Mother Dairy Franchise vs. Amul Franchise: Which Dairy Giant Wins for Startups in 2025?
At Startup Authority, we empower entrepreneurs with the insights they need to launch and scale successfully. India’s dairy industry, projected to reach $36 billion by 2025, presents lucrative opportunities for business owners. Two industry giants dominate the franchise landscape: Mother Dairy and Amul. Both offer brand recognition, steady demand, and strong profit potential—but which one is the better fit for your startup?
In this deep-dive analysis, we compare Mother Dairy and Amul franchises across key factors like investment, profitability, support, and market presence. Let’s break it down to help you decide which dairy powerhouse aligns with your business goals.
The Dairy Landscape: Why Mother Dairy and Amul Matter
India’s love for dairy is unmatched—milk, curd, and ghee are household staples.
- Mother Dairy was founded in 1974 under the National Dairy Development Board (NDDB), while
- Amul began in 1946 as the Gujarat Cooperative Milk Marketing Federation (GCMMF).
Both leverage cooperative models, sourcing milk directly from farmers to ensure quality and efficiency. However, their franchise models differ, impacting potential success.
Investment Breakdown: Counting the Costs
Starting a franchise requires capital. Here’s how the two brands compare:
| Feature | Mother Dairy Franchise | Amul Franchise |
|---|---|---|
| Kiosk/Booth | ₹2-5 lakhs (includes setup, security deposit ₹50,000-₹1 lakh, and initial stock) | ₹2-5 lakhs (₹25,000-₹50,000 refundable deposit, ₹1-2 lakhs for renovation/equipment) |
| Retail Shop | ₹5-10 lakhs (larger space, equipment like freezers) | N/A |
| Distributorship | ₹10-15 lakhs (vehicles, cold storage, broader inventory) | N/A |
| Ice Cream Scooping Parlour | N/A | ₹5-6 lakhs (higher setup costs for premium offerings) |
| Franchise Fee | No Franchise Fee | No Franchise Fee |
| Hidden Costs | Rent, staff salaries, and working capital may vary by location | Electricity for refrigeration, staff wages, and location-based expenses |
Winner: A tie on small investments, but Amul’s lower entry point (₹2-6 lakhs) makes it more accessible for lean startups. Mother Dairy’s higher distributorship option is better for scaling.
Profit Potential: Where’s the Money?
| Feature | Mother Dairy Franchise | Amul Franchise |
| Milk Margins | 5-10% | 2.5% |
| Value-Added Products | Up to 20% (ice cream, ghee) | 10% on dairy products, 20% on ice cream, 50% on recipe-based items (shakes, pizzas) |
| Earnings (Monthly) | ₹50,000-₹2 lakhs | ₹30,000-₹1.5 lakhs (kiosks); parlours can hit ₹5-10 lakhs revenue (not profit) |
| ROI Timeline | 12-24 months | 12-18 months (longer for parlours) |
| Market Edge | Strong in North India | Nationwide appeal |
🏆 Winner: Amul’s diverse margins (especially 50% on parlour items) make it the better choice in youth-centric locations. Mother Dairy’s stronghold in milk-centric markets makes it more stable but with a lower profit ceiling.
Support Systems: Who’s Got Your Back?
| Feature | Mother Dairy Franchise | Amul Franchise |
| Training | Hands-on operations guidance | Extensive onboarding, especially for parlours |
| Supply Chain | Reliable, but rural outlets may face occasional delays | Strong nationwide distribution network |
| Marketing | Strong in North India, but self-marketing is essential | National campaigns (e.g., “Amul Doodh Peeta Hai India”) |
| Perk | No strict location rules—you choose the setup spot | Equipment subsidies and signage support |
🏆 Winner: Amul’s marketing muscle and supply chain strength make it superior for first-time entrepreneurs.
Market Presence: Brand Power Play
| Feature | Mother Dairy | Amul |
|---|---|---|
| Brand Strength | Dominant in North India | Pan-India giant |
| Best For | Daily dairy consumers | Impulse buyers (ice cream, chocolates) |
| Market Weakness | Limited in South & West India | Faces urban competition in ice cream |
🏆 Winner: Amul’s pan-India reach makes it more versatile. However, Mother Dairy dominates North India, making it the better choice in that region.
Challenges to Watch Out For
Mother Dairy Franchise
Seasonal demand fluctuations (milk peaks in summer).
High competition from local dairies and Amul in non-core regions.
Supply chain issues in rural locations.
Amul Franchise
Thin milk margins (2.5%)—profits depend on premium products.
Urban parlours face strong competition from Kwality Walls, Naturals, and global brands.
High electricity costs for refrigeration.
Which Franchise Fits Your Startup Vision?
✅ Choose Mother Dairy If: You’re in North India, have ₹5-10 lakhs, and want a stable, milk-focused business.
✅ Choose Amul If: You’re anywhere in India, can start with ₹2-6 lakhs, and want a high-margin, diverse product range.
Final Verdict: Quality Content, Smart Choice
At Startup Authority, we prioritize real-world insights over fluff to help entrepreneurs make informed decisions. As of April 2025, Amul’s flexibility and national reach make it the better choice for most startups. However, if you’re in Mother Dairy’s stronghold and value premium brand perception, it’s a strong contender.