Supermarkets are like heaven for shoppers as they get a variety of products under one roof. It makes life less chaotic. A supermarket is not a new concept to the people. They have existed for many years now.

A supermarket offers a wide range of products to choose from. Located at the corner of the street, the supermarket is like a one-stop-shop for all the basic necessities.

There are many supermarkets in India today. The oldest of these is the Nilgiris Dairy Farm. The company has supply chains in various cities in Southern India. It is a household name in that part of the country.

They offer products under their own brand name at a pocket friendly rate.

History of Nilgiris 1905

Nilgiris Dairy Farm is India’s first organized chain of supermarkets. The birth of the store dates back to 1905. Arumuga Mudaliar, a resident of Erode district in Tamil Nadu is the founder of Nilgiris Dairy Farms. He used to collect mails for the British in the pre independent India. He delivered the mails in the hill stations of Ooty and Coonoor. During his trips between the cities, Arumuga Mudaliar was always requested to bring back essential items like dairy products when he returned from his trips.

In 1905, Arumuga Mudaliar purchased the butter business from an Englishman in Vannarpet and started his store. In the year 1936, the store was shifted Brigade Road in the city of Bangalore. The items available at the shop were milk, dairy products, bakery items, and chocolates.

A dairy farm was set up in Erode in the year 1962. The products sold at the store were made from the milk from the dairy farm.

 Arumugam’s son Chenniappan expanded the store further. He set up a small store in Bangalore to sell the products made by the company. The store was soon converted into a fully functional supermarket. Even though Chenniappan was inspired by the supermarkets of the US and Europe, Nilgiris was expanded according to the culture locally popular. The supermarket soon multiplied in number. From 1 store in Bangalore to 3 more stores in Erode, Chennai, and Coimbatore.

In November 2014 the Future Group purchased 98% shares of Nilgiris Dairy Farm. It is a fully owned subsidiary of  the Future Group.  

Nilgiris 1905 Franchise USP

Nilgiris Dairy Farm has made a place for itself in the lives of its customers since 1905. India,s oldest supermarket chain is still one of the most reputed companies in the business. Nilgiris offers a variety of products which also include the company in house products.

It is the only supermarket in India that offers a wide variety of in house produces to its customers. The company produces milk, and milk products like ghee, butter, cheese, flavored yogurt, paneer, and flavored milk. They also make and sell baked items like cake, cookies, and bread. The company also sells dals, rice, millets, and atta under its brand name.

The company has adapted and changed with time. It has been updating and upgrading itself with the change in time and preference of the customers. The customers who come to Nilgiris for shopping always leave happy and satisfied. The company has built a loyal customer base for itself over the years.

With the takeover by the Future Group, the company has more capital in hand and is expanding speedily. The company’s customers span from different generations. The company has created a brand value for itself step by step in over 114 years.

Benefits of owning a Nilgiris 1905 Franchise

Old Company

Nilgiris Dairy Farm was established in 1905 in India. The company has been providing milk and other dairy products to the customers ever since. It is a brand that has been known for generations.

India’s First Supermarket

Nilgiris Dairy Farm is India’s first organized chain of supermarkets. The first supermarket outlet opened in 1971 in Bangalore.

Presence in South India

Nilgiris is present in 4 states in the southern part of India. The company is expanding rapidly and opening new branches in South India. Today, the company has more than 170 stores located in various parts of the country.

Products

Nilgiris sells milk, dairy products, bakery items, and rice and grocery items. Milk and dairy products like ghee, butter, curd, and cheese are produced at the dairy farm owned by the company. The company also sells baked items like bread, buns, bar cakes, cookies, and cakes. These items are in house production of the company. It also sells dal, atta, millets, dry fruits and spices under the company’s name.

Achievement

India is the largest milk producer in the world. Nilgiris is the 3rd largest milk producer in the country. The company’s annual growth rate in the production of milk is 5% and 10% to 15% for other milk products like curd, ghee, butter, etc.

ISO Certified

Nilgiris is an ISO 22000:2005 certified company.

Quality and price

The company offers products at a reasonable rate to its customers. It never supplies inferior quality products to its customers. Due to quality and price, the company has loyal customers who always return for more. 

Location

Nilgiris Stores are located at all the major points in the states of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala. The stores are very easy to locate.

Future Group

Nilgiris Dairy Farm was recently taken over by the Future Group. It is a full subsidiary of the company. Future Group is prominent in the Indian retail and fashion sector.

