Why Investing In Dairy Franchise Can Be Profitable

Sneha Santra
Sneha Santra Jul 24 2018 - 2 min read
Why Investing In Dairy Franchise Can Be Profitable
India Is One Of The Largest Consumers Of Milk And Dairy Products With An Estimated Industry Size Of Around USD 70 Billion.

The growth story in India is driven largely by small-scale dairy farmers.  The Indian dairy market is amongst the largest and fastest growing markets in the world. Growing private sector investment in dairy farming, supply chain, processing facilities and backward integration is providing further impetus to India’s dairy industry. Read on to know why it is profitable to invest in Dairy Franchise.

Rising Demand

Demand for dairy products in India is likely to grow significantly in the coming years, driven by more consumers, higher incomes and greater interest in nutrition. The demand for quality dairy products is rising and production is also rising in many developing countries. Consumption of processed and packaged dairy products is increasing in urban areas. Because of the increasing competition from the private sector, several national and international brands have entered the market and expanded consumers’ expectation of quality.

Health and wellness

Consumer demand for healthy products is growing and this is being reflected in spending patterns. According to a recent study, 74% of consumers pay close attention to the nutritional content of the foods they purchase. Today’s people are willing to pay up to 10 per cent more for a healthy version of a product. The dairy sector is well positioned to capitalise on this trend, due to the increasing use of protein for satiety, training and weight management. Furthermore, there is a growing demand for ‘functional foods’ which carry specific health benefits. Dairy is playing a key role in this sector, through products such as probiotic yoghurts and cholesterol-lowering butters.

Amul’s Success Story

Read here: Amul Offers Business Model For Entrepreneurs To Earn Rs 5-10L Monthly

Amul’s success had a huge impact on Indian Dairy Industry. Amul is now making way for entrepreneurs by offering franchisees without any royalty or revenue share. The interested person would, however, have to invest something in between Rs 1.5 lakh to Rs 6 lakh for setting up of the shop. The owner can make from Rs 5 lakh to Rs 10 lakh per month through these franchisees. This will not only provide thriving business opportunities for aspiring entrepreneurs but will also boost up the Indian Dairy Sector.

Here is what R.S. Sodhi, Managing Director, GCMMF (Amul) says about the trends, important factors and success mantras for a successful food retail business:

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