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.