 lakh+
- Monthly net profit: ₹25,000 – ₹1.2 lakh
- Ice cream parlours in busy areas can earn more during summer months. Break-even is often achieved within 6 to 12 months.
Space & Location Advantage in Mumbai
Amul outlets work even in very small spaces, which is a major advantage in Mumbai where rent is high. Locations near railway stations, hospitals, schools, offices, and housing societies perform exceptionally well. Continuous footfall matters more than décor.
Support Provided by Amul
Amul provides branding, product supply, freezer support, marketing material, and operational guidance. There is no interference in daily operations as long as brand rules are followed. Supply reliability is one of Amul’s biggest strengths.
Who Should Invest in an Amul Franchise in Mumbai?
This business is ideal for:
- Small investors
- First-time entrepreneurs
- Shop owners
- Retired professionals
- Family-run businesses
- People looking for steady daily income with low risk
It is not meant for those expecting luxury branding or very high margins.
Risks & Challenges
Low margins on milk products, space rental cost in Mumbai, electricity expenses for freezers, and competition from local dairies are key challenges. However, Amul’s trust and pricing power reduce customer acquisition risk.
How to Apply for Amul Franchise in Mumbai
- Decide the outlet format
- Arrange a small shop or kiosk space
- Prepare basic documents and investment details
- Submit franchise request
- Deposit payment and agreement
- Store setup and stock delivery
- Start operations
Conclusion
An Amul franchise in Mumbai is one of the lowest-risk and most stable small business options available in 2025. With investment starting from ₹2 lakh and going up to ₹15 lakh, zero royalty, strong brand trust, and daily demand, it is ideal for entrepreneurs seeking predictable income rather than aggressive expansion. In a city like Mumbai, where dairy consumption never stops, a well-located Amul outlet can remain profitable for many years with disciplined operations.
Meet Suhas Harshe, a financial advisor committed to assisting people and businesses in confidently understanding and managing the complexities of the financial world. Suhas has shared his knowledge on various topics like business, investment strategies, optimizing taxes, and promoting financial well-being through articles in InvestmentDose.com
