If you live anywhere in Delhi or NCR region, then you must have definitely come across a grey colored Mother Dairy franchise booth quite a few times. For most people, Mother Dairy is an essential part of their day to day lives. Whether you pick up the milk packets from the booth or get it hand-delivered at home, Mother Dairy has been in service since 1974. The company manufactures markets and sells milk and milk products including curd, ice cream, paneer, cheese and ghee. It is trusted brand since many years.
History of Mother Dairy
Mother Dairy was created under the Operation Flood Initiative, the world’s largest program for dairy development with the aim of making India a milk sufficient nation. The company was commissioned in 1974. It is a subsidiary of the National Dairy Development Board. Mother Dairy sources most of the milk from dairy cooperatives and village level farmer centric organizations. Since its inception during the White Revolution the company has grown tremendously. The company initially focused only in Delhi and NCR region but now they have expanded all over India.
Mother Dairy’s USP
One of the pioneers of the White Revolution, Mother Dairy has created a place for itself in the dairy industry. It has been transforming the lives of rural dairy farmers through its work. The company ensures that all its customers get fresh produce. Over the years the customers have become a part of the ever-growing Mother dairy family.
The brand has expanded in North, South, East, and West India providing milk and milk products many households. It is one of the few companies to own a large scale distribution channel in India. Quality of the milk is of utmost importance to the company and hence, they have installed the latest technology machines to ensure high product quality, reliability, and safety. The company over the years has become a brand in itself and every customer swears by its products.
Benefits of owning a Mother Dairy franchise
Ever evolving
Mother Dairy started as a part of an initiative to make India a milk sufficient nation. The company in the beginning only supplied milk to its customers. Over the years the company has evolved keeping the needs of its customers in mind.
The company not only supplies milk but now it also produces various milk products. The company makes cheese in different packaging styles. They supply curd in various flavors. They also produce paneer. Mother Dairy is not just limited to one product. The company also makes ice cream and butter.
Giving back to the society
Mother Dairy procures most of its milk for production from the local dairy farmers, dairy cooperative societies and village level farmer-centric organizations. They empower the farmers and milk producers through the process that is equitable. A significant portion of the company’s income is put back into the value chain to support and maintain the system the company upholds.
Privately owned subsidy
Mother dairy is a subsidiary of the National Dairy Development Board. But it is a private company. The company’s full name is Mother Dairy Fruits and Vegetables private Limited.
Best quality products
Since the company procures milk from local farmers and societies, the milk it sells to its customers is always fresh. Mother Dairy has production units in many places in India. They use state of the art technology to process milk and produce milk products. The quality is never compromised.
In demand products
Mother Dairy supplies perishable goods. But that is not a bad thing. The products supplied by Mother Dairy are a daily need, essential products which are a necessity in every household. The products do not need to be stored in bulk. The sale of the products is quick as they are always in demand.
Brand value
Over the years Mother Dairy has created a name and place for itself in the dairy industry. Its goodwill is unparalleled. It is a brand which is known to both older people as well as the youth of today. It is a household name.
Location friendly
Mother Dairy outlets do not necessarily need to be in a busy area. They are more productive in residential areas.
ISO Certified
Mother Dairy is certified by ISO 9001:2008(QMS), ISO 22000:2005(FSMS), ISO 14001:2004(EMS) by National Dairy Development Board which means that the company provides best quality products. Mother Dairy is the only IS0 9001:2008 dairy in Eastern India honored with the International HACCP Certification on food safety.
What are the requirements to start a Mother Dairy franchise in India?
Area
The minimum area requirement to open a Mother Dairy outlet is 500 square feet of area. Residential area and ground floor would be more beneficial.
Skills or Experience
The vision of Mother Dairy is to provide quality food and beverages to consumers at affordable prices while ensuring fair returns to the producers. The company is looking for franchise partners who are willing to take initiative and maintain customer trust. They must provide the best service in the target area and uphold the brand name.
Regions of Operation
Mother Dairy has 1400 plus retail outlets and around 1000 exclusive Mother Dairy outlets in Delhi only. It also operates in NCR region. The company has its outlet in the state of Uttar Pradesh in the cities of Noida, Greater Noida and Ghaziabad. In Haryana the stores are located in Gurugram and Faridabad.