What are the requirements to start a Nilgiris 1905 Franchise in India?

Area

The minimum area required to start a Nilgiris store is 2000 square feet. The store must be located at a prime location. The outlet must be visible to the public. It has to be located on the ground floor for free and easy movement of shopping carts.

Skills or Experience

Niligiris 1905 franchise partner does not need any specific skills or experience to start a store.  If one has experience in running a supermarket outlet, it will be helpful. The franchise partner has to look after the running of the outlet. He has to manage the staff.

Regions of Operation

Nilgiris 1905 has its outlets in 4 states in India. In Andhra Pradesh, the stores are located in Secundrabad and Tirupathi. In Karnataka, the stores are located in Bengaluru, Coorg, Hassan, Mangalore, Raichur and Udupi.

In Kerala, the stores are located in Ernakulam, Trivandrum, and Trivendrum. In Tamil Nadu, the stores are located in Chengalpet, Chennai, Chidambaram, Coimbatore, Cuddalore, Dindigul, Hosur, Kanchipuram, Karaikal, Madurai, Mylapore, Navalur, Parthipattu, Pondicherry, T.Nagar, Thanjavur, Thirunelveli, Thiruvallur, Thiruvannamalai and Trichy. Nilgiris 1905 is expanding rapidly in Andhra Pradesh. It wants to focus on Tier 2 and Tier 3 cities.  The company wants to expand in rest of South India currently.  

Training

The company provides complete support in site selection to open the store. It also helps in setting up the interiors of the store and its construction. A complete operating manual is provided to run and manage the store. The training is provided at the head office of the company.

Complete field assistance is also provided by Nilgiris 1905. The head office gives expert guidance to the franchisee to open the store. The company also helps with the marketing and advertisement of the new store. The company helps in the distribution of pamphlets. The company also provides the franchise partner with the latest IT systems. The latest hardware and software are also provided.

Staff Requirement

Manpower of 10 to 12 people is required to run a Nilgiris 1905 store smoothly. There is a requirement of 2 to 3 cashiers to look after the billing of the products. A store manager is required to look after the management of staff and other works of the store. 5 to 7 people need to stock up aisles and to help customers in finding the products they need.

One guard is needed at the entrance of the store. The staff is trained by the company about the products, how to store inventory, how to stock up the aisles, how to handle the cash etc. The staff members must be friendly and help customers.

How much does a Nilgiris 1905 Franchise cost?

Investment

An investment of INR 20 lakh to INR 25 lakh is required to start a franchise outlet of Nilgiris 1905. The investment does not include the cost of the land required to open the store. If the proposed area is rented or on a lease, then the cost required for the area will vary for different localities, cities, and states.

The company provides the franchise partner with the stock inventory, cashier machines, barcode scanners, freezer and other necessary pieces of equipment required in the store.

Nilgiris charges a franchise fee of INR 250 per square feet from the fourth year of business.

Years of bond and profitability

The expected rate of return on investment is 20%. The expected payback period is 3 to 4 years. The company signs a standard franchise agreement with the franchisee. The contract can be renewed on expiration. Renewal depends on the discretion of the company.

Conclusion

Nilgiris Dairy Farm has been selling milk and dairy products in South India since 1905. For the last 114 years, the company has sold the best quality products to its customers. The company with its head office in Whitefield, Bangalore is India’s first-ever supermarket chain. The company has a customer base ranging from the older generation to the younger generation.

The store sells products keeping the needs of all its customers in mind. For its younger customers, the company has introduced various flavors of milk and yogurts. The company aims to provide quality products to its customers. The company wants to provide unprecedented quality products that are affordable and the customers have a variety to choose from.

In today’s time when new supermarkets open and close quickly, Nilgiris has maintained its name by evolving with the change in time.

One does not need any special skills or experience to start a franchise of Nilgiris Dairy Farm. The minimum area required to start a Nilgiris store is 2000 square feet. The store should be visible to the customers. The company has a strong network of stores in Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala. It aims to open more stores in these states and other states of South India.

All the necessary training and types of equipment needed to run a franchise unit are provided by the company. The company is always there to help and guide its partners.

An investment of INR 20 lakh to INR 25 lakh is required to start a store. The company charges a franchise fee of INR 250 per square feet from the fourth year of business. The expected rate of return on investment is 20%. The expected payback period is 3 to 4 years.

Nilgiris is a brand name that one looks forward to associating with.