Mother Dairy Franchise Cost in India: Model, ROI, Requirements & Application Guide

Mother Dairy, a Government of India–backed subsidiary of NDDB, has been a household dairy brand since 1974. It’s widely recognized in the milk and dairy segment, especially across Delhi–NCR, with an expanding presence in other regions.

It offers several franchise formats, including Milk Booths, Retail Outlets, and Safal (fruit & vegetable) stores. These cater to varied investment levels and entrepreneurial ambitions.

💰 Investment & Cost Breakdown

Costs vary based on outlet type and location. Here’s a consolidated table:

Component	Milk Booth	Retail Outlet	Safal Store
Franchise Fee	₹50k–1 Lakh	₹50k–1 Lakh	₹1 Lakh
Setup & Infrastructure	₹2–5 Lakh	₹2–5 Lakh	Included* (Brand supports setup)
Security Deposit (refundable)	—	—	₹1 Lakh
Working Capital	₹1 Lakh	₹1 Lakh	₹1 Lakh
Total Investment	₹5–10 Lakh	₹5–10 Lakh	₹2–3 Lakh

*Work included for Safal outlets via AWPO partnership for ex-servicemen.

Space Requirements:

• Milk Booth: 250–500 sq ft
• Retail Outlet: 500–1,000 sq ft
• Safal Store: ~500 sq ft

📈 Franchise Model & Fees

• Franchise fees range from ₹50k–1L for Milk/Retail and ₹1L for Safal.
• No royalties charged—earn 90% of revenue, Mother Dairy retains 10% margin.
• Revenue sharing: Franchisees keep ~90% of sales, brand retains ~10% .
• Tenure: Typically 3 years, with potential renewal; Safal agreements often 2 years initially .
• Includes comprehensive supply chain, brand support, and marketing assistance .

📊 Profitability & ROI

Milk Booth

• Fixed income ~₹11,000/month plus ₹0.30–0.35/litre on milk commissions.
• Payback: 10–24 months.

Retail Outlet

• Profit margins: 20–30% on dairy and Safal products.
• Monthly revenue: ₹2–6 Lakh, yielding annual income of ₹6–15 Lakh.
• Payback: Typically 12–24 months.

Safal Store

• Gross margin on fruits/veggies: 10–15%; other products may go higher.
• Monthly revenue: ₹2–6 Lakh.
• ROI: ~30%, breakeven in 18–24 months.

✅ Eligibility & Requirements

Basic Criteria

• Age ≥ 21, clean business record.
• Responsible financial background with at least ₹5–10 Lakh liquidity.
• Own or leased commercial space meeting per-type minimum requirements.
• At least 1–2 trained staff, more for larger outlets.
• Licenses: GST, FSSAI, trade/shop license, signage permissions.
• Ability to maintain quality standards and refrigeration compliance.

🛠️ Support & Setup Process

Mother Dairy provides strong support for franchisees:

• Training: For stock handling, billing, hygiene, customer relations.
• Store Setup: Templates for interiors, counters, cooling units.
• Supply Chain: Daily fresh deliveries, refrigerated logistics .
• Marketing: Brand-level campaigns with local support.
• Operations Support: Inventory planning, relationship managers.
• Application & Launch: Typically completed in 15–60 days.

📝 How to Apply

• Visit Official Website: Go to Mother Dairy’s site and navigate to Franchise/Dealership section.
• Submit Application with your location, investment capacity, and details.
• Pre-screening: Brand team evaluates your eligibility.
• Site Inspection: Physical evaluation of location and compliance.
• Agreement Signing: Based on type (Milk, Retail, Safal).
• Payment: Fee, deposit, and working capital transferred.
• Setup & Training: Complete shop set-up and attend training modules.
• Soft Launch: Begin operations, followed by formal opening with brand support.

⚖️ Pros & Cons

✅ Pros

• Trusted government-backed brand with 50+ years presence.
• Low upfront cost for kiosks/booths.
• No royalty—franchisee keeps ~90% revenue.
• Strong margins and growth support.
• Comprehensive brand and operational assistance.

⚠️ Cons

• Profit-sensitive to quality and footfall; must maintain strict hygiene.
• Space-dependent success; prime location needed.
• Compliance must be consistently upheld or risk spoilage.
• Shell vs full ownership: Safal model may be limited in flexibility.

💡 Tips for Success

• Choose strategic locations: Near residential areas, schools, offices.
• Maintain cold chain rigorously to prevent spoilage.
• Engage staff in customer service training.
• Diversify product mix, especially in retail and Safal stores.
• Promote locally via sampling, banners, and brand-led campaigns.
• Track metrics: Sales, inventory, wastage, margins.

🧭 Final Verdict

A Mother Dairy franchise is a solid, relatively low-risk investment in India’s essential goods segment.

• Milk Booths/Retail Outlets: ₹5–10 Lakh investment, 20–30% margins, breakeven in 10–24 months.
• Safal Stores: ₹2–3 Lakh investment, ~30% ROI, breakeven in 18–24 months.