Starting a Mother Dairy business can be a promising opportunity for generating side income, given the brand's strong presence and reputation in the Indian dairy industry. Mother Dairy, a subsidiary of the National Dairy Development Board (NDDB) since 1974, offers various franchise models to suit different investment levels and business goals. Here’s a comprehensive guide on how to start a Mother Dairy business:

Initial Investment and Franchise Fees

The initial investment for a Mother Dairy franchise typically ranges from ₹5 lakh to ₹10 lakh. This includes a franchise fee, which is usually between ₹50,000 to ₹1 lakh and may be refundable as a security deposit. The remaining amount covers the costs of setting up the booth or retail outlet, including equipment like refrigerators, deep freezers, interior work, and storage facilities. Some sources suggest the investment could range from ₹5 lakhs to ₹20 lakhs depending on the size, location, and products offered. Some sources mention that there are no royalty fees.

Franchise Models

Mother Dairy offers multiple franchise models:

• Milk Booths: These are smaller setups that primarily sell milk and basic dairy products like curd, paneer, and butter. This model requires a lower investment and is suitable for those starting with limited capital.
• Retail Outlets: These are larger stores that offer a wider range of Mother Dairy products, including milk, ice cream, frozen foods, ghee, and oils.
• Safal Stores: These focus on selling fresh fruits, vegetables, and other farm produce under the 'Safal' brand.

Space Requirements

The space required for a Mother Dairy franchise varies depending on the chosen model. A relatively small space of about 250-500 sq. ft. is usually sufficient. However, some sources suggest that a Mother Dairy franchise store typically requires around 150 square feet, while larger stores can be up to 500 square feet or more. Some sources say that 500-1000 sq ft is sufficient. The outlet should ideally be located on the ground floor in a residential area or a prominent location with high footfall, such as a market or residential society.

Documents Required

When applying for a Mother Dairy franchise, you will need to provide several documents:

• Identity Proof: Aadhar card, PAN card, driving license, or passport.
• Address Proof: Rental agreement or property ownership papers.
• Educational Qualification: A minimum of a 10th standard certificate is generally required.
• Photographs: Recent passport-size photographs.
• Financial Documents: Bank statements or financial statements to demonstrate financial stability.
• Shop Documents: Registry, electricity bill, conveyance deed (if owned), or rental/lease agreement (if rented).
• Business Registrations: FSSAI registration and GST number.
• No Objection Certificate (NOC): As applicable.
• Business Plan: A business plan outlining your strategy for operating the booth.

How to Apply

To apply for a Mother Dairy franchise:

1. Online Application: Visit the official Mother Dairy website and go to the "Franchise" or "Business Partners" section. Fill out the application form with the required details, including your name, contact information, proposed location, and investment capacity.
2. Offline Application: Alternatively, you can visit a Mother Dairy regional office to collect a physical application form. After filling it out, submit it along with the required documents.

Profit Margin and Return on Investment (ROI)

The profit margin for a Mother Dairy franchise can vary depending on the products sold and the location of the store.

• Dairy Products: Expect a profit margin of 20-25%.
• Ice Creams and Oils: Profit margins can be around 25-30%.
• Fruits and Vegetables (Safal): Profit margins can range from 10-15% or even higher on specific items.
• Milk Booths: Commission of ₹0.30-₹0.35 per liter of milk sold, plus 5% on other dairy products. Some booths offer a guaranteed income of around ₹11,000 per month.

With a solid strategy, monthly revenue can reach ₹3-₹6 lakh. The break-even period is estimated to be between 1.5 to 3 years, depending on the location, sales volume, and product mix. Some sources claim ROI can be expected after 1.5 to 2 years of business.

Additional Factors

• Eligibility: Individuals should be at least 21 years old and have completed 10th standard education.
• Training and Support: Mother Dairy provides training and support to franchisees to help them set up and operate their stores effectively. This includes product knowledge, customer service, and inventory management.
• Exclusivity: Franchise agreements generally require you to exclusively sell Mother Dairy products to maintain brand consistency and quality standards.