The demand for milk & milk-related products is very high all over the world & especially in India, as here most of the people are vegetarian.
In today’s post, I am going to tell you that why the Amul parlour business is far better than the dairy products business.
How to start Dairy Products Business
The dairy products business is a very complex work in which a shopkeeper needs to manage and maintain many products in his/her stock.
To start this business a person needs:
1. Rent Shop
Because this business will cover many products like:
- Milk
- Buttermilk
- Curd
- Paneer
- Khoya/Mawa
So, a person will need a decent size shop to place these products.
If the shop is in a posh area or in a location where too many people visit to show then it’s excellent.
But rent of this kind of shop can go very high depending upon the city.
2. Purchase Utensils & Machines
To store dairy products, a person will need many utensils which include big bowls, buckets, measuring vessels, milk cans, etc.
Along with this, a person will have to purchase butter & mawa making machines which makes buttermilk & mawa as well.
3. A Pro Worker
A person will need a professional worker in this business who can prepare curd, ghee, buttermilk, mawa & panner from the milk.
For customers, the taste & quality of dairy products matter, if you are not giving tasty and quality in your product then they will stop purchasing things from you.
So it’s always beneficial to have a professional person in the dairy products business.
4. Establish a Milk Source
Milk is the main thing that is required to make other milk products, so a person will need to establish a connection with dairy farmers for milk supply.
Most of the time, we have to go to farmers’ farms for milk.
5. Start Making Milk Products
Now, after doing all the work, a person needs to bring milk from farms, & then start making milk products.
After making milk products, that person needs to store them in a deep freezer because an open environment can damage the quality of the products.
Profit Margin
There is 25% to 100% profit margin in Diary products business.
| Product | Margin |
| Milk | 40% |
| Curd | 100% |
| Buttermilk | 100% – 150% |
| Ghee | 20% to 40% |
| Mawa | 50% |
For example, the average cost of curd is 30 rupees but it is sold at 55 rupees in the market, profit of 25 rupees.
The cost of buttermilk is 10/15 rupees per liter but it is sold at 30 – 35 rupees per liter.
Probably you are thinking that can a person earn a decent amount of money from this business?
The answer is yes but it requires hard work & patience.
Marketing of Dairy Products Business
Regarding the marketing of dairy products, you can read my post about the milk diary business in which I have shared many marketing ways which can double up your customer engagement.
Another thing which you can do is, start making contact with persons having marriage in their house, and tell them to use your products in marriage from milk to mawa.
This will help you to get some customers in the beginning.
Dairy Products Business Investment
Here is the table through which you can easily understand the investment in this business:
| Product | Price |
| Milk cans | 3,000 |
| Butter/Buttermilk making machine | 10,000 |
| Deep Freezer | 20,000 |
| Marketing cost | 10,000 |
| Total Investment | 43,000 |
Now, why I don’t like this business?
The reason is simple, if I am starting this business then I have to do everything like making curd, buttermilk, ghee and mawa making, etc. which itself is an art to learn.
So, if you are comfortable with this thing then I don’t think you will not like this business.
Is Dairy Products Business profitable?
Yes, this is a profitable business but point to remember that the profitability of any business depends upon the quantity of product sold.
For example, if a business has 100% profit margins but there are zero sales of their product in the market then shopkeepers will earn 0.
If a business has a low-profit margin but the demand for their product is very high then shopkeepers will earn a good amount of money.
So, at the end of the day the quantity sold MATTERS!!
Amul Parlour Business
Who doesn’t like Amul products, from their milk to chocolates.
Amul is a very reputed company and known for its quality, if you do frequent traveling from one city to another then probably you have seen Amul Parlour or shops.
Amul provides an opportunity to open their stall in your area for this you need to contact with their via their official website.
Benefits of Amul over Normal Dairy Products Business
Here are the reasons which will tell you that why I find the Amul best:
1. Lots of Product Variety
Amul manufactures a variety of people which we daily use like milk, chocolates, shakes, ice creams, ghee, etc.
More variety means more customer engagement & indirectly more earnings.
It’s far better than a normal diary products shop where you are only limited to 5 things.
2. Long Product Life
If we are manually preparing curd, buttermilk, & other milk-related products then the life or expiry of these products is very short, almost 2 – 3 days, which is a very short time.
If the shopkeeper is not able to sell these manually prepared products in 2-3 days then these will lose their quality & become useless, making them risky for a human to eat & indirectly loss of the shopkeeper because now he has to throw these products in garbage.
While the same products from the Amul have more expiry time, which is a plus point for a shopkeeper because he has more time to sell the product.
3. No need for Marketing
Amul, the name is enough for people to know the quality of products.
When we start a normal dairy products shop then we need to invest a lot of money on advertising and marketing but it’s not with Amul.
Because Amul is a very old company & everybody in India knows about it.
Although we need to invest some money on advertisement which will help people to know that we have started Amul shop at any particular location.
4. No manual work
Normally dairy shop owners have to manually prepare all the products from milk but with Amul, a person doesn’t need to do any manual work.
As products are prepared logically and scientifically in Amul so we don’t need to concern about changing the taste of products i.e if we manually prepare curd then sometimes it tastes good & sometimes not but Amul has the advantage of providing the same taste.
5. Beautiful Furniture
Amul being a big brand provides their own uniquely designed furniture which looks appealing from outside and inside.
One more advantage of this furniture is that your shop can be easily visible from a long distance, which directly cut distraction from other shop keepers.
Profit Margin
For exact profit margins you can visit Amul official website and as per my knowledge the profit margin on their products vary from 2.5% to 20%.
One thing which is a disadvantage here is that the profit margin in Amul is lower than the normal dairy products business.
Which is Best?
Well, I have shared all the important points about both the business but if a person gives more importance to profit margin, then no doubt manual-based dairy products shop is the best option to choose than Amul parlour.
Can we start both together?
Many of you are thinking that can we start both the businesses together?
Well, no problem with this but one needs to check with Amul that they allow keeping other products than Amul company in one shop.
If they don’t have any problem then it’s really good, let me explain:
If we see around us, then we will find that most people don’t buy loose ghee available in the diary shop (ghee which is manually prepared from milk) rather than this they prefer packed ghee from a reputed company.
Amul also offers packed ghee which most of the people like to eat & so by selling Amul’s packed ghee we can increase our profits.
In the same way, there are many products which people prefer to buy in a packed condition not in loose, so the combination of both Amul & normal diary shop can work as per me.
Bonus Tip
The shelf life of dairy products is very less i.e some products expire in only 5 days.
Once expired we can’t sell them & most of the companies don’t take expired products back from their dealers, directly or indirectly it’s our loss of money.
So always remember to order less in starting because it’s our hard-earned money which we are investing in new business.
I have written many post on business ideas so make sure to check them.
Thanks 👍
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