In Maharashtra the company supplies milk and milk products in the city of Nagpur. City of Sambalpur and Bhubaneswar in the state of Odisha also have Mother Dairy outlets. There are few outlets in other states in India. Mother Dairy milk is also available in Lucknow, Kanpur, Jaipur, Mumbai, Pune, Hyderabad, Chennai, Tirupathi. The company is rapidly expanding in all the cities in India.
Training
Mother Dairy provides detailed opening manuals to the franchisee. They also provide field assistance. There is a continuous managing support to make sure that the unit benefits as much as possible. The milk booth is also provided with all the latest IT systems so that the unit is always technically up to date. The company gives both online and offline training.
Staff Requirement
The number of staff required to run a Mother Dairy outlet is 1 person. The staff needs to provide the required products to the customers in a short span of time. He needs to be quick. He should greet customers pleasantly. He is trained by the company on how to operate token milk system.
How much does a Mother Dairy franchise cost?
Investment
An investment of INR 5 lakh to INR 10 lakh is required to open a Mother Dairy outlet. If you apply for multiple units then an investment of INR 1 crore to INR 2 crore is needed. The investment is INR 2 crore to INR 5 crore for outlets in a particular region. The cost to open outlets in various parts of a state will be above INR 5 crores.
INR 50000 is the brand fees. The company does not charge any royalty fees.
The company provides with the setup for the milk vending machine (token milk).
All the latest IT systems are provided in the franchise unit to make it technically up to date.
The company also helps with promotions.
Years of bond and profitability
The company signs a standard franchise agreement. The franchise contract has life time validity. There is no to go through bundle of paperwork in every few years for renewal. The expected return rate on investment is 30%. 2 years is estimated as the period to break even. However the figure of Rate of Return on investment depends on locality, city and the marketing strategy.
Profitability explained through hypothetical example
Total investment done in a booth is INR 10 lakh.
Expenses incurred in a month
- Rent paid for a 500 Sq. feet of area = INR 50,000
- Salaries paid to 1 employee (Rs.10,000*1) = INR 10,000
- Miscellaneous expenses = INR 10,000
Total expenses incurred in a month = INR 70,000
Income earned in a month
- Average milk sold in a day = 2500 liter
- Average revenue per liter = INR 50
- Total income per packet = INR 1
- Income from other products = INR 1300
- Total income per day = (INR 2500 + INR 1300) = INR 3800
- Total income per month = (INR 3800*30) = INR 114000
- Total profit per month = (INR 114000 – INR 70000) = INR 44000
According to the total profit it will take 2 years to earn back your entire investment. Return on investment depends on the location of your Mother Dairy booth.
Conclusion
Since the beginning, Mother Dairy has been spreading smile on many faces. Mother Dairy is a pioneer in the dairy industry. Over the years, Mother Dairy has lived up to its tag line “Happy Food, Happy People”. It has been serving a quality product since 1974. The business model is profitable for both the milk selling farmers as well as the franchise owners. It is one of the most sought after companies in the world of franchising.
Mother Dairy has an understanding of the taste and preferences of its customers. Over the years the company has become a like a family member for most of its customers. The company deals not only in milk but also sells a variety of milk products like ghee, butter, cheese, ice cream, flavored milk, curd to name a few. The company has been expanding rapidly.
Today, the Mother Dairy dominates 66% of the dairy market in the city of Delhi alone. The company has also ventured into other avenues like selling fruits and vegetables, oil but even today Mother Dairy is famous as the milk factory in India. The company has a loyal customer base which is only growing upward.
Where many company competitors have been forced to shut down, Mother Dairy has managed to keep up with the change in taste and preferences of people. They provide both quality and quantity products.
The total amount required to start a Mother Dairy outlet is INR 5 lakh to INR 10 lakh. The brand fees that the company charge is INR 50000. There is no royalty fee to be paid.
An area of 500 square feet is required to open an outlet. The area should preferably be in a residential area and located on the ground floor.
With the company’s goodwill and brand value, you can expect to earn back your entire investment in about 2 years. It is a very profitable business. The company provides all the required assistance to set up and run an outlet. Each person involved with the company is like a part of the Mother Dairy family. The company supports all its franchisees in promoting the business and running it efficiently.